GFM Griffin Mining Limited

    RNS Number : 5005A
  Griffin Mining Ld
  04 August 2008
   

    GRIFFIN MINING LIMITED
    60 St James's Street, London SW1A 1LE, United Kingdom
    Telephone: + 44 (0)20 7629 7772 Facsimile: + 44 (0)20 7629 7773
    E mail: griffin@griffinmining.com

    TRADING STATEMENT

    4th AUGUST 2008.


    Griffin Mining Ltd ("Griffin" or "the Company") expects to announce its interim results to 30th June 2008 on
    1st September 2008.

    In the six months to 30th June 2008 237,435 tonnes (2007 202,840 tonnes) of ore were processed to produce 11,748 tonnes (2007 10,983
tonnes) of zinc metal in concentrate and 15,787 tonnes (2007 10,893 tonnes) were sold. In addition; 550 tonnes of lead were produced and 483
tonnes sold; 98,843 ozs of silver were produced and 76,363 ozs sold; and 806 ozs of gold were produced and 354 ozs sold. No lead, silver or
gold were produced in the six months to 30th June 2007.

    The results for the six months to 30th June 2008 have been impacted by a 48% reduction in the average price received for zinc
concentrate from that received in the six months to 30th June 2007, as a result of falling world market prices for zinc.
      
    The Company has benefited from the receipt of a C$2.5m break fee from Yukon Zinc Corporation in the six months to 30th June 2008.

    As a result of disruptions to transport and manufacturing in the Beijing area with the Olympic games, delivery of critical items of
plant for the upgrade of the processing facilities at the Caijiaying Mine to a capacity of 750,000 tonnes of ore per annum have been
delayed. As a result completion of the upgrade is not now expected until the end of 2008. Delays have also been experienced in accessing and
developing the lower levels of the mine where higher grade, particularly gold, mineralisation is expected. As a result of the foregoing
matters, production quantities in the second half of 2008 are not expected to exceed those achieved in the first half of 2008 which with
lower zinc prices are likely to result in reduced revenues.  

    In accordance with the joint venture terms, the Company's share of the profits from the Caijiaying mine will be
    reduced from 100% to 60% with effect from 25th July 2008.

    Chairman Mladen Ninkov commented: "The unprecedented measures taken by the Chinese government to ensure the success of the Beijing
Olympic games causing a delay to the delivery of the ball mill and other items to Caijiaying coupled with the dramatic fall in the world
zinc price will most likely lead to reduction in the expectations for Griffin's annual results for 2008. Whilst disappointing for all
concerned, Caijiaying remains very profitable and well within the lowest cost quartile of zinc producers. I have every confidence in
Caijiaying and expect good news in the near future." 


    Further information

 Mladen Ninkov - Chairman          Telephone: +44(0)20 7629 7772
 Roger Goodwin - Finance Director
 Griffin Mining Limited

 Adrian Hadden                     Telephone: +44(0)20 7523 8350
 Collins Stewart Limited


    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

This information is provided by RNS
The company news service from the London Stock Exchange
 
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