www.bullabullinggold.com
Bullabulling Gold Limited is an Australian and UK publicly quoted mining exploration company headquartered in Perth, Western Australia. The Company is the successor entity of GGG Resources plc.
Bullabulling Gold is the 50% owner of a large previously producing mine called Bullabulling. We will acquire the remaining 50% interest in the project under an Australian court approved scheme in April 2012, subject to shareholder and final court approval.
Located in the goldfields of Western Australia, Bullabulling is within easy commuting distance of the main gold mining centre of Kalgoorlie which is less than 80kms away on the main Perth Kalgoorlie highway. The project straddles the main highway with mains power and water running through it.
The company has presently 170 million shares in issue which will rise to circa 290 million shares once Bullabulling Gold Limited acquires the remaining 50% interest in the project.
GGG Resources pleases analysts with Bullabulling resources upgrade
GGG Resource’s (LON:GGG,ASX:GGB) upgrading of resources at its key Bullabulling gold project in Western Australia earlier this week has led analysts at Westhouse to reiterate their enthusiasm for the stock.
The upgrade, revealed in a statement on Monday, comprised a new JORC compliant estimate of 2.6 million ounces at 1.03 grams per tonne and a cut-off of 0.5 grams. That compares with a 2004 figure of 1.98 million ounces at a cut-off 0.7 grams per tonne cut-off.
A total of 711,700 ounces have been converted from inferred to indicated status following phase-one infill drilling programme, which totalled 35,000 metres and focused on a 2.3 kilometre area between the Bacchus and Phoenix pits.
The 70,000-metre phase-two programme is already underway, and it is hoped it will upgrade a “substantial portion” of the current 1.9 million ounce inferred resource to the higher confidence indicated status in the first quarter of 2012.
That in turn should enable an initial JORC ore reserve to be estimated.
Preliminary project optimisation studies indicate potential for a “high conversion rate from resource category to reserve category” once the project economics have been finalised, GGG said in its statement.
An additional 20,000 metre exploration drill programme is also in progress targeting Gryphon, Kraken, Minotaur and Edwards on southern extension of the Bullabulling trend.
GGG jointly owns the project with Australia-listed Auzex Resources (ASX:AZX). GGG launched a bid for its partner in March in order to take full control of Bullabulling. The offer has been extended until September 5.
Managing director Jeff Malaihollo said in the Monday statement that the JORC update “demonstrates that Bullabulling is a very large and highly continuous system capable of achieving an initial ore reserve of over 1 million ounces of gold”.
“The join venture has made some assumptions on costs to optimise the pits based on the current resource update. Future drilling will be done primarily within these optimised areas which should translate to a high conversion of resources to reserves.
“The phase-two drilling programme should run to the end of 2011 and this we expect this to deliver an upgrade of portions of the inferred resource to higher categories.
Drilling is also in progress on exploration targets at the southern extension of the Bullabulling Trend such as Gryphon, Kraken, Minotaur and Edwards, which GGG expects will provide additional resources.
Today, Westhouse analysts noted that with an additional 90,000 metres of drilling currently under way, the company “is planning to upgrade more of the inferred resources to indicated, as well as exploring four targets on the southern extension of the trend”.
The broker notes that the latest increase in ounces was, in part, achieved by a reduction in the cut-off grade, from 0.7g/t to 0.5g/t, a move that it feels “is more than justified by the current market conditions”.
The broker concludes prospects for the Bullabulling project remain very promising. It has retained its ‘buy’ recommendation for GGG Resources, with a slightly increased target of 53 pence, up from 51p.
Midafternoon the shares stood at 21.25 pence, down 1.13 pence.
