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(Sharecast News) - Griffin Mining said on Thursday that gold production has started in zone three of the Yuan Long orebody at its Caijiaying Mine in China, marking the transition to sustained output from gold-only stopes and establishing gold as a recurring feed source to the processing plant.
The AIM-traded firm said initial stopes in zone three were contributing 5% to 10% of total daily mine production.
It said the Yuan Long orebody remained open to the south and at depth, with further diamond drilling and underground development planned to expand the production footprint.
Ongoing drilling was also expanding contained gold within the Yuan Long system and defining a new high-grade Fu Long feeder system, which management believed could offer near-term growth and longer-term resource expansion.
Recent drilling at Yuan Long returned high-grade gold intercepts at mineable widths, supporting continuity along strike and down-plunge.
Selected true-width intercepts included six metres at 31.5 grams of gold per tonne in hole UGCJY-6485, including 0.6 metres at 312 grams per tonne; 11.9 metres at 5.3 grams per tonne in UGCJY-6488, including 0.6 metres at 92 grams per tonne; and 6.9 metres at 4.7 grams per tonne in UGCJY-6202, including 2.5 metres at 11.8 grams per tonne.
At the Fu Long orebody, drilling confirmed a distinct high-grade feeder system interpreted to contribute to the broader Yuan Long-Fu Long mineralised corridor.
Notable true-width intercepts included 5.9 metres at 71.2 grams per tonne in UGCJY-6047, including 0.8 metres at 479.8 grams per tonne; 12.2 metres at 8.3 grams per tonne in UGCJY-5961, including 5.3 metres at 16 grams per tonne; and 13.9 metres at 5.8 grams per tonne in UCCJY-6048, including two metres at 30.1 grams per tonne.
Other highlighted results included 29 metres at four grams per tonne in UGCJY-6057 and 15.7 metres at 4.6 grams per tonne in UGCJY-6050, which included higher-grade intervals.
The company said identification of the Fu Long feeder system enhanced long-term production flexibility at Caijiaying and introduced additional high-grade growth potential.
"The continuing success of not only discovering more gold at the Caijiaying Mine, but also incorporating new discoveries into the production profile, confirms the quick nature in which newly discovered gold can be profitably extracted for the benefit of the company and, ultimately, the shareholders," said chairman Mladen Ninkov.
"We look forward to further news in due course.@"
At 1327 GMT, shares in Griffin Mining were up 4.83% at 335.47p.
Reporting by Josh White for Sharecast.com.