Griffin Mining Ld Resource Upgrade - Zone III Caijiaying Mine (9156U)

TIDMGFM

RNS Number : 9156U

Griffin Mining Ld

03 April 2019

Griffin Mining Limited

8(th) Floor, 54 Jermyn Street, London, SW1Y 6LX. United Kingdom

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

E mail: [e-mail]

3(rd) April 2019

78.5% INCREASE IN MINERAL RESOURCE FOR ZONE III

2.051 MILLION TONNES OF ZINC METAL (from 1.244 million tonnes)

885,000 OUNCES OF GOLD (from 574,000 ounces)

33.6 MILLION OUNCES OF SILVER (from 20 million ounces)

$7.8 BILLION METAL IN SITU IN ZONE III

Griffin Mining Limited ("Griffin" or the "Company") is extremely pleased to announce a substantial resource upgrade to the operating mine area at Zone III at its Caijiaying Mine. The Measured, Indicated and Inferred Mineral Resources has increased to 48.7 million tonnes at 4.2% Zinc, 0.2% Lead, 21.4 grammes/tonne Silver and 0.6 grammes/tonne Gold, a 78.5% increase in tonnes from the previously reported Measured, Indicated and Inferred Mineral Resources of 27.3 million tonnes at 4.6% Zinc, 0.2% Lead, 22.9 grammes/tonne Silver and 0.7 grammes/tonne Gold. The results lift the estimate of the contained metal at Zone III from approximately 1.22 to 2.051 million tonnes of zinc metal, from 0.574 to 0.885 million ounces of gold and from 20 to 33.6 million ounces of silver.

Relevant details are set out in the memorandum received from CSA Global in Appendix 1 to this announcement.

It should be stressed that this new resource is not the total "global resource" for the Caijiaying tenement area. The big increase in resources at Zone III has been due to the combination of additional drilling and a far improved understanding of the controls and the distribution of ore within the deposit. Modelling of the resources of the other "zones" at Caijiaying has been progressing with work well advanced on a revised Zone II resource model as well as the maiden estimate for Zone VIII (the recently identified northern resource extension of the Zone III deposit). Resource announcements for those zones should be forthcoming in the near future.

Chairman Mladen Ninkov commented "This is truly an outstanding result for the Company and its shareholders. The new resource statement reaffirms the world class size of the current Zone III orebody. One only wonders what the revised resource statements for Zone II and Zone VIII will reveal and the size of the increase to the global resource at Caijiaying. Stay tuned."

Further information

Griffin Mining Limited

   Mladen Ninkov - Chairman                               Telephone: [phone] 

Roger Goodwin - Finance Director

   Panmure Gordon (UK) Limited                               Telephone: [phone] 

Dominic Morley

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.

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

Appendix 1

CSA Global

Mining Industry Consultants

 
 MEMORANDUM 
 To:        Mladen Ninkov 
 Cc: 
 Date:      2(nd) April 2019 
 From:      Steve Rose 
 CSA Global Report     R206.2019 
  N : 
 Re: Caijiaying Zone III Mineral Resource estimate 
  31(st) December 2018 
 
 
 

CSA Global Pty Ltd

Level 2, 3 Ord Street

West Perth, WA 6005

AUSTRALIA

T [phone]

F [phone]

E [e-mail]

ABN 67 077 165 532

www.csaglobal.com

Summary

Griffin Mining Ltd (Griffin) requested CSA Global Pty Ltd (CSA Global) to prepare an updated Mineral Resource estimate as at December 31(st) , 2018 for Zone III of their Caijiaying Zinc-Gold deposit (Caijiaying), located in Hebei Province, People's Republic of China.

The new Mineral Resource estimate totals 48.7 Mt at 4.2% Zn and 0.6 g/t Au, and contains approximately 2,051 kt of zinc metal and 885 koz of gold metal. This is an increase of 21.5 Mt, 807Kt contained zinc and 311 kOz of contained gold since the Zone III Mineral Resources were last reported on 31(st) December 2017.

The updated Mineral Resources for Zone III of the Caijiaying deposit as at December 31(st) , 2018 are shown in Table 1. The Mineral Resource estimates are reported in accordance with The JORC Code (Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. The JORC Code, 2012 Edition. Prepared by: The Joint Ore Reserves Committee of The Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia (JORC)).

