Bullabulling Gold Project Update
June 02 2010 - 2:00AM
UK Regulatory
TIDMGGG
Central China Goldfields plc
(the "Company" or "GGG")
Bullabulling Gold Project Update
2 June 2010
Central China Goldfields plc in conjunction with its 50:50 partner Auzex
Resources Limited is pleased to announce the completion of an independent
structural study of the Bullabulling Gold Project situated in Western
Australia. A diamond drilling programme to confirm the previous economic drill
intercepts, test the structural model and to assist in the JORC classification
of the entire drill database will start imminently.
This study shows that mineralisation, running 0.5-1.5 grams per tonne (g/t)
gold (Au), can be traced on 40 metres spaced sections for nearly 6 kilometres
long and 330 metres wide. Within this low grade zone there are higher grade
shoots of 3-4 g/t Au which are continuous over hundreds of metres and 5-20
metres wide. All of the mineralisation is open at depth. This suggests that
Bullabulling could potentially be a very large deposit.
Seven diamond drill holes totalling 1,400m have been planned from
recommendations from the study to confirm the structural interpretation, test
continuity of mineralisation and intersect historic mineralisation. A program
of works has been submitted to the Western Australia Department of Mines and
the drill contract has been awarded.
Jeff Malaihollo, Managing Director of the Company comments:
"The work in past few months by the Joint Venture has started to reveal the
potential of the Bullabulling project with the scale of the project growing
substantially. The extensive database of drill results has meant that this
transformative work has been done in a relatively short time period and at a
low cost. We look forward to the results of the planned diamond drilling
programme and a revision the Bullabulling resource in Q3/Q4 2010."
Geological Details:
A detailed structural study of the Bullabulling project conducted by an
independent party has been completed. The aim of the project was to define the
geological structures which control gold mineralisation at Bullabulling to
structurally constrain new resource estimation and help with future exploration
targeting. The report documents the results of 3D geometric modelling of the
main primary deposits using the current drill database which include over
12,000 individual drill holes. This was followed up by five days of detailed
mapping on the Bacchus South, Phoenix, Gibraltar and Hobbit open pits. The
development of a 3D model for the first time at this project links the
structural framework associated with the gold deposits to their geometry as
defined by the existing drilling data.
The report was completed by Dr Toby Davis, Principal Geologist at Impel
Geoscience, based in Melbourne Australia. Dr Davis is a structural geologist
with 14 years of international experience in mining and exploration. Dr Davis
believes that "It is clear that potential exists to redefine the resources
within, and expand them beyond, existing drilling by applying the understanding
of the structural process involved in gold mineralisation that were revealed in
this study".
The major conclusions from the study are:
* The host rocks to gold mineralisation at Bullabulling have been weathered
to a depth of about 60 metres. Weathering processes produced laterite and
supergene gold in the near surface with a zone of gold depletion below this
gold mineralisation. Underneath the zone of gold depletion are zones of
primary gold with higher grades.
* Primary mineralisation is controlled by a 6 kilometres long 330 metres wide
shear (fault) zone mapped in the weathered and primary rocks.
* Two distinct mineralised trends were mapped: the N-S-striking Bullabulling
Trend and the E-W- to NW-SE-striking Gibraltar Trend. The majority of
resources are hosted by the Bullabulling Trend.
* The Bullabulling Trend comprises a network of ductile high strain zones and
folds that were formed by five overprinting deformation events. It contains
gold mineralisation that can be traced on 40 metres spaced sections for
nearly 6 kilometres along strike, potentially making it a very large
deposit.
* A halo of low grade gold mineralisation (0.5-1.5 g/t Au) is present
continuously throughout the 6 kilometres strike that is 330 metres wide and
open at depth, except where cut by later pegmatites.
* Higher grade shoots of 3-4 g/t Au within the lower grade halo are located
at the intersection of older and younger structures. These shoots tend to
be continuous over hundreds of metres, are 5-20 metres wide and are also
open at depth. The higher grade shoots appear to be systematically repeated
along the trend. This mineralisation style is similar to that being mined
by other operators in the adjacent Coolgardie Goldfields.
* Proposed structural model for mineralisation indicates the likelihood of
the deposits being highly linear at large scales with good continuity of
gold mineralisation expected over hundreds of metres at both low and high
grades.
* There may be other trends parallel to the Bullabulling Trend that have not
been exposed by uplift and weathering.
On specific areas, the study reveals that:
* The Phoenix deposit contains three parallel moderately west dipping lodes.
Individual lodes can be traced for more than 600 metres along strike and
have not been closed by drilling down dip. Mining in this area has been
limited and there are numerous drilling intersections below the shallow pit
that are greater than 5 g/t Au. Additionally these intersections display
significant continuity along strike.
* The northern part of the deposit in the Bacchus North pit is up to 25
metres wide and dips to the NW. It is composed of multiple anastomosing and
bifurcating internal W-dipping lodes that appear to trend to the Phoenix
pit 600 metres to the north.
* Gold grade distribution maps show that collections of samples greater than
5 g/t Au can be traced for hundreds of metres along strike between these
pits.
* It is possible that the folded older shear zone hosted lodes are replicated
by parallel structures vertically below the known deposits, following the
vertical younger high strain zone at depth. The potential for resources to
exist below the current pit at Bacchus South in sub parallel lodes is high.
Diagrams showing the distribution of grades and model for the formation of the
gold in Bullabulling will be posted on the Company's website
www.ccgoldfields.com
Planned work programme
Seven diamond drill holes (totalling about 1,400m) have been planned from
recommendations from the study to confirm the structural interpretation, test
continuity of the existing resources and intersect historic mineralisation
extending from Bacchus South pit to the Phoenix pit (and at depth outside the
current known resource), a distance of approximately 2.5 kilometres. All drill
holes have the potential to intersect significant mineralisation and provide
important geological information.
A program of works has been submitted to the Western Australia Department of
Mines and the drill contract has been awarded. Drilling is expected to commence
in mid June and be completed by the end of July / early August.
A survey to create a new Digital Terrain Model (DTM) has been commissioned and
will start next week.
The Company is also pleased to announce that GGG's investment in Bullabulling
has now been approved by the Australian Foreign Investment Review Board.
Technical information in the Company news releases has been reviewed and
approved by Dr. Jeffrey F. A. Malaihollo the Company's Managing Director, whois
a Fellow of the Geological Society of London.
For further information, please contact:
Central China Goldfields plc Westhouse Securities Limited
Dr. Jeffrey Malaihollo Tim Metcalfe / Martin Davison
Tel: 01992 531820 Tel: 020 7601 6100
Email: info@ccgoldfields.com
www.ccgoldfields.com Alexander David Securities
Limited
Nick Bealer / David Scott
Tel: 020 7448 9820
END
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