Interim Results
16 September 2002 - 10:00AM
UK Regulatory
RNS Number:1854B
Griffin Mining Ld
16 September 2002
GRIFFIN MINING LIMITED
1 Berkeley Street, London, W1J 8DJ, United Kingdom
Telephone: + 44 (0)20 7016 8821 Facsimile: + 44 (0)20 7016 9124
E mail: griffin@griffinmining.demon.co.uk
16th September 2002
SUBSTANTIAL RESOURCE UPGRADE EXPECTED AT CAIJIAYING
INTERIM STATEMENT FOR THE 6 MONTHS TO 30 JUNE 2002
Griffin Mining Limited ("Griffin") has today published both a summary report by
independent geological consultants CSA Australia Pty Ltd on the results of its
successful pre-development drilling program at Caijiaying in China and its
interim results for the 6 months ended 30th June 2002, copies of which are
attached hereto.
Griffin has successfully completed its 2002 field programme at its Caijiaying
zinc gold project in China. Although analyses from its pre development drilling
programme are not yet available, visual interpretations indicate that the
resource at Caijiaying is likely to be much larger than previously estimated. A
further announcement will be made when the analyses become available.
Mineralised lodes occur within a 60 metre wide envelope which has been
demonstrated to have a consistent dip of 75-80(o) to the west and have almost a
0.5 kilometre length and 75 metre vertical extent, the first time such
continuity has been demonstrated in the area. At least two parallel lodes are
present within the envelope and in places more lodes are present, contrasting
with the previous interpretation of a single lode. It is likely that this
system continues to the southeastern edge of the deposit giving an overall
length of 1 kilometre. The entire resource can now be re-modelled for a new
resource estimate
The interpretation of steep north-trending lode orientations is consistent with
the mineralisation at the Zone II deposit, which is situated (within Griffin's
licence area) 1 kilometre to the south of the main Zone III deposit and this
strongly suggests that the two deposits are continuous opening up a large area
for further exploration once production begins at Caijiaying
The results of the 2002 drilling work now clears the way for completion of a
feasibility study to western banking standards.
Losses in the six months to 30th June 2002 were further reduced to $109,000
compared to losses of $194,000 in the 6 months ended 30th June 2001. At 30th
June 2002 the Company retained cash and deposits of $2,218,000.
Mladen Ninkov, Chairman, commenting on the activities of Griffin said:
"This is yet another remarkable result for Griffin and its shareholders. Whilst
continuing to reduce our cost base the Company has shown the courage to
undertake further drilling in a difficult base metals market. This decision has
paid off handsomely for shareholders with the expectation now that a large
increase of the resource base at Caijiaying will be announced on the completion
of a competent person's report. It proves the orientation of the ore body and,
for the first time, indicates the full size of the resource and allows Griffin
to have the confidence to move forward with completing the feasibility study,
financing and building an operating mine at Caijiaying. I congratulate everyone
that was involved in this process".
Further information
Mladen Ninkov - Chairman Telephone: +44(0)20 7016 8821
Roger Goodwin - Finance Director Telephone: +44(0)20 7016 8821
Charles Dampney - Charles Stanley Telephone: +44(0)20 7739 8200
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
Consolidated Profit and Loss Account
(Expressed in thousands US Dollars)
6 months to 6 months to Year to
30/06/2002 30/06/2001 31/12/2001
Unaudited Unaudited Audited
$000 $000 $000
Income
Gains on the disposal of investments 8 - -
Net operating expenses (225) (202) (422)
(Loss) on disposal of discontinued operations - - (250)
Operating (Loss) (217) (202) (672)
Foreign exchange profits / (losses) 74 (20) 47
Interest receivable and similar income 34 28 82
(Loss) on ordinary activities before taxation (109) (194) (543)
Taxation on ordinary activities - - -
(Loss) for the financial period (109) (194) (543)
(Loss) per share (cents) (0.1) (0.3) (0.6)
Consolidated Balance Sheet
(Expressed in thousands US Dollars)
30/6/2002 30/6/2001 31/12/2001
Unaudited Unaudited Audited
$000 $000 $000
Fixed Assets
Intangible assets 5,190 4,761 4,985
Tangible assets 2 4 3
5,192 4,765 4,988
Current Assets
Portfolio investments 28 72 17
Accounts receivable 11 262 12
Prepaid expenses 14 21 7
Cash and deposits 2,218 2,915 2,581
2,271 3,270 2,617
Creditors: Amounts falling due within one year
Creditors and accrued expenses (45) (93) (70)
Net current assets 2,226 3,177 2,547
Total net assets 7,418 7,942 7,535
Capital and reserves
Share capital 1,033 1,033 1,033
Share premium 15,516 15,517 15,516
Contributing surplus 3,690 3,690 3,690
Investment revaluation reserve (845) (803) (857)
Foreign exchange reserve 152 176 173
Profit & loss (Deficit) (12,128) (11,671) (12,020)
Equity interests 7,418 7,942 7,535
Attributable net assets per share (cents) 7 8 7
Number of shares in issue 103,257,248 103,257,248 103,257,248
Consolidated Cash Flow
