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 'highly encouraging' results from Bullabulling metallurgical programme
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GGG Resources (LON:GGG, ASX:GGB) unveiled "highly encouraging" results from its initial metallurgical programme at the Bullabulling gold project.
The firm said that gold recoveries were expected to exceed 90 per cent for grades above 0.6 grammes of gold per tonne (g/t) at the project in Western Australia.
Investors cheered the announcement and, as at 11.50 am, the shares were up 9.09 per cent, trading at 18 pence.
The results are based on five mineralised samples from diamond drilling which were put together to form a master sample and further test work between the Bacchus and Phoenix pits on the Bullabulling Trend.
Managing director of GGG Jeff Malaihollo said the findings were "highly encouraging" and confirmed the project had excellent recoveries at head grades of less than 1.0 g/t Au with the master composite producing recoveries of over 90 per cent with low cyanide consumption.
"Previous operations during the 1990s produced average recoveries of approximately 94 per cent." he said.
He added that the Bullabulling mineralisation was not hard or abrasive, which should have a positive impact on operating costs.
"Bullabulling continues to demonstrate all of the characteristics of a robust long term gold project," concluded Malaihollo.
The work means the key inputs to a large scale carbon-in-leach operation for the project have now been established, said the company.
The master composite sample with a grade of 0.96 g/t gold achieved 92.5 per cent recovery over 24 hours.
Bullabulling is suitable for SAG (semi-autogenous grinding) milling, which uses steel grinding balls, and possibly high pressure grinding rolls (HPGR's), said the firm.
GGG Resources added that a follow-up metallurgical programme was now underway to finesse optimum grind size, reagents and recoveries.
Analyst Paul McGroary, of broker Collins Stewart, said these were more positive results from GGG, as it showed the Bullbulling ore had good recoveries and was relatively soft and non abrasive.
"The ore is softer and less abrasive than other deposits in the goldfields of Western Australia due to the lack of quartz associated with the mineralisation.
"This should have a positive impact on operating costs, crushing and grinding being the largest power consumers in the processing circuit," he said.
The analyst said the firm's shares were likely to re-rate, adding that the firm was currently merging with 50 per cent JV partner Auzex Resources (ASX:AZX) and the stock had "drifted off as this deal was hammered out".
"This sell off has been overdone in our view and we expect to see this reverse as the asset is consolidated into one dual listed vehicle and the company continues to move the project toward production," said McGroary.
Bullabulling is around 65km south-west of Kalgoorlie in Western Australia. Previous operations produced 371,000 ounces of gold in the 1990s.
The current programme is focused on the 6km portion of the shear zone known as the Bullabulling Trend where previous operations were concentrated.
In August this year, an updated JORC compliant resource estimate showed 78.84 million tonnes at 1.03 g/t gold for 2,603,000 ounces, using a 0.5 g/t gold cut-off. Of the 2.6 million ounces of resource, 711,700 ounces are in the indicated category.
