Griffin Mining - golden future! http://www.basemetals.com/

GFM deserves a new thread after todays AGM. For the first time the venue was packed with shareholders, a tribute to the interest and support the company has for what the Board has achieved. For those unable to be at the meeting here are some of the points I noted which may interest folk on this BB.

Production: dry and wet testing now completed and zinc concentrate comes through the smelter next week. Zinc price on the LME is currently $1300/ton. GFM is being offered $1700/ton at the mine gate. This premium reflects the demand and difficulty local industry has in sourcing this basic metal ( As an aside the chairman reported that zinc is not easily and efficiently extracted as a recycled metal so newly mined zinc is always required). Cost of production is $595/ton ($700/ton if all depreciation costs are included). Labour costs are $1000/worker pa cf an Aussie underground worker of $130,000/worker pa. Apparently the 20m.pa worker migration from agricultural to industrial jobs means that there are queues of applicants wanting jobs at the mine; wage inflation is not an issue. 240+ employees on site to run the mine on a 24/7 basis.
Production can be increased w/o further investment for a throughput of 400,000 tons of ore pa; An increase to 500,000tons pa would require further investment of between $1m and $2m . All plant has been purposely over-engineered to ensure capacity can rise reliably and with back-up facilities (eg 3 boilers, 2 of which are back-up)
H&S is to world stds., setting an example to the rest of the Chinese mining industry which has a poor record currently because of the number of small private mines.

Reserves: 14.5years supply on current zone rising to 25 years in zone 3. Chairman showed an independent report which believes that the closure of many existing zinc mines is now producing a supply gap which will continue to improve the zinc price cycle to year 2012.

Profits: No problems known or foreseen to the repatriation of profits. However the chairman stated that the profits might achieve more for shareholders if the company uses these for further exploration and possibly buying back the companys shares. The latter move might help resolve the current shorting problem where it is thought that between 6 or 7 million shares are currently being shorted. This move could have a highly geared effect on increasing the share price and help deter the shorters/stock bashers from further activity.

Exploration: Chairman says company will be drilling a further 18,000m over the coming summer months and in his personal view he expects the company to steadily move towards becoming a gold mining concern, with some of the profits from the zinc smelting funding that work. An RC rig which costs 33% of the cost of a diamond drilling rig has been brought on to site.
Future exploration areas always being looked at + changes in Chinese Ministry of Land & Resources policy towards funding means that GFM will likely be offered many more prime government held assets in the near future.

Personal view is that GFM is a well and responsibly run mining company which is now likely to really grab a lot more attention as the profits start to flow as of next week. I am sure others on this BB at the meeting can fill the gaps where I have missed anything.

is there any reasoning behind the 2 Oak & Di or just a nice figure to dream about?
I know of a serious target some have for 70p short term but havent heard elsewhere above 1.

016622 without getting technical with loads of figures just look at the profits that GFM are making each day on zinc plus the cash in the bank and then add the Gold. Just wait for a statement about how much gold has been found and whoosh 2 is not such a dream.
Di

Also, GFM are keen to more than double zinc production to maximise profits during 3 year tax free period....Luvverly.

cheers guys n girls...lets see

How wrong can we be ? - Best result is that MMs are "collecting" for a large buyer and have done a little tree shaking - end of play will tell us (like watching another b****y test match !!

Todays british bulls.
Griffin Mining
Daily Commentary


Our system posted a BUY-IF today. The previous SELL recommendation that was confirmed was made on 22.09.2005 (1) days ago, when the stock price was 42.2500. Since then GFM has gained 4.14% .

Is this finally a good time to buy? Well, it depends. First check what happened at after hours trading and future values. Then, follow the next session very carefully and be on your toes. This candlestick pattern is a bullish one, but we have to see whether it will be confirmed or not.

Do you see a gap-up at the market open? Do you see a white candlestick forming with a higher close at the session's end? Shortly, is it a nice bullish day? If so, place your buy orders and open new long positions. The market is now on the bull side.

But, be careful, also. If you see a gap-down when the market opens, or if the session closes with a bearish sentiment producing a black candlestick characterized by a lower close, do not challenge the market. Ignore the BUY-IF alert. Cancel the buy orders and cover any new long positions that you might have opened. Bears are still in control.

[MOTTO OF THE DAY]
Buy only if the bulls are in charge
Forget about it if the bears surge

Talk english man...

Come back from a week away and look at the price difference. At last others are catching on to this stock. Although Sun.Tel. mention will have helped the fact that GFM has maintained its new levels is encouraging. Andy, you asked if the gold drilling programme would confirm a commercial mine; I am led to believe that at levels of 1gm/ton some mines are profitable; the earlier test drilling at GFM's mine yielded much greater amounts than that but need more extensive drilling to confirm that the results were cocistent over a wider area. The chairman at the AGM reckoned they would but went out of his way to say that was a personal view at that stage.

Sharesure,

Well that would depend on the cost of producing the gold!

In China I would expect the cost to be very reasonable, due to low labour costs. So, with the current high gold price, 1gm per ton could well be economical, but I would prefer to see a slightly higher grade, to gaurd against any fall in the POG, although I don't see that happenning in the near future, quite the opposite in fact.

