GGG Resources plc
LSE : GGG

GGG Resources plc

January 12, 2011 03:00 ET

GGG Resources plc: Bullabulling Gold Project-Resource Drilling Update

LONDON, UNITED KINGDOM--(Marketwire - Jan. 12, 2011) - GGG Resources plc (LSE:GGG) is pleased to announce the results from 59 drill holes of the 18,000 metres resource drilling programme at the Bullabulling Gold Project, a former gold mine in the Coolgardie Goldfield of Western Australia, being developed with the Company's joint venture partner, Auzex Resources Limited. These results follow the announcement made on 15 December 2010 and form part of the same drill programme.

Highlights

•    Assays from the 59 drill holes completed with mineralisation intersected in 58 holes.
     
•    The drilling programme is approximately one third complete and results to date have improved management's confidence in the current resource model and the historic data.
     
•    Approximately a third of the results show higher grade or width than historic results.
     
•    Overall results are similar and consistent with the current resource model.
     
•    New zones of mineralisation, which amounts to about a quarter of the results, have been intersected both below and along strike from known mineralisation.
     
•    New higher grade zones intersected include:
     
    1m at 13.4 g/t Au from 21m in BJ00019, 
     
    10m at 6.4 g/t Au from 75m in BJ00030, 
     
    2m at 30.3 g/t Au from 77m in BJ00030, 
     
    6m at 4.5 g/t Au from 118m in BJ00040, 
     
    1m at 16.0 g/t Au from 58m in BJ00045, 
     
    4m at 7.5 g/t Au from 85m in BJ00046, 
     
    23m at 2.1 g/t Au from 121m in BJ00059, 
     
    39m at 4.9 g/t Au from 34m in BJ00061, 
     
    1m at 152.0 g/t Au from 48m in BJ0061. 
     
•    Metallurgical drilling has been completed.
     
•    Groundwater assessment indicates existing bore holes are in good condition.
     
•    Updated and upgraded JORC resource scheduled for Q2 2011 is on track.

Jeff Malaihollo, Managing Director, comments:

"We are highly encouraged by the results to date which confirm the model of a large, low grade deposit with high grade zones. About a quarter of these results show new zones of mineralisation outside of the historically modelled areas. The majority of the intersections reported today returned similar or better grades or widths of mineralisation. We are nicely on track to deliver an updated and upgraded JORC Mineral Resource in Q2 2011."

Geological Details:

Total drill meterage to date is 6,923m (Table 1), including 3 pre-collars for the metallurgical test work sampling with average core production since the start of the programme of 204m per day. The drilling is progressing as planned and the work-plan to deliver an updated and upgraded JORC resource estimate for Bullabulling in Q2 2011 remains on track.

The main aim of the current drilling programme is to compare results from the historic drilling to allow the current Inferred Resource to be reclassified to Indicated and Measured Resource Categories, and in turn to 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 mining depth of 315m RL, approximately 120m depth.

Drilling has continued to focus on infill drilling to the east and between the Bacchus and Phoenix pits, testing the limits of the resource in the footwall and hanging wall and following up intersections in historic drilling beneath 120m depth.

A total of 8,105 samples have been submitted for assay from the start of the programme (6,922 routine, 687 standards and blanks and 496 duplicates). Assays have been received for all samples submitted. All but one of the fifty nine holes drilled to date has intersected significant mineralisation at 0.3 g/t Au cut off (Table 2) that is similar in grade and widths to the historic drilling. Multiple intersections of mineralisation continue to be returned from each hole that correspond to the interpreted series of westerly dipping stacked lodes, which contain narrow higher grade zones of mineralisation that are discontinuous along strike. These higher grade zones include new intersections of 1m at 13.4 g/t Au from 21m in BJ00019, 10m at 6.4 g/t Au from 75m in BJ00030, 2m at 30.3 g/t Au from 77m in BJ00030, 6m at 4.5 g/t Au from 118m in BJ00040, 1m at 16.0 g/t Au from 58m in BJ00045, 4m at 7.5 g/t Au from 85m in BJ00046, 23m at 2.1 g/t Au from 121m in BJ00059, 39m at 4.9 g/t Au from 34m in BJ00061 and 1m at 152.0 g/t Au from 48m in BJ0061.

