BGL3 Jul 2012 21:39
DRILLING RECOMMENCES AT BULLABULLING
Bullabulling Gold Limited is pleased to advise that drilling recommenced yesterday at the Bullabulling Gold Project.
There are 26 RC drill holes planned for the current program, with depths of between 60 metres and 260 metres for a total of approximately 3,800 metres. The program is principally targeting two areas where additional information is being sought to finalise open pit designs for the prefeasibility study currently underway. It is considered likely that this work will lead to a further modest expansion of the existing resource.
Drilling will test an area of the Bacchus Prospect where prior work intercepted mineralisation that is situated within or immediately adjacent to the proposed open pit, but current drill hole density is insufficient for resource definition. The results of these holes will enable detailed pit designs to be finalized and all significant mineralisation captured to be reported within the mining inventory.
The program will also test a largely un-drilled section of the corridor between the Hobbit Prospect and the Dickson's Prospect which is traversed by Great Eastern Highway. If continuity of mineralisation can be demonstrated through this corridor it may prove financially attractive to realign the highway, which would open up more of the Bullabulling Trend to exploration and potential mining.
It will take up to six weeks to complete drilling with final assays anticipated by the end of August. The resource model will subsequently be updated to enable final mine design and scheduling to be completed.
Integration of the Gibraltar Project into the prefeasibility study as a satellite ore source to Bullabulling is also being evaluated. An updated resource estimate for Gibraltar is scheduled for completion this month. In addition, the Company is currently assessing whether it will exercise an option to acquire the Geko Gold Project and incorporate that deposit into the study. The option to acquire Geko expires on 6 July 2012.
Other elements of the prefeasibility study have been progressing well, with no significant issues identified. It is anticipated that the Company will be in a position to release guidance on capital and operating cost estimates during September. The complete prefeasibility study, incorporating the satellite deposits, final open pit designs, production schedule and full financial analysis, is targeted for release prior to year end.
A version of this announcement containing a map outlining the location of the primary drill site locations, can be found on the Company's website.
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