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Griffin Mining News
Griffin Mining Limited (“Griffin” or the “Company”) is extremely pleased to announce that it has concluded a feasibility study on the upgrade to the Caijiaying mine processing facilities and, based on the conclusions of that study, the board of Griffin has resolved to upgrade the Caijiaying processing facilities to enable the processing capacity to be increased from the commissioning capacity of 200,000 tonnes of ore per annum (“t.p.a”) (subsequently increased to 350,000 t.p.a.) to 500,000 t.p.a. in 2007 and to 750,000 t.p.a. in 2008. The initial plant upgrade in 2007 will enable a precious metals concentrate containing gold, silver and lead to be produced for sale in China. This first stage of the upgrade will be achieved by the addition of floatation and scavenger cells, an inline pressure jig, a new power line and sub-station, the construction of a new backfill plant and a new precious metals circuit, all to be completed by the end of summer 2007. This will increase the processing capacity to 500,000 t.p.a. The cost of these additions is estimated to be $4.8 million. The second stage will consist of a new SAG mill circuit to be ordered in 2007 with delivery and installation to be completed in 2008. This will increase the processing capacity to 750,000 t.p.a. The cost of this addition is estimated to be $2.3 million. All capital expenditure will be met by the current cash reserves of the Griffin Group of companies which currently amounts to $33 million. The Company has no debt. The increased throughput is expected to substantially increase revenues as a result of greater zinc metal production and the introduction of a new revenue stream from the production of precious and other base metals. The Company will immediately proceed to complete detailed designs for the upgrades, expected to be completed in the second quarter of 2007. A revised JORC compliant resource statement for zone III at Caijiaying is expected shortly. Mladen Ninkov, Griffin’s Chairman, commented as follows: "This is yet another outstanding result for the shareholders of Griffin which has been achieved by the dedication and talent of the employees and contractors of the Company. All facets of the Company’s asset base continue to improve including the size of the orebody, the talent of the Griffin team and the economic and political stability which China provides."
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Griffin Mining Limited 6th Floor 60 St James's Street London SW1A 1LE |
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Tel: +44 (0)20 7629 7772 Fax: +44 (0)20 7629 7773 |
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