There are 192 mineralised intersections returned to date from the drilling and these have been compared to the resource block model to assess the validity of the reported resource. Of these 67 intersections have better grades or widths than predicted by the resource model. Only 23 intersections returned widths or grades worse than predicted by the model and the remaining intersections are similar to the resource model. A total of 50 of the reported intersections have returned gold mineralisation outside the current resource model, which has been reported to approximately 120m below surface, and these will add to the current resource base of the project.

In summary the drilling results to date have improved management's confidence in the current resource model and validated the historic data that was used to estimate the resource model. New zones of mineralisation have been intersected both below and along strike from known mineralisation which will add to the updated resource estimate. The programme is now one third complete and remains on track to be completed by the end of February and for resource modelling to be completed in the first half of 2011.

Snowden continued working on the new resource estimate and are continuing to review drilling results as they become available in relation to Quality Assurance / Quality Control ("QAQC") requirements to upgrade the current resource to Indicated and Measured categories. A review of the QAQC data for the assays received to date is being undertaken and results will be available by the end of January.

The current Inferred Resource estimate 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.

Metallurgical Drilling:

The programme of diamond drilling to collect samples for metallurgical test work has been completed. The core has been logged, photographed and selected 20-25m intervals (300kg) from each drill hole delivered to the Ammtec laboratory in Perth. The core has now been reviewed and various samples selected for comminution (a process by which solid materials are reduced in size, encompassing crushing, grinding and other techniques).

Three samples from each hole have been selected that are representative of the mineralised lithologies and sample preparation has been completed. The remaining core will be crushed and assayed and composite samples selected with grades from 0.7 g/t – 1.5 g/t Au for metallurgical variability test work.

For the purpose of Metallurgical testing, a large bore water sample is required to allow test work to be completed in conditions which are representative of the likely operating conditions.

An assessment of the current status of the Bullabulling ground water bore fields has been completed by geotechnical and hydrology consultants, Mining One. The bores have not been in operation since approximately 1999, but the review has established that all groundwater bores appear to be in good condition (i.e. bore casings appear intact, clean and free of obstruction) and the pipeline from the bore field to the project area is intact. A water sample will be collected, to assist in metallurgical test work, by using a submersible pump after the bore has been pumped clean for 24 hours. The sample will be collected and transported to Ammtec in Perth by the end of January.

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.

Table 1: Bullabulling Collar information for RC drilling to 24 December 2010.

