Exploration Update
January 03 2006 - 3:00AM
UK Regulatory
Central China Goldfields plc
'GGG' or 'The Company'
EXPLORATION UPDATE - RESULTS FROM QIAOQIAOSHANG
LONDON - 4 January 2006 - Central China Goldfields plc (AIM: GGG, GGGW) reports
results from a recently completed aditing (tunnelling) and trenching programme
at the eastern end of the Qiaoqiaoshang deposit ("QQS") in the Snow Mountain
Project, Sichuan Province of China.
Highlights:
Assay results from three underground tunnels (210 metres) and three trenches
(169 metres) are reported
Results verify the work previously reported by Sichuan Bureau of Metallurgy and
Geological Exploration ("SBMGE")
One new zone identified and several zones are shown to be continuous
Underground tunnelling results include: 13.5 metres @ 2.3 g/t Au, 14.7 metres @
1.95 g/t Au and 8.5 metres @ 2.66 g/t Au
Trenching results include: 36 metres @ 1.67 g/t Au, 6.5 metres @ 2.55 g/t Au
(in a new zone), 5 metres @ 2.3 g/t Au and 4 metres @ 2.32 g/t Au
A Three Dimensional model of Qiaoqiaoshang will be made available on the
Company's website
Central China Goldfields' Exploration Manager, Chris Ford, said "I am pleased
that these results give further confirmation of the original assay values
obtained by our Partners, SBMGE, and pave the way for further exploration of
the deposit with a view to increasing the tonnage by drilling, particularly in
the western section."
Dr. Jeff Malaihollo, Central China Goldfields' Managing Director commented "Our
strategy on the eastern side of Qiaoqiaoshang, where the gold occurs near the
surface is to test previous work by re-opening the tunnels and trenches. On the
western side of the deposit, where the ore bodies are deeper but thicker and
with higher grades, we have conducted a geophysical survey identifying targets
which we plan to drill this year."
Technical Details:
The Qiaoqiaoshang deposit consists of a series of discontinuous E-W trending
mineralised bodies. Previous work by our partner the SBMGE included drilling of
41 vertical holes and development of underground tunnels. Their work identified
9 mineralised lenses covering a cumulative strike of 1,446 metres. SBMGE have
calculated an Inferred Resource of 19 tonnes of gold (about 610,000 ounces). Of
this, a total of 2,075,000 tonnes @ 2.21 g/t Au or 4.6 tonnes of gold
(approximately 147,400 ounces) is compliant to the Canadian 43-101 standard.
On 4 August 2005, we reported the results from a High-Resolution Induced
Polarisation survey ("IP"), not previously used in the area. The survey shows
that there is a continuous zone of clear IP response (high chargeability and
moderate resistivity) overlying known mineralised bodies. The IP anomaly
continues for a further 400 metres westward of the known mineralised bodies.
The anomaly plunges to the west - northwest of the main mineralised bodies
drilled to date.
The following results are from the eastern end of the deposit where
mineralisation is found at the surface and is of lower grade. All of the
samples were analysed by SGS laboratory in Tianjin, China, using the 50 grammes
fire assay method.
Fire assay results from adits (underground tunnels) at the QQS prospect
generally agree with similar intervals previously reported by the SBMGE using
wet assay method. The mineralised zones are largely in graphitic, sheared and
quartz veined, calcareous, pyritic siltstones.
Similarly to the Songpanguo deposit also in the Snow Mountain Project, reported
12th December, the trench results vary more than those from the adits, probably
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.
QQS Adits
Intersections re-sampled in three adits (see table below) over a cumulative
distance of 37m gave 82 metre grammes compared with an original total of 33
metres and 86 metre grammes. The average fire assay grade of the three
intersections was 2.2 g/t gold compared with original wet assays of 2.6 g/t
gold over an interval that is 5 metres shorter. This shows good confirmation of
the original assays.
PD 6 gave a longer intersection on re-sampling; 8.5m @ 2.66 g/t gold (true
width 5m) compared with original assays of 4.9m @ 2.45 g/t gold (true width
3m).
PD 9 also gave a wider intersection; the original sampling had indicated two
zones separated by a lower grade 4m section, but when this was re-sampled the
grades continued throughout the entire zone. The re-sampling by fire assay gave
13.50m @ 2.29 g/t gold (11m true thickness) compared to two zones: 10.66m @
2.56 g/t gold (true thickness 6m) and 2.08m @ 2.15 g/t gold.
PD 12 returned a slightly lower intersection; 14.7m @ 1.95 g/t gold (12.5 m
true thickness) compared to original wet assay sampling of 16.20m @ 2.63 g/t
gold (13.5m true thickness).
QQS TRENCHES
Re-sampling of three trenches confirmed that mineralised zones of a similar
grades and widths to the original were intersected, although the precise
location of the mineralised zones differed due to removal of the old trenches
by trial mining and further slumping.
TC 41: Fire assays gave 4.00m @ 2.32 g/t gold, compared with original sampling
of 3.19m @ 3.10 g/t gold.
TC 44: In the northern part of the trench, the original wet assays gave 1.37m @
3.13 g/t gold and 1.37m @ 3.36 g/t gold from two individual zones, where the 4
metres of rock separating them had not been sampled. The intersection in the
re-sampled trench gave 5.0m @ 2.3 g/t gold from a continuous section.
In the southern part, re-sampling gave 3.00m @ 1.34 g/t gold. A partly sampled
zone in the original trench assayed 1.22m @ 1.44 g/t gold.
TC 40: This trench has been mined away during trial mining, so the samples for
fire assay were taken from a new trench below the original elevation. The
original trench intersected two main mineralised areas. The northern one gave
two intersections of 2.50m @ 4.59 g/t gold and 2.33m @ 3.09 g/t gold separated
by 6 metres, which was not sampled apart from one interval of 0.5m @ 6.36 g/t
gold. The new trench intersected a wider zone of 36m @ 1.67 g/t gold (27m true
width).
The southern zone in the old trench assayed 15.97m @ 1.98 g/t gold, but this
could not be re-sampled as it is now under a waste pile from trial mining.
The new trench also intersected an additional zone of 6.50m @ 2.55 g/t gold
(true width 5m) at the northern end.
QQS assay results
Distance
Location (m from Old Wet Assay New Fire Assay Comments
portal)
Width Au(g/t) Metre Width Au(g/t) Metre
ADITS (m) grammes (m) grammes
PD6 70 4.90 2.45 11.99 8.50 2.66 22.62
True width 3m 5m
PD9 33 10.66 2.56 27.27 13.50 2.29 30.95
True width 6m 11m
2.08 2.15 4.46
PD12 38 16.20 2.63 42.60 14.7 1.95 28.62
True width 13.5 12.5
TOTALS; adits resampled 33.84 2.55 86.32 36.70 2.24 82.19
TRENCHES
TC 40 28 2.50 4.59 11.49
TC 40 33 2.33 3.09 7.21
TC 40 68 15.97 1.98 31.60
TC 40R 3.5 6.50 2.55 16.59 New zone
TC 40R 19 36.00 1.67 59.95 Not directly comparable
TC 41 3.19 3.10 9.89 4 2.32 9.28
TC 44R 5.00 2.31 11.55 From 39m
TC 44 20 1.37 3.13 4.29
TC 44 26 1.17 3.36 3.93
TC 44R 3.00 1.34 4.01 From 97m
TC 44 79 1.22 1.44 1.76
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 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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