Drilling Report
August 30 2007 - 3:00AM
UK Regulatory
Central China Goldfields plc
`GGG' or `The Company'
SIGNIFICANT DRILLING AND TRENCHING RESULTS
FROM GANGJIANG, NIMU PROJECT
LONDON - 30 August 2007- Central China Goldfields plc (AIM: GGG) reports
significant results on the scout diamond drilling activities at the Gangjiang
exploration licence area, Nimu Copper-Molybdenum Project ("Nimu"), with the
discovery of at least two areas of high grade mineralisation.
At the current molybdenum price of approximately ten times the copper price and
assuming 100% metallurgical recovery of both copper and molybdenum, the Guqing
and Gelong areas represent areas with a significant concentration of copper and
molybdenum mineralisation.
Highlights:
* A total of eight (8) scout diamond drill holes (GJ01 to GJ08) have been
drilled at the Gangjiang exploration licence area. The majority of the
drill holes intersected elevated copper and significant molybdenum
mineralisation. These drill holes are still open at depth.
* Two areas of significant mineralisation have been delineated; these are
Guqing and Gelong areas.
* In the Guqing area, Hole GJ08 intersected almost continuous mineralisation
from 2.9 to 227.7 metres downhole returning about 0.2-0.28% Cu and
0.020-0.029% Mo, including 42 metres at 0.63% Cu and 0.039% Mo. The same
hole then intersected 80 metres at 0.31% Cu and 0.067% Mo, including 34
metres at 0.44% Cu and 0.104% Mo. Hole GJ07, intersected 76.5 metres at
0.22% Cu and 0.028% Mo, including 8.7 metres at 0.43% Cu and 0.032% Mo.
* Several trenches near Holes GJ08 and GJ07 in Guqing intersected significant
mineralisation: Trench GJT01 - 48 metres at 0.72% Cu and 0.020% Mo,
including 34 metres @ 0.90% Cu and 0.025% Mo. Trench GJT02 - 87.9 metres at
0.45% Cu and 0.022% Mo,, including 20.5 metres at 1.00% Cu and 0.043% Mo.
Trench GJT03 - 22.7 metres at 0.42% Cu and 0.087% Mo and 49.3 metres at
0.31% Cu and 0.007% Mo, including 14 metres at 0.67% Cu and 0.014% Mo.
* In the Gelong area, (about 2 kilometres north from Guqing) Hole GJ05
intersected several mineralised sections which are: 37 metres at 0.30% Cu
and 0.015% Mo, 19.2 metres at 0.33% Cu and 0.021% Mo, 31 metres at 0.33% Cu
and 0.031% Mo and 57 metres at 0.22% and 0.020% Mo. This drill hole
terminated in mineralisation.
* A detailed IP geophysical survey is currently underway in Bairong and
Gangjiang to further define targets for drilling.
Jeff Malaihollo, Managing Director of Central China Goldfields plc, comments:
"We are delighted that we have discovered at least two areas of higher grade
mineralisation in the Gangjiang Licence, Nimu Project. This is a very positive
result from our initial drilling programme at Nimu."
"It appears that the system in Gangjiang is a molybdenum-rich portion of the
copper-molybdenum porphyry. At the current molybdenum price of approximately
ten times the copper price, the Guqing and Gelong areas represent areas with a
significant concentration of mineralisation."
"We are now conducting geophysical surveys to further define other targets in
this highly mineralised area."
GEOLOGICALDETAILS:
Sampling and Analytical Details
Drill core samples (PQ, HQ, NQ core diameter sizes) are split into half by a
diamond saw cutting machine at the project site. The half split samples, each
weighing about 3-7 kilograms, are collected at an average interval of 2 metres.
The samples were processed and analysed by Intertek Testing Service Ltd.
Shanghai. Sample preparation is done by Intertek-Kunming branch office, China.
Chemical analysis is done by Intertek-Beijing office. Copper, silver, lead and
zinc were analysed by atomic absorption spectrometry (AAS), gold by 30 grammes
fire assay with AAS finish and molybdenum, arsenic and antimony were analysed
by x-ray fluorescence (XRF). Routine international-standard QA/QC procedures
were used by Intertek. Two of the eight elements analysed are reported here:
copper (Cu) and molybdenum (Mo). The detection limits for Cu and Mo are 2 ppm
and 1 ppm, respectively.
