Bullabulling Gold Project - Drilling Update (3374V)

TIDMGGG

RNS Number : 3374V

GGG Resources PLC

11 January 2012

11 January 2012

Bullabulling Gold Project

Completion of Phase II Resource Drilling Programme

GGG Resources Plc (AIM: GGG, ASX: GGB) and Auzex Resources Ltd (ASX:AZX) are pleased to report that they have completed the Phase II infilling drill programme at the Bullabulling gold project near Kalgoorlie in the eastern goldfields of Western Australia.

The Phase II drill programme commenced on May 14 and was completed on schedule on18 December 2011.

Under Phase II, a total of 425 holes were drilled for a total of 74,452m.The Joint Venture now awaits the results from the assays which are expected in between four to six weeks' time. Resource estimation work has commenced and will be completed once all the results are received.

Phase II drilling has focused on infilling of the areas between Phoenix and Bonecrusher pits, and has been at a drill spacing that will allow for a substantial portion of the 1.9 million ounces of Inferred resources reported in the last resource estimate (announced on 12 August 2011) to be reclassified to the higher Indicated resource category.

The current report JORC compliant mineral resource is 78,836,000 tonnes at 1.03 g/t Au (2.60 million ounces contained gold) at a 0.5 g/t Au cut off, of which 711,000 ounces are in the Indicated category.

As previously reported to shareholders, drill results to date continue to confirm the resource and geological model with approximately 99% of the drill holes intersecting gold mineralisation.

Drilling will now focus on exploration drilling at the Gibraltar resource and along strike to the south along the Bullabulling Trend, with the aim of discovering additional near surface mineralisation.

The Joint Venture is also pleased to report that 2 D seismic and aero-magnetic data acquisition have been completed over the entire Bullabulling Trend. Acquisition of gravity data is planned in January, which will be used with the magnetic and seismic data to develop a 3D geological model of the Bullabulling Trend for targeting high grade mineralisation at depth.

Contacts:

 
  David McArthur                              David Brook 
   GGG Resources plc (Australia)               Professional Public Relations 
   41 Stirling Highway                         (Australia Media) 
   Nedlands, WA, 6009 
   Australia                                   Email: [e-mail] 
   Tel: [phone]                        Tel: [phone] / +61 433 
                                               112 936 
------------------------------------------  --------------------------------- 
  Dr. Jeffrey Malaihollo                      Westhouse Securities Limited 
   Managing Director, GGG Resources            (UK Nominated Adviser) 
   plc (UK)                                    Tom Price / Martin Davison 
   Email: [e-mail]     Tel: [phone] 
   Tel: [phone] 
------------------------------------------  --------------------------------- 
  Neil Boom                                   Collins Stewart Europe Limited 
   MD, Gresham PR Ltd (UK media)               (Broker) 
   Tel: [phone]                       John Prior / Adam Miller 
   Email:[e-mail]             Tel: [phone] 
------------------------------------------  --------------------------------- 
 

Bullabulling Overview

The Bullabulling Gold project (Bullabulling) is a large tonnage, low grade deposit with high grade shoots, associated with the regional Bullabulling shear zone which extends over tens of kilometres. The mineralised structure is 500m wide, consisting of multiple west dipping low grade stacked zones with narrower higher grade gold mineralisation. Bullabulling is located near Coolgardie and approximately 65km south-west of Kalgoorlie, Western Australia. Bullabulling has been previously mined producing about 371k oz Au in the 1990's. The current programme focuses on the 6km portion of the shear zone known as the Bullabulling Trend where previous operations were concentrated. The focus for the Bullabulling joint venture between Auzex Resources Ltd and GGG Resources plc is to establish an initial reserve exceeding one million ounces gold to commence production in 2015.

This information is provided by RNS

The company news service from the London Stock Exchange

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