Updated resource statement

RNS Number : 9625H

Griffin Mining Ld

03 March 2010

 



60 St James's Street, London SW1A 1LE, United Kingdom

Telephone: + 44 (0)20 7629 7772  Facsimile:  + 44 (0)20 7629 7773

E mail: [e-mail]

3^rd March 2010

UPDATED JORC MINERAL RESOURCE FOR ZONE III AT CAIJIAYING

Griffin Mining Limited ("Griffin" or the "Company") is very pleased to announce the latest JORC reported Mineral Resource for Zone III at its Caijiaying Mine in the People's Republic of China.  The results confirm increased grade and Measured Resources from that previously reported in the Micromine 2002 Mineral Resource Estimate, and extensive resources and long mine life for the continuing mining operations at Zone III.

Highlights include:

1.   The addition of 4.7 million tonnes @ 6.7%  Zinc, 0.9 g/t Gold, 34.3g/t Silver and 0.4% Lead to the Measured Resource at Zone III, containing:

·     318,000 tonnes of Zinc metal

·     19,000 tonnes of Lead metal

·     131,000 ounces of Gold

·     5,200,000 ounces of Silver

2.   The following increase in the grade of the Indicated Resources in Zone III:

·     36% Increase in the Zinc grade

·     16% Increase in the Gold grade

3.   The following increase in the grade of the Inferred Resources in Zone III:

·     51% Increase in the Zinc grade

·     90% Increase in the Gold grade

This Mineral Resource estimate includes a conservative recalculation of the resource at Zone III in light of the grade control drilling undertaken during the 5 years of successful mining operations at Caijiaying, with a reinterpretation of the structure of the ore bodies.  The deeper Mineral Resources have not been included and will be evaluated in light of the proposed drilling program to be undertaken in 2010 which will provide a better understanding of the deeper mineralisation at Zone III.

Drilling along strike and south of Zone III, towards Zone II, is having success with several holes intersecting mineralisation over the IP anomalies that were located in the 2008 IP survey program.  The results have provided the necessary confidence to commit to a 25,000 metre surface and underground drilling program in 2010 which may enable an estimate to be made to JORC reporting standards on the Mineral Resource located in the area between Zones III and II.

The 2010 Mineral Resource was estimated at a zinc cut-off of 1%.  Tabled below is the summary of the recent up-dated 2010 Mineral Resource. 

			Metal Grade				Contained Metal
Category	Cut off	Tonnes	Zn	Pb	Ag	Au	Zn	Pb	Ag	Au
		'000 t	%	%	g/t	g/t	t	t	Oz	Oz
Measured	1%	4,737	6.73	0.41	34.29	0.87	318,657	19,191	5,221,348	131,761
Indicated		5,999	5.85	0.35	32.48	0.81	351,052	20,787	6,263,912	155,724
Inferred		16,596	4.38	0.24	26.39	0.95	726,957	39,437	14,078,921	508,317
Total:		27,332	5.11	0.29	29.09	0.91	1,396,666	79,416	25,564,182	795,803

The information in this report that relates to the 2010 Mineral Resource estimates for the 2010  is based on information compiled by Mr Luke Marshall  BSc Geology , Member AIG. Mr. Marshall is a full time employee of Hebei Hua Ao Mining Industry Company Limited, a subsidiary of Griffin Mining Limited. Mr. Marshall has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he has undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' (the JORC Code). Mr Marshall consents to the inclusion in the report of the matters based on his information in the form and context in which they appear.

CSA Global Pty Ltd undertook a high level review of the resource model and found no flaws to the model or estimation.

A Mineral Reserve Statement for Zone III at Caijiaying is currently being calculated for inclusion in the annual report for 2009.

Chairman Mladen Ninkov commented

"The new resource statement provides for a 35 year mine life within just the defined shallow resources at Zone III at the increased throughput level of 750,000 tonnes per annum expected to be reached in the later half of 2010.  This new resource statement ignores the deeper ore in Zone III, the new resources at Zone II and the significant resources believed to be contained in the large area between the two zones.  This is a wonderful result for shareholders and their continued faith in the Company which, in addition to the cash balances of in excess of $65m in the Group, sets the Company up for a successful and exciting future."

Further information

Griffin Mining Limited

Mladen Ninkov - Chairman                                               Telephone: [phone]

Roger Goodwin - Finance Director

Investec Investment Banking:

Stephen Cooper                                                                   Telephone: [phone]

Griffin Mining Limited's shares are quoted on the Alternative Investment Market (AIM) of the London Stock Exchange (symbol GFM).  The Company's news releases are available on the Company's web site: www.griffinmining.com

GLOSSARY OF TECHNICAL TERMS

"cut-off"                                            the grade above which mineralised material is considered to be ore

"grade"                                             the amount of mineral in each tonne of ore.

"g/t"                                                  gramme/metric tonne

"Indicated Resource"                         that part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a reasonable level of confidence. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are too widely or inappropriately spaced to confirm geological and/or grade continuity but are spaced closely enough for continuity to be assumed.

"Inferred Resource"                           that part of a Mineral Resource for which tonnage, grade and mineral content can be estimated with a low level of confidence. It is inferred from geological evidence and assumed but not verified geological and/or grade continuity. It is based on information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes which may be limited or of uncertain quality and reliability.

"JORC Code"                                    the Australasian Code for Reporting of Mineral Resources and Ore Reserves, 1999. Prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia

"Measured Resources"                      is that part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a high level of confidence. It is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are spaced closely enough to confirm geological and grade continuity

"Mineral Resource"                           a concentration or occurrence of natural, solid, inorganic or fossilized organic material in or on the Earth's crust in such form and quantity and of such a grade or quality that it has reasonable prospects for economic extraction. The location, quantity, grade, geological characteristics and continuity of a mineral resource are known, estimated or interpreted from specific geological evidence and knowledge

"Mineral Reserve"                             that part of a Mineral Resource which has been demonstrated to be economically exploitable

 

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