REG - Griffin Mining Ld - RECORD SECOND QUARTER PRODUCTION

Griffin MiningAnnouncement

07/07/2022 07:17

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RNS Number : 5884R  Griffin Mining Ld  07 July 2022

 

8th Floor, Royal Trust House, 54-56 Jermyn Street, London. SW1Y 6LX, United Kingdom
Telephone: + 44 (0)20 7629 7772  Facsimile:  + 44 (0)20 7629 7773

E mail: griffin@griffinmining.com (mailto:griffin@griffinmining.com)

 

 

Record Second Quarter Production

 

Zone II Mine Plan Approval Update

 

7(th)  July 2022

 

Griffin Mining Limited ("Griffin" or the "Company") is pleased to announce
record production results for the three months to the 30(th) June 2022,
achieved after the successful recommencement of operations following the
enforced suspension of all operations in the first quarter of this year for
the Chinese Lunar New Year holiday celebrations, the 2022 Winter Olympics and
the subsequent Winter Paralympics.

 

 

                                                3 months to 30(th)  June 2022   3 months to 31(st) March 2022  3 months to 30(th)  June 2021
 Ore mined                              Tonnes  338,790                         17,975                         277,112
 Ore processed                          Tonnes  329,390                         8,649                          275,576
 Zinc in concentrate Produced           Tonnes  13,189                          268                            11,645
 Gold in concentrate produced           Ozs     3,504                           1,474                          4,080
 Silver in concentrate produced         Ozs     79,246                          168                            81,098
 Lead in concentrate produced           Tonnes  345                             7                              327
 Average zinc price received per tonne  USD     2,886                           -                              2,224
 Average gold price received per oz     USD     2,323                           -                              1,684
 Average silver price received per oz   USD     18.1                            -                              20.4
 Average lead price received per tonne  USD     1,788                           -                              2,026

 

 

Overview

Record ore mined, hauled and processed and record zinc metal in concentrate
produced was achieved in the second quarter of 2022 at the annualised
equivalent rate of circa 1.3 million tonnes of ore mined and processed.

Whilst Covid-19 restrictions remained in force throughout China, the sale and
transport of metal in concentrate, services and supplies to the Caijiaying
Mine have continued with minimal impact to operations.

Mining and processing have now reached the equivalent of over 1.3 million
tonnes of ore per annum, all of which has been extracted from Zone III. Zone
II not yet been placed into production.

 

Zone II Mine Plan Approval

 

The Zone II Safety Facility Design (the "Mine Plan") was completed for the
mineral resources located in the upper part of Zone II between the 1420RL and
1340RL by the Company, in conjunction with the industry-leading Chinese design
institute ENFI, in accordance with the guidance issued by the Hebei Provincial
Emergency Response Bureau (the "Bureau"), and was submitted to the Bureau in
June 2022 to allow for the commencement of Zone II development in July 2022.

 

The recent meeting of the Bureau to consider the Mine Plan interpreted the
4(th) Recommendation of the National Mine Safety Bureau to include a detailed
design for all of Zone II to the 1000RL and the installation of all safety
facility designs and access to the 1000RL, greatly expanding the scope of the
project.

 

Consequently, the Company immediately began an expansion of its current Mine
Plan to extend it to the 1000RL to accommodate the Bureau's ruling. The new
revised Mine Plan will be reconsidered by the Bureau at the end of September
should there be no additional travel restrictions imposed due the COVID-19
pandemic.

 

Although this is a material change in the scope of works for Zone II and is
estimated to delay the Zone II Mine Plan approval by 3 months, this is more
than offset by the opportunity to have the entire resource contained within
Zone II included within an approved Mine Plan allowing advanced access for
diamond definition drilling ensuring the long-term security of production
without the continual need for ongoing approvals.

 

It is not expected to affect  throughput for 2022 or 2023.

 

Chairman Mladen Ninkov commented, "I would firstly like to congratulate all
the staff and contractors who have delivered such an extraordinary second
quarter result for the Company.  It augurs well for the remainder of the year
ahead and for 2023. Secondly, in the terms of the Mine Plan delay, what at
first seemed like a dark cloud and yet another delay on a licencing matter in
China, having not forgotten the long delays experienced in obtaining the Zone
II mining licence, has in fact delivered the figurative silver lining with the
Company now being able to obtain the Mine Plan approval for the total known
mineral resource on all levels of Zone II. This is quite a win for the
Company. I look forward to further announcements as the year progresses."

 

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 giffinmining.com.

Further information

 

Griffin Mining Limited

Mladen Ninkov - Chairman
Telephone: +44(0)20 7629 7772

Roger Goodwin - Finance Director

 

Panmure Gordon (UK)
Limited
Telephone: +44 (0)20 7886 2500

             John Prior

             Ailsa MacMaster

 

Berenberg
 
Telephone: +44(0)20 3207 7800

            Matthew Armitt

Jennifer Wyllie

Deltir Elezi

 

BlytheRay

            Tim
Blythe
Telephone: +44(0)20 7138 3205

 

Swiss Resource Capital AG

            Jochen
Staiger
Telephone: +41 (0)71 354 8501

 

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

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