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.
UPDATE: GGG Resources unveils encouraging drill results from Bullabulling
---Adds share price and comments from Collins Stewart and Northland---
GGG Resources (LON:GGG, ASX:GGB) this morning unveiled yet more encouraging results from the company’s ongoing drilling programme at the Bullabulling Gold Project in Western Australia.
The highlights of an extensive programme included a 1 metre section at 48.8 grams per tonne of the precious metal, and 13.32 grams over 9 metres.
More typical were the wider intersections at lower grades, including 20 metres at 3.45 grams per tonne of gold and 19 metres at 2.48 grams per tonne. Gold was found from 21 metres down to 195 metres.
GGG said the drilling results “continue to reconcile well against the latest gold JORC resource model and give confidence for the next JORC upgrade due in the first quarter of 2012”.
The goal is to increase the 711,000 ounces of existing indicated resource by moving a significant portion of the 1.9 million ounces of inferred resource into the higher indicated category.
GGG managing director Jeff Malaihollo said: "These latest results continue to confirm the resource and geological model with approximately 99% of the drill holes hitting gold mineralisation.
"The drilling also continues intersecting regularly higher grade mineralisation within the broad low grade halo which provide encouragement for targeting high grade ore shoots within the Bullabulling Trend beneath the low grade, open pittable resource."
In all, 59 drill holes were completed last month and early this month for a total of 11,163 metres. In all the phase-two programme has drilled 391 holes for a total of 57,657 metres out of a planned 70,000 metres.
“The Western Australian based gold explorer is getting consistently good results from the phase two drilling-campaign,” said Ryan Long, mining analyst at Northland Capital.
“The drilling is progressing at pace and areas of high grade within a larger low grade open pittable resource are being defined.”
At 10.55 am GGG was up 0.07 pence at 16.44 pence, but have fallen sharply in the last six months. The correction mirrors the decline in the value of the company’s merger partner Auzex.
Repeating its buy advice, broker Collins Stewart told investors today: “The 61 per cent share price fall since March, tracking JV partner Auzex lower has been overdone, in our view, given the merger terms with Auzex result in no dilution in its ownership stake, no mater the number of shares or size of Auzex.”
