GGG Ggg Resources

 
TIDMGGG 
 
Central China Goldfields plc 
 
                           (the "Company" or "GGG") 
 
                   Cikoleang Indonesian Gold Project Update 
 
London 27 April 2010 - Central China Goldfields plc (AIM: GGG) is pleased to 
announce an update on the Cikoleang Gold Project in the Banten Province, 
Indonesia. 
 
As announced on 15 December 2009, the Company entered into an exclusive option 
agreement over the Cikoleang Gold Property with a local partner company PT Fino 
Bersaudara ("Fino") with a view to entering a definitive joint venture 
agreement (the "Joint Venture") within six months. A further announcement was 
made on 27 January 2010 following the commencement of field work and the 
Company is now pleased to provide an update on the findings so far. 
 
Highlights: 
 
  * Thirteen gold vein prospects have now been identified on the Cikoleang 
    Project area. 
 
  * The most promising targets are the Cimapag, CLK and Cimubui vein zones in 
    the western part and Cikecapi and Cicurug in the southeastern part of the 
    Cikoleang Project. These areas will now form the focus of our exploration 
    efforts. 
 
  * At Cimapag and CLK, 100-150 metres long NNW-trending vein zones have been 
    identified and these remain open to the south. Ten rock samples tested from 
    ore extracted by local artisanal miners returned 0.86 to 22.2 grammes per 
    tonne ("g/t") gold and 5.5 to 232 g/t silver. 
 
  * At the Cimubui prospect, which may be continuous with the CLK vein, two 
    rock samples taken from a quartz veinlet zone returned 1.19 to 1.48 g/t 
    gold and 2.7 to 16.8 g/t silver. 
 
  * To the southeast of the Cikoleang Project, at Cikecapi, a NNW-trending vein 
    zone potentially 300 metres long is exposed at surface. A single sample of 
    artisanal miners' ore returned 18.1 g/t gold and 1140 g/t silver. A further 
    four rock samples of vein outcrops returned between <1.0 and 26.6 g/t gold 
    and <1.0 and 96.3 g/t silver. 
 
  * Also in the southeast at Cicurug, three vein zones trending NW to NNE are 
    exposed at surface. Six samples of artisanal miners' ore returned between 
    less than 1 and 11.9 g/t gold and 9.9 and 256 g/t silver while one outcrop 
    sample returned 0.58 g/t gold and 80.4 g/t silver. 
 
PROSPECTS & ROCK SAMPLING RESULTS: 
 
Thirteen vein prospects have been geologically mapped and sampled within the 
7,891 hectares exploration licence (KP) area. The mineralisation is of an 
intermediate sulphidation epithermal vein type where gold and silver are 
accompanied by variable amounts of base metal sulphides. 
 
Two dominant structural trends have been recognised: NNW to NW at the eastern 
and western portions and ENE to NE at the central portion. From west to east, 
the prospects are Cimapag, CLK (previously known as Cikoleang), Cimubui, 
Cinyukcruk, Cimancak, Pasir Munding, Sibokor, Lamping Timur, Ciuluran, Cikeper, 
Cicurug, Cikecapi and Ciurug Beber. The veins widths are up to 1.5m wide with 
strike lengths of up to 300m long. 
 
The most promising of the gold prospects are the Cimapag, CLK and Cimubui vein 
zones in the western part and Cikecapi and Cicurug in the southeastern part of 
the property. Results of grab samples are shown below: 
 
  Prospect     No.     Vein Width    g/t Au     g/t Ag 
             Samples      (m) 
 
Cimapag         16     0.3 - 1.5     <1.0 -   1.7 - 398 
                                      22.2 
 
CLK             8       0.15 -1      <1.0 -    7 - 50.2 
                                      14.4 
 
Cimubui         2         0.12       1.19 -   2.7 - 18.8 
                                      1.48 
 
Cikecapi        5      0.2 - 0.8     <1.0 -   <1 - 1140 
                                      26.6 
 
Cicurug         7      0.2 - 1.5     <1.0 -   9.9 - 256 
                                      11.9 
 
At Cimapag and CLK, artisanal mining has exposed 100-150 metres long 
NNW-trending vein zones which may extend under the rice fields to the south. 
Individual veins are <1 to 1.5m thick. Ten rock samples taken from ore 
extracted by the artisanal miners returned <1.0 to 22.2 g/t gold (Au) and 5.5 
to 232 g/t silver (Ag). Fourteen rock samples taken from vein float and 
outcrops returned <1 to 4.1 g/t Au and <1 to 15.1 g/t Ag. The Cimubui prospect 
located approximately 500 metres to the southeast of the CLK vein is possibly 
an extension of the CLK vein. Two rock samples of a quartz veinlet zone 
returned 1.19 to 1.48 g/t Au and 2.7 to 16.8 g/t Ag. 
 
