Central China Goldfields PLC
Central China Goldfields PLC: SIGNIFICANT DRILLING AND TRENCHING RESULTS FROM GANGJIANG, NIMU PROJECT
Central China Goldfields PLC / Miscellaneous Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer / publisher is solely responsible for the content of this announcement. ---------------------------------------------------------------------- Central China Goldfields plc SIGNIFICANT DRILLING AND TRENCHING RESULTS FROM GANGJIANG, NIMU PROJECT LONDON – 30 August 2007 – Central China Goldfields plc (AIM: GGG) reports significant results on the scout diamond drilling activities at the Gangjiang exploration licence area, Nimu Copper-Molybdenum Project ('Nimu'), with the discovery of at least two areas of high grade mineralisation. At the current molybdenum price of approximately ten times the copper price and assuming 100% metallurgical recovery of both copper and molybdenum, the Guqing and Gelong areas represent areas with a significant concentration of copper and molybdenum mineralisation. Highlights: • A total of eight (8) scout diamond drill holes (GJ01 to GJ08) have been drilled at the Gangjiang exploration licence area. The majority of the drill holes intersected elevated copper and significant molybdenum mineralisation. These drill holes are still open at depth. • Two areas of significant mineralisation have been delineated; these are Guqing and Gelong areas. • In the Guqing area, Hole GJ08 intersected almost continuous mineralisation from 2.9 to 227.7 metres downhole returning about 0.2-0.28% Cu and 0.020-0.029% Mo, including 42 metres at 0.63% Cu and 0.039% Mo. The same hole then intersected 80 metres at 0.31% Cu and 0.067% Mo, including 34 metres at 0.44% Cu and 0.104% Mo. Hole GJ07, intersected 76.5 metres at 0.22% Cu and 0.028% Mo, including 8.7 metres at 0.43% Cu and 0.032% Mo. • Several trenches near Holes GJ08 and GJ07 in Guqing intersected significant mineralisation: Trench GJT01 – 48 metres at 0.72% Cu and 0.020% Mo, including 34 metres @ 0.90% Cu and 0.025% Mo. Trench GJT02 – 87.9 metres at 0.45% Cu and 0.022% Mo,, including 20.5 metres at 1.00% Cu and 0.043% Mo. Trench GJT03 – 22.7 metres at 0.42% Cu and 0.087% Mo and 49.3 metres at 0.31% Cu and 0.007% Mo, including 14 metres at 0.67% Cu and 0.014% Mo. • In the Gelong area, (about 2 kilometres north from Guqing) Hole GJ05 intersected several mineralised sections which are: 37 metres at 0.30% Cu and 0.015% Mo, 19.2 metres at 0.33% Cu and 0.021% Mo, 31 metres at 0.33% Cu and 0.031% Mo and 57 metres at 0.22% and 0.020% Mo. This drill hole terminated in mineralisation. • A detailed IP geophysical survey is currently underway in Bairong and Gangjiang to further define targets for drilling. Jeff Malaihollo, Managing Director of Central China Goldfields plc, comments: 'We are delighted that we have discovered at least two areas of higher grade mineralisation in the Gangjiang Licence, Nimu Project. This is a very positive result from our initial drilling programme at Nimu.' 'It appears that the system in Gangjiang is a molybdenum-rich portion of the copper-molybdenum porphyry. At the current molybdenum price of approximately ten times the copper price, the Guqing and Gelong areas represent areas with a significant concentration of mineralisation.' 'We are now conducting geophysical surveys to further define other targets in this highly mineralised area.' GEOLOGICAL DETAILS: Sampling and Analytical Details Drill core samples (PQ, HQ, NQ core diameter 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), gold by 30 grammes fire assay with AAS finish and molybdenum, arsenic and antimony were analysed by x-ray fluorescence (XRF). Routine international-standard QA/QC procedures were used by Intertek. Two of the eight elements analysed are reported here: copper (Cu) and molybdenum (Mo). The detection limits for Cu and Mo are 2 ppm and 1 ppm, respectively. Guqing The Guqing area is underlain primarily by quartz monzonite intruded by rhyodacitic dikes. Significant copper and molybdenum mineralisation occurs in zones of moderate to intense intermediate argillic (clay – sericite) alteration. Mineralisation consists of chalcopyrite and molybdenite mainly as blebs and fracture fills and less frequently in quartz-calcite veinlets. Pyrite is relatively scarce and copper sulfosalts are locally abundant. Trenches GJT01, GJT02 and GJT03 dug partly on the drill access road delineated almost