Assay Results and Geological Interpretation
Eight (8) holes were drilled as listed in Table 1.
Table 1. Gangjiang drillhole summary
Hole No. Azimuth(o) Dip (o) Collar Depth
Elevation(m) (m)
GJ01 45 -50 5,019 356.70
GJ02 220 -50 4,990 275.00
GJ03 135 -55 4,456 219.90
GJ04 270 -60 4,459 350.00
GJ05 320 -65 4,590 261.30
GJ06 320 -65 4,692 220.00
GJ07 45 -50 4,908 250.00
GJ08 225 -50 4,899 400.00
Total Depth (m) 2,322.90
At a 0.10% Cu cut-off, the assay results of the drill holes and several
trenches are outlined in Tables 2 and 3.
Table 2.Summary of drillhole assay results
Hole No. From (m) To (m) Apparent Width (m) % Cu % Mo g/T Au g/T Ag
GJ01 168.5 192.5 24.0 0.12 0.001
GJ02 11 275 264 0.15 0.014
GJ03 17.5 74.1 56.6 0.14 0.003
77 219.9 142.1 0.12 0.011
GJ04 3.9 33 29.1 0.17 0.012
43.7 47.5 3.8 0.09 0.006 0.50 12.62
57.5 71.3 13.8 0.09 0.005 0.59 22.80
103.3 121.1 17.8 0.11 0.003
Including
105.3 109.3 4 0.07 0.004 0.78 8.50
139.1 173.1 34 0.14 0.007
188.3 204.7 16.4 0.15 0.007
274.5 310.7 36.2 0.22 0.024
Including
278 282.7 4.7 0.69 0.176 0.06 12.55
GJ05 20.8 57.8 37 0.30 0.015
Including
39.2 49.2 10 0.45 0.027
79.8 99 19.2 0.33 0.021
118.5 149.5 31 0.33 0.031
Including
140 149.5 9.5 0.43 0.022
201.2 258.2 57 0.22 0.021
GJ06 67.6 145.4 77.8 0.16 0.017
153.8 163.9 10.1 0.38 0.075
169.2 187.9 18.7 0.24 0.025
203.3 220.0 16.7 0.20 0.034
GJ07 2.9 25.1 22.2 0.23 0.010
57.1 133.6 76.5 0.22 0.028
Including
57.1 65.8 8.7 0.43 0.032
193.5 203.5 10 0.26 0.044
219.2 225.2 6 0.19 0.022
GJ08 2.9 48.8 45.9 0.20 0.020
54 227.7 173.7 0.28 0.029
Including
181.7 223.7 42 0.63 0.039 0.04 4.62
259.6 339.6 80 0.31 0.067
Including
293.6 327.6 34 0.44 0.104 0.03 3.88
356.5 371.1 14.6 0.21 0.004
Table 3. Summary of trench assay results
Mineralised Zone Widths Grade
Trench No. From To Apparent % Cu % Mo
Width (m)
GJT01 0 48 48 0.72 0.020
Including
14 48 34 0.90 0.025
62 78 16 0.46 0.021
Including
64 74 10 0.60 0.027
GJT02 0 87.9 87.9 0.45 0.022
Including
12 32.5 20.5 1.00 0.043
GJT03 0 22.7 22.7 0.42 0.038
32.7 82 49.3 0.31 0.007
Including
36.7 50.7 14 0.67 0.014
Guqing
The Guqing area is underlain primarily by quartz monzonite intruded by
rhyodacitic dikes. Significant copper and molybdenum mineralisation occurs in
zones of moderate to intense intermediate argillic (clay - sericite)
alteration. Mineralisation consists of chalcopyrite and molybdenite mainly as
blebs and fracture fills and less frequently in quartz-calcite veinlets. Pyrite
is relatively scarce and copper sulfosalts are locally abundant.
Trenches GJT01, GJT02 and GJT03 dug partly on the drill access road delineated
almost continuous >0.3% Cu mineralisation for about 400 metres consisting of
mixed supergene oxides and hypogene sulphides. Trench GJT01 returned 48 metres
at 0.72% Cu and 0.020% Mo, including 34 metres at 0.90% Cu and 0.025% Mo.
Trench GJT02 returned 87.9 metres at 0.45% Cu and 0.022% Mo, including 20.5
metres at 1.00% Cu and 0.043% Mo. Trench GJT03 returned 22.7 metres at 0.42% Cu
and 0.038% Mo and 49.3 metres at 0.31% Cu and 0.007% Mo, including 14 metres at
0.67% Cu and 0.014% Mo.