Cikecapi is a NNW-trending vein zone, up to 300 metres long, that is exposed by 
artisanal mining. Maximum vein thickness observed is one metre. One sample of 
the artisanal miners' ore returned 18.1 g/t Au, 1140 g/t Ag and 3.5% manganese 
(Mn). Four rock samples of vein outcrops returned <1.0 to 26.6 g/t Au and <1.0 
to 96.3 g/t Ag. At Cicurug, west of Cikecapi, three vein zones trending NW to 
NNE are exposed at surface. Six samples of artisanal miners' ore returned <1.0 
to 11.9 g/t Au and 9.9 to 256 g/t Ag while one outcrop sample returned 0.58 g/t 
Au and 80.4 g/t Ag. 
 
There are eight other vein prospects in the KP area. From west to east, they 
are listed below: 
 
  Prospect      No.    Vein Width    g/t Au     g/t Ag 
              Samples     (m) 
 
Cinyukcruk       2         1         2.31 -   2.5 - 8.3 
                                      3.05 
 
Cimancak         1        0.5         0.07       9.6 
 
Pasir Munding    1        0.4         1.84       8.2 
 
Sibokor          1        0.75        2.33       23.3 
 
Lamping Timur    3        0.5         NA*         NA 
 
Cikeper          3        1.1        0.09 -   0.6 - 0.7 
                                      0.15 
 
Ciuluran         1        0.5         1.77       3.5 
 
Curug Bebek      2        1.2      0.37 - 1.1 9.9 - 104 
 
*NA - not yet available 
 
ORIENTATION SOIL SURVEY 
 
During March 2010, an orientation soil survey was undertaken at the CLK and 
Cikecapi-Cicurug prospects. For each area, two picket lines 100 metres apart 
were laid out across known mineralised veins. Soil samples were collected every 
25 metres along each picket line including field duplicates every ten samples. 
A total of 158 original soil and 15 duplicate samples were collected. 
 
Two sampling and analytical techniques were applied to the soil survey to 
determine the most effective sampling method at the Cikoleang Project. The 
first technique used total digest analytical methods, i.e. Au by fire assay 
with atomic absorption spectrometry (AAS) finish and Ag, Cu, Pb, Zn, Mo, 
arsenic (As) and antimony (Sb) by inductively coupled plasma-optical emission 
spectroscopy (ICP-OES). The second technique used a partial digest method using 
the patented Mobile Metal Ion (MMI) technology of the SGS Group. Based on the 
effectiveness of these methods in pinpointing known vein gold mineralisation, 
the Company will use the most appropriate technique in future routine soil 
surveys across the prospects. 
 
Analytical results from both labs have been received recently. Data 
interpretation is still in progress. 
 
ROCK SAMPLING & ANALYTICAL DETAILS 
 
Rock samples, each weighing 0.5 to 1.5 kilograms, were processed and analysed 
by PT. Intertek Utama Indonesia, a subsidiary of Intertek. The entire samples 
were dried, crushed and fine pulverized to minus 75 microns. Gold was analysed 
by 50 grammes fire assay with atomic absorption spectrometry (AAS) finish. For 
the other 35 elements including Ag, the pulp samples were digested in aqua 
regia and analysed by inductively coupled plasma-optical emission spectroscopy 
(ICP-OES). Routine international-standard QA/QC procedures were used by 
Intertek. Four elements are reported here: Au, Ag, Zn and Mn. The detection 
limit for the various elements are - 0.01 parts per million (ppm) for Au, 0.1 
ppm for Ag, and 1 ppm for Zn and Mn. 
 
NEXT STEPS 
 
The initial results are encouraging, but the Company is continuing to conduct 
its detailed geological, legal and financial due diligence during its exclusive 
six month Option Period over the Cikoleang Project. This Option Period runs to 
14 June 2010 and a further update will be provided in due course. 
 
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. 
 
Technical information 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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