Extract from iii today on ggg.l (apparently this will go into a...

Extract from iii today on ggg.l (apparently this will go into a shares publication in London soon):

"Buy aspiring gold miner GGG
Resources (GGG:AIM) at 14p
ahead of the first results from
a A$2 million drilling programme
which starts next week on the
two million ounce Bullabulling gold
project in Western Australia. The drill
results will set the tone for GGG�s
attempt to improve confidence in the
quality and quantity of gold in the
ground. Shares understands GGG is
hoping to prove up at least four million
ounces of gold in the long-term.
Informal talks are underway with
partner Auzex Resources (AZX:ASX),
which owns 50% of Bullabulling, as to
taking ownership of the mine into a
single entity. Chairman Peter Ruxton
says this could involve GGG becoming
the full owner, seeking a merger, or
even a third party taking control.
A fund raising looks likely as GGG
hopes to buy parts of a second-hand processing
plant in the first half of 2011 at
a cost of up to A$12 million. We expect
any share placing to be oversubscribed
given the size potential of Bullabulling.
GGG has already seen strong support as
investors mopped up a near-20% stake
in the miner sold over the past
few months by Obtala Resources
(OBT:AIM). A sale of such size would
normally depress a share price, but not
in the case of GGG.
We previously said to take profits at
6.12p (Agenda, 19 Aug) after the shares
jumped nearly 100% in a week as
Bullabulling�s resource quadrupled. At
the time, that looked a suitable exit
point for a stock that had been
depressed for the previous two years
upon project failures in China. We suggested
anyone still interested would
soon find a cheaper entry point. It was
the correct call as GGG subsequently
fell 10% to 5.52p later that month as the
hype died down. It has since risen to a
high of 15p amid a higher gold price and
project developments.
Australian deposits have historically
been economical only above gold grades
of two grams per tonne and minimum
annual processing rates of three million
tonnes of ore. Bullabulling�s average
grade is 1.5 grams per tonne, yet the
rise in the gold price this year makes it
viable to develop. GGG proposes to have
a plant that processes at least three million
tonnes of ore per year capacity and
hopes to produce at least 120,000
ounces of gold annually.
Bullabulling used to be an operating
mine but stopped in the 1990s when its
owner was taken over and the processing
plant was shipped to Ghana to support
the acquirer�s existing operations.
Another company took over
Bullabulling but applied the wrong processing
technique and recovered minimal
amounts of gold. Auzex then
secured the project but lacked the A$2
million necessary to fund the acquisition.
Ruxton, through a prior relationship
with Auzex, was asked to help and
suggested cash-rich GGG which eventually
paid $2.5 million after counter-bidding
a $2 million offer from a Hong
Kong broker.
Shares says: As long as the gold price
stays strong, GGG looks to onto a
winner. Buy. "