continuous >0.3% Cu mineralisation for about 400 metres consisting of mixed supergene oxides and hypogene sulphides. Trench GJT01 returned 48 metres at 0.72% Cu and 0.020% Mo, including 34 metres at 0.90% Cu and 0.025% Mo. Trench GJT02 returned 87.9 metres at 0.45% Cu and 0.022% Mo, including 20.5 metres at 1.00% Cu and 0.043% Mo. Trench GJT03 returned 22.7 metres at 0.42% Cu and 0.038% Mo and 49.3 metres at 0.31% Cu and 0.007% Mo, including 14 metres at 0.67% Cu and 0.014% Mo. Holes GJ08 and GJ07 targeted the significant copper and molybdenum mineralisation discovered in the trenches. Hole GJ08 intersected 45.9 metres (from 2.9 to 48.8 m downhole) at 0.20% Cu and 0.020% Mo; and 173 metres (from 54 to 227.7 m downhole) at 0.28% Cu and 0.029% Mo, including 42 metres at 0.63% Cu and 0.039% Mo with elevated Ag values, ie. 4.62 g/t Ag. The mineralisation is most likely continuous from 2.9 to 227.7 metres downhole except that three (3) half-core samples were lost in transit, i.e. from 48.8 to 54 m. Quarter-split samples will be analysed as soon as possible. Further down, the hole also intersected 80 metres (from 293.6 to 339.6 m downhole) at 0.31% Cu, 0.067% Mo and 3.88 g/t Ag, including 34 metres at 0.44% Cu and 0.104% Mo. Hole GJ07 intersected 76.5 metres (from 57.1 to 133.6m downhole) at 0.22% Cu and 0.028% Mo, including 8.7 metres at 0.43% Cu and 0.032% Mo. Gelong The Gelong area is underlain by quartz monzonite and early crowded quartz monzonite porphyry intruded by intra- to late-mineral rhyodacitic dikes. The early crowded quartz monzonite porphyry has been recognised as one of the main-stage intrusion that caused much of the copper and molybdenum mineralisation in the area. The quartz monzonite exhibits moderate potassic alteration. Mineralisation consists of chalcopyrite and molybdenite mainly as fracture fillings and disseminations and less frequently in quartz veinlets. Holes GJ05 and GJ06 targeted the IP and magnetic anomalies delineated by geophysical surveys. Both holes terminated in mineralisation in moderately potassic-altered quartz monzonite. Hole GJ05, the best hole in Gelong, intersected 37 metres (from 20.8 m to 57.8 m downhole) at 0.30% Cu and 0.015% Mo, including 10 metres at 0.45% Cu and 0.027% Mo; 19.2 metres (from 79.8 m to 99 m downhole) at 0.33% Cu and 0.021% Mo; 31 metres (from 118.5 m to 149.5 m downhole) at 0.33% Cu and 0.031% Mo, and 57 metres (from 201.2 to 258.2 m downhole) at 0.22% Cu and 0.021% Mo. Holes GJ03 and GJ04, located 500 metres northeast from Hole GJ05, tested the significant outcrops found during surface mapping in the area. Both drill holes intersected elevated copper mineralisation in potassic and phyllic–altered quartz monzonite, averaging about 0.11 to 0.22% Cu and 0.003 to 0.024% Mo. Hole GJ04 intersected four (4) discrete silver±gold epithermal quartz vein zones overprinting the porphyry system. The apparent widths of the vein zones range from 3.80m to 13.80m. Silver grades ranges from 8.50 to 22.80 g/t) while gold grades ranges from 0.06 to 0.78 g/t. Minor amounts of antimony ('Sb') and arsenic ('As') are associated up to a maximum of 582 parts per million ('ppm') Sb and 328 ppm As. In one vein zone (278-282.7 metres downhole), 0.17% lead and 0.27% zinc were returned. Nading Hole GJ01 targeted the phyllic-altered intra-mineral rhyodacite porphyry stock while Hole GJ02 tested the contact between the rhyodacite porphyry stock and the intruded potassic-altered quartz monzonite. Hole GJ01 intersected very weak copper and molybdenum mineralisation. The best mineralised intercept is 24 metres at 0.12% Cu and 0.001% Mo. Hole GJ02 intersected better mineralisation in the intruded quartz monzonite but is still low, i.e. 264 metres at 0.15% Cu and 0.014% Mo. Technical information in the Company news releases has been reviewed and approved by Ciceron 'Jun' Angeles (MSc. FAusIMM) the Company’s Exploration Manager. 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 Dr. Jeffrey Malaihollo Tel: 020 7621 0200 Email: info@ccgoldfields.com www.ccgoldfields.com Hanson Westhouse Limited Anita Ghanekar / Phil Swinfen Tel: 020 7601 6100 Smithfield Consultants Neil Boom / Rupert Trefgarne Tel: 020 7360 4900 King & Shaxson Capital Limited Nick Bealer Tel: 020 7426 5986 31.08.2007 Financial News transmitted by DGAP ----------------------------------------------------------------------
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