GFM Griffin Mining Limited

RNS Number:0985B
Griffin Mining Ld
22 July 2004


                             GRIFFIN MINING LIMITED

               MINE CONSTRUCTION AT CAIJIAYING ON TIME AND BUDGET

                           CASH AT BANK US$20 MILLION

               DRILLING PROGRAMME TO BEGIN BETWEEN ZONES II & III


22nd July 2004

Griffin Mining Limited ("Griffin" or the "Company") is pleased to announce the
following:


Construction Progress at Caijiaying

Construction of the underground mine and processing facilities at Caijiaying
continues according to schedule - within budget and on target for commissioning
in Spring 2005. More recently construction work has commenced on the processing
plant and supporting facilities with the completion of the final process plant
design and commencement of contracts for the plant construction, main decline
development, site offices, site access roads and other facilities.   In
addition, development of the underground mine is now well advanced with a
vertical ventilation shaft almost completed to the first level, 350 metres of
horizontal development, commencement of stope definition underground drilling
and the start of development of the first ore stopes.

Whilst having incurred expenditure in connection with the above, Griffin
currently retains in excess of $20 million in cash at bank and no debt.


Drilling to Commence Between Zone II & III

Following completion of a successful orientation geophysical survey at
Caijiaying, the Company will now commence a programme of further infill
geophysics and drilling in the area between zone III (the area of initial mine
production) and the 1.5 kilometre area south to zone II. This initial programme
will comprise the drilling of widely spaced diamond drill holes from surface.


Underground Drilling Results & Exploration Activity

The first set of results from the 2004 underground resource definition drilling
program on the zone III deposit have become available.  As previously announced,
the priority has been to drill up gold-bearing ore adjacent to the mine
development in the zone III area that can be readily accessed once production
starts next year.  The initial results confirm the previously suspected
potential indicated from prior surface drilling of:


           Hole No   Interval        Au g/t
         ZK 313-14     2.00m           30.9
         ZK 313-14     8.00m           11.65



A number of diamond core holes were drilled from the level 116 metres
underground in a fan across the strike of the target which gave the following
results (at a 7% Zinc cut off; 2 metre internal dilution and with no upper cut):


           Hole No Interval          Zn %           Au g/t          Ag g/t

         UGCJY-005   6.15m           7.43            3.15             11.35
         UGCJY-008   9.08m           11.43           3.09             18.02
         UGCJY-004   5.15m           8.55            1.48             19.38
         UGCJY-006   5.45m           15.28           0.77             96.84


One further hole will be deepened later and another was abandoned.

The gold is contained within moderate to high grade zinc mineralized zones
although high-grade zinc also occurs outside these zones in addition to the
intercepts reported above.

Overall, the results confirm the presence of a steeply dipping 3-7 metre wide
(true width) gold-bearing lode over a vertical extent of 50 metres.   The upper
part of the lode will be available for mining in the early part of next year.
Further drilling will now be done along strike to fully quantify this lode
system in preparation for mining.  This lode system was not included in the
original mining ore reserve but is likely to make a valuable addition to it once
the strike extent has been determined.

In addition to the drilling work, underground mapping and sampling has located
several previously unsuspected gold-bearing lodes in the walls of the access
incline returning a 6 metre long channel sample at 6.63 g/t Au and 3.95% Zn
across a 3 metre true width structure.  A further lode yielded 3.98 g/t Au over
an interval of 1.5 metres.  It is planned to trial mine these lodes from the
incline in the near future to determine their orientation and extent.

Griffin is also planning a geophysical survey over the regional exploration
licence area, where recent microscopic studies have provided further
confirmation of the epithermal gold potential of this area.



Commenting on the results, Chairman Mladen Ninkov said "These new results are
further evidence that significantly more gold mineralization exists in the zone
III deposit than was indicated in the original drilling and the Company's policy
of delineating reserves via underground drilling has been vindicated.  I am also
very happy with the progress that is being achieved with the construction of the
mine which is, so far, on time and within budget.  Caijiaying continues to
fulfill all our expectations and I look forward to further exploration success
in the coming months."




Further information

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

Philip Davies                                     Telephone: +44(0)20 7953 2000
Charles Stanley & Company Limited



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