Further results from drilling at the Dong Mao Huo Gold Project from Central China Goldfields today further underlined the potential of the project to deliver near term cash flow for the company. Reverse circulation results today included assays not only for gold, but for copper and silver which could act as significant by-product credits when the mine is put back into production.
Highlights included drill hole RC37 which intercepted 5 metres grading 3.15 grams per tonne gold, but also 46.7 grams per tonne silver and 0.53% copper from 44 metres down hole. Channel sampling of the walls in Pit 1 of the West Hill also returned ‘gold-rich zones’ over widths between 2 and 6 metres. Similar results were also obtained in Pit 2 and Pit 3, in addition to encouagnig channel sampling in Adit 4 and Adit 5.
Jeff Malaihollo, MD of Central China Goldfields, said that the company was now working towards a in-house resource calculation and mine development plan,"We are now completing the in-house resource calculations and mine development plan for Dong Mao Huo and this will be followed by bulk sampling of the oxide gold on the East Hill. This is the precursor to mining which is scheduled for early 2009.”
“These drill results validate the drill success to date and provide additional knowledge on the location of the higher grade mineralisation at depth. The presence of significant amounts of silver and copper further improves the economics of the project."