Hole Easting Northing RL Dip Az Length Comments
BJ0008 299,356 6,566,674 430 -50 90 246 Mineralised
BJ0009 299,410 6,566,773 431 -55 90 252 Mineralised
BJ0010 299,387 6,566,773 431 -60 90 241 Mineralised
BJ0011 299,446 6,566,847 431 -60 90 241 Mineralised
BJ0012 299,396 6,566,845 431 -60 90 240 Mineralised
BJ0013 299,385 6,566,924 432 -60 90 247 Mineralised
BJ0014 299,932 6,566,857 431 -60 90 79 Mineralised
BJ0015 299,873 6,566,857 431 -60 90 100 Mineralised
BJ0016 299,832 6,566,857 431 -60 90 120 Mineralised
BJ0017 299,792 6,566,858 431 -60 90 139 Mineralised
BJ0018 299,753 6,566,858 430 -60 90 156 Mineralised
BJ0019 299,930 6,566,932 432 -60 90 90 Mineralised
BJ0020 299,618 6,566,851 432 -60 90 80 Mineralised
BJ0021 299,567 6,566,851 432 -60 90 100 Mineralised
BJ0022 299,755 6,567,002 432 -60 90 80 Mineralised
BJ0023 299,717 6,567,003 432 -60 90 96 Mineralised
BJ0024 299,677 6,567,003 431 -60 90 120 Mineralised
BJ0025 299,754 6,567,129 434 -60 90 80 Mineralised
BJ0026 299,718 6,567,129 434 -60 90 100 Mineralised
BJ0027 299,656 6,567,125 432 -60 90 155 Mineralised
BJ0028 299,768 6,567,150 434 -60 90 80 Mineralised
BJ0029 299,738 6,567,150 434 -60 90 100 Mineralised
BJ0030 299,708 6,567,150 434 -60 90 120 Mineralised
BJ0031 299,892 6,566,678 431 -60 90 90 Mineralised
BJ0032 299,853 6,566,679 430 -60 90 115 Mineralised
BJ0033 299,812 6,566,679 430 -60 90 140 Mineralised
BJ0034 299,772 6,566,680 430 -60 90 159 Mineralised
BJ0035 299,732 6,566,681 430 -60 90 180 Mineralised
BJ0036 299,957 6,566,782 431 -60 90 55 Not Mineralised
BJ0037 299,936 6,566,782 431 -60 90 223 Mineralised
BJ0038 299,916 6,566,782 431 -60 90 79 Mineralised
BJ0039 299,833 6,566,782 430 -60 90 120 Mineralised
BJ0040 299,791 6,566,782 430 -60 90 140 Mineralised
BJ0041 299,851 6,566,926 432 -60 90 127 Mineralised
BJ0042 299,768 6,566,929 431 -60 90 169 Mineralised
BJ0043 299,730 6,566,929 431 -60 90 79 Mineralised
BJ0044 299,675 6,566,929 430 -60 90 103 Mineralised
BJ0045 299,633 6,566,929 431 -60 90 120 Mineralised
BJ0046 299,911 6,566,960 432 -60 90 100 Mineralised
BJ0047 299,871 6,566,960 432 -60 90 120 Mineralised
BJ0048 299,831 6,566,960 432 -60 90 139 Mineralised
BJ0049 299,894 6,566,984 432 -60 90 100 Mineralised
BJ0050 299,832 6,566,985 433 -60 90 127 Mineralised
BJ0051 299,931 6,567,007 432 -60 90 100 Mineralised
BJ0052 299,970 6,567,008 432 -60 90 80 Mineralised
BJ0053 299,953 6,567,063 433 -60 90 91 Mineralised
BJ0054 299,925 6,567,061 433 -62 90 109 Mineralised
BJ0055 299,933 6,567,385 438 -60 90 79 Mineralised
BJ0056 299,893 6,567,383 438 -60 90 100 Mineralised
BJ0059 299,768 6,567,348 438 -60 90 160 Mineralised
BJ0061 299,695 6,567,205 436 -60 90 80 Mineralised
BJ0062 299,655 6,567,205 434 -60 90 100 Mineralised
BJ0064 299,808 6,567,230 435 -60 90 100 Mineralised
BJM001 299,441 6,566,135 374 -70 70 47 Metallurgical Hole
BJM002 299,737 6,567,478 437 -70 90 101 Metallurgical Hole
BJM003 299,916 6,566,857 431 -70 270 113 Metallurgical Hole
BJM004 299,882 6,567,380 439 -90 90 101 Metallurgical Hole
BJM005 299,852 6,567,543 416 -60 90 68 Metallurgical Hole
BJM006 299,412 6,566,000 372 -52 270 75 Metallurgical Hole

Table 2: Intersection summary from drill assays received to December 24, 2010.

