18/11/10- RNS20 Nov 2010 01:35
LONDON, UNITED KINGDOM--(Marketwire - Nov. 18, 2010) - GGG Resources plc (the "Company" or "GGG") (LSE:GGG) -
Highlights:
-- An RC drill rig targeting high grade zones has commenced at
Bullabulling.
-- A second drill rig, due to start next week, is targeting the conversion
of current inferred resources into indicated and measured resources.
-- Snowden Group is advising on the drilling programme and the resource
modelling.
-- Most drilling is in the 2.3 km zone between the Bacchus and Phoenix
pits, with some drilling in the northern part of the tenement at
Bonecrusher.
-- Additional bulk density measurements are also underway.
-- Analysts from UK brokers Westhouse Securities and Collins Stewart have
visited the site.
The Joint Venture between GGG Resources plc and Auzex Resources Limited is pleased to announce that the planned resource drilling programme at the former Bullabulling open pit gold mine in Western Australia is underway.
A Programme of Works (POW) application has been approved by the West Australian Department of Mines and Petroleum for the drilling campaign at Bullabulling and VM Drilling Pty Ltd of Kalgoorlie has been confirmed as the drilling contractor.
Work to be undertaken include a 5,000 metre Reverse Circulation ("RC") drilling programme to allow the upgrading of the recent inferred resource estimation (see 16 August 2010 announcement) to measured and indicated resource categories; a 12,000 metre infill RC drilling programme to expand the known resource estimate; and a further 1,200 metres of diamond drill core within the primary zone for metallurgical test work will be undertaken.
The first RC drill rig has started and is targeting historic high grade intersections beneath the Bacchus North pit (which included 7m @ 77g/t Au, 5m @ 14g/t Au, 4m @ 5.08g/t Au, 3m @ 4.43g/t Au, and 3m @ 9.16g/t Au). A second RC drill rig will arrive on site in approximately one week's time and will focus on drilling twin holes to compare results from historic drilling with the aim of improving the confidence in the historical assays. This should allow the current inferred resource to be reclassified to indicated and measured categories which in turn should allow a JORC compliant reserve to be established for the project.
The current reported JORC compliant mineral resource is 41,517,000 tonnes @ 1.48 g/t Au for 1.98 million ounces of gold at a 0.7 g/t Au cut off to an assumed economic mining depth to approximately 120m depth. The mineral resource excludes all intersections below 120m, any historic production and does not include surface dumps that contain approximately 12,000 ounces of gold in the indicated mineral resource category.
High-Grade Zones:
There are several high grade intersections in the Bacchus Deep area (e.g. 7m @ 77g/t Au, 5m @ 14g/t Au, 4m @ 5.08g/t Au, 3m @ 4.43g/t Au, and 3m @ 9.16g/
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