Drilling Results
September 26 2006 - 3:00AM
UK Regulatory
Central China Goldfields plc
`GGG' or `The Company'
INITIAL DRILLING RESULTS FROM SHUINIUJIA IN SNOW MOUNTAIN
LONDON - 26 September 2006 - Central China Goldfields plc (AIM: GGG) is pleased
to report its encouraging results from a new drilling area within the Snow
Mountain Project ("Snow Mountain") which is in the Sichuan Province of China.
The Company has been drilling at the nearby Songpanguo deposit since April 2006
and has found gold mineralisation in all of the five holes drilled to date. The
Company is currently completing the trenching and tunnelling work at
Songpanguo.
This report details the initial results from the recently completed drill holes
(SNJDH01, SNJDH02 and SNJDH03) at the Shuiniujia ("SNJ") deposit, located
approximately 6kms to the east of Songpanguo, in Snow Mountain.
These two areas, Songpanguo and Shuiniujia , within Snow Mountain are
collectively known as the `Baima' area. The Company's goal is to demonstrate
one million ounces of gold in Baima.
Central China Goldfields now has four flagship projects following an agreement
signed earlier this month with Majestic Gold Corp. for the option to earn 51%
of Majestic's entire portfolio of mining properties in China. The properties
include Song Jia Guo, a near-production gold deposit with a mining licence, and
Sawayaerdun in the highly prospective Tian Shan Gold Belt in Xinjiang Province,
Western China.
Highlights:
* Partial results of hole SNJDH03 hit three zones of gold mineralisation.
Zone 1 returned 14.80 metres at an average of 1.77 grammes of gold per
tonne ("g/t Au") including 6.70 metres at 2.83 g/t Au. Zone 2 returned
28.90 metres at 0.91 g/t Au including 3.80 metres at 4.31 g/t Au and 2.0
metres at 2.33 g/t Au. Results from hitherto unrecognised Zone 3 are still
pending.
* Gold mineralisation at SNJDH03 has now been extended down to 150 metres
depth.
* The current drilling is using a larger drill rig utilising a triple tube
coring technique and larger size core.
* Two earlier holes, SNJDH01 and SNJDH02, which used a smaller drill rig had
to be stopped short of the targeted mineralised zones due to poor ground
conditions.
* Although these two holes were terminated short of the target depths, both
holes hit previously undetected mineralised zones.
* Hole SNJDH01 returned 8 metres at an average of 0.42 g/t Au (Zone 3).
* Hole SNJDH02 returned 2 metres at an average of 1.55 g/t Au.
Jeff Malaihollo, Managing Director of Central China Goldfields, said:
"The Shuiniujia deposit has never been drilled before and we are particularly
pleased that all of the holes drilled so far have hit mineralisation. Hole
SNJDH03 has shown that mineralisation extends down to at least 150 metres and
may be widening with depth. In addition Holes SNJDH01 and SNJDH02 have also
intersected a new gold zone (Zone 3). The drilling programme to date has
demonstrated that the mineralising system at Shuiniujia is more pervasive than
previously understood and therefore may potentially add significant resource to
the deposit."
"It is also worth noting that the Shuiniujia deposit is located only 6km away
from the Songpanguo deposit and we are treating these two deposits as two
satellite deposits."
GEOLOGICAL DETAILS:
The SNJ Exploration Licence area consists of interbedded siltstone, mudstone
and sandstone. There are interbeds of marly limestone, but the whole sequence
appears to be much less calcareous than that seen at Songpangou.
GGG's partner, the Sichuan Bureau of Metallurgy and Geological Exploration,
reported an inferred resource from tunnelling and trenching of 4.436 tonnes of
gold (approximately 140,000 oz of gold) at average grades of 4.7 g/t Au on two
mineralised zones.
Bedding dips predominantly to the east or north-east at shallow to moderate
angles.
The metamorphic grade at SNJ is slightly higher than at Songpangou. This is
evidenced by some fine white mica on cleavage surfaces and the abundance of
white metamorphic quartz veins both along bedding, cleavage and as crosscutting
veins. Most of the rocks can be described as metasediments.
Gold mineralisation is associated with a steep SW dipping fault or fault zone
that trends through the centre of the licence area. In the trenches, the fault
strikes 295� and dips 60�E. The fault is sub-parallel to bedding in enclosing
phyllite. The main fault zone is a 2 metre wide graphitic shear. It contains
minor limonite staining (possibly after sulphide) and bucky, lensy, quartz
veins. Several associated parallel fault surfaces, up to 30cm wide, occur in
the footwall of the main zone.
Gold mineralisation is associated with fine arsenic-bearing pyrite, stibnite
and quartz veinlets in the fault zones: no realgar has been sighted. However,
mineralisation is geochemically anomalous in As, Hg and Sb.
Jun Angeles, Exploration Manager of Central China Goldfields, comments:
"The mineralisation intersected by drilling so far seems to suggest
shear-hosted gold-type with some associated metamorphic quartz veins which
although has no relationship to Carlin-style mineralisation may have spatial
and genetic significance".
