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.

So as to to bolster and maximise zinc production and lay the foundations to the mining of both gold and silver l would much prefer re-investment at this stage as opposed to what i suspect would be a "small " divdend" . GFM has no gearing and with no debt to service , it could achieve a lot with any spare capital . ..@J

Xmas just came early for GFM holders!

Click HERE to find out why!

And a very merry Christmas to you Andy

I bought in at 26p a while back and sold in May at 95p.
I am back in again tentatively.
My question on Chinese stocks is will they pay a dividend?
Will the Chinese pay profits to UK shareholders?
GFM says it won't (?) and has gone for a share buyback.
Therefore how high can the shares go.

Yay finally Griffin has broken the 1 barrier...lets hope it stays there :-)

wow what a good mover GFM has been today and about time too. :-)

Lets hope this keeps going into the 1.20s.

Peter,

The Chinese won't stop you from selling some of your shares if you want some profits.

Anyone thinking over the next month this is going to fall back to around 90 as the RNS was good but not that good for the rise we've seen?

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


8th January 2007


SUBSTANTIAL REVISED JORC MINERAL RESOURCE FOR ZONE III AT CAIJIAYING


INCREASE
1.2 TO 3.0 MILLION TONNES OF ZINC METAL
0.2 TO 1.6 MILLION OUNCES OF GOLD
13.9 TO 53.7 MILLION OUNCES OF SILVER



Griffin Mining Limited ('Griffin' or the 'Company') is pleased to announce a
substantial upwards resource revision following its first 18 months of
operations at its Caijiaying Mine in the People's Republic of China. The
results lift the contained metal in situ from approximately 1.2 to 3.0 million
tonnes of zinc metal, from 0.2 to 1.6 million ounces of gold and from 13.9 to
53.7 million ounces of silver.

The Company has now completed approximately 52,700 m of underground diamond
drilling. The underground drilling used to re-estimate the resource covers less
than 15% of the entire resource area originally defined for the mining
feasibility study in 2002.

The updated resource figures confirm the recent announcement to increase mine
production to 750,000 tonnes of ore per annum by 2008.

Significantly, the resource for silver and gold indicates that the inclusion of
a precious metals circuit will generate significant cash flows for the Company.

The 2006 Mineral Resource was estimated at a zinc cut-off of 1%. Tabled below
is the summary of the recent up-dated 2006 Mineral Resource for the grade
control drilled mine area plus the 2002 Mineral Resource for the non grade
control drilled mine area at both a 1% and 4% cut-off grade. The aggregate
resource is calculated by adding both the 2006 and 2002 resource estimates at a
1% cut-off grade.


Micromine 2002 Mineral Resource Estimate (Non Grade Control Drilling)
Category Cut Tonnes Metal Grade Contained Metal
-off Millions Zinc % Gold g/t Silver g/t Zinc million Gold million Silver
tonnes Oz million Oz
Indicated 1% 40.32 4.3 0.7 20 1.67 0.95 29.53
Inferred 1% 34.29 2.9 0.5 13 0.93 0.56 18.25
Total 1% 74.60 3.6 0.6 17 2.60 1.51 47.78

Indicated 4% 13.72 7.9 0.8 32 1.09 0.33 13.97
Inferred 4% 4.89 8.5 0.5 31 0.42 0.09 4.82
Total 4% 18.61 8.1 0.7 32 1.51 0.42 18.79


FinOre 2006 Mineral Resource Estimate (Grade Control Drilling)
Category Cut Tonnes Metal Grade Contained Metal
-off Millions Zinc % Gold g/t Silver g/t Zinc million Gold million Silver
tonnes Oz
million Oz
Measured 1% 1.52 6.8 0.5 37 0.10 0.02 1.81
Indicated 1% 3.22 5.7 0.6 33 0.18 0.06 3.42
Inferred 1% 0.89 4.5 0.6 22 0.04 0.02 0.65
Total 1% 5.63 5.8 0.6 32 0.32 0.10 5.88



The information in this report that relates to the Mineral Resource estimates
for the 2006 grade control drilled areas is based on information compiled by
Mr C Fawcett BSc (Hons),G Dip Eng, MAusIMM, of FinOre Pty Ltd and the
information relating to the 2002 non grade control drilled area by Mr D Pertel
of Micromine Consulting Ltd. Mr Fawcett is a Member of The Australasian
Institute of Mining and Metallurgy and Mr Pertel is a Member of the Australian
Institute of Geoscientists. Both Mr Fawcett and Mr Pertel have sufficient
experience which is relevant to the style of mineralisation and type of deposit
under consideration and to the activity which they are undertaking to qualify as
a Competent Person as defined in the 2004 Edition of the 'Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves' (the JORC
Code). Mr Fawcett consents to the inclusion in the report of the matters based
on his information in the form and context in which they appear.

Chairman Mladen Ninkov commented 'The new resource statement reaffirms the world
class size of the current orebody which will be extracted at a higher rate with
the planned production increase in 2007 and 2008. Caijiaying continues to
impress and excite all those associated with it.'

These share will easily reach 1.20 !!!!

When is the good news going to finish ????

well i bought in friday and again today...expected it to go to 120p today so maybe tomoro

maetro, much of the good new would have already been priced in, as investors were expecting this...

Too right, I'm out now having ridden this up form 33p a share.

Anyone know when results are due on these.
last year they were released in May, but TMI mentioned March.

Trading Places goes with Griffin Mining, watch the last ten minutes.

http://demand.global-mix.net/?o=gmuk-stockmarket-vod/trading_places-190207.wmv&.wvx

In answer to post 1056, results believed to be due 30th April 2007

Yay GFM break out...I've been waiting for this especially with results due soon and GFM like to add on a nice new juicey tipbit...I wonder what it will be this time :-)
Di

from th eother side;

TAKEN FROM MONEY WEEK.

Griffin Mining sparkled at 113p, up 6p, on buying ahead of Monday's results. Collins Stewart's target price is 139p.

http://www.thisismoney.co.uk/investing-and-markets/tips-and-tactics/article.html?in_article_id=419699&in_page_id=23&ct=5