Central China Goldfields: Cikoleang gold project update
Wednesday, April 28 2010 - 04:18 AM WIB
As announced on 15 December 2009, the Company entered into an exclusive option agreement over the Cikoleang Gold Property with a local partner company PT Fino Bersaudara (?Fino?) with a view to entering a definitive joint venture agreement (the ?Joint Venture?) within six months.
A further announcement was made on 27 January 2010 following the commencement of field work and the Company is now pleased to provide an update on the findings so far.
PROSPECTS & ROCK SAMPLING RESULTS:
Thirteen vein prospects have been geologically mapped and sampled within the 7,891 hectares exploration licence (KP) area. The mineralisation is of an intermediate sulphidation epithermal vein type where gold and silver are accompanied by variable amounts of base metal sulphides.
Two dominant structural trends have been recognised: NNW to NW at the eastern and western portions and ENE to NE at the central portion. From west to east, the prospects are Cimapag, CLK (previously known as Cikoleang), Cimubui, Cinyukcruk, Cimancak, Pasir Munding, Sibokor, Lamping Timur, Ciuluran, Cikeper, Cicurug, Cikecapi and Ciurug Beber.
The veins widths are up to 1.5m wide with strike lengths of up to 300m long.The most promising of the gold prospects are the Cimapag, CLK and Cimubui vein zones in the western part and Cikecapi and Cicurug in the southeastern part of the property. Results of grab samples are shown below:
| Prospect | No. Samples | Vein Width (m) | g/t Au | g/t Ag |
| Cimapag | 16 | 0.3 - 1.5 | <1.0 - 22.2 | 1.7 - 398 |
| CLK | 8 | 0.15 - 1 | <1.0 - 14.4 | 7 - 50.2 |
| Cimubui | 2 | 0.12 | 1.19 - 1.48 | 2.7 - 18.8 |
| Cikecapi | 5 | 0.2 - 0.8 | <1.0 - 26.6 | <1 - 1140 |
| Cicurug | 7 | 0.2 - 1.5 | <1.0 - 11.9 | 9.9 - 256 |
At Cimapag and CLK, artisanal mining has exposed 100-150 metres long NNW-trending vein zones which may extend under the rice fields to the south. Individual veins are <1 to 1.5m thick.
Ten rock samples taken from ore extracted by the artisanal miners returned <1.0 to 22.2 g/t gold (Au) and 5.5 to 232 g/t silver (Ag). Fourteen rock samples taken from vein float and outcrops returned <1 to 4.1 g/t Au and <1 to 15.1 g/t Ag.
The Cimubui prospect located approximately 500 metres to the southeast of the CLK vein is possibly an extension of the CLK vein. Two rock samples of a quartz veinlet zone returned 1.19 to 1.48 g/t Au and 2.7 to 16.8 g/t Ag.
Cikecapi is a NNW-trending vein zone, up to 300 metres long, that is exposed by artisanal mining. Maximum vein thickness observed is one metre. One sample of the artisanal miners' ore returned 18.1 g/t Au, 1140 g/t Ag and 3.5% manganese (Mn). Four rock samples of vein outcrops returned <1.0 to 26.6 g/t Au and <1.0 to 96.3 g/t Ag.
At Cicurug, west of Cikecapi, three vein zones trending NW to NNE are exposed at surface. Six samples of artisanal miners' ore returned <1.0 to 11.9 g/t Au and 9.9 to 256 g/t Ag while one outcrop sample returned 0.58 g/t Au and 80.4 g/t Ag.
There are eight other vein prospects in the KP area. From west to east, they are listed below:
| Prospect | No. Samples | Vein Width (m) | g/t Au | g/t Ag |
| Cinyukcruk | 2 | 1 | 2.31 - 3.05 | 2.5 - 8.3 |
| Cimancak | 1 | 0.5 | 0.07 | 9.6 |
| Pasir Munding | 1 | 0.4 | 1.84 | 8.2 |
| Sibokor | 1 | 0.75 | 2.33 | 23.3 |
| Lamping Timur | 3 | 0.5 | NA* | NA |
| Cikeper | 3 | 1.1 | 0.09 - 0.15 | 0.6 - 0.7 |
| Ciuluran | 1 | 0.5 | 1.77 | 3.5 |
| Curug Bebek | 2 | 1.2 | 0.37 - 1.1 | 9.9 - 104 |
| *NA - not yet available | ||||
ORIENTATION SOIL SURVEY
During March 2010, an orientation soil survey was undertaken at the CLK and Cikecapi-Cicurug prospects. For each area, two picket lines 100 metres apart were laid out across known mineralized veins. Soil samples were collected every 25 metres along each picket line including field duplicates every ten samples. A total of 158 original soil and 15 duplicate samples were collected.
Two sampling and analytical techniques were applied to the soil survey to determine the most effective sampling method at the Cikoleang Project. The first technique used total digest analytical methods, i.e. Au by fire assay with atomic absorption spectrometry (AAS) finish and Ag, Cu, Pb, Zn, Mo, arsenic (As) and antimony (Sb) by inductively coupled plasma-optical emission spectroscopy (ICP-OES). The second technique used a partial digest method using the patented Mobile Metal Ion (MMI) technology of the SGS Group. Based on the effectiveness of these methods in pinpointing known vein gold mineralisation, the Company will use the most appropriate technique in future routine soil surveys across the prospects.
Analytical results from both labs have been received recently. Data interpretation is still in progress.
ROCK SAMPLING & ANALYTICAL DETAILS
Rock samples, each weighing 0.5 to 1.5 kilograms, were processed and analysed by PT. Intertek Utama Indonesia, a subsidiary of Intertek. The entire samples were dried, crushed and fine pulverized to minus 75 microns. Gold was analysed by 50 grammes fire assay with atomic absorption spectrometry (AAS) finish. For the other 35 elements including Ag, the pulp samples were digested in aqua regia and analysed by inductively coupled plasma-optical emission spectroscopy (ICP-OES). Routine international-standard QA/QC procedures were used by Intertek.
Four elements are reported here: Au, Ag, Zn and Mn. The detection limit for the various elements are - 0.01 parts per million (ppm) for Au, 0.1 ppm for Ag, and 1 ppm for Zn and Mn.
NEXT STEPS
The initial results are encouraging, but the Company is continuing to conduct its detailed geological, legal and financial due diligence during its exclusive six month Option Period over the Cikoleang Project. This Option Period runs to 14 June 2010 and a further update will be provided in due course.
Should GGG decided to form a Joint Venture, GGG will pay additional US$ 10,000 upon signing. GGG?s total exposure during the first six months Option Period is US$ 75,000.
Subject to due diligence Joint Venture terms are as follows:
? GGG will own 75% and Fino will own 25% of the Joint Venture company over the Cikoleang Project.
? GGG will fund the first US$ 2 million of expenditure.
? Beyond US$ 2 million expenditure both parties will contribute pro rata with the JV proportions.
? In the event of Fino deciding it does not wish to contribute its interest will be diluted in proportion down to 12.5%.
? Fino?s interest is then held constant at 12.5% unless GGG buys their JV share based on a mutually agreed price. (end of release)