SCR South China

RNS Number:9392Q
South China Resources PLC
08 February 2007



                      South China Resources plc (AIM: SCR)
                   ("South China Resources" or "the Company")

                             DANFENG PROJECT UPDATE



South China Resources wishes to announce an update with regards to the Company's
Danfeng copper ("Cu") - Molybdenum ("Mo") Project ("Danfeng" or "the Project")
in Shaanxi Province, China.



South China Resources PLC has now received the final report ("the Report") from
SRK Exploration Services ("SRKES") titled - "A Review of Drilling, Sampling and
Assaying Procedures". This report was initiated in response to Quality
Assessment and Quality Control ("QA/QC") concerns regarding the drilling,
handling and assaying of copper and molybdenum mineralisation in diamond drill
core and underground channel sampling.



Key findings of the Report can be summarised as follows:


1)      Good copper grades and thicknesses encountered thus far, including
drilling results from Brigade Line 17 announced by the Company on 11 January
2007, appear to support the original Chinese data.


2)      Molybdenite mineralisation is structurally complex and not contiguous.


3)      Drilling to date has indicated that molybdenite mineralisation is not
broadly pervasive throughout the project area. This view is supported by recent
drilling across historical Brigade Line 17.


4)      Some molybdenite loss occurs during drilling where molybdenite forms
paints and flakes in certain lithologies. Further limited molybdenite loss
occurs during transport, handling and cutting of drill core. Assaying for
molybdenum should utilise a 4, not 2 stage, digest technique and therefore true
molybdenum grades have probably been understated to some extent in the existing
database.


5)      However, the estimation of the magnitude of material loss and assay
understatement is not sufficiently high for the Company to believe there is
potential for the Project to sustain a bulk tonnage, high-grade molybdenum mine
is at this time.


6)      Thus the overall the drilling database showing molybdenum in the range
of 0.05% to 0.33% is possibly more representative of average potential project
grades to be expected than underground sampling, which returned higher grades.


As a result of the findings the Company wishes to provide clear guidance to
shareholders regarding future works at Danfeng.



1)      The Company believes that good copper grades, which correlate well with
previous Chinese drilling may be of economic interest to the Company.



2)      The Company believes that given the structural complexities there is
very limited potential for the Project to sustain a bulk tonnage, high-grade
molybdenum mine at the current level of geological understanding. However, the
Company believes that were molybdenum credits to exceed 0.08%Mo this would have
a material economic impact on the copper Project.



3)      As such the Company wishes to model the copper mineralisation to obtain
an understanding of the geometry of that mineralisation and to perform some
studies to determine the economics of mining this as a single product.



4)      The Company intends to continue working with its Joint Venture Partner
to investigate the potential to develop a modest, but scalable copper mining
operation at the Project.



5)      The Company does not believe that in order to do this further drilling
is required at this time, however should further drilling be required, a
suitable contractor will be sought to undertake any such works.





Alastair Clayton, Executive Chairman commented: "Based on recent drilling
results and the SRKES report, the Company believes it is unlikely that the
molybdenum mineralisation will constitute an economic orebody in its own right.
That said, the nature and style of the copper mineralisation is in line with the
Company's expectations and it is now appropriate to make an economic evaluation
of the Danfeng Project based on the copper grades we have reported to date. We
will update the market on this as soon as information is available."



Qualified Person

Alastair Clayton - BSc. (Geol) Hons. Grad. Dip. Finance & Economics (SIA) has
reviewed the information contained in this announcement.  Alastair holds a
Bachelor of Science (Geology) from the University of Western Australia and a
graduate diploma in Finance and economics from the Securities Institute of
Australia.  Alastair is the Executive Chairman of South China Resources Plc.



Enquiries:


South China Resources plc             Nabarro Wells               Parkgreen Communications
Alastair Clayton                      Hugh Oram                   Annabel Leather
+44 (0)20 7 493 7671                  +44 (0)20 7107 8000         +44 (0)20 7851 7480



Notes to Editors:



Background of the Danfeng Project:



Danfeng is a mineralised skarn porphyry related system, previously drilled, bulk
sampled and defined by Chinese exploration efforts. The exploration licence
covers an area of over 10.6 km2. Within this area, through a review of existing
data, sampling and inspection of five exploration adits and the on-going drill
programme, the Company is attempting to define an economic copper resource in
the Danfeng Project area.






                      This information is provided by RNS
            The company news service from the London Stock Exchange
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