GGG Ggg Resources

 
TIDMGGG 
 
GGG Resources plc 
 
                            (the "Company" or "GGG") 
 
 
            A$2 million feasibility drill programme starts October 
 
 
 
 
22 September 2010 
 
 
 
GGG Resources plc, in conjunction with its 50:50 joint venture ("JV") partner 
Auzex Resources Limited, is pleased to announce a A$ 2,000,000 drilling 
programme at its Bullabulling Gold Project, the site of a former gold mine in 
Western Australia. 
 
 
 
The Bullabulling Project is sited in Western Australia's Coolgardie gold mining 
district, and has already been granted a series of mining leases. 
 
 
 
Extensive existing data based on over 12,000 historic drill holes suggests that 
it could yield large, open pittable gold deposits with several high grade 
lodes. On 16 August this year the JV partners reported JORC compliant inferred 
resources of 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. This estimation is to an assumed economic mining depth of 
approximately 120m. That mineral resource excludes all historic production and 
does not include historic surface dumps that contain approximately 12,000 
ounces of gold in the indicated mineral resource category. 
 
 
 
A Programme of Works ("POW") application has been submitted to the West 
Australian Department of Mines and Petroleum seeking approval to commence a 
detailed drilling programme at Bullabulling. 
 
 
 
The programme's objectives are: 
 
To provide quality assurance information for the extensive existing drill 
database of Resolute/Samantha - largely by "twinning" (i.e. drilling alongside) 
existing drill holes.  This work should give the required confidence for CSA 
Global to re-classify much of the existing 2.0Moz gold Inferred Resource into 
the Measured & Indicated Resource categories. 
 
To infill drill to expand and complete the known resource base in preparation 
for the determination of mineable reserves. 
 
To target selected deeper, potentially high-grade zones, particularly in the 
Bacchus North area. 
 
To conduct further metallurgical test work on the primary sulphide 
mineralisation. 
 
 
 
Most of the holes will be located in the southern 2.5km of the 6km drill 
identified mineralisation trend - between the Bacchus South pit and the Phoenix 
pit. 
 
 
 
Work to be undertaken includes approximately 5,000 metre Quality Assurance 
Quality Control ("QAQC") twinning drilling programme to allow the upgrading of 
the recent inferred resource estimation completed by consultants CSA Global to 
Measured and Indicated Resource categories, a 12,000 metre infill drilling 
programme to expand the known resource estimate, and 1,200 metres of diamond 
drill core within the primary zone for metallurgical test work. 
 
 
 
Drilling is expected to commence in October 2010 with the first results 
expected to be reported to shareholders in November 2010. This work programme 
signifies the beginning of the feasibility study for the project. A 
comprehensive programme and budget for the full feasibility study is being 
formulated over the coming weeks and will be announced shortly. 
 
 
 
Upon completion of the drilling programme, it is expected that most of the 1.98 
million ounces Inferred Resources (JORC) estimated by CSA Global will be 
reclassified to Measured and Indicated categories, an important step towards 
the planned resumption of production at Bullabulling. 
 
 
 
 
 
Geological details: 
 
 
 
The scoping study of the economics of the project suggests that the project may 
be sensitive to grade, recovery and processing costs. In determining the 
feasibility of developing the Bullabulling Project it is essential for the 
historical database to be re-classified to modern JORC standards. This may 
require several stages of twinning historical drillholes depending on results. 
CSA Global has also completed a review of the drill spacing by using the 
historic grade control data from mining at Bacchus and Phoenix pits. The data 
was compiled and geostatistically analysed to confirm the required drill 
spacing for Measured and Indicated Resource categories. The recommended drill 
spacing are summarised below with the optimal distances between collars in 
north-south and east-west orientations stipulated. 
 
 
 
Table 1. Recommended drill spacing derived from a geostatistical analysis of 
grade control drilling. 
 
