Central China Goldfields plc
("Central China" or the "Company")
4 September 2008
Central China Goldfields plc, (AIM: GGG), the mineral exploration and
development company operating in China, is pleased to report its unaudited
results for the six months ended 30 June 2008.
Operational highlights:
* Diamond drilling commenced in May on the Gangjiang licence, at the flagship
copper project Nimu, starting on the Guqing prospect.
* At the Dong Mao Huo gold property, a total of 50 reverse circulation drill
holes were completed, drilled along a 50m x 50m grid, for a total of 5,328
metres .
* The presence of high grade mineralised sulphide pods underlying the surface
oxides was reconfirmed at Dong Mao Huo.
* The Snow Mountain gold exploration project was sold for a total
consideration of RMB 38 million, resulting in a profit of circa �1m to
Central China.
Post Balance Sheet Events:
* Successful completion of a �680,000 share placing, primarily to initiate
commencement of bulk sampling on the Dong Mao Huo gold project
* Final approvals for sale of the Snow Mountain project were received from
both the Central and Provincial Chinese authorities.
* To date, six out of eight holes in the Guqing prospect at Gangjiang have
returned significant mineralisation over long intervals and all eight holes
have hit mineralisation from surface. Highlights of drilling include drill
hole GJ13 which intersected 94.5 meters at 0.92% copper equivalent 3.5
meters from the surface and drill hole GJ14 which intersected 65.1 meters
of 0.75% copper equivalent starting 1.7 meters from the surface.
* Copper oxide at the Guqing prospect has been detected at the surface
measuring so far about 460 metres long, 60 to 80 metres wide, and 45 to 58
metres thick.
* Drilling is continuing in the Nimu project targeting two new areas of
mineralisation at Gelong and East Nading prospects which may be connected
to the Guqing prospect.
* Preparations are now advanced for bulk sampling of the Dong Mao Huo gold
project
Nigel Clark, Chairman of Central China Goldfields, commented:
"Central China Goldfields has produced some very significant results in this
period. The Nimu copper project is now providing clear evidence which
reinforces its potential to become a world class base metal opportunity. The
fact that widespread copper oxides have now been intercepted over significant
lengths, near surface and with good grades is very encouraging for its future
mining potential. The current drilling which will continue until October on the
Gangjiang licence is now directed to firm up some of that potential.
At Dong Mao Huo results on both the oxides and sulphides continue to support
the project's likely ability to provide short term cash flow and we are pushing
ahead with this, probably in partnership with a local contract mining company,
with the expectation of first production in April 2009".
Chairman's Statement
I am pleased to report interim results for the six months to 30 June 2008.
Again, it has been a very intensive period in the development of your Company,
during which much encouraging progress was accomplished.
A final agreement to sell the Snow Mountain property was made but the tragic
events of the earthquake in Sichuan resulted in delays in the payment. Final
approvals for the sale have now been received from both the Central and the
Provincial Chinese authorities and an initial part payment of RMB 3 million was
received with the remaining RMB 35 million payable once formal interests in the
property have been transferred. These proceeds have been earmarked to fund
drilling on the Nimu project.
At Dong Mao Huo a reverse circulation drill programme was completed and the
both surface oxides and gold bearing sulphide pods have been delineated for
potential future production. Preparation is underway for bulk sampling.
Preliminary metallurgical tests have indicated simple metallurgy with high rate
of recoveries. Detailed work is on going.
Drilling at the Nimu project has provided some significant results to date.
Within Gangjiang we have now identified four potential centres of
mineralisation (Guqing, West Guqing, Gelong, and East Nading) which appear to
sit within a broader body of lower grade copper mineralisation. The results of
holes GJ07 to GJ14 have confirmed the south-eastern centre at Guqing.
Mineralisation at Guqing starts near surface and has been detected across an
area of approximately 460 metres long, up to 150 metres wide and up to 250
metres deep. The near surface portion of this contains significant amounts of
oxide copper.
The presence of supergene copper oxide at the Guqing prospect could make a
significant economic difference to the potential of the Nimu project as this
can substantially lower the overall cost of production and increases the
possibility of early cashflow to enhance early capital repayment.