Hole From To Width Au g/t Includes Comment
BJ0008 57 59 2 0.32   Reported Previously
BJ0008 70 74 4 0.77 1m @ 1.78g/t From 72m Reported Previously
BJ0008 80 91 11 0.98 1m @ 3.71g/t From 80m Reported Previously
BJ0008 102 112 10 0.73 1m @ 3.54g/t From 111m Reported Previously
BJ0008 129 131 2 0.37   Reported Previously
BJ0008 201 208 7 0.64 1m @ 2.95g/t From 207m Reported Previously
BJ0009 79 90 11 2.92 2m @ 9.625g/t From 83m and 1m @ 8.48g/t From 89m Reported Previously
BJ0009 98 103 5 0.44   Reported Previously
BJ0009 118 122 4 0.57   Reported Previously
BJ0009 136 138 2 0.78   Reported Previously
BJ0009 200 202 2 0.52   Reported Previously
BJ0009 234 240 6 1.07 1m @ 2.40g/t From 239m Reported Previously
BJ0009 247 250 3 0.57   Reported Previously
BJ0010 75 90 15 0.67 1m @ 3.35g/t From 38m Reported Previously
BJ0010 96 102 6 0.79 1m @ 3.89g/t From 101m Reported Previously
BJ0010 217 220 3 1.83 2m @ 2.46g/t From 218m Reported Previously
BJ0011 57 60 3 1.18   Reported Previously
BJ0011 69 74 5 0.72   Reported Previously
BJ0011 98 107 9 6.85 4m @ 14.40g/t From 103m Reported Previously
BJ0011 113 120 7 0.60   Reported Previously
BJ0011 150 155 5 0.41   Reported Previously
BJ0011 191 199 8 1.21 4m @ 1.78g/t From 195m Reported Previously
BJ0011 218 227 9 0.51   Reported Previously
BJ0011 233 235 2 0.49   Reported Previously
BJ0012 120 126 6 0.43   Reported Previously
BJ0012 146 151 5 0.34   Reported Previously
BJ0012 184 188 4 0.39   Reported Previously
BJ0012 193 196 3 1.05 1m @ 2.03g/t From 195m Reported Previously
BJ0012 202 227 25 0.81 3m @ 2.41g/t From 215m Reported Previously
BJ0013 149 152 3 0.74   Reported Previously
BJ0013 203 205 2 1.10   Reported Previously
BJ0013 225 227 2 0.43   Reported Previously
BJ0014 37 40 3 0.45   Reported Previously
BJ0014 52 60 8 0.67   Reported Previously
BJ0014 62 64 2 0.40   Reported Previously
BJ0015 38 64 26 0.64 1m @ 3.89g/t From 38m Reported Previously
BJ0015 71 85 14 0.81 2m @ 3.34g/t From 73m Reported Previously
BJ0016 36 38 2 0.95   Reported Previously
BJ0016 47 53 6 0.31   Reported Previously
BJ0016 62 68 6 0.48   Reported Previously
BJ0016 73 76 3 2.33   Reported Previously
BJ0016 82 101 19 1.30   Reported Previously
BJ0017 1 6 5 2.17 3m @ 3.39g/t From 1m Reported Previously
BJ0017 16 21 5 0.83 1m @ 2.46g/t From 16m Reported Previously
BJ0017 49 53 4 0.62   Reported Previously
BJ0017 70 87 17 0.59 1m @ 3.41g/t From 70m Reported Previously
BJ0017 104 108 4 0.82   Reported Previously
BJ0017 110 115 5 0.47   Reported Previously
BJ0018 38 44 6 0.54   New Intersection
BJ0018 70 73 3 0.34   New Intersection
BJ0018 96 98 2 0.80   New Intersection
BJ0018 119 121 2 0.38   New Intersection
BJ0018 122 126 4 0.31   New Intersection
BJ0019 41 54 13 0.63 1m @ 13.45g/t From 21m New Intersection
BJ0019 67 72 5 0.54   New Intersection
BJ0020 36 39 3 0.43   New Intersection
BJ0020 48 51 3 1.07   New Intersection