Deposit    Orientation    Measured Category Distance   Indicated Category Distance 
 
Bacchus    North South    30 to 40m                    40 to 100m 
 
           East West      20 to 25m                    25 to 45m 
 
Phoenix    North South    30 to 50m                    50 to 70m 
 
           East West      20 to 35m                    35 to 45m 
 
 
 
 
The recently reported mineral resource was classified as inferred due to a lack 
of QAQC data on some of the historic drill holes. To check the historic assay 
results, each major historical drilling campaign will be checked by geological 
domain, especially weathering profile, with about 1,000-1,500 samples required 
from each domain. Two complete fences of drilling across the shear zone have 
also been recommended to confirm the continuity of grade, geology and estimate 
the pegmatite distribution so it can be compensated for in the model outputs. 
The planned QAQC programme will allow areas with high density historic drilling 
to be upgraded to indicated and measured categories by twinning historic RC 
drill holes. Some of the twinned holes will be extended at depth to intersect 
the eastern footwall lodes that are interpreted to dip underneath the historic 
pits. The remaining areas will require infill drilling to convert the Inferred 
Resources to Measured and Indicated. 
 
 
 
The high grade intersections beneath the Bacchus North pit have also been 
targeted for infill drilling. Historic results from this area returned some 
high grade intersections below the 120 metres depth which, if continuity is 
shown to exist, could add significantly to the current resource. The initial 
programme should consist of about 4,000 metres, which if successful will be 
followed by 6,000 metres of infill drilling to a spacing of 20m by 40m. 
 
 
 
Table 2. Historic high-grade intersections under Bacchus Pit. 
 
Hole No  Northing  Easting  Dip  From   To     Intersection 
 
BDC008    11636    8659    -60E  151m  158m    7m @ 77.0 g/t Au 
 
BDD001    11632    8653    -50E  148m  153m    5m @ 14.0 g/t Au 
 
BSC272    11630    8710    -60E  149m  153m    4m @ 5.1 g/t Au 
 
BULRC03   11615    8664    -55E  148m  151m    3m @ 4.4 g/t Au 
 
BULRC04   11615    8660    -70E  155m  158m    3m @ 9.2 g/t Au 
 
BKC0003   12075    8817    -60E  148m  156m    8m @ 23.2 g/t Au 
 
BKC0003   12075    8817    -60E  162m  166m    4m @ 6.0 g/t Au 
 
 
 
 
The number and quality of bulk density measurements are also insufficient for 
upgrading the current resource category. Consequently, a number of new bulk 
density measurements are required from each weathering domain at different 
depths to improve this database, with particular emphasis on primary ore. This 
work is also planned at the same time as the drilling using samples from the 
recent diamond drilling, open cut pits and the new metallurgical drilling. 
 
 
 
Work is continuing on the feasibility review and scoping study that will 
provide information on mining costs, treatment costs, cut-off grade and the 
scale of the operation to be used in the coming feasibility study. Preliminary 
optimisations have now been completed using an A$1,200 gold price, a 3 million 
TPA processing rate and assumed costs similar to the Edna May project 150 
kilometres to the west in the Southern Cross Belt. This project has very 
similar characteristics to the Bullabulling project including processing scale, 
geology and grade. The pit shells from these optimisations provided the 
required information on where follow up drilling is required. 
 
 
 
The drilling and metallurgical test work will start once the programme of works 
has been approved by the Department of Mines and Energy. The current Inferred 
Resource will be upgraded once the QAQC results have been analysed and a new 
resource model estimated to include the new infill drilling results. The new 
resource is expected to include mineralisation below the current artificial 
Inferred Resource depth cut-off of 120m below surface. 
 
 
 
Technical information in the Company's news release 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. 
 
 
 
For further information, please contact: 
 
Dr. Jeffrey Malaihollo                         Westhouse Securities Limited 
 
Tel: 01992 531820                              Tim Metcalfe / Martin Davison 
 
Email: info@gggresources.com                   Tel: 020 7601 6100 
 
www.gggresources.com 
 
 
Gresham PR                                     Alexander David Securities 
                                               Limited 
Neil Boom 
                                               Nick Bealer / David Scott 
Tel: 07866 805 108 
                                               Tel: 020 7448 9820 
 
 
 
 
 
 
 
 
END 
 

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