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GGG Resources plc
1.98 Million ounces JORC Compliant Mineral Resource Estimate
Highlights:
The updated JORC reported Mineral Resources of Bullabulling has been increased
by approximately 450% to 1.98 million ounces of gold (41.5 Mt @ 1.5 g/t Au at
0.7 g/t Au cut off).
Resource estimated by independent consultants CSA Global
Some areas can be updated to Measured and Indicated Resource upon twinning of a
number of historic drill holes.
Economic scoping study being completed after which a further Mineral Resource
update will be estimated.
The current Mineral Resource is expected to increase with further exploration
drilling.
Bullabulling could develop into a significant new gold project.
Share Purchase Agreement was completed last week.
16 August 2010
GGG Resources plc together with its Joint Venture partner at the Bullabulling
Project, Auzex Resources Limited ("Auzex"), are pleased to announce a new JORC
reported Mineral Resource of 41,517,000 tonnes @ 1.5 g/t Au for 1.98 million
ounces of gold at a 0.7 g/t Au cut off for the Bullabulling Gold Project.
The new JORC reported Mineral Resource was estimated to an assumed economic
mining depth of 315m RL, approximately 120m depth. This depth has been used as
a conservative approximation of mineralisation that is expected to be amenable
to open-cut mining operations.
Th new Mineral Resource estimate has been restricted predominantly to
mineralisation within the Bullabulling Trend, which extends over approximately
6km strike and where gold mineralisation exhibits excellent lateral and
vertical continuity, and is open in all directions. The Mineral Resource
excludes all historic production and does not include historic surface dumps
that are reported to contain approximately 12,000 ounces of gold.
Mineral Resource estimate Cut Off (g/t) Class Tonnes Au g/t Ounces
August 2010 0.7 Inferred 41,517,000 1.5 1,982,000
Note: The resource is quoted for blocks with a grade of greater than 0.7 g/t
and above the 315 RL. Differences may occur due to rounding.
The Mineral Resource was estimated by CSA Global who are an independent
consultancy based in Perth (An executive summary of their report is attached).
The estimation used assays from all the historic drill hole data over a 9 km2
area covering the Bullabulling shear zone and the Ordinary Kriged method for
interpolation. Grade tonnage curves at various cut offs from this estimate
confirm that a significant amount of the resource sits between 0.3 and 0.9 g/t
Au, consequently it is believed that the project will return the greatest value
as a high tonnage low grade bulk mining operation.
Due to lack of QAQC data on the drill holes samples, the Mineral Resource
estimate has been classified as Inferred under JORC (2004). In some areas with
high density historic drilling, this can likely be upgraded quickly and cost
effectively to Measured and Indicated JORC classification by twinning a number
of the historic RC drill holes to increase the confidence in the historic
assay results. The remaining areas will require infill drilling to a spacing of
20m by 25m to convert the Inferred Mineral Resource to Measured and Indicated.
The twinning of the historic holes will be completed as soon as possible to
allow the Mineral Resource to be reclassified to include Measured and Indicated
categories.
A preliminary economic scoping study is currently being completed by CUBE
consultants that will provide information on mining costs, treatment costs, cut
off grade and the scale of the operation to be used in the up-coming
feasibility study planned for commencement in October 2010. Optimisation
studies are planned on the global Mineral Resource to confirm the economic
mining depth and this information should be available by mid to late September.
The Mineral Resource will be upgraded at this time to take account of the
economic depth of mining.
The Mineral Resource estimate is based on 10,522 drillholes, with approximately
half being RC and half being RAB drillholes. The Mineral Resource estimate has
well defined variography that reconciles well with the orientations of
mineralised shoots derived from the structural study. The new estimate also
reconciles well against historic production. The recently completed diamond
drilling program will also be used to review the model when all assay results
are finalised. These have not been considered in the current Mineral Resource
estimate.
Bullabulling Grade Tonnage Curve estimated at different cut-off grades from
mineralisation less than 120 metres below surface.
Average Grade Contained
Gold cut-off g/t Au Tonnes Au g/t Ounces
1 22,202,000 2.06 1,468,400
0.9 26,739,000 1.87 1,606,500
0.7 41,517,000 1.48 1,981,600
0.6 54,231,000 1.29 2,245,900
0.5 75,013,000 1.08 2,611,800
0.4 107,094,000 0.89 3,071,800
0.3 162,171,000 0.71 3,683,200
This is the first time that all the data has been used to estimate the gold
Mineral Resource for the Project. The previous quoted Mineral Resource of
431,000 ounces of gold (announced on 11 February 2010 when GGG entered into a
Heads of Agreement with Auzex) was confined to the main pit areas and to small
laterite and supergene prospects to the north and south and contained an
unusually small amount of Mineral Resource in the Inferred category. The
recently completed structural study demonstrated that mineralisation not only
continued between the historic pits at Bacchus and Phoenix and down dip, but
also the mineralised shear zone was wider and that mineralisation was also
present in the foot wall and hanging wall of the Bacchus and Phoenix pits
respectively. The recently completed diamond drilling program confirms this
potential and also confirms that additional mineralisation occurs in stacked
shoots beneath the known zones of mineralisation as suggested by the structural
modelling.
The Joint Venture considers the establishment of the new increased Mineral
Resource for the Project as a significant milestone that will allow the Project
to be developed to its optimum economic potential. The scale of the Mineral
Resource also suggests that the Project could develop into a significant gold
project that will establish the Coolgardie Goldfield in the Eastern Goldfields
of Western Australia as a significant producer for years to come.
Share Purchase Agreement
The Joint Venture is also pleased to announce that the acquisition of the
Bullabulling Gold project mining tenements, plant and equipment was
successfully completed on Friday 13 August 2010. Registration of the tenement
transfers is underway and Ministerial consent to sell Bullabulling pastoral
lease to the Joint Venture has been obtained.