Andy, Agree re finds of 1g/ton. That wouldn't get anyone excited. I think that the chairman's AGM optimism was based on early drill results over 40 times greater than that; but it is right to be cautious until wider results are known, in case those early results just struck an isolated vein/deposit. Anyway, I doubt we have many weeks to wait before some more extensive drilling results are issued.

Sharesure Hi, hope you had a good holiday.
I asked a question recently, wondered if you could help with :- assuming the drill test results are good, will this mean an economic mine awaits us or will still further tests be needed?

p.s.- has anyone here looked at/bought AIMR? Looking at buying and just wondered if anyone else has any extra info on them? TIA.

Dibbles, apologies, didn't check back carefully enough. Thought it was asked by Andy. I reckon that the viabilility is a foregone conclusion. It's just a case of how good it is, in my opinion, if I am interpreting the AGM comments correctly.

There was some information some wks ago in Shares Mag but have forgot exactley what it said ,if I remember It said we would be hearing some good news in near future

Parkin, Shares just commented that GFM had brought a difficult project in a difficult country in ahead of schedule and on budget. Shares were very slow to realise the potential of GFM, and I think are still lagging in their views behind the rest of us who have been with this stock a lot longer and maybe know the calibre of the mgt. team better. In my experience the mgt. has always exceeded what they have said they would do which is not always true in the mining sector!!!

Another strong day...
I wonder how much further we can go without news though...

22.7m @ 8.36g/t!!!
GOLD...

Griffin Mining Ld
27 September 2005

GRIFFIN MINING LIMITED
60 St James's Street, London SW1A 1LE, United Kingdom
Telephone: + 44 (0)20 7629 7772 Facsimile: + 44 (0)20 7629 7773
E mail:
griffin@griffinmining.com

27th September 2005


UNDERGROUND GOLD DRILLING RESULTS

PRACTICAL COMPLETION OF CAIJIAYING MINE AND PROCESSING PLANT

PRODUCTION UPGRADE STUDY COMMISSIONED

Griffin Mining Limited ('Griffin'or 'the Company') is pleased to announce that a
further exciting gold intersection has been obtained from the underground
drilling program at its Caijiaying mine in China, and that the Company has
commissioned a study to investigate upgrading production at Caijiaying.

Underground Gold Drilling Results

The Company is pleased to announce a further high grade intersection in one
drill hole of:

22.7 metres at 8.36 grams per tonne;
3.5 metres at 4.56 grams per tonne: and
3.9 metres at 5.28 grams per tonne.

This follows the previous announcement by the Company of significant gold
intercepts in one of the underground drill holes of:

8.8 metres at 19.2 grams per tonne; and
6.2 metres at 14.2 grams per tonne.

The latest drill hole is located at the southern end of Zone III at Caijiaying
some 210 metres south of the previous intersection mentioned above. Both
intersections occur at a similar level with few drill holes between them.
Further infill drilling will be undertaken to define the ore reserves in this
area of the mine.

RC Drilling

The reverse circulation ('RC') drilling programme from surface at Caijiaying is
progressing well with approximately 75% of the planned programme completed. Due
to the current lack of capacity in the support services for the mining industry,
assay results have been severely delayed with no meaningful results having yet
been received. The Company will release such results as soon as they become
available.

Practical Completion of Caijiaying Mine and Processing Plant

The Caijiaying mine and processing plant has now reached practical completion
less than 3 months after production began in June of this year. The mine has
been consistently producing ore in excess of the required rate of 3,850 tonnes
per week in the past month. The process plant has now been fully commissioned
for zinc production and has achieved its design specification level with respect
to the recovery rate (92%) and initial production of 45.4 tonnes per day. The
feasibility study head grade of over 10% zinc is now being fed into the mill. As
at the end of August over 50,000 tonnes of ore have been accumulated at surface
in stockpiles ready for processing. With the zinc circuit fully operational, the
gold circuit is now being prepared for commissioning.

Production Upgrade Study Commissioned

With the exceptional mining and production results obtained to date, the Company
has commissioned the relevant studies with a view to upgrading production at
Caijiaying by the summer of next year.

Griffin Mining Chairman Mladen Ninkov commented:

'Caijiaying continues to provide ample evidence that the long term view held by
the Company that Caijiaying will develop into a long term, highly profitable,
world class ore body and mining operation is valid and continues to strengthen
with each passing day. This is a continuing just reward for the loyal
shareholders of the Company.'

Further information

Mladen Ninkov - Chairman Telephone: +44(0)20 7629 7772
Roger Goodwin - Finance Director
Griffin Mining Limited

Andrew Smith/Martin Eales Telephone:+44(0)20 7523 8350
Collins Stewart Limited

Hugo de Salis Telephone: +44(0) 20 7242 4477
St Brides Media & Finance Ltd




Griffin Mining Limited's shares are quoted on the Alternative Investment Market
(AIM) of the London Stock Exchange (symbol GFM).

The Company's news releases are available on the Company's web site:

www.griffinmining.com

Good result, this mine could prove very exciting indeed.

Agreed but why has it not taken off this morning