Geophysical Report
November 22 2006 - 2:00AM
UK Regulatory
Central China Goldfields plc
`GGG' or the`Company'
INDUCED POLARISATION AND GROUND MAGNETIC SURVEY
OXIDE AND SULPHIDE COPPER TARGETS REVEALED
AT NIMU COPPER-MOLYBDENUM PROJECT
LONDON - 22 November 2006 - Central China Goldfields plc (AIM: GGG) is pleased
to announce encouraging results from a newly-completed ground magnetics and
deep-penetrating induced polarisation (IP) and resistivity survey programme at
two exploration licence areas (Tinggong and Gangjiang) in the Nimu
Copper-Molybdenum Project in Tibet ("Nimu"). (Refer to news release dated 9
October 2006 for more background information on the project.)Together with the
results of an on-going Quickbird-aided 1:2000 scale geological mapping exercise
at Tinggong (and in Gangjiang next year), GGG intends to commence scout
drilling at these two licence areas as soon as the weather permits in early
2007.
The results have delineated ten geophysical anomalies, which could potentially
point to copper oxide-sulfide ore bodies in Tinggong and Gangjiang (these are
described below).
Nimu is one of the Company's two `flagship' projects; the other is the
Carlin-style Snow Mountain gold project in Sichuan Province. The Company has
also finalised an agreement with Majestic Gold Corp. ("Majestic") which will
bring two additional significant projects into the Company's portfolio: the
Song Jia Guo gold project in Shandong Province and the Sawayaerdun gold project
located in the highly prospective Tian Shan Gold Belt in Xinjiang Province.
Highlights:
Tinggong Exploration Licence Area:
* Six discrete IP and resistivity anomalies have been delineated, ranging
from shallow (TG1 and 2 at under 100 metres depth) to relatively deep (TG3
to 6) levels. The ground magnetic data at Tinggong reflects lithologic
types, e.g. sedimentary cover vs. porphyry-related host rocks.
* The shallow anomalies in particular could be associated with a supergene
copper ("chalcocite") blanket, similar to the outcrops observed at TG1 and
at the adjacent active copper oxide mine operated by a local Tibetan
company ("TibetCo"). The larger anomalies (especially TG2 and 4) may host
both supergene copper oxide and hypogene copper sulphide.
* Results of an on-going Quickbird-assisted 1:2000 scale geological mapping
indicate considerable faulting and widespread phyllic and argillic
alteration in the quartz monzonite rocks exhibiting these geophysical
anomalies.
* The Company now plans to execute a drilling program in early 2007 to test
these geophysical anomalies.
Gangjiang Exploration Licence Area:
* A total of four IP and resistivity anomalies have been defined, two of
which were detected at shallow levels (GJ1 and 2) and the other two were
below 100 metres (GJ3 and 4).
* The shallow anomalies are both hosted by outcropping potassic altered
quartz monzonite bodies that show porphyry-style hydrothermal alteration
and copper mineralisation. In addition, GJ2 is also enclosed within an
area, in excess of one kilometre squared, of variably de-magnetised rocks,
which may indicate widespread phyllic-argillic alteration and potential
supergene copper mineralisation at depth.
* The other two deeper anomalies (GJ3 and 4), which become broader at depth,
are potentially good targets for both copper oxide and sulphide
mineralisation.
* Detailed geological mapping at a 1:2000 scale (using Quickbird) was
initiated earlier this month but was terminated due to unfavourable weather
conditions. Mapping will recommence early next year after which drill
targets will be identified to test these geophysical anomalies.
Jeff Malaihollo, Managing Director of Central China Goldfields, comments:
"Our geologists have identified eight areas from surface expression where we
think copper may be concentrated in enriched supergene layers. Geophysical
work has detected ten drill targets in two out of the eight areas identified.
The geophysical signatures suggest that these supergene copper layers may exist
at depths of under 100 metres. We will drill these targets as soon as the
weather permits in early 2007."
GEOPHYSICAL SURVEY DETAILS:
The ground magnetic survey was conducted by the 605 Geophysical Team of the
Sichuan Bureau of Metallurgical and Geological Exploration (SBMGE), using G856
proton magnetometers. Data was measured at 5 metre intervals with a line
spacing of 200 metres. The total coverage for Tinggong and Gangjiang is 4739
stations (23.6 line kilometres) and 9210 stations (45.9 line kilometres),
respectively. The induced polarisation survey was done by the Baoding Institute
of Geophysical Survey, using a pole-dipole configuration (at 50 metre
intervals, 200 metre line spacing, with a GDP-16 receiver and a GGT-30
transmitter manufactured by Zonge Engineering, USA). The total coverage for
Tinggong and Gangjiang is 24.7 and 49.6 line kilometres, respectively.
Tinggong Exploration Licence Area:
The Tinggong EL (14.93 km2) encircles the active copper mine of the TibetCo,
which reportedly contains inferred resources of supergene copper oxide of
28,000 tonnes contained copper averaging 1.1% Cu, and hypogene copper sulphide
at 23,700 tonnes contained copper (data taken from SBMGE, all to Chinese
standards and not compliant to international standards).
