Central China Goldfields says it is ‘on track’ for early cash flow after latest drilling at its Dong Mao Huo project.

The London-based company says the first nine of 50 drill holes confirm the presence of gold at low grades of one to 1.83 grammes per tonne of ore at Dong Mao Huo, is in China’s Nei Menggu ‘autonomous region’. Managing director Jeff Malaihollo says AIM-quoted Central China targets first production in the first quarter of next year and argues that the grades found so far are ‘in line with our expectation that there are high-grade areas surrounded by a lower grade envelope’.

Floated at 1p in 2005, Central China shares surged to 19.12p two years ago, but have fallen back since then. Now 5.75p, they value the company at £7.5 million.  

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Central China Goldfields	AIM	£2.91m	2.00p	0.00p
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Other company articles:
Cost hope at Central China			14/10/2008
Drill progress at Central China			19/06/2008
In the Hot Seat			03/03/2008
Robert Tyerman’s Exploration Insights			07/02/2006
Central China on bid path			13/01/2006