Resource Update
August 16 2010 - 2:00AM
UK Regulatory
TIDMGGG
Central China Goldfields plc
To be renamed
GGG Resources plc
(the "Company" or "GGG")
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.
Technical information in the Company news releases has been reviewed and
approved by Dr. Jeffrey F. A. Malaihollo the Company's Managing Director, who
is a Fellow of the Geological Society of London.
Competent Persons Statement
The latest August 2010 Mineral Resource estimate was completed under the
overall supervision and direction of Steven Hodgson, MAIG, of CSA Global who is
a Competent Person as defined by the Australasian Code for the Reporting of
Exploration Results, Mineral Resources and Ore Reserves (JORC Code 2004
Edition) and who consents to the inclusion in this announcement of the matters
based on the information in the form and context in which it appears.
For further information, please contact:
Dr. Jeffrey Malaihollo Westhouse Securities Limited
Tel: 01992 531820 Tim Metcalfe / Martin Davison
Email: info@ccgoldfields.com Tel: 020 7601 6100
www.ccgoldfields.com
Gresham PR Alexander David Securities
Limited
Neil Boom
Nick Bealer / David Scott
Tel: 07866 805 108
Tel: 020 7448 9820
Set out below is the text of a letter addressed to our joint venture partner,
Auzex Resources Limited, in relation to the Bullabulling Project.
12 August 2010
Dr Greg Partington
Auzex Resources Ltd
PO Box 2145
MARMION WA 6020
Dear Greg
RE: 2010 Bullabulling Gold Project Mineral Resource estimate
Auzex Resources Ltd (Auzex) commissioned CSA Global Pty Ltd (CSA) to compile a
Mineral Resource estimate for the Bullabulling Gold Project (BBGP). The BBP is
located west of Coolgardie in Western Australia.
The August 2010 Mineral Resource estimate for the BBGP contains 41,517,000
tonnes at 1.5 g/t Au using a 0.7 g/t Au cut off for 1,982,000 ounces of
contained gold above 315 RL. The grade and tonnes above 315 RL using a 0.5 and
0.7 g/t cut off and is presented in Table 1. The 315 RL is considered a
realistic maximum open pit mining depth, however mineralisation does continue
below this RL. The deposit is classified as Inferred as per the JORC Code (2004
edition). The BBGP has been open pit mined in the mid 1990 and the reported
results are based on the post mined topography.
Table 1 Mineral Resource Estimate Summary, 0.7 g/t cut off, 315 RL to Surface
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 estimate prepared by CSA is predominantly based on
historic drillholes. All drillholes were used for the grade estimation, which
allowed the resource to be verified against historic production. Drillhole
spacing varies from to 20m by 25m to 100m by 50 m.
The Mineral Resource is classified as Inferred due the lack of QAQC on the
drillhole sampling. Twinning of selected drillholes and further infill
drilling should help increase confidence in and improve on classification for
portions of the Mineral Resource.
The Bullabulling Gold Project is located in the middle of the Coolgardie Domain
of the Kalgoorlie Terrane in the Yilgarn Craton in Western Australia. The
southern part of the Coolgardie Domain is dominated by the Burra Granite that
extends eastwards from the Ida Fault. North of the Burra Granite, the mapped
distribution of mapped rock types is dominated by the greenstone units that
envelope numerous monzogranite bodies in the centre of the domain. These
intrusions are named the Calooli, Bali and Silt Dam monzogranites and the
Dunnsville Dome/Doyle Dam Granodiorite. The gold deposits that comprise the
Bullabulling gold camp are clustered around the SW corner of the Bali
Monzogranite and extend some 14 km along the margin of the intrusion.
Gold mineralisation occurs in the laterite and in the quartz amphibolites
interpreted to be metasedimentary rocks, and metakomatiites.
Bulk density information was limited to 75 historic samples. Bulk densities
of 1.7, 2.1, 2.4 and 2.6 g/cm3 were used for the completely oxidised,
moderately oxidised, weakly oxidised and unoxidised rock respectively.
Yours Sincerely
Steven Hodgson
Senior Resource Consultant
CSA Global Pty Ltd
Geological & Mining Consultants to the Global Minerals Industry
Competent Persons Statement
The estimate was completed under the overall supervision and direction of
Steven Hodgson, MAIG, of CSA Global who is a Competent Person as defined by the
Australasian Code for the Reporting of Exploration Results, Mineral Resources
and Ore Reserves (JORC Code 2004 Edition) and who consents to the inclusion in
this report of the matters based on the information in the form and context in
which it appears. The information in this report that relates to in-situ
Mineral Resources was based on information provided by the client.
Glossary of Technical Terms
Amphibolites The name given to a rock consisting mainly of hornblende
Assay Quantitative analysis of a substance to determine the
proportion of some valuable constituent
Au Gold
Cut off Limit
g/t Grams per tonne
JORC Joint Ore Reserves Committee
Indicated In situ Mineral Resource calculated with a moderate confidence
resource level to which economic parameters have not been applied
Inferred In situ Mineral Resource calculated with a low confidence level
resource to which economic parameters have not been applied
Km kilometres
Laterites Soil types rich in iron and aluminium formed in hot and wet
tropical areas
m Metres
Measured In situ Mineral Resource calculated with a high confidence
resource level to which economic parameters have not been applied
Metakomatiites Metamorphosed komatiite (ultramafic derived volcanic rock)
metasedimentary Metamorphosed sedimentary rock
rocks
Monzogranite Biotite rich granite
Ordinary Kriged Geostatistical method to interpolate the value at an unobserved
method location from observations of its value at nearby locations
QAQC Quality Assurance / Quality Control
RAB Percussion (pneumatic) Rotary Air Blast drilling
RC Reverse Circulation drilling
RL Reduced Level
Shear zone Zone of rock deformation (fault)
Supergene Near surface enrichment
Bullabulling Gold Project
Bullabulling, the site of former gold mine in the Western Australia gold mining
district, is the Company's principal asset. Some 60km2 in size, Bullabulling
lies 70km South West of Kalgoorlie in Western Australia. It is a sizeable
project area held in a series of granted mining leases.
Following extensive computer modelling of previously collected data, GGG
believe that there could be large, open pittable gold deposits. GGG is testing
this through new drilling programmes and is encouraged by today's resource
update.
The Company completed the acquisition of Bullabulling in May 2010, and intends
to fast-track the mine into production by 2013.
Bullabulling is part of the Eastern Goldfields. The Goldfields contain over
160 deposits, 19 of which are greater than three million ounces of gold.
Bullabulling is a 50:50 joint venture with Auzex Resources Limited, an
ASX-listed Australian mining company.
Maps of the Bullabulling project are available on the Company's website.
END
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