We are now testing the second area, East Nading, 900 metres to the north of
Guqing. In this area we identified copper mineralisation last year in hole
GJ02. In light of what we learnt, we have re-analysed this hole and confirmed
that the top 44.7 metres from 11 metres down hole returned circa 0.5% copper
equivalent. This particular section is hosted within the favourable quartz
monzonite where strong mineralisation was identified elsewhere in Nimu. Hole
GJ15 has been drilled with the aim of confirming the potential of the East
Nading area.
Results from Nimu are reinforcing our ideas that this is an important copper
district following our drilling successes over the past few months. Central
China Goldfields has interests in a further six exploration licences in Nimu,
each of which has evidence of copper porphyry mineralisation. The work we are
doing now on the Gangjiang license is just a small area within one of the seven
licences. Going forward we will be looking for strong joint venture partners
with whom we can progress this opportunity.
In August we raised �680,000 at 3p primarily to accelerate the commencement of
mining on the Dong Mao Huo gold project. In total the Directors and senior
employees subscribed for over �150,000 in the placing.
Nigel Clark
Beijing, 3 September 2008
CENTRAL CHINA GOLDFIELDS PLC
CONSOLIDATED INCOME STATEMENT
Six months ended 30 June 2008
Six months Six months
ended ended
30 June 30 June
2008 2007
� �
Administrative expenses (723,619) (499,421)
------------ ------------
OPERATING LOSS (723,619) (499,421)
Net gain on disposal of intangible assets 999,408 -
Stock option expense - (240,000)
Loss on impairment of marketable securities (311,662) (93,432)
Investment revenues - interest on bank deposits 12,559 74,011
------------ ------------
LOSS BEFORE TAX (23,313) (758,842)
Tax - -
------------ ------------
LOSS FOR THE FINANCIAL PERIOD (23,313) (758,842)
============ ============
ATTRIBUTABLE TO THE EQUITY HOLDERS OF THE PARENT (23,313) (758,842)
============ ============
LOSS PER SHARE 0.0002 0.0067
All of the activities of the group are classed as continuing.
The group has no recognised gains or losses other than the results for the
period as set out above in the consolidated income statement. Accordingly, a
statement of recognised income and expense is not presented.
The company has taken advantage of section 230 of the Companies Act 1985 not to
publish its own Income Statement.
STATEMENT OF CHANGES IN EQUITY
Six months Six months
ended ended
30 June 30 June
Group 2008 2007
� �
Opening balance 6,151,357 7,035,881
Loss for financial period (23,313) (758,842)
New equity share capital subscribed 31,360 58,829
Premium on new equity share capital subscribed 188,160 529,456
Translation reserve 53,871 (192,741)
Cost of share options granted - 240,000
Foreign exchange movement on revaluation of 13,424 -
minority interest
------------ ------------
Closing Balance 6,414,859 6,912,583
============ ============
CENTRAL CHINA GOLDFIELDS PLC
CONSOLIDATED BALANCE SHEET
30 June 2008
30 Jun 31 Dec
2008 2007
� �
Non-current assets
Intangible assets 4,534,442 4,334,953
Property, plant and equipment 66,536 62,420
------------ ------------
4,600,979 4,397,373
Current assets
Receivable on disposal of intangible assets 2,552,511 -
Marketable securities 44,920 428,266
Other receivables 270,693 65,322
Cash & cash equivalents 402,699 1,620,463
------------ ------------
3,270,823 2,114,051
------------ ------------
Total assets 7,871,802 6,511,424
Current liabilities
Other payables (1,456,943) (360,067)
------------ ------------
Total liabilities (1,456,943) (360,067)
------------ ------------
Net assets 6,414,859 6,151,357
============ ============
Equity
Share capital 1,238,179 1,206,819
Share premium 7,660,097 7,471,937
Warrant reserve 517,743 517,743
Share option reserve 494,079 494,079
Translation reserve 60,581 6,710
Retained losses (3,774,605) (3,751,292)