Holes GJ08 and GJ07 targeted the significant copper and molybdenum
mineralisation discovered in the trenches. Hole GJ08 intersected 45.9 metres
(from 2.9 to 48.8 m downhole) at 0.20% Cu and 0.020% Mo; and 173 metres (from
54 to 227.7 m downhole) at 0.28% Cu and 0.029% Mo, including 42 metres at 0.63%
Cu and 0.039% Mo with elevated Ag values, ie. 4.62 g/t Ag. The mineralisation
is most likely continuous from 2.9 to 227.7 metres downhole except that three
(3) half-core samples were lost in transit, i.e. from 48.8 to 54 m.
Quarter-split samples will be analysed as soon as possible. Further down, the
hole also intersected 80 metres (from 293.6 to 339.6 m downhole) at 0.31% Cu,
0.067% Mo and 3.88 g/t Ag, including 34 metres at 0.44% Cu and 0.104% Mo. Hole
GJ07 intersected 76.5 metres (from 57.1 to 133.6m downhole) at 0.22% Cu and
0.028% Mo, including 8.7 metres at 0.43% Cu and 0.032% Mo.
Gelong
The Gelong area is underlain by quartz monzonite and early crowded quartz
monzonite porphyry intruded by intra- to late-mineral rhyodacitic dikes. The
early crowded quartz monzonite porphyry has been recognised as one of the
main-stage intrusion that caused much of the copper and molybdenum
mineralisation in the area. The quartz monzonite exhibits moderate potassic
alteration. Mineralisation consists of chalcopyrite and molybdenite mainly as
fracture fillings and disseminations and less frequently in quartz veinlets.
Holes GJ05 and GJ06 targeted the IP and magnetic anomalies delineated by
geophysical surveys. Both holes terminated in mineralisation in moderately
potassic-altered quartz monzonite. Hole GJ05, the best hole in Gelong,
intersected 37 metres (from 20.8 m to 57.8 m downhole) at 0.30% Cu and 0.015%
Mo, including 10 metres at 0.45% Cu and 0.027% Mo; 19.2 metres (from 79.8 m to
99 m downhole) at 0.33% Cu and 0.021% Mo; 31 metres (from 118.5 m to 149.5 m
downhole) at 0.33% Cu and 0.031% Mo, and 57 metres (from 201.2 to 258.2 m
downhole) at 0.22% Cu and 0.021% Mo.
Holes GJ03 and GJ04, located 500 metres northeast from Hole GJ05, tested the
significant outcrops found during surface mapping in the area. Both drill holes
intersected elevated copper mineralisation in potassic and phyllic-altered
quartz monzonite, averaging about 0.11 to 0.22% Cu and 0.003 to 0.024% Mo. Hole
GJ04 intersected four (4) discrete silver�gold epithermal quartz vein zones
overprinting the porphyry system. The apparent widths of the vein zones range
from 3.80m to 13.80m. Silver grades ranges from 8.50 to 22.80 g/t) while gold
grades ranges from 0.06 to 0.78 g/t. Minor amounts of antimony ("Sb") and
arsenic ("As") are associated up to a maximum of 582 parts per million ("ppm")
Sb and 328 ppm As. In one vein zone (278-282.7 metres downhole), 0.17% lead and
0.27% zinc were returned.
Nading
Hole GJ01 targeted the phyllic-altered intra-mineral rhyodacite porphyry stock
while Hole GJ02 tested the contact between the rhyodacite porphyry stock and
the intruded potassic-altered quartz monzonite. Hole GJ01 intersected very weak
copper and molybdenum mineralisation. The best mineralised intercept is 24
metres at 0.12% Cu and 0.001% Mo. Hole GJ02 intersected better mineralisation
in the intruded quartz monzonite but is still low, i.e. 264 metres at 0.15% Cu
and 0.014% Mo.
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 Limited
Dr. Jeffrey Malaihollo Anita Ghanekar / Phil Swinfen
Tel: 020 7621 0200 Tel: 020 7601 6100
Email: info@ccgoldfields.com
www.ccgoldfields.com
Smithfield Consultants King & Shaxson Capital Limited
Neil Boom / Rupert Trefgarne Nick Bealer
Tel: 020 7360 4900 Tel: 020 7426 5986
END
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