Drilling Report
October 24 2006 - 3:01AM
UK Regulatory
Central China Goldfields plc
'GGG' or the 'Company'
ADDITIONAL DRILLING RESULTS FROM SHUINIUJIA, SNOW MOUNTAIN PROJECT
LONDON - 24 October 2006 - Central China Goldfields plc (AIM: GGG) reports
additional results from the recently completed drillholes SNJDH03 and SNJDH04
at the Shuiniujia ("SNJ") deposit, part of the Company's flagship Snow Mountain
Project.
The SNJ deposit is located approximately 6km to the east of the Company's
Songpanguo deposit where , earlier this year, drilling confirmed gold
mineralisation in each of the five holes drilled. These area s are collectively
known as the Baima area which is within the Snow Mountain Project in the
Sichuan Province of China.
The Company has four flagship projects which are: the Snow Mountain Project
which is a Carlin-style gold project, the Nimu Copper-Molybdenum project where
GGG has identified eight supergene copper oxide targets, the Song Jia Guo mine
which is a near-production gold deposit with a pilot production plant , and the
Sawayaerdun deposit with a gold resource of over 1.5 million ounces , located
in the highly prospective Tian Shan Gold Belt in Xinjiang Province, Western
China.
Highlights:
Additional results have increased the apparent width of Zone 1 intersected by
hole SNJDH03 to 29.60 metres at an average of 1.05 grammes of gold per tonne
("g/t Au") including 14.80 metres at 1.77 g/t Au. New mineralised zones have
also been intersected by hole SNJDH03 with the best zone at 6.10 metres at 1.42
g/t Au including 2.90 metres at 2.69 g/t Au.
Results of SNJDH04 returned 9.50 metres (Zone 2) at 1.38 g/t Au with 3.40
metres at 3.18 g/t Au and 2.65 metres (Zone 1) at 4.99 g/t Au. A new
mineralised zone was encountered with an intersection of 1 metre at 2.03 g/t
Au.
Gold mineralisation at SNJDH03 and SNJDH04 has now been extended further down
to 200 metres and 100 metres depth respectively.
Jeff Malaihollo, Managing Director of Central China Goldfields, comments:
"We are encouraged by continuous exploration success at both the Songpanguo and
Shuiniujia deposits in the Baima area. The area clearly shows great potential."
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.
The Company's partner , the Sichuan Bureau of Metallurgy and Geological
Exploration , reported an inferred resource 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.
Further details of the geology of the SNJ area can be obtained from the
Company's news release of 26 September 2006.
Jun Angeles, Exploration Manager of Central China Goldfields, comments:
"So far, the drilling has proven that mineralised Zones 1 and 2 are persistent
along strike and depths of 150-200 metres. Also, additional mineralised zones
in between the main Zones have been intersected. Their continuity along strike
will be determined by the results of two more pending drill holes."
Drill Hole SNJDH03
Location: same as SNJDH01.
Purpose: to test the depth extension Zones 1, 2 and 3.
Highlight of results:
Hole No. Azimuth Dip Zone Mineralised Core Widths Grade
From To Apparent Width (m) g/t Au
SNJDH03 230 o -50o Zone 3 12.70 23.00 10.30 0.13
Zone 2 141.10 170.00 28.90 0.91*
including 159.00 162.80 3.80 4.30*
including 168.00 170.00 2.00 2.33*
Zone 1 207.00 236.60 29.60 1.05
Including 213.00 228.50 14.80 1.77
New Zone 179.00 187.00 8.00 0.51
including 183.00 184.00 1.00 2.71
New Zone 248.00 254.10 6.10 1.42
including 251.20 254.10 2.90 2.69
New Zone 271.00 275.60 4.60 0.37
* Denotes results announced on 26 September 2006.
Drill Hole SNJDH04
Location: 120 metres to the northwest of SNJDH03.
Purpose: to test the depth extension Zones 1 and 2.
Highlight of results:
Hole No. Azimuth Dip Zone Mineralised Core Widths Grade
From To Apparent Width (m) g/t Au
SNJDH04 230 o -50o Zone 2 54.50 64.00 9.50 1.38
including 57.60 61.00 3.40 3.18
Zone 1 162.30 164.95 2.65 4.99
New Zone 78.00 79.00 1.00 2.03
SNJDH04 is collared at the same location of SNJDH02. Utilising a larger drill
machine and triple tube coring technique, the hole was drilled to a depth of
254.80m. It intersected at least three shear zones with potential gold
mineralisation.
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:
Central China Goldfields plc Hanson Westhouse LLP
Anita Ghanekar / Cailey Barker
Dr. Jeffrey Malaihollo Tel: 020 7601 6100
Tel: 020 7621 0200
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
END
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