------------ ------------
Equity attributable to Equity Holders of Parent 6,196,074 5,945,996
Minority interest 218,785 205,361
------------ ------------
Total equity 6,414,859 6,151,357
============ ============
CENTRAL CHINA GOLDFIELDS PLC
GROUP CASH FLOW
Six months Six months
ended ended
30 June 30 June
2008 2007
� �
Operating Loss (35,873) (832,853)
Depreciation 5,590 477
Amortisation - 1,239
Non-cash loss on impairment of marketable securities 311,662 93,432
Effect of foreign exchange translation 12,825 -
Profit on disposal of intangible assets (999,408) -
Proceeds on disposal of intangible assets 218,206 -
Stock Option Expense - 240,000
Change in receivables and other current assets - (205,371) 887,927
(Increase)/Decrease
Change in payables - Increase/Decrease 1,096,876 (80,044)
------------ ------------
NET CASH USED IN OPERATING ACTIVITIES 417,931 310,178
------------ ------------
INVESTING ACTIVITIES
Investment in marketable securities - (686,988)
Change in tangible fixed assets (9,706) -
Change in intangible assets (1,625,125) (1,133,464)
Interest received 12,559 74,011
------------ ------------
NET CASH USED IN INVESTING ACTIVITIES (1,635,696) (1,746,441)
FINANCING ACTIVITIES
Proceeds on Exercise of Warrants - 588,285
------------ ------------
NET CASH FROM FINANCING ACTIVITIES - 588,285
------------ ------------
NET (DECREASE)/INCREASE IN CASH & CASH EQUIVALENTS
(1,217,764) (847,978)
CASH & CASH EQUIVALENTS AT BEGINNING OF PERIOD 1,620,463 4,013,417
------------ ------------
CASH & CASH EQUIVALENTS AT END OF PERIOD 402,699 3,165,439
============ ============
CENTRAL CHINA GOLDFIELDS PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2008
ACCOUNTING POLICIES
These interim financial statements do not constitute statutory financial
statements within the meaning of Section 240 of the Companies Act 1985. A copy
of the statutory accounts for the year ended 31 December 2007 has been
delivered to the Registrar of Companies. The auditors' report on those accounts
was not qualified and did not contain statements under Section 237(2) or (3) of
the Companies Act 1985.
These interim financial statements have been prepared in accordance with
International Financial Reporting Standards (IFRS).
Results for the six-month period ended 30 June 2008 have not been audited.
2. LOSS PER SHARE
IAS requires presentation of diluted earnings per share when a company could be
called upon to issue shares that would decrease net profit or increase net loss
per share. For a loss making company with outstanding share options, net loss
per share would only be increased by the exercise of out-of-money options.
Since it seems inappropriate to assume that option holders would exercise
out-of-money options, no adjustment has been made to diluted loss per share for
out-of-money share options.
The calculation of basic and diluted loss per ordinary share is based on the
loss of �23,313 for the six months ended 30 June 2008 (30 June 2007: �758,842)
and on 123,817,873 ordinary shares (30 June 2007: 120,181,873) being the
weighted average number of ordinary shares in issue.
3. SHARE CAPITAL
30 Jun 30 Jun
2008 2007
� �
Authorised share capital
500,000,000 ordinary shares of 1 5,000,000 5,000,000
pence each
No. � No. �
Called up, allotted and fully paid
Ordinary shares of 1 pence each 123,817,873 1,238,179 120,181,873 1,201,819
4. Commitments
The Group has future commitments of approximately �1,167,000 (CNY 16,000,000)
in relation to property payments for the Group's Nimu project, falling due
after the balance sheet date and are payable to the Sichuan Bureau of
Metallurgical Geology and Exploration (SBMGE).
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
Michael Parnes / Lisa Ahlas
Old Park Lane Capital Plc
Tel: 020 7493 8188
END
GGG Resources (LSE:GGG)
Historical Stock Chart
From Jun 2024 to Jul 2024
GGG Resources (LSE:GGG)
Historical Stock Chart
From Jul 2023 to Jul 2024