The Mineral Resource estimate is based on 3,754 underground diamond drill holes and 169 surface drill holes. 2,016 new underground diamond drill holes have been completed since the last Mineral Resource estimate. Mineralisation wireframes were interpreted by CSA Global in consultation with Griffin geologists using a nominal 1% Zn cut-off grade ("Zinc Domains") or a nominal 0.5 g/t Au cut-off grade ("Gold Domains"). The Zinc and Gold Domains are reported separately in Table 1. The mineralisation wireframes were used to domain samples, and to then constrain estimation within a 3D block model. Grade interpolation was carried out by ordinary kriging methods.

The Mineral Resource has been depleted using a three-dimensional survey "As Built" wireframe which represents the mined-out voids as at 31(st) December 2018. The Mineral Resource estimate also includes 19,039 t of surface stockpiles. The stockpile estimates are based on actual survey and mine production data.

Table 1: Caijiaying Zone III Mineral Resource estimate December 31(st) , 2018. 1% Zn cut-off grade adopted for Zinc Domains, including surface stockpiles, and 0.5 g/t Au cut-off grade adopted for Gold Domains.

 
                   Caijiaying Zone III Mineral Resources December 31 2018 
             Zinc Domain Grade Tonnage Reported above a Cut-off Grade of 1.0% Zn 
              Tonnes   Zn    Pb     Ag      Au     Zn Metal   Pb Metal   Ag Metal   Au Metal 
  Category     (Mt)    (%)   (%)   (g/t)   (g/t)     (kt)       (kt)      (kOz)      (kOz) 
 
 Measured      19.9    4.6   0.2   23.0     0.7      917         44       14,739      413 
 Indicated     10.1    4.0   0.2   18.2     0.6      404         17       5,907       187 
 Inferred      18.0    4.0   0.2   21.5     0.4      724         36       12,455      211 
 Sub-Total     48.0    4.3   0.2   21.5     0.5     2,045        98       33,100      812 
                   Caijiaying Zone III Mineral Resources December 31 2018 
           Gold Domain Grade Tonnage Reported above a Cut-off Grade of 0.5 g/t Au 
              Tonnes   Zn    Pb     Ag      Au     Zn Metal   Pb Metal   Ag Metal   Au Metal 
  Category     (Mt)    (%)   (%)   (g/t)   (g/t)     (kt)       (kt)      (kOz)      (kOz) 
 
 Measured       -       -     -      -       -        -          -          -          - 
 Indicated      -       -     -      -       -        -          -          -          - 
 Inferred      0.8     0.8   0.1   19.9     3.0       6          1         483         73 
 Sub-Total     0.8     0.7   0.1   19.9     3.0       6          1         483         73 
                         Caijiaying Zone III Total Mineral Resources 
              Tonnes   Zn    Pb     Ag      Au     Zn Metal   Pb Metal   Ag Metal   Au Metal 
  Category     (Mt)    (%)   (%)   (g/t)   (g/t)     (kt)       (kt)      (kOz)      (kOz) 
 
 Measured      19.9    4.6   0.2   23.0     0.6      917         44       14,739      413 
 Indicated     10.1    4.0   0.2   18.2     0.6      404         17       5,907       187 
 Inferred      18.7    3.9   0.2   21.5     0.5      730         37       12,938      284 
 Total         48.7    4.2   0.2   21.4     0.6     2,051        99       33,584      885 
 

Note: rounding errors may occur

Competent Persons Statement

The information in this report that relates to Mineral Resources is based on information compiled by Mr. Steve Rose. Mr. Steve Rose is a full-time employee of CSA Global Pty Ltd and is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr. Steve Rose holds share options in Griffin Mining Ltd. Mr. Steve Rose has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as Competent Persons as defined in the 2012 edition of the Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code). Mr. Steve Rose consents to the disclosure of the information in this report in the form and context in which it appears.

