Exploration Update
October 20 2005 - 4:00AM
UK Regulatory
Central China Goldfields plc
`GGG' or `The Company'
EXPLORATION UPDATE - EXTENSION OF SHUINIUJIA
LONDON - 20 October 2005 - Central China Goldfields plc (AIM: GGG, GGGW)
reports results from soil sampling survey at the Shuiniujia deposit, Baima
area, in the Snow Mountain Project, Sichuan Province of China.
Highlights:
* Soil sampling in the Shuiniujia licence identified new gold zones
* The new zones SIGNIFICANTLY extend the strike length of mineralisation and
increase the potential of Shuiniujia
* Additional trenching to follow-up this discovery is in progress
Central China Goldfields' Exploration Manager, Chris Ford, said "These are very
exciting results which significantly extend the strike length of mineralisation
and increase the potential of the Shuiniujia prospect. We are extending our
field season to rapidly follow-up on this discovery, and expect trench assay
results to be available in December."
The Company reports that assays from the recently completed soil survey grid to
the west and south west of the previously defined mineralised zones at
Shuiniujia show new gold anomalous zones.
The first zone (Zone I) is a NNW trending zone 400m long in the SE of the grid.
This zone occurs across two lines, each 200m apart. Gold values above 30 parts
per billion (ppb), with a maximum of 386 ppb, form an anomalous zone in soil,
60-100m wide on the steep west facing valley side.
The second zone (Zone II), about 200m to the east, is defined by gold values
over 50 ppb. This zone is running NW along the end of the grid and it appears
to converge with the NNW trend. This zone may represent a second horizon.
The Company considers that these two zones possibly represent the continuation
of the existing mineralised zone to the NE.
In addition, a new zone (Zone III), 700m to the SW of the existing
mineralization, was discovered in the NW of the grid. Anomalous samples from 30
to 58 ppb extend for 100m width on line E and anomalous values are also present
on line G, 400m to the SE.
A programme of 250m of trenching is planned over the next month, to follow up
on these encouraging geochemical results.
The Company also reports that drilling in Qiaoqiaoshang has been delayed due to
earlier than usual onset of winter conditions. In the interim, the focus of
exploration will be shifted to the Sonpanguo and Shiuniujia deposits. These two
deposits are within 6 km of each other and hereto will be referred as the Baima
Project. Currently there is a combined inferred resource of about 350,000 oz.
of gold. As announced above, the Company's work to date suggests that the area
of mineralisation is more extensive than previously defined. Work will consist
of the tunnelling of at least four new adits and the cleaning up and extension
of previously opened adits to assess the potential size of these two deposits.
The tunnelling programme, like the drilling programme, will test the lateral
and depth extension of the known resources. The Company is evaluating the
possibilities of combining the two deposits into a single operation.
Technical information in Company announcements has been received and approved
by Chris Ford MSc. who is the Company's Exploration Manager and is qualified as
a Competent Person under the Code for the Reporting of Mineral Exploration
Results, Mineral Resources and Mineral Reserves ("The Reporting Code") prepared
by the Institute of Mining and Metallurgy.
Ends
Enquiries:
Central China Goldfields plc Nominated Advisor:
Dr. Jeffrey Malaihollo Ruegg & Co Limited
Tel: 020 7621-0200 Brett Miller
Email: jeff@ccgoldfields.com Tel: 020 7584-3663
www.ccgoldfields.com
Public Relations: Broker:
Parkgreen Communications King & Shaxson Capital Limited
Victoria Thomas / Justine Howarth Nick Bealer
Tel: 020 7493-3713 Tel: 020 7426-5986
END
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