Business
Caijiaying Update
Caijiaying Update.
About this update from Griffin Mining Limited
[{"type":"text","content":"\n Griffin Mining Ld\n04 December 2006\n\n\n GRIFFIN MINING LIMITED\n 60 St James's Street, London SW1A 1LE, United Kingdom\n Telephone: + 44 (0)20 7629 7772 Facsimile: + 44 (0)20 7629 7773\n E mail: [email protected]\n\n 4th DECEMBER 2006\n\n UPGRADE OF PROCESSING FACILITIES AT CAIJIAYING ZINC GOLD MINE TO\n 500,000 t.p.a. in 2007\n 750,000 t.p.a. in 2008\n\n\n GRIFFIN CASH HOLDINGS $33 MILLION\n\n\nGriffin Mining Limited ('Griffin' or the 'Company') is extremely pleased to\nannounce that it has concluded a feasibility study on the upgrade to the\nCaijiaying mine processing facilities and, based on the conclusions of that\nstudy, the board of Griffin has resolved to upgrade the Caijiaying processing\nfacilities to enable the processing capacity to be increased from the\ncommissioning capacity of 200,000 tonnes of ore per annum ('t.p.a')\n(subsequently increased to 350,000 t.p.a.) to 500,000 t.p.a. in 2007 and to\n750,000 t.p.a. in 2008.\n\nThe initial plant upgrade in 2007 will enable a precious metals concentrate\ncontaining gold, silver and lead to be produced for sale in China.\n\nThis first stage of the upgrade will be achieved by the addition of floatation\nand scavenger cells, an inline pressure jig, a new power line and sub-station,\nthe construction of a new backfill plant and a new precious metals circuit, all\nto be completed by the end of summer 2007. This will increase the processing\ncapacity to 500,000 t.p.a. The cost of these additions is estimated to be $4.8\nmillion.\n\nThe second stage will consist of a new SAG mill circuit to be ordered in 2007\nwith delivery and installation to be completed in 2008. This will increase the\nprocessing capacity to 750,000 t.p.a. The cost of this addition is estimated to\nbe $2.3 million.\n\nAll capital expenditure will be met by the current cash reserves of the Griffin\nGroup of companies which currently amounts to $33 million. The Company has no\ndebt.\n\nThe increased throughput is expected to substantially increase revenues as a\nresult of greater zinc metal production and the introduction of a new revenue\nstream from the production of precious and other base metals.\n\nThe Company will immediately proceed to complete detailed designs for the\nupgrades, expected to be completed in the second quarter of 2007.\n\nA revised JORC compliant resource statement for zone I...