The recently completed ground geophysical surveys at Tinggong have identified
six discrete anomalies within an area of 4.5 km2. These are outlined in Table
1.
Table 1 Geophysical anomalies at the Tinggong exploration licence area
Anomaly Area (km2) Geophysical signature Surface geology/
Mineralisation style
At Below IP Resistivity Total
surface 100m from chargeability magnetic
surface intensity
TG1 ~ 0.40 > 0.39 Moderate Moderate-Low High Fault-controlled
phyllic-argillic and
weak potassic quartz
monzonite with copper
oxides and a
supergene-enriched
chalcocite blanket
TG2 ~ 0.72 > 0.84 Moderate Moderate-Low Low Faulted phyllic and
argillic quartz
TG3 No > 0.42 High-Moderate Moderate-Low High-Moderate monzonite hosting
signature copper oxides
TG4 No > 0.24 High-Moderate High-Moderate High Phyllic and argillic
signature quartz monzonite
intruding meta-
TG5 No > 0.16 Moderate Moderate-Low High-Moderate sediments
signature
TG6 No > 0.12 Moderate Moderate-Low Moderate Phyllic and argillic
signature quartz monzonite
hosting copper oxides
At Tinggong, both IP and resistivity data effectively delineate the potential
copper mineralised ground, whereas the ground magnetics data differentiate
between the porphyry-related host rocks from the extensive thin sedimentary
cover in the area.
The two shallow anomalies, particularly TG1, could be a typical geophysical
signature of a supergene copper (`chalcocite') blanket in this area. At TG1, an
outcropping (200 x 300 metres) supergene chalcocite blanket zone within intense
phyllic-argillic altered quartz monzonite was earlier mapped by GGG geologists.
This area is also in close proximity to the TibetCo copper oxide mine.
The other larger and deeper anomalies (e.g., TG2 and 4) may host both supergene
copper oxide and hypogene copper sulphide mineralisation.
The on-going Quickbird-assisted 1:2000 scale geological mapping indicates that
the geophysical anomalies are hosted by extensively faulted and
phyllic-argillic altered quartz monzonite bodies.
These geophysical and geological targets will be drilled as soon as the weather
permits in early 2007.
Gangjiang Exploration Licence Area:
The ground geophysical work in Gangjiang is centered within the 1.5 x 2.5
kilometre highly prospective area, which was earlier recognised by GGG
geologists and reported in the announcement dated 9 October 2006 (i.e., 16
samples gave 0.2-5.6% Cu, 0.01-0.14% Mo and 6 samples returned 0.2-9.6 g/t Au,
0.1-4.4% Pb and 0.1-5.8% Zn).
The recently completed ground geophysical surveys in Gangjiang, covering an
area of 8.2 km2, have identified four discrete anomalies. These are summarised
in Table 2.
Table 2 Geophysical anomalies at the Gangjiang exploration licence area
Anomaly Approx. area (km2) Geophysical signature Surface geology and
Mineralisation style
At Below IP Resistivity Total
surface 100m chargeability magnetic
from intensity
surface
GJ1 ~ 0.54 -> 0.79 Moderate-High High High Quartz
monzonite-hosted
porphyry Cu-Mo-(Au)
GJ2 ~ 0.15 > 0.35 Moderate Moderate-Low Moderate- Quartz
Low monzonite-hosted
porphyry Cu-Mo-(Au)
and suspected
supergene-enriched
Cu blanket
GJ3 No > 0.11 Moderate Moderate- High Weak potassic
signature Low altered quartz
monzonite
GJ4 No > 0.12 Moderate Low-High Moderate-
signature Low
The two shallow anomalies (GJ1 and 2) are both hosted by outcropping potassic
altered quartz monzonite bodies displaying typical porphyry-style hydrothermal
alteration and mineralisation, e.g., quartz+sulphide stockworks and
disseminated sulphides. In addition, GJ2 is also enclosed within an area, in
excess of one kilometre squared, of variably de-magnetised rocks, indicating
widespread phyllic-argillic alteration. Altogether, these features are
important indicators for potential supergene copper mineralisation at depth.
The other two deeper anomalies (GJ3 and 4) are potentially good targets for
both supergene copper and hypogene copper sulphide mineralisation. Both
anomalies widen at depths below 350 metres to 0.63 and 0.18 km2, respectively.
Detailed geological mapping at a 1:2000 scale (using Quickbird) started earlier
this month but was terminated due to thick snow cover in the area. Mapping will
recommence early next year after which drill targets will be identified to test
these geophysical anomalies.
The content of this announcement 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 two flagship projects:
the Snow Mountain Project in Sichuan Province (Carlin style) and the Nimu
Copper-Molybdenum Project in Tibet (copper oxide). The company is finalising
the joint venture with Majestic Gold Corporation after which 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.
END
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