Appendix 2

Glossary of key terms

 
 Competent Person   A minerals industry professional who is a Member 
                     or Fellow of The Australasian Institute of Mining 
                     and Metallurgy, or of the Australian Institute 
                     of Geoscientists, or of a 'Recognised Professional 
                     Organisation' (RPO), as included in a list available 
                     on the JORC and ASX websites. These organisations 
                     have enforceable disciplinary processes including 
                     the powers to suspend or expel a member. 
                     A Competent Person must have a minimum of five 
                     years relevant experience in the style of mineralisation 
                     or type of deposit under consideration and in 
                     the activity which that person is undertaking. 
 CSA                CSA Global Pty Ltd. A private consulting firm 
                     providing technical and management services to 
                     the global resources industry. 
 cross-section      A two dimensional geologic diagram which views 
                     the earth as if it were cut open and seen from 
                     the side. 
 cut-off            The lowest grade, or quality, of mineralised 
                     material that qualifies as economically mineable 

                     and available in a given deposit. May be defined 
                     on the basis of economic evaluation, or on physical 
                     or chemical attributes that define an acceptable 
                     product specification. 
 Indicated          An 'Indicated Mineral Resource' is that part 
                     of a Mineral Resource for which quantity, grade 
                     (or quality), densities, shape and physical characteristics 
                     are estimated with sufficient confidence to allow 
                     the application of Modifying Factors in sufficient 
                     detail to support mine planning and evaluation 
                     of the economic viability of the deposit. 
 
                     Geological evidence is derived from adequately 
                     detailed and reliable exploration, sampling and 
                     testing gathered through appropriate techniques 
                     from locations such as outcrops, trenches, pits, 
                     workings and drill holes and is sufficient to 
                     assume geological and grade (or quality) continuity 
                     between points of observation where data and 
                     samples are gathered. 
 
                     An Indicated Mineral Resource has a lower level 
                     of confidence than that applying to a Measured 
                     Mineral Resource and may only be converted to 
                     a Probable Ore Reserve. 
 Inferred           An 'Inferred Mineral Resource' is that part of 
                     a Mineral Resource for which quantity and grade 
                     (or quality) are estimated on the basis of limited 
                     geological evidence and sampling. Geological 
                     evidence is sufficient to imply but not verify 
                     geological and grade (or quality) continuity. 
                     It is based on exploration, sampling and testing 
                     information gathered through appropriate techniques 
                     from locations such as outcrops, trenches, pits, 
                     workings and drill holes. 
 
                     An Inferred Mineral Resource has a lower level 
                     of confidence than that applying to an Indicated 
                     Mineral Resource and must not be converted to 
                     an Ore Reserve. It is reasonably expected that 
                     the majority of Inferred Mineral Resources could 
                     be upgraded to Indicated Mineral Resources with 
                     continued exploration. 
 JORC Code          Australasian Code for Reporting of Exploration 
                     Results, Mineral Resources and Ore Reserves. 
                     The JORC Code, 2012 Edition. Prepared by: The 
                     Joint Ore Reserves Committee of The Australasian 
                     Institute of Mining and Metallurgy, Australian 
                     Institute of Geoscientists and Minerals Council 
                     of Australia (JORC). 
 Kriging            Kriging is an advanced geostatistical procedure 
                     that generates an estimated surface from a scattered 
                     set of points with z-values 
 Measured           A 'Measured Mineral Resource' is that part of 
                     a Mineral Resource for which quantity, grade 
                     (or quality), densities, shape, and physical 
                     characteristics are estimated with confidence 
                     sufficient to allow the application of Modifying 
                     Factors to support detailed mine planning and 
                     final evaluation of the economic viability of 
                     the deposit. 
 
                     Geological evidence is derived from detailed 
                     and reliable exploration, sampling and testing 
                     gathered through appropriate techniques from 
                     locations such as outcrops, trenches, pits, workings 
                     and drill holes, and is sufficient to confirm 
                     geological and grade (or quality) continuity 
                     between points of observation where data and 
                     samples are gathered. 
 
                     A Measured Mineral Resource has a higher level 
                     of confidence than that applying to either an 
                     Indicated Mineral Resource or an Inferred Mineral 
                     Resource. It may be converted to a Proved Ore 
                     Reserve of under certain circumstances to a Probable 
                     Ore Reserve. 
 

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April 03, 2019 02:00 ET (06:00 GMT)