GGG Ggg Resources

    Central China Goldfields plc                          

                            (GGG or the 'Company')                             

                              DONG MAO HUO UPDATE                              

                          AND PROJECT RATIONALISATION                          

London, 20 December 2006 - Central China Goldfields plc (AIM: GGG), the mineral
exploration and development company operating in China, is pleased to report
that following the signing of the Memorandum of Understanding on the Dong Mao
Huo Mine (announced on 11 April 2006) GGG has now signed a Joint Venture
agreement with the Shandong Zhengyuan Geology & Resource Co. Ltd.
("Zhengyuan"). The partners will explore and develop the Dong Mao Huo Mine and
surrounding areas in Nei Menggu (Inner Mongolia) Province of China.

The Company and Zhengyuan will now work together to form the joint venture
company to be named Central China Zhengyuan Minerals Inc.

The Dong Mao Huo Mine is a small operational underground mine, exploiting gold
in the supergene (enriched) zone, with reported resources of 135,000 oz. at 3.3
g/t Au (Chinese categories 332, 333 and 234 which are not compliant to JORC, NI
43-101 or CMMI standards). Gold mineralisation is also associated with minor
silver and supergene copper mineralisation.

The Company contracted CSA Australia to conduct an independent geological
evaluation of the mining and exploration potential of the mine. CSA concluded
that the structural, geological and geochemical characteristics of the deposits
suggest that mineralisation at Dong Mao Huo can be compared to the mesothermal
lode-gold deposits of the Archaean in Western Australia. The resource reported
does not conform with JORC or other international reporting standards and
therefore CSA has recommended a drilling programme using diamond and reverse
circulation drilling to test the open-pit potential of the Dong Mao Huo Mine.
CSA surmised that there is a reasonable, although unquantifiable, potential for
further resources within the supergene zone in the licence area.

Project Rationalisation:

The Company has also notified its partner, the Hubei North East Geological Team
("HNEGT") that the Company will not proceed with the Xiang Shui Tan Project in
Hubei. This is part of a Company policy to continuously review projects and
advance the assets with the best prospects. The Company strategy is to focus on
the Joint Ventures which offer shareholders the highest likely returns on their
investment.

Together with HNEGT, GGG will now start the process of closing down the Joint
Venture company Hubei Xiang Shui Tan Gold Inc.

HNEGT remains a partner of the Company in the De Ming Ding copper project in
Tibet (announced on 24 April 2006).

Snow Mountain Progress:

Further progress from the Snow Mountain Project, including the JORC resource
calculations, will be reported early next year.

Jeff Malaihollo, Managing Director of Central China Goldfields, said:

"We are pleased to announce signing of the joint venture with Zhengyuan, and
our intention to explore the potential of the area surrounding the Dong Mao Hou
gold mine. The CSA report leads us to believe that there is a reasonable chance
of finding more commercial amounts of gold, but further work will start next
year to test out this supposition."

"We have decided to dispose of our interests in Hubei because Central China
Goldfields' strategy is to advance assets with the best potential for creating
value, and divest properties that carry the greatest risk or have limited long
term commercial potential. We want to spend shareholders' funds wisely by
advancing the best assets."

Technical information in Company news releases has been reviewed and approved
by Dr. Jeffrey Malaihollo. He holds a BA and PhD in Geological Sciences and is
a Fellow of the Geological Society.

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                    



END

GGG Resources (LSE:GGG)
Historical Stock Chart
From May 2024 to Jun 2024

GGG Resources (LSE:GGG)
Historical Stock Chart
From Jun 2023 to Jun 2024