Drilling update
June 18 2008 - 2:15AM
UK Regulatory
Central China Goldfields plc
("GGG" or "the Company")
ENCOURAGING INITIAL RESULTS FROM
SECOND ROUND OF REVERSE CIRCULATION DRILLING AT
DONG MAO HUO GOLD PROJECT
LONDON - 18 June 2008 - Central China Goldfields plc (AIM: GGG) is pleased to
announce the completion of the second round of reverse circulation ("RC")
drilling program at the Dong Mao Huo gold project in the Nei Menggu Autonomous
Region. Gold assays are available for the first nine holes.
Highlights:
* Results from the first nine, of fifty, drill holes confirm the presence of
1 gramme per tonne gold ("g/t")) in all nine holes.
* Hole RC21 intersected 22 metres at an average grade of 1.48 g/t gold from
104 metres, including 6.31 g/t gold over 2 metres;
* Hole RC18 intersected 1.83 g/t gold over 5 metres from 44 metres;
* Hole RC19 intersected 9 metres at 1.1 g/t gold from 22 metres;
* Hole RC19A intersected 1 g/t gold over 12 metres from 54 metres;
* Hole RC23 intersected 1.41 g/t gold over 6 metres from 150 metres;
* The second round of infill RC drilling programme, totaling 50 holes for a
total of 5,328 metres, was completed on 15 June 2008. The aim of the
drilling program is to provide additional data to assist mine planning by
infilling the drill grid from 80 x 80 metres to approximately 40 x 40
metres.
* The results from the first nine holes have validated the presence of
significant mineralisation. Assay results are still pending for the
remaining 41 holes.
* The in-fill drilling has confirmed that the trend of gold mineralisation is
generally northerly rather than east-west, as was previously presumed.
Jeff Malaihollo, Managing Director of Central China Goldfields, comments:
"Central China Goldfields is on track to produce early cash flow from small
scale mining and gold production at Dong Mao Huo, with a targeted startup in
the first quarter of next year. These initial drill results are encouraging in
that they show that we are starting to define a mineable block in the West
Hill. Furthermore, these results also confirm our assessment that the
mineralised structure is generally northerly orientated. The grades are in line
with our expectation that there are high grade areas surrounded by a lower
grade envelope."
GEOLOGICAL DETAILS:
Drilling Results Details:
A RC drill program was undertaken by Beijing Kente Drilling Co. Ltd., a
subsidiary of the Drillcorp Group, from 4 May to 15 June 2008. The aim is to
assist mine planning by infilling the drill grid from 80 x 80 metres to
approximately 40 x 40 metres. The drilling also confirmed that the trend of
gold mineralisation is generally northerly which is transverse to the east-west
trend of the host rhyodacite breccia. The program consisted of 50 holes
totaling 5,328 metres. The total drilling from the first and second round is
10,423.60 metres, comprising 7,129 metres of RC and 3,294.60 metres.
The second round of 50 RC holes is summarised below:
Table 1. Dong Mao Huo drilling summary
Hole No. Elevation Azimuth Dip Depth (m)
(m)
RC16 1663 90 -60 180
RC17 1669 90 -60 165
RC18 1673 90 -60 160
RC19 1671 90 -60 37
RC19A 1671 90 -60 105
RC20 1666 90 -60 132
RC21 1666 90 -60 168
RC22 1660 90 -60 180
RC23 1678 180 -70 168
RC23A 1678 90 -60 144
RC24 1672 90 -60 132
RC25 1674 0 -60 108
RC25A 1672 90 -60 122
RC26 1677 0 -60 110
RC26A 1676 90 -60 120
RC27 1679 90 -60 44
RC28 1680 90 -60 102
RC29 1677 180 -60 26
RC30 1674 0 -60 66
RC30A 1674 270 -60 108
RC31 1670 0 -60 110
RC32 1675 0 -60 102
RC32A 1674 90 -60 108
RC33 1667 0 -60 108
RC34 1666 0 -60 102
RC35 1666 0 -55 90
RC36 1659 0 -60 62
RC37 1667 90 -60 122
RC38 1666 0 -60 156
RC39 1664 0 -55 140
RC40 1658 90 -60 150
RC41 1656 90 -60 150
RC42 1665 90 -60 80
RC43 1678 90 -60 42
RC43A 1678 90 -60 106
RC44 1677 90 -60 31
RC44A 1677 90 -60 102
RC45 1653 90 -60 137
RC46 1681 90 -60 131
RC47 1678 90 -60 96
RC48 1673 90 -60 52
RC49 1673 90 -60 68
RC50 1668 270 -55 90
RC51 1668 90 -60 72
RC52 1675 90 -60 57
RC53 1654 90 -60 19
RC53A 1654 90 -60 42
RC54 1649 90 -60 142
RC55 1652 90 -60 144
RC56 1647 90 -60 140
TOTAL DEPTH (m) 5,328
The gold mineralisation at Dong Mao Huo is associated with an 800 metre long x
120 metre wide east-west trending structurally emplaced rhyodacite breccia/dyke
in an orthogneiss and schist complex. The gold and base metal mineralisation is
generally associated with northerly trending structures characterized by
hydraulic emplacement of sulphides along fractures and zones of hydrothermal
breccias. The ore minerals are pyrite and chalcopyrite with minor to trace
amounts of sphalerite, chalcocite, galena and arsenopyrite as disseminations,
fracture and breccia fills. Deep weathering has oxidised the mineralised zone
down to about 35 to 50 metres.
