4TH QUARTER OPERATIONAL GUIDANCE
18th November 2022
Griffin Mining Limited (“Griffin” or the “Company”) is pleased to announce, following the 20th Congress of the Chinese Communist Party and the subsequent relaxation of the Covid-19 restrictions by the Central Chinese authorities, an update as to the impact of these events for the 4th Quarter operations of the Company.
As previously announced, the Caijiaying Mine was operational as of the 1st November. Nevertheless, the subsequent appearance of Covid-19 in the Zhangjiakou City prefecture imposed significant constraints which hampered the Company’s continuing smooth operations by limiting the functions of various government departments and impeding road transport vital for supplying necessary logistics and supplies to the Caijiaying Mine.
Since the 1st November, the Caijiaying Mine and Site have already experienced 2 government mandated 3 day precautionary shutdowns. Despite the announcement by the central Chinese authorities this week of more relaxed Covid-19 guidelines, there may still be significant disruption if Covid-19 is detected in or around the Caijiaying Mine.
In addition, regulatory processes administered both at the Zhangjiakou City Government and the Hebei Provincial Government levels have been curtailed due to Zhangjiakou and the Provincial Capital being quarantined. As a result, critical operational approvals, such as the use of explosives and the Zone II Safety Facility Design, have been delayed.
However, these restrictions have not impeded the Caijiaying mine from completing the construction of its new dry tailing’s facility TSF#4, obtaining approval and building a new explosive magazine, completing the construction of a greenhouse gas reduction tower for the Site boiler, commencing the solar power project and moving sufficient staff, contractors and materials for full operations to commence at the Caijiaying Mine. Full production and blasting recommenced on the 16th November.
Whilst recognising the potential for further disruption, the Company is expecting to produce 175,000 tonnes of ore in the 4th Quarter and 800,000 tonnes for the 2022 calendar year, despite operations being suspended for almost 5 months of the year. The Company is confident of its key objectives being, a profitable 2022, the continued development of Zone II and Zone III and to increase production throughput to 1.5 million tonnes in 2023.
Chairman Mladen Ninkov commented, “In a very, very difficult year and an uncertain Covid-19 environment, the Caijiaying Mine and its people continue to shrug off adversity and produce extraordinary results. The Company is very fortunate to have the quality and fortitude of the people on site and in the Company. With a clear year ahead of us I expect an exceptional operational performance in 2023.”
About Griffin Mining Limited
Griffin Mining Limited’s shares are quoted on the Alternative Investment Market (AIM) of the London Stock Exchange (symbol GFM). Griffin Mining Limited owns and operates through its 88.8% owned Joint Venture in China the Caijiaying Zinc Gold Mine, a profitable mine producing zinc, gold, silver, and lead metals in concentrates. For more information, please visit the Company’s website griffinmining.com
GRIFFIN MINING LIMITED Telephone: +44(0)20 7629 7772
Mladen Ninkov – Chairman
Roger Goodwin – Finance Director
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