New zone at Songpanguo
October 03 2006 - 3:00AM
UK Regulatory
Central China Goldfields plc
`GGG' or `The Company'
NEW `ZONE 6' ESTABLISHED AT SONGPANGUO IN SNOW MOUNTAIN
LONDON - 3 October 2006 - Central China Goldfields plc (AIM: GGG) is pleased to
announce that it has added a new Zone 6 to its gold deposit at Songpanguo
("SPG") following an ongoing programme of trenching and tunneling.
The SPG deposit is one of three gold deposits currently being explored by GGG
in the Snow Mountain region in China's Sichuan Province. The area has emerged
as an important gold region in China with Carlin-style gold mineralisation.
Snow Mountain is one of four Company `flagship' projects: the others include
the Nimu Copper project in Tibet, the Song Jia Guo Gold deposit in Eastern
China and the Sawayaerdun Gold project located in the highly prospective Tian
Shan Gold Belt in Western China.
Highlights:
* The depth extension of gold mineralisation of the new area (named Zone 6)
to the east of the main mineralised zones at SPG has been confirmed by a
tunnel driven 50 metres below the surface mineralisation.
* The results include: 1 metre @ 1.37 grammes of gold per tonne ("g/t Au")
and 42 metres @ 0.46 g/t Au including 1 metre @ 1.2 g/t Au and 15 metres @
0.59 g/t Au.
* This new zone has the potential to add more tonnage to the deposit if it is
proven that gold extends both laterally and at depth.
Jeff Malaihollo, Managing Director of Central China Goldfields, comments:
"The discovery of Zone 6 from trenching and tunneling shows that the Songpanguo
deposit is an extensive mineralised system. Although the grades reported are
lower than at the other zones, the width of the mineralisation is substantially
wider. Therefore this new Zone may add a considerable amount of tonnage to the
deposit. We will continue to test the depth extension of this zone by drilling
and the lateral extension by additional trenching, tunneling and drilling."
GEOLOGICAL DETAILS:
PD 420 which aims to test the sub-surface extension of the broad Zone 6
mineralisation intersected by Trench 31 in the SPG area (reported on 25 July
2006), returned the following results:
1 metre @ 1.37 g/t Au and 42 metres @ 0.46 g/t Au including two intersections
of 1 metre @ 1.2 g/t Au and 15 metres @ 0.59 g/t Au.
The adit is located about 50 metres below Trench 31. This new zone is about 200
metres to the east of Zone 3. It has the potential to add more tonnage to the
resources in SPG if the gold mineralisation is proven to extend both laterally
and at depth.
The host rocks of the mineralisation are sandstone and well-bedded, cleaved
intercalated siltstone and mudstone. The gold grades are associated with the
presence of crosscutting quartz and carbonate veinlets with pyrite.
Two narrow pyrite-bearing dacite dykes intrude the sedimentary rocks further to
the west. Assay results for the rest of the adit are still pending.
Jun Angeles, Exploration Manager of Central China Goldfields, said:
"The mineralisation intersected by Trench 31 and adit PD420 proves that Zone 6
is mineralised down to 50 metres below the surface and open at depth. More work
including exploratory drilling will commence next year to find the extent of
the mineralisation both laterally and at depth."
Fire assay results of adit and trench channel samples at the SPG deposit are
reported. The samples are crushed and pulverised by the SIMGE lab in Chengdu
and the pulps are sent to the SGS Laboratory in Tianjin, China for analysis.
All samples were analysed using the 50 grammes fire assay method with atomic
absorption spectrometry finish.
Other Additional Results:
The Company also reports the following surface chip samples from mineralisation
discovered along the drill access road at Songpanguo. These are surface
continuations of Zones 4 and 5.
Road Results (g/t Au)
Road 3 (Zone 5) 4 metres @ 0.53 g/t
2 metres @ 0.50 g/t
2 metres @ 0.56 g/t
7 metres @ 1.76 g/t
1 metre @ 3.93 g/t
Road 2 (Zone 5) 3 metres @ 0.51 g/t
1 metre @ 0.92 g/t
1 metre @ 1.89 g/t
4 metres @ 1.28 g/t
Road 1 (Zone 4) 3 metres @ 0.75 g/t
incl. 1 metre @ 1.25 g/t
1 metre @ 2.51 g/t
1 metre @ 1.84 g/t
1 metre @ 1.06
The Company is also pleased to report that preliminary JORC-standard resource
calculations at the Songpanguo deposit has commenced. The Company expects the
results to be completed by the end of the month. The calculations, including
results from nearby Shuiniujia deposit, will be updated again at the end of the
field season.
Technical information in the 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 Anita Ghanekar / 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.
The Company'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
finalisation of the joint venture with Majestic Gold Corporation the Company
will also earn 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).
The Company 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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