BJ0020 52 54 2 0.42   New Intersection
BJ0020 62 64 2 0.36   New Intersection
BJ0020 65 70 5 0.55   New Intersection
BJ0021 53 59 6 0.96 1m @ 4.57g/t From 58m New Intersection
BJ0021 63 71 8 0.75   New Intersection
BJ0022 13 15 2 3.49   New Intersection
BJ0022 51 61 10 0.59   New Intersection
BJ0022 73 76 3 0.85   New Intersection
BJ0023 41 55 14 0.98   New Intersection
BJ0024 11 13 2 0.44   New Intersection
BJ0024 48 56 8 0.61   New Intersection
BJ0024 68 72 4 0.40   New Intersection
BJ0024 95 99 4 0.36   New Intersection
BJ0024 104 107 3 0.50   New Intersection
BJ0025 35 42 7 0.54   New Intersection
BJ0025 50 62 12 0.76   New Intersection
BJ0025 68 77 9 0.95 1m @ 4.29g/t From 76m New Intersection
BJ0026 37 39 2 0.42   New Intersection
BJ0026 44 68 24 0.77   New Intersection
BJ0026 77 82 5 0.32   New Intersection
BJ0027 54 68 14 0.58   New Intersection
BJ0027 71 74 3 0.33   New Intersection
BJ0027 79 82 3 1.94 1m @ 5.06g/t From 79m New Intersection
BJ0027 88 100 12 0.61   New Intersection
BJ0027 111 116 5 0.58   New Intersection
BJ0027 132 136 4 0.70   New Intersection
BJ0028 32 34 2 0.46   New Intersection
BJ0028 36 45 9 0.65   New Intersection
BJ0028 61 63 2 0.98   New Intersection
BJ0028 78 80 2 0.70   New Intersection
BJ0029 38 46 8 1.33 2m @ 3.00g/t From 43m New Intersection
BJ0029 62 69 7 0.90   New Intersection
BJ0030 46 50 4 0.91   New Intersection
BJ0030 60 67 7 0.38   New Intersection
BJ0030 75 85 10 6.39 2m @ 30.27g/t From 77m New Intersection
BJ0030 109 113 4 1.40   New Intersection
BJ0030 114 116 2 0.32   New Intersection
BJ0031 53 58 5 0.44   New Intersection
BJ0032 99 101 2 0.81   New Intersection
BJ0033 53 58 5 0.36   New Intersection
BJ0033 117 122 5 0.49   New Intersection
BJ0034 67 69 2 0.34   New Intersection
BJ0034 72 78 6 0.54   New Intersection
BJ0034 101 105 4 0.31   New Intersection
BJ0035 13 15 2 2.22   New Intersection
BJ0035 68 70 2 0.83   New Intersection
BJ0035 89 97 8 0.82   New Intersection
BJ0035 109 112 3 0.67   New Intersection
BJ0037 35 44 9 1.56 5m @ 2.20g/t From 35m New Intersection
BJ0037 72 74 2 3.01   New Intersection
BJ0038 36 48 12 1.29   New Intersection
BJ0038 49 51 2 0.38   New Intersection
BJ0038 76 79 3 1.61   New Intersection
BJ0039 69 71 2 0.43   New Intersection
BJ0039 80 82 2 0.48   New Intersection
BJ0039 90 102 12 0.69   New Intersection
BJ0040 29 32 3 1.53 1m @ 4.00g/t From 29m New Intersection
BJ0040 47 53 6 0.76   New Intersection
BJ0040 73 75 2 0.59   New Intersection
BJ0040 86 89 3 0.84   New Intersection
BJ0040 118 124 6 4.53 3m @ 8.52g/t From 120m New Intersection
BJ0042 27 30 3 0.37   New Intersection
BJ0042 53 55 2 0.40   New Intersection
BJ0042 80 84 4 0.41   New Intersection
BJ0042 92 98 6 0.83   New Intersection
BJ0043 11 14 3 0.60   New Intersection
BJ0043 33 38 5 1.88 2m @ 3.91g/t From 34m New Intersection
BJ0043 48 50 2 0.69   New Intersection
BJ0043 52 55 3 0.30   New Intersection
