GGG Resources plc
LSE : GGG

GGG Resources plc

November 18, 2010 02:16 ET

GGG Resources plc: Bullabulling Gold Project-Resource Drilling Commences

LONDON, UNITED KINGDOM--(Marketwire - Nov. 18, 2010) - GGG Resources plc (the "Company" or "GGG") (LSE:GGG) -

Highlights:

  • An RC drill rig targeting high grade zones has commenced at Bullabulling.

  • A second drill rig, due to start next week, is targeting the conversion of current inferred resources into indicated and measured resources.

  • Snowden Group is advising on the drilling programme and the resource modelling.

  • Most drilling is in the 2.3 km zone between the Bacchus and Phoenix pits, with some drilling in the northern part of the tenement at Bonecrusher.

  • Additional bulk density measurements are also underway.

  • Analysts from UK brokers Westhouse Securities and Collins Stewart have visited the site.

The Joint Venture between GGG Resources plc and Auzex Resources Limited is pleased to announce that the planned resource drilling programme at the former Bullabulling open pit gold mine in Western Australia is underway.

A Programme of Works (POW) application has been approved by the West Australian Department of Mines and Petroleum for the drilling campaign at Bullabulling and VM Drilling Pty Ltd of Kalgoorlie has been confirmed as the drilling contractor.

Work to be undertaken include a 5,000 metre Reverse Circulation ("RC") drilling programme to allow the upgrading of the recent inferred resource estimation (see 16 August 2010 announcement) to measured and indicated resource categories; a 12,000 metre infill RC drilling programme to expand the known resource estimate; and a further 1,200 metres of diamond drill core within the primary zone for metallurgical test work will be undertaken.

The first RC drill rig has started and is targeting historic high grade intersections beneath the Bacchus North pit (which included 7m @ 77g/t Au, 5m @ 14g/t Au, 4m @ 5.08g/t Au, 3m @ 4.43g/t Au, and 3m @ 9.16g/t Au). A second RC drill rig will arrive on site in approximately one week's time and will focus on drilling twin holes to compare results from historic drilling with the aim of improving the confidence in the historical assays. This should allow the current inferred resource to be reclassified to indicated and measured categories which in turn should allow a JORC compliant reserve 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 to approximately 120m depth. The mineral resource excludes all intersections below 120m, any historic production and does not include surface dumps that contain approximately 12,000 ounces of gold in the indicated mineral resource category.

High-Grade Zones:

There are several high grade intersections in the Bacchus Deep area (e.g. 7m @ 77g/t Au, 5m @ 14g/t Au, 4m @ 5.08g/t Au, 3m @ 4.43g/t Au, and 3m @ 9.16g/t Au). However, there are too few intersections to include in the current resource. The current drilling is to confirm the continuity of these high grade intersections.

In-fill drilling:

Based on preliminary pit optimisations of the current inferred resource, the main part of the resource is located in the area from the southern limit of the Bacchus South pit to immediately north of the Phoenix pit over a strike length of 2.3km and over a width of 400m to 800m defined by the Bullabulling shear zone. As there are more drill holes in this area, the majority of reserves are expected to be defined in this area. The areas immediately beneath the Bacchus pits contain resources that can be mined with a minimal strip ratio.

Twinning Programme:

In order to check the historic assay results, each major historical drilling campaign will be checked by geological domain, especially weathering profile, with about 1000-1500 samples required from each domain. Two complete fences of drilling across the shear zone have also been planned to confirm the continuity of grade and geology and to estimate the pegmatite distribution so it can be compensated for in the model outputs. The planned Quality Assurance / Quality Control programme should allow areas with high density historic drilling to be upgraded to indicated and measured resource categories by twinning historic RC drill holes to provide increased confidence in the estimates. Some of the twinned holes will be extended at depth and if successful should increase the current resource. The remaining areas will require infill drilling to convert the inferred resources to measured and indicated. The Snowden Group has been engaged to estimate a new resource including all the new drilling results, advise on the Quality Assurance / Quality Control programme and estimate JORC compliant reserves for the project.

Other Areas:

Drilling has been planned in the Bonecrusher area in the northern part of the tenement. A significant proportion of the resource at Bonecrusher has been drilled using the shallow depth RAB (Percussion or pneumatic Rotary Air Blast) drilling technique and all these holes will have to be re-drilled for the resource in this area to be classified as indicated and measured.

Bulk Density Measurement:

The number and quality of bulk density measurements are also insufficient for upgrading the current resource category. Consequently, a number of new bulk density measurements are required from each weathering domain with particular emphasis on primary ore. This work is also planned at the same time as the drilling using samples from the recent diamond drilling, open cut pits and the new metallurgical drilling.

Initial results from the drilling are expected by the end of the year and the metallurgical test results early next the year. The current inferred resource will be upgraded once the QAQC results have been analysed and a new resource model estimated to include the new infill drilling results. The new resource is expected to include mineralisation below the current inferred resource.

A map showing the planned drill holes is available on the version of this release on the Company's website.

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.

To view the Drill plan showing the location of QAQC and infill drilling in the main resource areas and holes targeting the high grade mineralisation in the Bacchus Deeps area, please visit the following link:

http://media3.marketwire.com/docs/653370.pdf

Contact Information

  • GGG Resources plc
    Dr. Jeffrey Malaihollo
    01992 531820
    www.gggresources.com
    or
    Gresham PR
    Neil Boom
    07866 805 108
    www.greshampr.co.uk
    or
    Westhouse Securities Limited (Nominated Adviser)
    Tim Metcalfe / Martin Davison
    020 7601 6100
    or
    Collins Stewart Europe Limited (Broker)
    John Prior / Adam Miller
    020 7523 8350