Griffin Mining nearly doubles resource estimate for Zone III at Caijiaying mine

Shares of Griffin Mining shot higher after outfit reported a near doubling in the estimated mineral resource at the Zone III part of its Caijiaying zinc mine in the People's Republic of China.

The miner estimated a total of 48.7 metric tonnes at averages grades of 4.2% zinc, 0.2% lead, 21.4g/t silver and 0.6g/t gold.

Previously, it had estimated 27.3mt at 4.6% zinc, 0.2% lead, 22.9g/t silver and 0.7g/t gold.

Commenting on the new estimate for Zone III, chairman Mladen Ninkov said it was a "truly an outstanding result".

"One only wonders what the revised resource statements for Zone II and Zone VIII will reveal and the size of the increase to the global resource at Caijiaying," he said.

The revised estimate for Zone II and maiden one for Zone VIII were both well-advanced and should be forthcoming in the near future, Ninkov added.

Griffin classed 40% of those resources as measured, 20% as indicated and 40% as inferred, with the bes zinc grade (4.6%) reported in the measured segment.

Analysts at SP Angel dubbed the revised Zone III estimate "meaningful", telling clients they looked "forward to further updates when the current work is completed."