Gold assay results and some partial results of silver ("Ag") and copper ("Cu")
for the first 9 holes have been received. Significant gold mineralisation at >1
g/t Au has been confirmed in all holes.
At about 0.35 g/t Au cut-off, the assay results of the RC holes are outlined in
Table 2.
Table 2. Summary of significicant drillhole assay results
Hole No. Zone From (m) To (m) Width (m) Au g/t Ag g/t Cu %
RC16 Mixed 40.00 42.00 2.00 0.70 9.05 0.34
RC16 Mixed 70.00 72.00 2.00 1.78 22.75 0.69
RC16 Sulphide 78.00 82.00 4.00 0.56 4.05 0.16
RC17 Sulphide 82.00 91.00 9.00 0.94 4.56 0.17
incl. 86.00 87.00 1.00 3.76 16.90 0.58
RC17 Sulphide 98.00 101.00 3.00 0.43 2.63 0.05
RC17 Sulphide 110.00 112.00 2.00 1.44 2.50 0.03
RC17 Sulphide 116.00 118.00 2.00 0.82 6.90 0.06
RC17 Sulphide 122.00 125.00 3.00 0.63 1.67 0.03
RC18 Mixed 44.00 49.00 5.00 1.83 N.A. N.A.
RC18 Sulphide 59.00 63.00 4.00 0.71 N.A. N.A.
RC18 Sulphide 92.00 94.00 2.00 1.19 N.A. N.A.
RC18 Sulphide 124.00 128.00 4.00 0.73 N.A. N.A.
RC19 Oxide 22.00 31.00 9.00 1.10 N.A. N.A.
incl. 25.00 27.00 2.00 3.06 N.A. N.A.
RC19 Oxide 33.00 37.00 4.00 3.07 N.A. N.A.
incl. 34.00 36.00 2.00 5.43 N.A. N.A.
RC19A Mixed 23.00 28.00 5.00 1.52 N.A. N.A.
incl. 24.00 27.00 3.00 2.16 N.A. N.A.
RC19A Mixed 35.00 40.00 5.00 1.07 N.A. N.A.
RC19A Sulphide 50.00 52.00 2.00 0.75 N.A. N.A.
RC19A Sulphide 54.00 66.00 12.00 1.00 N.A. N.A.
incl. 54.00 58.00 4.00 1.77 N.A. N.A.
RC19A Sulphide 70.00 73.00 3.00 0.66 N.A. N.A.
RC19A Sulphide 86.00 90.00 4.00 1.94 N.A. N.A.
incl. 86.00 88.00 2.00 3.57 N.A. N.A.
RC19A Sulphide 95.00 99.00 4.00 1.22 N.A. N.A.
RC20 Sulphide 80.00 81.00 1.00 2.33 N.A. N.A.
RC20 Sulphide 100.00 102.00 2.00 0.42 N.A. N.A.
RC21 Sulphide 75.00 77.00 2.00 0.61 N.A. N.A.
RC21 Sulphide 97.00 100.00 3.00 0.48 N.A. N.A.
