Exploration Update
December 12 2005 - 3:01AM
UK Regulatory
Central China Goldfields plc
`GGG' or `The Company'
EXPLORATION UPDATE - RESULTS FROM SONGPANGUO
LONDON - 12 December 2005 - Central China Goldfields plc (AIM: GGG, GGGW)
reports results from recently completed aditing (tunnelling) and trenching
programme at the Songpanguo deposit ("SPG"), Baima area, in the Snow Mountain
Project, Sichuan Province of China.
Highlights:
* The assay results from four underground tunnels (1,540 metres) and nine
trenches (860 metres) are reported
* Results confirm the work previously reported by Sichuan Bureau of
Metallurgy and Geological Exploration ("SBMGE")
* Several new zones discovered in underground tunnels
* Underground tunnelling results include: 5m @ 14.58 g/t Au (reported on 3
November 2005), 4m @ 3.54 g/t Au, 3m @ 3.75 g/t Au, 3m @ 4.00 g/t Au and 4m
@ 3.32 g/t Au.
* Trenching results include: 19m @ 4.33 g/t Au, 10m @ 5.27 g/t Au, 7m @ 6.66
g/t Au, 9m @ 2.94 g/t Au and 9m @ 2.67 g/t Au.
* A Three Dimensional model of the orebody will be made available on the
Company's website.
Central China Goldfields' Exploration Manager, Chris Ford, said "The
confirmation of the adit assay results by fire assay at SPG is encouraging. The
discovery of new mineralised zones indicate the potential to increase the
tonnage along strike and at depth and this will be the focus of our programme
in the next field season."
Dr. Jeff Malaihollo, Central China Goldfields' Managing Director commented "We
are very excited by the discovery of new zones which suggest that the deposit
is bigger than the 200,000 oz. inferred resources defined to date."
Geological Details:
Fire assay results from adits at SPG prospect generally agree with similar
intervals previously wet assayed by our partners the SBMGE. The mineralised
zones occur largely in graphitic, sheared and quartz veined siltstones with
pyrite, realgar and orpiment.
The trench results vary more than those from the adits, mainly due to the
difficulty of locating the old trenches which have largely slumped or been
excavated for trial mining, and to the varying degrees of oxidation in the
mineralised zones on surface.
The samples were analysed by SGS laboratory in Tianjin, China, using the 50
grammes fire assay method.
SPG Adits:
Resampling in four adits (see table) over a cumulative distance of 21m gave 64
metre grammes gold compared with an original 17m yielding 68 metre grammes gold
(averages of 3.0 g/t Au on fire assay compared with 4.0g/t Au original SBMGE
wet assays). This difference is largely due to one intersection which
originally assayed 9.2 g/t Au but gave 2.1g/t Au on re-assay. Checking of the
site reveals that the pyrite rich exposure in the adit has been badly oxidised
and water is running down the wall of the adit. The location has now been
properly cleaned and will be re-sampled.
In addition, some new intersections were obtained, over intervals that
previously had not been sampled. Some of the new intersections include 3m@ 4g/t
Au in PD 406 at 9m and 0.65m @ 3.81 g/t Au in PD 401 at 8.5m. In PD 412 a new
zone in the westward extension of the adit returned 4m @ 1.17 g/t Au.
Total meterage returning fire assay grades over 1 g/t Au was 30m for a total of
87 metre grammes gold compared with 17m for 68 metre grammes gold for the
previous wet assays, reflecting the new zones discovered. This excludes results
from PD 404 which was reported on the Company's announcement on 3 November
2005.
SPG Trenches:
The trenches at SPG were difficult to compare with the original assays as most
trenches have either slumped or been mined away during trial mining.
New trench TC 51-1R gave three fire assay intersections including 9m @ 2.94 g/t
Au, for a total of 34 metre grammes gold. The closest wet assay data comes from
TC 51 to the NW, which returned three zones with a total metre grammes of 38
and trench TC 84 to the west which gave 4 intersections totaling 62 metre
grammes.
