New Total Global Mineral Resource Statement
50% Increase in Mineral Resource at Caijiaying Zinc-Gold Mine to
101.5 million tonnes
US$17.7 Billion Metal in Situ[1]
18th February 2021
Griffin Mining Limited (“Griffin” or the “Company”) is pleased to announce the new Global Mineral Resource estimate for it’s Caijiaying Zinc-Gold Mine in the People’s Republic of China. The new Global Mineral Resources from the 4 main deposit “Zones”, reported in accordance with the JORC Code (2012) , total:
- 101.5 million tonne Global Mineral Resource (from 67.7 million tonnes[2])
- 4.0 million tonnes of Zinc Metal (from 2.7 million tonnes2)
- 1.6 million ounces of Gold (from 1.0 million ounces2)
- 88.8 million ounces of Silver (from 48.5 million ounces2)
- 0.6 million tonnes of Lead (from 0.2 million tonnes2)
The global Measured, Indicated and Inferred Mineral Resource estimate totals 101.5 Mt at 3.9% Zn, 0.6% Pb, 27.0 g/t Ag and 0.5 g/t Au, resulting in total contained metal of approximately 4.0 million tonnes of zinc metal, 0.6 million tonnes of lead metal, 88.8 million ounces of silver metal and 1.59 million ounces of gold metal.
This is an increase of 33.9 Mt (50%) from the previous mineral resource, which incorporated Zone II and III only, of 67.6Mt @ 3.9% Zn, 0.4% Pb, 22.3g/t Ag and 0.5 g/t Au, as reported on 16th June 2020 in Griffin’s 2019 annual report and accounts.
The contained metal has increased from approximately 2.653 to 3.968 million tonnes of zinc metal, 0.242 to 0.606 million tonnes of lead, 48.5 to 88.8 million ounces of silver and 1.025 to 1.593 million ounces of gold.
The Mineral Resources at Caijiaying are distributed among four “Zones” with the main line of lodes stretching 3km in strike. Zones II, III and VIII are all accessible from the existing mine infrastructure while Zone V is located just 0.8km west of Zone II. As previously announced by the Company on the 4th January 2021, the Zone II and III Mineral Resources are located within a single newly expanded Mining Licence where the current underground mining activity is focused on the Zone III resources. This recent resource increase has now triggered a development programme to be commenced to enable increased production to 1.5 Mt per annum, delivering an 80% production increase in the next two years.
In the future, an additional mine expansion may be delivered with the inclusion of the Zone V and VIII Mineral Resources that are located within the Company’s Retention Licence adjacent to the west of Zone II and north of Zone III, respectively. The Retention Licence is valid for two years and is the first step in the process of converting the area to a Mining Licence.
The strategy of focusing on near-mine exploration and resource definition drilling has delivered substantial growth to the Caijiaying Mineral Resources. At Zone VIII, surface drilling has defined the northern extension to Zone III a further 500m along strike where it remains open at depth. The Zone V Mineral Resource is the result of detailed research into the historical data set. This significant body of work has enabled the Inferred Mineral Resource estimate to JORC 2012 compliance. Further work is planned to unlock the full potential of these maiden resources.
Further information in relation to the Mineral Resource estimate is set out in the appendix to this announcement, and is also available on the Company’s website, www.griffinmining.com
Chairman Mladen Ninkov said “Finally, the vast potential of Caijiaying has been uncovered and confirms the absolute world class nature of the deposit. I am so delighted for the shareholders, directors and staff of Griffin, and in particular, our great friend and recently departed director Rupert Crowe, who believed in, and toiled so passionately for, Caijiaying. Yet we are still only in the earliest of stages of our journey of understanding what still could lie around us and below us. Remarkable!”
COMPETENT PERSON STATEMENT
The information in this announcement that relates to Mineral Resources is based on, and fairly reflects, information compiled by Mr Serikjan Urbisinov a Competent Person, who is a Member of the Australian Institute of Geoscientists. Mr Serikjan Urbisinov is a full-time employee of CSA Global Pty Ltd. Mr Serikjan Urbisinov 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 Person as defined in the 2012 edition of the Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code). Mr Serikjan Urbisinov consents to the disclosure of the information in this announcement of the matters based on his information in the form and context in which it appears.
[1]The insitu metal value is the result of the Company’s assessment based on LME spot metal prices at 16/02/2021 and does not consider modifying factors such as the cost of metal extraction and recovery.
[2] The relative increase in resources compares the current Global Mineral Resource to the total Zone II and Zone III Mineral Resource as at 31st December 2019.
To view the full statement, please click here.
Further information
GRIFFIN MINING LIMITED Telephone: +44(0)20 7629 7772
Mladen Ninkov – Chairman
Roger Goodwin – Finance Director
PANMURE GORDON (UK) LIMITED Telephone: +44 (0)20 7886 2500
John Prior
Joanna Langley
BERENBERG Telephone: +44(0)20 3207 7800
Matthew Armitt
Jennifer Wyllie
Deltir Elezi
BLYTHEWEIGH Telephone: +44(0)20 7138 3205
Tim Blythe