RC21 Sulphide 104.00 126.00 22.00 1.48 N.A. N.A.
incl. 109.00 111.00 2.00 6.31 N.A. N.A.
incl. 121.00 124.00 3.00 3.33 N.A. N.A.
RC21 Sulphide 135.00 140.00 5.00 0.69 N.A. N.A.
RC22 Sulphide 85.00 90.00 5.00 0.64 N.A. N.A.
incl. 86.00 87.00 1.00 1.71 N.A. N.A.
RC22 Sulphide 95.00 99.00 4.00 0.62 N.A. N.A.
incl. 97.00 98.00 1.00 1.37 N.A. N.A.
RC22 Sulphide 141.00 142.00 1.00 1.52 N.A. N.A.
RC23 Sulphide 59.00 63.00 4.00 0.63 N.A. N.A.
RC23 Sulphide 78.00 84.00 6.00 0.82 N.A. N.A.
RC23 Sulphide 89.00 93.00 4.00 0.72 N.A. N.A.
RC23 Sulphide 96.00 99.00 3.00 1.09 N.A. N.A.
RC23 Sulphide 102.00 104.00 2.00 1.50 N.A. N.A.
RC23 Sulphide 110.00 114.00 4.00 1.13 N.A. N.A.
RC23 Sulphide 150.00 156.00 6.00 1.41 N.A. N.A.
N.A. - Not Available Yet
At about 0.35 g/t Au cut-off, the best results are hole RC21 which intersected
1.48 g/t Au over 22 metres from 104 metres downhole, including 6.31 g/t Au over
2 metres and 3.33 g/t Au over 3 metres; hole RC18 which intersected 1.83 g/t Au
over 5 metres from 44 metres downhole; hole RC19 which intersected 1.1 g/t Au
over 9 metres from 22 metres downhole and 3.07 g/t Au over 4 metres from 33
metres downhole; hole RC19A which intersected 1 g/t Au over 12 metres from 54
metres downhole and 1.94 g/t Au over 4 metres from 86 metres downhole; and hole
RC23 which interesected 1.41 g/t Au over 6 metres from 150 metres downhole.
Hole RC19A is a redrill of hole RC19 which had to be terminated due to broken
ground.
Sampling and Analytical Details
RC drilling uses 139.7mm sized drill rods producing about 25 to 30 kilograms of
crushed rock every one metre of drilling with largest fragment size at about 1
centimetre. Samples were taken every one metre and split down to about 1.5 to 2
kilograms using a Jones sample splitter at the drillsite. Sample preparation
and chemical analysis were done by Intertek Testing Service Ltd. Shanghai in
Beijing. Sample preparation involves crushing and pulverisation of the
subsamples to minus 75 microns. Gold was analysed by 50 grammes fire assay with
AAS finish and 34 other elements by inductively coupled plasma-optical emission
spectroscopy (ICP-OES). Three of the 35 elements are reported here: gold (Au),
silver (Ag) and copper (Cu). The detection limits for Au, Ag and Cu are 0.005,
0.1 and 1 part per million (ppm) respectively. Routine international-standard
quality assurance/quality control (QA/QC) procedures were adopted. Duplicate
sampling was done every tenth sample at the drillsite and Intertek utilised
internal standard procedures for standard, blank and replicate sample testing.
Corrections
The news release dated 5 June 2008 on Dong Mao Huo surface sampling contains
the following error under the paragraph describing East Hill and Table 1:
"The trench intersected three high-grade mineralised zones. These are 8 metres
@ 2.26 g/t Au (including 5 metres @ 5.77 g/t Au and a high of 8.19 g/t Au), *"
This should read:
"The trench intersected three high-grade mineralised zones. These are 8 metres
@ 2.26 g/t Au (including 5 metres @ 3.4 g/t Au and a high of 8.19 g/t Au), *"
Technical information in the Company news releases has been reviewed and
approved by Ciceron "Jun" Angeles (MSc. FAusIMM, CPGeo) the Company's
Exploration Vice President. 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 Limited
Dr. Jeffrey Malaihollo Anita Ghanekar / Martin Davison
Tel: 020 7621 0200 Tel: 020 7601 6100
Email: info@ccgoldfields.com
www.ccgoldfields.com
Neil Boom
Bishopgate Communications Ltd
Tel: 020 7562 3367
END
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