(Expressed in thousands US Dollars)
6 months to 6 months to Year to
30/06/2002 30/06/2001 31/12/2001
Unaudited Unaudited Audited
$000 $000 $000
Net cash (outflow) from operating activities (178) (266) (420)
Investing activities
Interest received 34 28 82
Payments to acquire intangible fixed assets (219) (204) (434)
Payments to acquire tangible fixed assets - 2 (2)
Receipts from the disposal of discontinued - - -
operations
Net cash (outflow) from investing activities (185) (174) (354)
Net cash (outflow) before financing (363) (440) (774)
Financing
Issue of ordinary share capital - 3,101 3,101
Expenses paid in connection with share issue - (116) (116)
- 2,985 2,985
(Decrease) / increase in cash and cash (363) 2,545 2,211
equivalents
Reconciliation of operating (loss) to net cash
(outflow) from operating activities
Operating loss (217) (202) (672)
Taxation - - -
Depreciation 1 2 3
(Gains) on sale of investments (8) - -
Receipts on the sale of investments 8 - -
Payments to acquire investments - (2) -
Provisions in respect of continuing operations - - -
Losses / (profits) on disposal of discontinued
operations - - 250
(Increase) / decrease / in debtors (6) (4) 10
(Decrease) in creditors (24) (37) (61)
Other non-cash income, including exchange
differences 68 (23) 50
(178) (266) (420)
Statement of Total Recognised Gains & Losses
(Expressed in thousands US Dollars)
6 months to 6 months to Year to
30/06/2002 30/06/2001 31/12/2001
Unaudited Unaudited Audited
$000 $000 $000
(Loss) for the period (109) (194) (543)
Unrealised gains / (losses) on investments 12 (430) (485)
Currency translation differences in foreign
currency net investments (20) 16 13
Total gains and (losses) recognised in the (117) (608) (1,015)
period
Notes:
1. This statement has been prepared using accounting policies and
presentation consistent with those applied in the preparation of the statutory
accounts of the Company.
2. Copies of this interim report are being sent to all registered
shareholders. Additional copies are available from the Company's London office,
1 Berkeley Street, London W1J 8DJ.
3. Losses per share have been calculated on the basis of the net loss
after taxation of $109,000 and the weighted average number of shares in issue in
the period ended 30 June 2002 of 103,257,248. There is no dilutive effect of
outstanding share purchase options.
4. The summary accounts set out above do not constitute statutory accounts
as defined by Section 84 of the Bermuda Companies Act 1981 or Section 240 of the
UK Companies Act 1985. The summarised balance sheet at 31 December 2001 and the
summarised profit and loss account, summarised cash flow statement and
summarised statement of total recognised gains and losses for the year then
ended have been extracted from the Group's 2001 statutory financial statements
upon which the auditors' opinion is unqualified.
6. Reconciliation of shareholders' funds.
6 months to 6 months to Year to
30/06/2002 30/06/2001 31/12/2001
Unaudited Unaudited Audited
$000 $000 $000
Total gains and (losses) recognised in the
period (117) (608) (1,015)
Issue of Ordinary Shares in the period - 2,985 2,985
Net additions to shareholders' funds (117) 2,377 1,970
Opening shareholders' funds 7,535 5,565 5,565
Closing shareholders' funds 7,418 7,942 7,535
Date; 13-Sep-02
Ref, RC.94.02
The Directors
Griffin Mining Ltd
1 Berekeley Street
London W1J 8DJ
United Kingdom
Re; The Caijiaying Project
Dear Sirs,
You have asked for a brief explanation of the recent drilling results at
Caijiaying, pending receipt of the core analyses. My summary of these results
is presented below.
Background
This brief information sheet has been prepared by us as Griffin is making an
initial announcement of the results of their recent drilling program on the
Caijiaying Project in China, pending receipt of drill-sample analyses. Neither
CSA nor any of its staff hold any shares in Griffin.
Following the granting of a Mining Licence on the Caijiaying Zone III zinc/gold
deposit on 21st March, 2002, Griffin has completed a program of oriented diamond
drilling between May and August as planned. The purpose of this program was to
confirm the interpretation of sub-vertical, north-trending lodes interpreted
from trial underground mining on the south-eastern part of the resource in 2000.
A secondary objective was to test the corridors for additional lodes between
the previous north-south drill sections by drilling in an east-west orientation.
It was decided to do this over the northern part of the deposit where the
bulk of the mineralisation occurs. This confirmation was needed so that an
updated resource estimate and mine development plan could be made for the final
feasibility study.
Program
The drilling program consisted of seven angled holes drilled on three sections
as follows:
* a Southern Section comprising two holes drilled towards the east (on
grid line 40020N),
* a Central Section (on grid line 40140N) comprising three holes
drilled towards the east and one hole drilled towards the west to
cross-check the other holes, and
* a Northern Section comprising one hole drilled towards the east (on
grid line 40360N).
