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 scoping study targets production of 230,000 ounces of gold a year
GGG Resources (LON:GGG. ASX:GGB) has outlined some ambitious plans for the Bullabulling gold deposit in Western Australia as part of a scoping study of the project.
Targeted production is 230,000 ounces of the precious metal a year, which requires a plant capable of processing at least 7.5 million tonnes of material a year.
The capital costs are expected to be in the order of A$366 million, though the group is examining methods of lowering the capex.
Initial projections suggest the project will have an internal rate of return of 29 per cent with gold at A$1,500 and a 42 per cent IRR is seen at A$1,700 an ounce.
GGG and Auzex (ASX:AZX), its partner on Bullabulling, are targeting a minimum ten-year mine life.
A pre-feasibility study is now planned, the results of which will be published in the third quarter.
GGG’s managing director Jeff Malaihollo said: "With over 200,000 ounces of annual gold production targeted, the joint venture is proceeding with a full pre-feasibility study, which it expects to complete by the third quarter of 2012.
“This will be initially based on a 7.5 million tonnes a year processing operation and a new resource model due in the first quarter of 2012 that will be upgraded to include the current infill drilling results.
“The pre-feasibility study will refine the costs estimation and allow the establishment of a maiden reserve for the project."