New Trench 51-3R gave 10m@ 5.27 g/t Au and 3m @2.79 g/t Au by fire assay. The
closest trench is TC 84E which gave 5.1m@ 3.63g/t Au and 1.2m@ 2.21 g/t Au by
wet assay.
New trenches TC 502 and 504 ran partly along the mineralised zones and gave
estimated true widths of 4m @ 2.6 g/t Au (a new zone in Area III) and 6m @ 4.33
g/t Au respectively.
A complete list of SPG assay results is tabulated below:
SPG assay results
Location Distance Wet assay (Old SBMGE Fire Assay (New CCG Comments
(m from Results) Results)
portal)
ADITS Width Au g/t Metre Width Au g/t Metre
Sampled grammes Sampled grammes
(m) (m)
PD412 10 1.96 2.15 4.21 1.00 2.83 2.83
65 3.19 2.45 7.82 4.00 3.54 14.16
77 2.76 9.18 25.34 2.00 2.13 4.26 Exposure
badly
oxidised -
will
re-sample
93 4.00 0.5g/t 0 4.00 1.84 7.36
157 4.00 1.17 4.68 New
intersection
PD401 8.5 NS 0.65 3.81 2.48 New
intersection
23 0.75 8.31 6.23 3.00 3.75 11.25
77 2.00 1.80 3.60 1.00 4.02 4.02
79 NS 2.00 1.85 3.70
83 0.8 1.92 1.41 2.00 3.54 7.08
PD406 9 NS 3.00 4.00 12.00 New
intersection
40 1.71 11.58 19.80 4.00 3.32 13.28
PD404 5.00 14.58 72.88 Original
location
collapsed -
Reported on
3 Novembver
2005
NS =
Not
Sampled
TOTALS; 17.17 3.98 68.41 21.00 3.06 64.24
adits
resampled
TOTALS; 17.17 3.98 68.41 30.65 2.84 87.10 Excluding PD
including 404
new zones
TRENCHES
TC51 E*W 3.20 2.92 9.34 9.00 2.94 26.45 TC51-1R
nearest to
south
TC51 2.70 8.59 23.20 1.00 2.44 2.44 TC51-1R
nearest to
south
TC51 2.10 2.52 5.30 2.00 2.50 5.00 TC51-1R
nearest to
south
TC 84 1.8 1.1 1.98 Nearest to
West of TC
51-R
TC 84 6 2.59 15.54
TC 84 3.2 12.6 40.32
TC 84 1.5 3.1 4.65
TC 51-1 8.50 1.70 14.46
TC51-3R E*W 10.00 5.27 52.65 New trench
TC51-3R 3.00 2.79 8.37
TC84E 5.10 3.63 18.52 Nearest
trench to
51-3R
TC84E 1.20 2.21 2.65
TC 51 2R 2.00 6.14 12.28
TC13501 1.6 2.73 4.37 1 1.18 1.18 TC 81 -R
TC13501 4 1.82 7.28
TC 502 9.00 2.67 24.02 True width
4m
TC 504 0.8 8.00 4.94 39.50 True width
3m
TC 504 28.6 7.00 6.66 46.60 True width
3m
TC 504 41.5 19.00 4.33 82.26 True width
6m
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 Mineral Exploration
Results, Mineral Resources and Mineral Reserves ("The Reporting Code") prepared
by the Institute of Mining and Metallurgy.
The 200,000 oz. of Inferred Resources is not compliant to Canadian 43-101
standard. The Canadian 43-101 standard is developed by the Canadian Securities
Administrators to govern how issuers disclose scientific and technical
information about their mineral projects to the public.
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
Public Relations: Brokers:
Parkgreen Communications Westhouse Securities LLP
Victoria Thomas / Justine Howarth Richard Morrison / Cailey Barker
Tel: 020 7493-3713 Tel: 020 7601 6100
King & Shaxson Capital Limited
Nick Bealer
Tel: 020 7426-5986
END
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