Drilling Report
July 31 2008 - 2:15AM
UK Regulatory
Central China Goldfields plc
(`GGG' or `the Company')
94.5 METRES OF 0.92% COPPER EQUIVALENT
41.5 METRES OF NEAR SURFACE OXIDE
AT GANGJIANG, NIMU PROJECT
LONDON - 31 July 2008 - Central China Goldfields plc (AIM: GGG) is pleased to
report additional diamond drill results from the 2008 round of drilling at the
Gangjiang exploration licence area, Nimu Copper-Molybdenum Project ("Nimu").
Highlight:
* Hole GJ13 intersected 94.5 metres of 0.92% copper equivalent 3.5 metres
from surface
* First 41.5 metres of mineralisation is supergene(enriched) copper oxide
* Further 25.5 metres of mixed copper oxide-sulphide down to 70.5 metres
* Copper oxide has to date been detected at the surface along a 200 metre
long zone
* Five out of seven holes in the Guqing area of Gangjiang have returned
significant mineralisation to depth and all seven holes have hit
mineralisation at the surface
* Further assaying to test copper oxide content underway
Jeff Malaihollo, Managing Director of Central China Goldfields plc, comments:
"This is the first hole in the Gangjiang Licence which has identified the
economically important supergene copper oxide over a substantial interval. This
reinforces our belief in Nimu as a potentially substantial deposit.
We now have a zone, in the Guqing area of Gangjiang, of significant
copper-molybdenum mineralisation of over 400 metres long, 75-100 metres wide
and up to 300 metres deep which is potentially open-pittable.
The Guqing area is one of several higher-grade mineralised centres in
Gangjiang. These mineralised centres appear to be connected by lower-grade
copper mineralisation running about 0.05 to 0.1% Cu. Our aim therefore is to
define several of the higher-grade centres and look to develop the economic
potential either as stand alone open-pittable areas or as part of a more
substantial operation where some of the lower grade rock is utilised when
economic.
The results from the 2008 drilling season so far validate our exploration model
in finding both copper oxides and sulphides in the Nimu district. Following
completion of holes GJ11 and GJ12 which were designed to delineate the southern
mineralised boundary we have now moved the drills north in a substantial step
out.
The presence of high-grade supergene copper oxide could make a significant
economic difference to the potential of the Nimu project. Copper oxide could
lower the overall cost of production and increases the possibility of early
cashflow to enhance early capital repayment. We are therefore looking to focus
our programme on identifying open pit potential with an emphasis on near
surface mineralisation complemented by the discovery of copper oxide pockets
when present."
2008 DRILLING PROGRAMME:
A second round of diamond drilling at the Gangjiang exploration licence area
commenced on 25 May 2008. About 6,000 metres of drilling have been scheduled.
The aim of this year's drilling programme is to find the higher grade zones of
last year's drilled prospects and define an inferred resource. These prospects
are the Guqing prospect represented by holes GJ07 and GJ08, East Nading
represented by hole GJ02, and Gelong represented by holes GJ05 and GJ06.
To date, six holes were completed at the Guqing prospect as listed in Table 1.
The seventh hole, GJ15, is currently being drilled at the East Nading prospect,
located about 900 metres northwest of the site of holes GJ13/GJ14. To date,
copper ("Cu") and molybdenum ("Mo") assays for holes GJ09 to GJ13 have been
received. The rest are still pending.
Table 1. Gangjiang drillhole summary
Hole No. Azimuth (o) Dip (o) Collar Depth (m)
Elevation
(m)
GJ09 270 -60 4,899 373.50
GJ10 90 -60 4,899 543.70
GJ11 268 -60 4,829 220.00
GJ12 90 -60 4,829 304.70
GJ13 269 -60 4,928 325.30
GJ14 90 -60 4,928 303.00
GJ15 90 -60 4,990 In Progress
Total Depth (m) 2,070.20
GEOLOGICAL& ASSAY DETAILS:
The Guqing-East Nading area is underlain primarily by main stage quartz
monzonite ("QZMZ") intruded by various intra- to late-mineral porphyry
intrusives such as quartz monzonite ("PPQM"), rhyodacite ("PPRD"), dacite
("PPDC") and andesite porphyry dykes. Significant copper-molybdenum
mineralisation is in zones of moderate to intense phyllic (sericite-clay)
alteration in the QZMZ and PPQM. Mineralisation consists of chalcopyrite and
molybdenite mainly as blebs and fracture fills and less in quartz veinlets.
Pyrite is in very minor amounts and hypogene chalcocite, sphalerite, and galena
are locally abundant in structurally controlled hydrothermal breccias. In
supergene (weathered) zone, the copper ore consist of malachite, azurite,
neotocite (Cu manganese hydroxide), chalcocite and minor to rare pyrite.
Assay results from holes GJ11, GJ12 and GJ13 have been received from the drill
programme. Results of a prior batch, holes GJ09 and GJ10, were released on 29
July 2008. Holes GJ11 and G12 are located at the same drill site, about 180
metres south of holes GJ09 and GJ10. Hole GJ12 is drilled to the west while
GJ13 to the east. About 225 metres northeast of holes GJ09 and GJ10, holes GJ13
and GJ14 are also located at the same drill site. Hole GJ13 is drilled due west
while GJ14 is drilled due east. At about 0.10% Cu cut-off, the assay results of
the holes GJ09 and GJ10 are outlined in Table 2.
Table 2. Summary of significant drillhole assay results at about 0.1% Cu or
0.03% Mo
Hole No. From (m) To (m) Width (m) % Cu % Mo ppm Ag %Cu Eq1
GJ11 3.20 6.00 2.80 0.33 0.030 1.8 0.61
22.00 32.00 10.00 0.13 0.001 400 metres long and
probably up to 300 metres deep. The mineralisation is still open northwards
from holes GJ13 and GJ14. Hole GJ14 will test the eastern limit of the
mineralised screen in the north. Although there is some copper mineralisation
at the surface, holes GJ11 and GJ12 are now interpreted to delineate the
southern limit of the porphyry centre at the Guqing prospect.
Drill and trench samples at the near surface at the vicinity of holes GJ07,
GJ08, GJ13 and GJ14 will soon be submitted for analysis of Cu oxide content
using atomic absorption spectrometry after sulphuric acid digest.
SAMPLING & ANALYTICAL DETAILS:
Drill core samples (PQ, HQ, NQ core diametre 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), and molybdenum,
arsenic and antimony were analysed by x-ray fluorescence (XRF). Routine
international-standard QA/QC procedures were used by Intertek. Three of the
seven elements analysed are reported here: copper (Cu), molybdenum (Mo) and
silver (Ag). The detection limit for Cu is 2 parts per million (ppm), while for
Mo and Ag, it is 1 ppm.
Technical information in the Company news releases has been reviewed and
approved by Ciceron "Jun" Angeles (MSc. FAusIMM, CPGeo) the Company's Vice
President for Exploration. 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 / Martin Davison
Tel: 020 7621 0200 Tel: 020 7601 6100
Email: info@ccgoldfields.com
www.ccgoldfields.com
Neil Boom Michael Parnes
Bishopgate Communications Ltd Old Park Lane Capital Plc
Tel: 020 7562 3367 Tel: 020 7493 8188
END
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