STOCKS NEWS UK-Griffin Mining up, mining application progress

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10:16GMT 27Oct2009-Griffin Mining up, mining application progress

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Shares in AIM-listed Griffin Mining (GFM.L) rise more than 8 percent after the company says its application to mine below the 1300 level at the Caijiaying zinc-gold mine, near Beijing, has been accepted and may be approved within 28 days.

"As they go deeper underground I think we should see more gold coming through in terms of production," says Asa Bridle, an analyst at Seymour Pierce, maintaining a "hold" recommendation on Griffin.

He adds he is impressed that the mine, which suspended operations for most of the first half due to falling commodity prices, has returned to profitability.

Smaller AIM-listed Ormonde Mining (ORM.I) rises more than 22 percent as it announces a joint venture with Antofagasta Minerals S. A. (ANTO.L) on Ormonde's La Zarza ground holdings (with potential copper) in the Huelva Province of southern Spain.

"The combination of improving metal prices and Antofagasta wanting to look at assets away from its traditional base in Chile has made a nice combination, so it will be interesting to see what results come through," Bridle says.

To see Griffin's statement please click on [ID:nRnsa3901B] and for Ormonde's statement please click on [ID:nRnsa3294B]

Reuters messaging rm://sharon.lindores.reuters.com@reuters.net