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 & Auzex to create new Bullabulling operating company
GGG Resources (LON:GGG, ASX:GGB) and Auzex Resources (ASX:AZX) have agreed a deal to create a new jointly owned company to develop the Bullabulling gold project.
The new company will be listed both on AIM and the Australian Securities Exchange.
Today's deal is ending disagreements between the partners regarding the strategy for, and development of, the project with a JORC compliant resource of 2.6 million ounces at 1.03 grams per tonne and a cut-off of 0.5 grams.
The news was greeted by investors in London, and by midday, GGG stock was trading up nearly 15 percent at 20.8 pence.
The impasse came to a head earlier this year and in March, GGG launched a A$95 million takeover bid for partner Auzex. The JV partners continued to cooperate, however, and earlier this month, agreed to implement the findings of a consultancy’s drill spacing study,
The required drill spacing to define JORC indicated resources will be increased to 75 metres north-south and 35 metres east-west, reducing both the timeline and cost to complete the current infill drilling program along the Bullabulling Trend which exceeds eight kilometres in length.
GGG and Auzex have now entered into binding heads of agreement to combine the two companies' interests in Bullabulling under a single new Australian corporate entity to be named Bullabulling Gold Ltd, to be listed on both ASX and AIM and - subject to certain adjustments and possible spin-outs of non-core assets - to be jointly owned by the current shareholders of both companies.
GGG said further details of the agreement will be announced on the ASX and AIM on August 29 and August 30, respectively.
There is now less than 45,000 metres of infill drilling required at Bullabulling to convert inferred resources to indicated resources, which is about half the total originally reported. Drilling is expected to be completed by November.
Bullabulling is located near Coolgardie and approximately 65 kilometres south-west of Kalgoorlie, Western Australia, and has been previously been mined producing 371,000 ounces gold in the 1990s.
