http://bit.ly/vuQtEeGGG Resources Plc(AIM, ASX: GGG) is a gold...

http://bit.ly/vuQtEe

GGG Resources Plc(AIM, ASX: GGG) is a gold mine development company aiming to restart significant gold production from the Bullabulling Mine, situated at the heart of Western Australia's Eastern Goldfields.


The Bullabulling Mine stopped operation at a time when gold price was approximately $295/oz, leaving known resources in-situ, basic mining infrastructure in place and a comprehensive geological and engineering data bank including records for more than 12,000 drill holes on the property (for almost half a million meters). The open pit operations only extended to a maximum of 80m in depth,
though mineralization was known to extend further (past 180m).


to known macro-shear hosted bulk gold targets across Western Australia but benefits from a later deformation and reactivation of fluid flow resultant in remobilized disseminated gold of a uniform tenor. This second order deformation also provides a mechanism for exploration upside at depth though drilling has y
The geology conforms wellet to confirm any economic resources.


Bullabulling is easily commutable from the mining centres of Coolgardie & Kalgoorlie making it an attractive posting for miners with families. In times where skills are short, such factors can make the difference between average plant performance and excellence and a day down time vs. a week if critical equipment requires maintenance.


Grid power and a dedicated water borehole field are already in place though both will require upgrading to meet higher production targets than were previously achieved.


Processing will be Australian standard tanked CIL. The data bank from previous operations has allowed a very good handle to be gained on processing parameters. Starting from a comparatively high degree of certainty about both resource estimation parameters and processing parameters should allow for consistent achievement of production targets and in time optimize performance to achieve maximum possible returns.


In a merged vehicle called Bullalbulling Gold with Auzex Resources (ASX: AZX), GGG expects to produce 100-150koz of gold per year with a life of mine around 10 years. The current resource is 2.6Moz @ ~1g/t with exploration upside at depth and along strike. We expect the new corporate entity to trade at around 144p once in production with gold at $1700/oz and with 306m shares on issue (i.e. fully diluted on the basis of post-merger share capital). On the basis of current assets a price of around 60p/sh (A$0.94/sh) is supported.
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