Drilling Results
July 18 2006 - 3:00AM
UK Regulatory
Central China Goldfields plc
`GGG' or `The Company'
ADDITIONAL DRILLING RESULTS FROM SONGPANGUO
MINERALISATION EXTENDED AT DEPTH
LONDON - 18 July 2006 - Central China Goldfields plc (AIM: GGG), a mineral
exploration and development company operating in China, is pleased to report
results from recently completed drillholes SPGDH04, SPGDH05 and extension of
drillhole SPGDH01 at the Songpanguo ("SPG") deposit in the Snow Mountain
Project, Sichuan Province of China. The area is an emerging gold region in
China with Carlin-style gold mineralisation.
Snow Mountain is one of two `flagship' Central China Goldfields projects: the
other is the Nimu copper project in Tibet.
Highlights:
* Five discrete mineralised zones were intersected in drillhole SPGDH04,
including 12 metres @ 2.84 grammes of gold per tonne, 4 metres @ 1.27
grammes of gold per tonne, 1 metre @ 1.86 grammes of gold per tonne, 1
metre @ 1.53 grammes of gold per tonne, and 1 metre @1.17 grammes of gold
per tonne.
* Additional two distinct mineralised zones were intersected at depth in
drillhole SPGDH01, including 4 metres @ 1.14 grammes of gold per tonne, and
1 metre @ 1.29 grammes of gold per tonne.
* Two separate mineralised zones were intersected in drillhole SPGDH05,
including 1 metre @ 2.88 grammes of gold per tonne and 1 metres @ 1.33
grammes of gold per tonne.
* These results show that mineralisation at SPG extends down to at least 200m
depth over a strike length of at least 480m.
Jeff Malaihollo, Managing Director of Central China Goldfields, comments:
"This drilling programme was designed to test the depth extension of Songpanguo
along a 480 metres section. We drilled 5 holes and we hit mineralisation on
every hole. Mineralisation at Songpanguo is more pervasive than previously
understood, and this adds a substantial amount of tonnage potential to the
deposit. Our goal is to demonstrate 1 million ounces of gold at Songpanguo.
Currently, we are opening up several tunnels to test the continuation of the
deposit on the southern and eastern sides. Upon receiving these results an
independent party will audit the results and report resources to international
standards."
GEOLOGICAL DETAILS:
Fire assay results from three drillholes of a five hole programme at the SPG
deposit are reported. The drill cores were split by diamond saw, with half sent
to the SGS Laboratory in Tianjin, China for analyses. All samples were analysed
using the 50 grammes fire assay method with AAS finish.
These holes are part of a diamond drill programme designed to test the depth
extension of known mineralisation at Songpanguo. SPGDH04 further confirmed the
persistence of the main gold mineralisation along a 480m strike length, while
SPGDH01 intersected additional gold mineralised zones to the east of known
mineralised zones. A dacite dyke encountered at SPGDH04 and SPGDH05 is also
mineralised. At SPGDH04, the dyke has an apparent width of 15.4m (or 5m true
width) @ 0.73 ppm Au including up to 3m @ 1.46 ppm Au; while at SPGDH05, it is
22.9m (or 8m true width) @ 0.17 ppm Au including up to 1m @ 1.33 ppm Au.
The geology of the area is dominated by intercalated siltstone, mudstone,
sandstone and marl with abundant late-stage calcite selvedges. Gold
mineralisation is associated with the presence of 1 to 5 volume per cent.
pyrite and occasional presence of realgar and trace to nil amounts of stibnite
and cinnabar in fractured filled veins and veinlets associated with fault zones
within the sedimentary package. These are typical mineralisation styles of
Carlin-type deposits. In addition there are 3-10 per cent. pyrite
disseminations in silicified dacite dykes. It is most probable that the dykes
are genetically associated with the mineralisation.
The Company maintains an archive of half core samples and a photographic record
of all cores for future reference.
Drill Hole SPGDH01
Location: northern end of Songpanguo.
Purpose: to test the depth extension of Zone 3.
Highlight of results:
Hole No. Azimuth Dip Mineralised Core Widths Grade
From To Apparent Width g/t Au
(m)
(m) (m)
SPGDH01 117 o -50o 264 265 1 1.29
271 275 4 1.14
This hole was terminated at 247 metres but was then extended to 352 metres. The
results from 0 - 247 metres have been reported in an earlier news release.
Drill Hole SPGDH04
Location: 360m southwest of SPGDH01
Purpose: to test the depth extension of Zones 4 and 5.
Highlight of results:
Hole No. Azimuth Dip Mineralised Core Widths Grade
From (m) To (m) Apparent Width g/t Au
(m)
SPGDH04 297 o -50o 148 160 12 2.84
175 176 1 1.86
207 211 4 1.27
214 215 1 1.53
222 223 1 1.17
The 3 lower ore intercepts are from the mineralised dacite dyke.
Drill Hole SPGDH05
Location: 120m southwest of SPGDH04
Purpose: to test the strike and depth extension of Zones 4 and 5
Highlight of results:
Hole No. Azimuth Dip Mineralised Core Widths Grade
From To Apparent Width g/t Au
(m)
(m) (m)
SPGDH05 297 o -50o 29 30 1 2.88
312 313 1 1.33
The lower ore intercept is from the mineralised dacite dyke.
Jun Angeles, Exploration Manager of Central China Goldfields comments: "The
presence of gold mineralisation in the dacite dyke spatially close to
Carlin-style mineralisation in the sediments indicates another exciting style
of mineralisation. This requires immediate examination of all related
intrusives in the vicinity."
Technical information in Company news releases has been reviewed and approved
by Ciceron "Jun" Angeles MSc. FAusIMM 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, 2004 ("The
Reporting Code") prepared by the Australasian Institute of Mining and
Metallurgy and the Australian Institute of Geoscientists.
For further information, please contact:
Central China Goldfields plc Westhouse Securities LLP
Dr. Jeffrey Malaihollo Richard Morrison / Cailey Barker
Tel: 020 7621-0200 Tel: 020 7601 6100
Email: info@ccgoldfields.com
www.ccgoldfields.com
Public Relations: King & Shaxson Capital Limited
Gresham PR Ltd Nick Bealer
Neil Boom Tel: 020 7426-5986
Tel: 020 7404-9000
END
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