GGG Ggg Resources

 
TIDMGGG 
 
GGG Resources plc 
 
                           (the "Company" or "GGG") 
 
            Bullabulling Gold Project - Resource Drilling Commences 
 
18 November 2010 
 
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/t 
Au). However, there are too few intersections to include in the current 
resource. The current drilling is to confirm the continuity of these high grade 
intersections. 
 
In-filldrilling: 
 
Based on preliminary pit optimisations of the current inferred resource, the 
main part of the resource is located in the area from the southern limit of the 
Bacchus South pit to immediately north of the Phoenix pit over a strike length 
of 2.3km and over a width of 400m to 800m defined by the Bullabulling shear 
zone. As there are more drill holes in this area, the majority of reserves are 
expected to be defined in this area. The areas immediately beneath the Bacchus 
pits contain resources that can be mined with a minimal strip ratio. 
 
Twinning Programme: 
 
In order to check the historic assay results, each major historical drilling 
campaign will be checked by geological domain, especially weathering profile, 
with about 1000-1500 samples required from each domain. Two complete fences of 
drilling across the shear zone have also been planned to confirm the continuity 
of grade and geology and to estimate the pegmatite distribution so it can be 
compensated for in the model outputs. The planned Quality Assurance / Quality 
Control programme should allow areas with high density historic drilling to be 
upgraded to indicated and measured resource categories by twinning historic RC 
drill holes to provide increased confidence in the estimates. Some of the 
twinned holes will be extended at depth and if successful should increase the 
current resource. The remaining areas will require infill drilling to convert 
the inferred resources to measured and indicated. The Snowden Group has been 
engaged to estimate a new resource including all the new drilling results, 
advise on the Quality Assurance / Quality Control programme and estimate JORC 
compliant reserves for the project. 
 
Other Areas: 
 
Drilling has been planned in the Bonecrusher area in the northern part of the 
tenement. A significant proportion of the resource at Bonecrusher has been 
drilled using the shallow depth RAB (Percussion or pneumatic Rotary Air Blast) 
drilling technique and all these holes will have to be re-drilled for the 
resource in this area to be classified as indicated and measured. 
 
Bulk Density Measurement: 
 
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 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. 
 
Initial results from the drilling are expected by the end of the year and the 
metallurgical test results early next the year. 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 inferred resource. 
 
A map showing the planned drill holes is available on the version of this 
release on the Company's website. 
 
Technical information in the Company'snews 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. 
 
Dr. Jeffrey Malaihollo         Westhouse Securities Limited (Nominated Adviser) 
 
Tel: 01992 531820              Tim Metcalfe / Martin Davison 
 
www.gggresources.com           Tel: 020 7601 6100 
 
Gresham PR                     Collins Stewart Europe Limited (Broker) 
 
Neil Boom                      John Prior / Adam Miller 
 
Tel: 07866 805 108             Tel: 020 7523 8350 
 
 
 
END 
 

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