Fire assay results from the first three holes of the drill programme at the SNJ
deposit are reported. The drill cores were split by diamond saw, with half sent
to SGS Laboratory in Tianjin, China for analyses. All samples were analysed
using the 50 grammes fire assay method with atomic absorption spectrometry
finish. The Company maintains an archive of half core samples and a
photographic record of all cores for future reference.
These holes are part of a diamond drill programme designed to test the depth
extension and strike length of known mineralisation at Shuiniujia. However, due
to very poor ground conditions the first two drillholes were abandoned without
intersecting the targeted mineralised zones. The average core recoveries for
holes SNJDH01 and SNJDH02 were 74 - 76%.
SNJDH03 is collared at the same location as SNJDH01. Utilising a larger drill
machine and triple tube coring technique, the hole was drilled to a depth of
350.10m. It intersected three gold mineralised shear zones. The average core
recovery is 94%. Results of SNJDH03 are still partial, the assays of the rest
of the hole are still pending.
Drill Hole SNJDH01
Location: southeastern end of Shuiniujia
Purpose: to test the depth extension Zones 1 and 2
Highlight of results:
Hole No. Azimuth Dip Mineralised Core Widths Grade
From To Apparent Width g/t Au
(m)
SNJDH01 230 o -50o 22 30 8 0.42
This hole was designed for 250 metres but had to be terminated at 128 metres
due to poor ground conditions which may be related to faulting. The mineralised
zones were targeted between 150 to 200 metres.
Drill Hole SNJDH02
Location: 120 metres to the northwest of SNJDH01.
Purpose: to test the depth extension Zones 1 and 2.
Highlight of results:
Hole No. Azimuth Dip Mineralised Core Widths Grade
From To Apparent Width g/t Au
(m)
SNJDH02 230 o -50o 73 75 2 1.55
This hole was designed for 250 metres but had to be terminated at 108 metres
due to poor ground conditions. The mineralised zones were targeted between 140
to 170 metres.
Drill Hole SNJDH03
Location: same as SNJDH01.
Purpose: to test the depth extension Zones 1, 2 and 3.
Highlight of results:
SNJDH03230 o-50o
Hole No. Azimuth Dip Zone Mineralised Core Widths Grade
From To Apparent g/t Au
Width (m)
Zone 2 141.10 170 28.90 0.91
including 159 162.80 3.80 4.31
including 168 170 2.00 2.33
Zone 1 213 228.50 14.80 1.77
including 213 220.70 6.70 2.83
The triple tube drill programme commenced on the first week of August. This
programme consists of four drill holes approximately totalling to 1,000 metres
of which two of the holes are re-drills. This programme is being carried out by
the Huafeng drilling company which commissioned a Longyear LF70 drill rig, a
bigger and more powerful machine than the previous one. The current drilling
also utilises triple tube coring technique with a larger PQ to NQ size core (85
- 47.6 mm diameter) and additional drilling mud, which act as an adhesive, to
ensure increased recovery. This drilling programme is scheduled to be completed
by late September.
Technical information in Company news releases has been reviewed and approved
by Ciceron "Jun" Angeles (MSc. FAusIMM) the Company's Exploration Manager. He
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 Hanson Westhouse LLP
Dr. Jeffrey Malaihollo Martin Davison / Cailey Barker
Tel: 020 7621 0200 Tel: 020 7601 6100
Email: info@ccgoldfields.com
www.ccgoldfields.com
Gresham PR Ltd King & Shaxson Capital Limited
Neil Boom Nick Bealer
Tel: 020 7404 9000 Tel: 020 7426 5986
Notes to Editors:
About Central China Goldfields:
AIM quoted Central China Goldfields plc (AIM: GGG) develops and explores for
economically mineable Gold, Copper and Silver projects in China focusing on
areas with historical production where modern mine extraction methodology have
been under utilised. The company's core skill is to move under-valued
exploration assets quickly through to mine ready deposits. The Company is keen
to grow through exploration, development and acquisitions.
Central China's property portfolio is currently made up of four flagship
projects: the Snow Mountain Project in Sichuan Province (Carlin style) and the
Nimu Copper-Molybdenum Project in Tibet (copper oxide). Following the Joint
Venture with Majestic Gold, the Company is also earning interests in the
near-production Song Jia Gou deposit, which has a pilot mining plant and an
extensive underground development, and the Sawayaerdun deposit in the prolific
Tian Shan gold belt.
The Company also has three other projects: the Dong Mao Huo Mine in Nei Menggu
(oxide gold), the De Ming Ding Project in Tibet (porphyry copper) and the Xiang
Shui Tan Silver-Gold Project in Hubei Province (vein type).
Central China and its local partners have defined a total of 1,300,000 ounces
of gold and >600,000 tonnes of contained copper in these projects (all Chinese
standards).
All properties are under-explored and Central China is actively developing
these projects, including a drilling programme at Snow Mountain and geophysical
survey at Nimu.
END
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