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Central China Goldfields directors buy 1.2 million shares

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Central China Goldfields (AIM: GGG) told investors that its directors have increased their holdings in the company, collectively buying 1.2m shares and paying between 2.7 and 2.725p per share. The company has shifted its focus away from China in recent months, with new projects underway in Indonesia and Western Australia.

The company’s Executive Chairman Peter Ruxton bought 700,000 shares at 2.725p, while non-executive directors Nigel Clark and Paul McGroary both purchased 200,000 shares each at 2.275p. Chief Executive Jeff Malaihollo bought 100,000 shares at 2.7p.

McGroary is now materially interested in approximately 8.1m shares, including 3.2m shares held by associated company Marshall Lake Mining, representing 4.11% of the company’s issued share capital. Clark now owns approximately 4m shares equating to 2.03% of Central China Gold. Malaihollo and Ruxton now hold 3.1m and 1.4m shares, representing stakes of 1.59% and 0.72% respectively.

Earlier this month, Central China Goldfields signed an agreement with Auzex Resources (ASX: AZX) to option a joint venture for the development of the Bullabulling gold property in the Coolgardie Goldfield, Western Australia. The company can earn up to 50% interest in the project through the option agreement.

Bullabulling straddles the Great Eastern Highway, 70 kilometres south west of Kalgoorlie in Western Australia. The property consists of 60 square kilometres with a series of licences and granted mining leases covering the typical Eastern Goldfields gold-bearing greenstone. Previous shallow mining over an exposed 14km strike produced some 371,500 ounces of gold from more than six open pit mines. “The obvious potential of the Bullabulling gold project is its historic JORC 431,600 gold ounces estimated when the price of gold was much lower than is currently the case”, Ruxton commented.

In 1998, Bullabulling had a JORC rated Measured and Indicated Resource of 9.3 million tonnes (Mt) at 1.44 gram per tonne gold, equating to approximately 430,000oz. However, with an average drill hole depth of only 34m, the deposit has not been tested at depth and remains open along strike in several areas, CCG said.

Previously in January, the company began work on its first project outside China, following the sale if the Nimu copper-molybdenum project and termination of development at its remaining Chinese project. The
Cikoleang property is located in the Bayah Dome gold district in Indonesia, some 100 kilometres south-west of Jakarta.

The property consists of intermediate sulphidation epithermal gold mineralisation, similar to the neighbouring Cikotok and Cirotan mines. At least ten veins have been recognised with widths of up to 1.5 metres wide with strike lengths of up to 300 metres. Central China Goldfields believes it is possible that some of the veins are continuous.

The on-going work programme is concentrated on detailed geological mapping, focusing on both surface and underground exposures of known gold vein areas. The aim is to extend the gold rich veins as well as identify further enrichment zones and new areas of mineralisation outside of the known veins.

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