News

April 20, 2008

Griffin Mining Still Sitting On A Huge Cashpile And Working On Deals

By Rob Davies

It’s often said that timing is everything. Certainly the placing Griffin Mining did in July 2007 at 110p to raise £75 million was good for the company, if not, perhaps, for the investors. The reason for the funding was to provide some ammunition for acquisitions. But nothing happened and the shares fell sharply in the autumn in the wake of a temporarily suspension of sales, and, at their current 92.5p are only just beginning to recover. Part of the reason for the recovery is the upcoming results for the last year which are due out at the end of April. The other reason is the announcement in early April of a new mine at the Caijiaying site in China.

Finance director Roger Goodwin waxed lyrical about this new mine. It only lies one and a quarter miles from the current one, and while the grades may not be the highest the location close to established facilities makes them more than attractive. The JORC indicated and inferred resource is 5.2 million tonnes with a grade of 3.2% Zn, 0.6% Pb, 0.3 grammes per tonne gold and 24.4 grammes per tonne silver. A decline has already been driven in to access it and it won’t be long before the underground...