GGG Ggg Resources

 
TIDMGGG 
 
Central China Goldfields plc 
 
           Option Agreement over Cikoleang Gold Project in Indonesia 
 
15 December 2009 
 
High-Grade Indonesian Gold Project 
 
Central China Goldfields plc is pleased to announce that it has signed an 
exclusive option agreement over the Cikoleang Gold Property in the Banten 
Province, Indonesia with a local partner company PT Fino Bersaudara ("Fino") 
with a view to entering a definitive joint venture agreement within six months. 
The directors are very encouraged by what they have seen so far and will now 
conduct extensive due diligence before committing the Company's resources under 
the joint venture. The early indications are positive though and it is the 
current intention that the Company will seek to expand, define and fast track 
this gold property towards early production. 
 
Cikoleang Gold Property 
 
The gold property is located approximately 100km southwest of Jakarta, the 
capital of Indonesia, in Banten Province within the famous Bayah Dome gold 
mining area. This historic location hosts the Cikotok, Cirotan and Gunung 
Pongkor mining operations. 
 
The Cikoleang property is directly adjacent to the presently closed Cikotok 
gold mine which has been operated since the Dutch colonial times until recently 
when it was operated by the Indonesian State Company Aneka Tambang. 
 
Cikoleang has areas of exposed intermediate sulphidisation epithermal veins, up 
to 1.5m wide, reporting high gold values of up to 77 grammes per tonne (g/t). 
Additionally one area identified by Central China Goldfields plc has 1m wide 
lead-zinc-silver veins running up to 35% zinc. 
 
Grab samples of ores exploited by local artisanal miners, reviewed by Central 
China Goldfields plc, returned between 4.12g/t to 22.2g/t gold. Veins sampled 
returned between 1g/t to 3g/t gold. High amounts of silver are associated with 
these rocks in places running up to 398g/t. A single sample of lead-zinc-silver 
ore returned 24% zinc and 105g/t silver. 
 
So far the veins at Cikoleang are reported to be 300 metres long with vein 
ranging from under 1m to 1.5m width. 
 
The terms of the Agreement 
 
Central China Goldfields plc will conduct detailed geological, legal and 
financial due diligence during an exclusive six months Option Period where. GGG 
will pay Fino US$ 45,000 upon signing. After that there will be monthly payment 
of US$ 5,000 starting on month 3 for a total of US$ 20,000. Should GGG decided 
to form a Joint Venture, GGG will pay additional US$ 10,000 upon signing. GGG's 
total exposure during the first six months Option Period is US$ 75,000. 
 
Subject to due diligence Joint Venture terms are as follows: 
 
  * GGG will own 75% and Fino will own 25% of the Joint Venture company over 
    the Cikoleang Project. 
 
  * GGG will fund the first US$ 2 million of expenditure. 
 
  * Beyond US$ 2 million expenditure both parties will contribute pro rata with 
    the JV proportions. 
 
  * In the event of Fino deciding it does not wish to contribute its interest 
    will be diluted in proportion down to 12.5%. 
 
  * Fino's interest is then held constant at 12.5% unless GGG buys their JV 
    share based on a mutually agreed price. 
 
Further Gold and Copper Opportunities in Indonesia and the Philippines 
 
The Company is still actively reviewing a number of gold and copper 
opportunities with a view to acquiring assets which can be fast tracked towards 
early production. 
 
Receipt of Funds from the sale of Nimu 
 
The Company also announces that it has received the second payment from the 
sale of the Nimu Project into its Chinese subsidiary. 
 
Review of Chinese Operations 
 
Following the acquisition of the option over Cikoleang Gold Property the board 
of Central China Goldfields plc have been reviewing the Company's remaining 
Chinese operation, Dong Mao Huo In the light of the slower than expected 
progress being made by our joint venture partner, the board are considering 
withdrawing from this project to better focus the Company's resources on 
prospects, such as Cikoleang, which have the potential to generate significant 
value for shareholders. Once a withdrawal has been formally completed the 
Company then will inform shareholders once a final decision has been made. 
 
Nominated Adviser Name Change 
 
The Company also wishes to announce that with effect from 26 November 2009, the 
Company's Nominated Adviser changed its name from Hanson Westhouse Limited to 
Westhouse Securities Limited. 
 
Technical information in the Company news releases has been reviewed and 
approved by Ciceron "Jun" Angeles (MSc. FAusIMM, CPGeo) the Company's Technical 
Director. 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                    Westhouse Securities Limited 
 
Dr. Jeffrey Malaihollo                          Tim Metcalfe / Martin Davison 
 
Tel: 020 7621 0200                              Tel: 020 7601 6100 
 
Email: info@ccgoldfields.com 
 
www.ccgoldfields.com                            Alexander David Securities 
                                                Limited 
 
                                                Nick Bealer / David Scott 
 
                                                Tel: 020 7448 9820 
 
 
 
END 
 

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