Western-Australian mining exploration and development company GGG Resources is pleased to announce an update on its Bullabulling project, the former producing gold mine in the Coolgardie Goldfield.
The update includes results from an additional 105 drill holes of the current resource drilling programme. Bullabulling, a large tonnage, low grade deposit with high grade shoots, is being re-developed by GGG Resources with Auzex Resources Limited.
Highlights:
- 105 new drill holes totalling 15,575m completed during February and March 2011, bringing the overall total drilled to 30,854m in 227 drill holes
- Drill results continue to confirm and expand the current resource model and include new high grade intersections
- Approximately 66% of mineralised intersections returned similar or better grades and/or widths than expected from the resource model and 22% of reported mineralised sections are outside the current resource model
- New zones of mineralisation continue to be intersected outside the resource model both below and along strike from known mineralisation
- Most holes continue to return intersections similar to those predicted by the resource model and about a quarter are intersecting new mineralisation not in the resource model
- A Programme of Works has been submitted to the West Australian Department of Mines to allow a total of 194,000m to be drilled in the coming year or as required
Jeff Malaihollo, Managing Director of GGG Resources Plc, said:
"The gold results continue to be both consistent and encouraging. It is therefore with confidence that we are now looking to expand considerably the Bullabulling work programme. We are delighted that we already have in place the finance necessary to fund this ambitious enlarged drilling programme."
Dr. Jeffrey Malaihollo Westhouse Securities Limited (UK Nominated Adviser) MD, GGG Resources plc (UK) Tom Price / Martin Davison
Tel: + 44 1992 531820 Tel: + 44 20 7601 6100
Email: www.gggresources.com
Neil Boom Collins Stewart Europe Limited (Broker) MD, Gresham PR Ltd (UK). John Prior / Adam Miller Tel: + 44 7866 805 108 Tel: + 44 20 7523 8350
David McArthur David Brook GGG Resources plc (Australia) Professional Public Relations (Australia media) 41 Stirling Highway T: +61 8 9388 0944/ +61 433 112 936 Nedlands, WA 6009 E: [email protected] Australia Tel: +61 8 9423 3200
The Bullabulling Gold Project RC resource drilling programme was extended through February and March. Activities continued to focus on infill resource drilling, reviewing QAQC results, review of drill spacing requirements to upgrade the new resource estimate, preliminary resource modelling and metallurgical test work. Detailed drill planning has also been undertaken to expand the resource base and more importantly convert the large amount of Inferred resources to Indicated resources. Results from the drilling to date continue to increase our confidence in the quality of the historic data and accuracy of the current resource estimate.
The majority of holes continue to return intersections similar to those predicted by the resource model and about a quarter are intersecting new mineralisation not currently taken account of by the resource model.
Resource Drilling
A key aim of the current resource drilling programme is to compare results from the historic drilling with the aim of improving the confidence in the historical assays to allow the current Inferred resource to be reclassified to Indicated and possibly Measured categories, and in turn enable initial JORC compliant reserves to be established for the project. The current reported JORC compliant mineral resource is 41,517,000 tonnes @ 1.48 g/t Au for 1.98 million ounces of gold at a 0.7 g/t Au cut off to an assumed economic mining depth of 315m RL, approximately 120m below surface.
Total drilling production to date is 30,854m from 227 holes since the programme commenced, including pre-collars for the metallurgical holes. Since the last announcement where results were reported to 01 February 2011 there has been 15,575 metres drilled in 105 holes to 01 April 2011 (Table 1). Drilling during the period focussed on in-fill drilling new mineralisation found at Titan and Bacchus East, and testing of historical mineralisation south and north of Phoenix, Bacchus South and reconnaissance drilling at Bonecrusher, which is located at the northern end of the Bullabulling mineralised trend.
All the new holes drilled have intersected mineralisation that is similar in grade and widths to the historic drilling. Of particular importance were the results from Bonecrusher which confirmed similar mineralisation five kilometres along strike from the main resource area. Bonecrusher has the potential to add to the resource base of the project as the footwall lodes found to the south have not been tested in this area.
As in the previously announced holes, there are 4 intersections per hole relating to the multiple stacked lodes defined by the structural mapping. Approximately 66% of these intersections returned similar or better grades or widths of mineralisation to the resource model and 34% are worse or did not intersect mineralisation predicted by the resource model. Approximately 23% of the reported intersections have returned gold mineralisation outside the current resource model approximately 120m below surface, which will add to the current resource base of the project.
Resource Estimation
The geological consultants continued to work on the new resource estimate and have been continuously reviewing drilling results as they become available in relation to QAQC and drill spacing requirements. A review of the standards, blanks and duplicate samples to date has also been completed with no issues identified. Preliminary resource estimation has started to finalise the modelling techniques and geostatistical parameters to be used in the resource estimate upgrade. Also detailed process, mining and administration costs are being compiled in preparation for optimisation studies that will be carried out on the upgraded resource estimate to establish a maiden reserve for the project.
Metallurgy Test Work
Consultant metallurgical engineers are currently reviewing the new metallurgical comminution, recovery and variability testwork data and have started modelling potential processing and plant capital costs, assuming a base case plant capacity of 5.0 mtpa. Preliminary crushing, mill and plant design work will also be carried out. This information will then be used to optimise plant throughput, and define operating and capital costs for the planned reserve estimation.
Technical information in the Company's news release has been reviewed and approved by Dr. Jeffrey F. A. Malaihollo the Company's Managing Director, who is a Fellow of the Geological Society of London.
Temu
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