A total of 2031m were drilled. All three sections were designed to assess the
geometry of mineralisation intersected in the northern part of the previous
north-south 315 Section drilled by the Chinese where 40% of the total resource
occurs. The holes were drilled at a 60(o) precise angle (within 1.5(o))
orthogonal to the known lodes to establish true widths and also test whether the
mineralisation occurs as single or multiple lodes. The previous north-south
drilling had meant that the resource estimate had had to assume only a single
lode. Drill-hole angles were measured using an imported western down-hole
camera and core orientations were established by a down-hole spear. The drill
program was managed by CSA.
Although the analytical results are yet to be received, the mineralisation is
sufficiently identifiable by visual means to be able to interpret the broad
results and their implications for the Project.
Drill Results
On the Southern Section, the recent drilling intersected a new zone of
mineralisation of 10-12m true width which occurs 15m west of the previously
known mineralisation. Both zones occur in a variably mineralised envelope that
is 60m wide and dips at 78(o) to the west and parallel to a 4m-wide felsite
intrusion which occurs 15m east of the mineralisation. Vertical continuity has
been demonstrated over 25m but can be inferred over 75m. The same felsite
intrusion was intercepted on the Central and Northern sections where it also
parallels the mineralisation and, as such, it represents a marker unit.
Mineralisation in the Central Section (120m to the north) also occurs in a 60m
wide envelope (also dipping 75 - 80(o) to the west) but is much more abundant
and occurs in multiple complex lenses, probably due to a cross fault that cuts
off the up-dip vertical extent of the mineralisation on this section. This is
similar to the pattern encountered in the trial mining where east-west lodes
were developed along cross-cutting features. A total of three main lodes with
true widths of 2 -15m were intersected with two smaller peripheral ones of 1 -
5m width. The lodes on this section appear to rapidly pinch and swell over 10m
distances. A vertical extent of the mineralised envelope of over 50m has been
demonstrated and can be inferred over 75m.
The single drill hole on the Northern Section (220m to the north of the Central
Section) showed the same general pattern as the Southern Section. A new lode of
7m true width was encountered 15m west of the previously encountered lode. The
latter original lode was poorly mineralised in the new drill hole as the hole
intersected the felsite intrusion in the middle of the mineralised zone. Like
in the other two sections, the mineralised envelope is 60m wide and dips about
75(o) to the west.
Structural Study
A structural study was completed at the same time as the drilling survey and has
provided a framework for understanding the structural controls on the
mineralisation on a broad scale. An attempt was made to also apply this model
to explain individual lode geometry and, while this may assist future mining
operations, it cannot really be applied to the resource modeling due to limited
data at this stage. Consequently a more empirical approach will be used for
modeling the broad mineralised envelopes that have been defined by the survey.
Conclusions
The main conclusions that can be drawn from these results are as follows;
* Mineralised lodes in the northern part of the deposit are complex
in detail but occur within a 60m-wide envelope which has been demonstrated to
have a consistent dip of 75-80(o) to the west and have at least 460m length and
75m vertical extent. This is the first time such continuity has been
demonstrated in the area.
* The survey has demonstrated that at least two parallel lodes are
present within the envelope and, in places more lodes are present. This
contrasts with the previous interpretation of a single lode which was
constrained by the absence of east-west drill sections.
* The identification of a marker unit that parallels the
mineralisation system will be useful for further resource modeling and
exploration within the area.
* The conclusion regarding lode geometry is similar to that
discovered by trial underground mining of the southeast part of the resource
but the earlier results could not be confidently extrapolated northwards until
now. The two areas are 380m apart.
* The interpretation of steep north-trending lode orientations is
also consistent with the mineralisation at the Zone II deposit, which is
situated 1km to the south of Zone III (also on Griffin's licence) and this
strongly suggests that the two deposits are continuous across the intervening
area which has not yet been adequately tested. This forms a large area for
further exploration.
* The evidence is now overwhelming that the majority of the
Caijiaying mineralisation follows the same consistent orientation so that the
entire resource can be re-modeled for a new resource estimate.
* A new resource estimate will be significantly larger than the
previous resource which had to be estimated using unconventional methods due to
the absence of east-west drill information. A substantial increase can be
expected because the recent drilling intersected more than twice the amount of
mineralisation than was expected. The previous estimate was 1.52Mt @ 12.34%
zinc, 0.53% lead, 48g/t silver and 0.75g/t gold at a 7% zinc cut-off. In
addition, a new resource estimate can be made using block modeling techniques,
thus resulting in a higher level of confidence and a workable resource model for
mine planning.
* Once the new resource estimate is completed, the way will be clear
to upgrade the Chinese Feasibility Study to western banking standards during the
forthcoming winter.
Signed
_______________________
Rupert W. A. Crowe
BSc, F.AusIMM, MIAEG
Managing Director
This information is provided by RNS
The company news service from the London Stock Exchange
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