BJ0043 70 73 3 10.82   New Intersection
BJ0044 42 61 19 0.86 1m @ 5.38g/t From 45m New Intersection
BJ0044 66 71 5 0.57   New Intersection
BJ0044 85 91 6 0.34   New Intersection
BJ0044 98 100 2 0.50   New Intersection
BJ0045 47 52 5 0.67   New Intersection
BJ0045 58 70 12 1.97 1m @ 16.00g/t From 58m New Intersection
BJ0045 75 77 2 0.48   New Intersection
BJ0045 96 101 5 0.79   New Intersection
BJ0046 35 38 3 0.77   New Intersection
BJ0046 49 51 2 0.58   New Intersection
BJ0046 56 61 5 0.38   New Intersection
BJ0046 72 77 5 1.63 1m @ 5.85g/t From 72m New Intersection
BJ0046 85 89 4 7.54 2m @ 14.59g/t From 87m New Intersection
BJ0047 33 38 5 1.37   New Intersection
BJ0047 65 77 12 0.51   New Intersection
BJ0047 91 94 3 1.15   New Intersection
BJ0048 28 39 11 0.95   New Intersection
BJ0048 46 51 5 0.73   New Intersection
BJ0048 77 84 7 0.83   New Intersection
BJ0048 90 92 2 0.37   New Intersection
BJ0048 93 96 3 0.46   New Intersection
BJ0048 100 104 4 2.39 2m @ 3.98g/t From 100m New Intersection
BJ0049 28 45 17 0.93 2m @ 3.79g/t From 28m New Intersection
BJ0050 24 26 2 1.68   New Intersection
BJ0050 48 53 5 0.59   New Intersection
BJ0050 82 87 5 1.44   New Intersection
BJ0051 60 66 6 0.43   New Intersection
BJ0051 79 81 2 0.58   New Intersection
BJ0052 44 50 6 0.51   New Intersection
BJ0052 57 60 3 1.18   New Intersection
BJ0053 42 66 24 0.66   New Intersection
BJ0053 71 79 8 0.70   New Intersection
BJ0054 62 70 8 0.70   New Intersection
BJ0054 86 88 2 6.29   New Intersection
BJ0055 65 79 14 0.48   New Intersection
BJ0056 39 51 12 0.52   New Intersection
BJ0056 56 66 10 0.42   New Intersection
BJ0059 0 2 2 0.41   New Intersection
BJ0059 29 31 2 0.37   New Intersection
BJ0059 40 46 6 0.45   New Intersection
BJ0059 51 54 3 0.34   New Intersection
BJ0059 56 59 3 0.50   New Intersection
BJ0059 61 64 3 0.35   New Intersection
BJ0059 76 78 2 1.18   New Intersection
BJ0059 121 144 23 2.11 5m @ 7.67g/t From 121m New Intersection
BJ0061 34 73 39 4.93 6m @ 28.51g/t From 47m, 1m @ 152g/t From 48m New Intersection
BJ0062 46 51 5 0.43   New Intersection
BJ0062 60 77 17 1.00 1m @ 4.08g/t From 75m New Intersection
BJ0062 85 87 2 1.79   New Intersection
BJ0062 95 97 2 0.75   New Intersection
BJ0064 8 10 2 2.56 1m @ 4.74g/t From 8m New Intersection
BJ0064 28 32 4 0.39   New Intersection
BJ0064 45 47 2 0.70   New Intersection
BJ0064 56 61 5 0.41   New Intersection
BJ0064 66 69 3 0.37   New Intersection
BJ0064 85 88 3 0.78   New Intersection
BJM002 13 25 12 0.74   New Intersection
BJM002 32 41 9 0.63   New Intersection
BJM002 43 46 3 0.41   New Intersection
BJM003 36 61 25 0.39   New Intersection

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/ggg_resources_jan12.pdf

Contact Information

  • GGG Resources plc
    Dr. Jeffrey Malaihollo
    01992 531820
    www.gggresources.com
    or
    Gresham PR
    Neil Boom
    07866 805 108
    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