Griffin Mining Limited · LSE:GFM
Griffin Mining — Investor Presentation (December 2005)
22 slides from Griffin Mining's investor presentation, December 2005
Slide 1: Griffin Mining Limited - Caijiaying zinc-gold project
Griffin Mining Limited Caijiaying zinc-gold project December 2005
Slide 2: Corporate Overview
CORPORATE OVERVIEW • London Stock Exchange AIM quoted company • Market capitalisation of £92m • No Debt • Principal asset: Caijiaying zinc–gold underground mine and processing facilities • Management team with mining, emerging markets and corporate finance expertise
Slide 3: Location of Caijiaying
CAIJIAYING LOCATION OF CAIJIAYING _ l T T 15 Ny N 116° S = a” HEBEI PROVINCE. @ey> - \ > CAIJIAYING 7 l MINE ee ams) yy | Nae a . _ Se, 2 . ~] / Xuannuay® Me "7 A i }: \ : be N° hot j \ \ ”~ 1 Bh Ve ——\ 7 . ’ GREATER LEGEND q i << Great Wall of China \ Wr PS \ BENING —— Highways \ y SS eee a y AREA
Slide 4: Caijiaying Processing Plant
CAIJIAYING PROCESSING PLANT
Slide 5: History
HISTORY • Resource discovered by Chinese in 1967 who subsequently completed, inter alia, 95,000 metres of diamond drilling • Hebei Hua-Ao Joint venture formed in 1994 • Hebei Hua-Ao acquired by Griffin in 1997/98. • Approximately US$5 million of pre-development expenditure including 10,000 metres of
Slide 6: Legal Structure
LEGAL STRUCTURE • Joint venture company, Hebei Hua’ Ao Mining Development Company Limited, established in 1994. Griffin 60% interest (100% interest for first 3 years of production) – Chinese partners 40% • Second joint venture company, Hebei Hua’ Anglo Mining Development Company Limited, established
Slide 7: Project Licence Area
PROJECT LICENCE AREA • JV Company issued with first Exploration Licence under new 1997 Chinese Mining Law in October 1998 over an initial 11.3sq km • Exploration Licence over further 56 sq. km surrounding original licence area • JV Company granted the first new Mining Licence to a foreign controlled
Slide 8: Joint Venture
JOINT VENTURE • Chinese partners – The Ministry of Land and Natural Resources – The Zhangjiakou City Government – The Third Geological Brigade • 25 year Business Licence granted October 1994 • Double taxation treaty with the UK and Australia
Slide 9: Joint Venture Board of Directors & Management
JOINT VENTURE BOARD OF DIRECTORS & MANAGEMENT From left to right: Mr Jin Shengchang, CFO, JV; Mr Pei Xiaodong, Director 3rd Brigade; Mr Jeff Haitian Sun, Chief Rep’ China,Griffin Mining; Mr Zhao Quanle, Dep Director MLR & Director JV; Mr Mladen Ninkov, Chairman Griffin Mining & JV; Mr Zhang Baoyi, C
Slide 10: JORC Code Zone III Resource Statement
JORC CODE ZONE III RESOURCE STATEMENT • Zinc: Indicated & Inferred Resource – 23.6 m/t @ 8.08 % Zn at a 4% cut off – 10.56 m/t @ 11.63 % Zn at a 7% cut off • 1,230,000 tonnes of contained zinc metal • Mineable Reserve for first 14½ years of 2,570,000 tonnes at 12.59% zinc at at 7% cut off, 0.66 g/t
Slide 11: Project Strengths
PROJECT STRENGTHS • Underground mining operation selected due to low capital cost, long life, profitability and good rate of return • Initial mine production 200,000 tonne per ore per annum • Metallurgically simple • Connected to grid power, large water resources and gentle terrain • Substantial tax
Slide 12: Main Design Features
MAIN DESIGN FEATURES • Environmental impact study to World Bank Standards • Main access to orebody by decline handling large motorised traffic. • Ventilation and emergency access by secondary decline and ventilation shaft • Mining and haulage by contractor • Crushing and grinding of ore • Gravity se
Slide 13: Main Production Decline
CAIJIAYING MAIN PRODUCTION DECLINE
Slide 14: Caijiaying Zinc Mine - Site Layout
CAIJIAYING ZINC MINE – SITE LAYOUT
Slide 15: Staff at Caijiaying Processing Plant
STAFF AT CAIJIAYING PROCESSING PLANT
Slide 16: Mine Commissioning
MINE COMMISSING • All key personnel engaged • All main buildings including processing plant, administration & accommodation blocks completed & occupied • Plant commissioned • Zinc concentrate being sold by monthly tender to a number of Chinese smelters • Initial production targets of 3,850 tonnes of
Slide 17: Zinc Concentrate Stock Pile Ready for Sale
ZINC CONCENTRATE STOCK PILE READY FOR SALE
Slide 18: Exploration Potential
EXPLORATION POTENTIAL • Potential to add significant gold & zinc reserves by drilling between mineralized Zones II & III • Drilling and other work in Zones II, IV and V indicate significant potential for discoveries of zinc, gold, copper and other metals • Exploration licence over 56 sq. km of highl
Slide 19: Reverse Circulation Drill Rig
REVERSE CIRCULATION DRILL RIG
Slide 20: Regional Geology Showing Epithermal Gold Targets
REGIONAL GEOLOGY SHOWING EPITHERMAL GOLD TARGETS
Slide 21: Caijiaying Geology
CAIJIAYING CAIJIAYING GEOLOGY ‘GENERALIZED GEOLOGY END ~| First two gold targets being tested from under- ground (see Section) Caijiaying Village Caijiaying Zinc/Gold Mine PRIMARY EXPLORATION TARGETS ‘Showing zinc zones, and all previous drill sites
Slide 22: Summary
SUMMARY • Management team that has delivered a clear strategy of value • Company with extensive experience and presence in China • Well structured and legally secure joint venture with foremost issue of exploration and mining licences in China • Large zinc & gold resource defined • Construction of u
Griffin Mining — Investor Presentation (December 2005) on 6ix