GGG Ggg Resources

 
TIDMGGG 
 
GGG Resources plc 
 
                           (the "Company" or "GGG") 
 
         Bullabulling Gold Project - Resource Drilling and Work Update 
 
 
GGG Resources plc ("GGG") notes that Auzex Resources Limited ("Auzex") has 
today released an announcement regarding the Bullabulling Gold Project. This 
has been done without GGG's prior consultation or approval, as required under 
the Bullabulling Joint Venture Agreement. 
 
Having reviewed the release, GGG now makes the following announcement:. 
 
Highlights 
 
  * Development of Bullabulling continues on track 
 
  * The Auzex/GGG joint venture has commenced the Phase Two drill programme. 
 
  * Approval of the Programme of Works for a planned 194,000m drilling 
    programme has been received from the WA government and 3 drill rigs are 
    currently working on site. 
 
  * 27 new drill holes totalling 5,793m have been completed during April and 
    May 2011, bringing the overall drilling total to 36,540m in 254 drill holes 
    since commencement and 1,508m in 8 holes for the Phase Two drilling 
    programme. 
 
  * Results from the drilling programme continue to confirm and expand the 
    current resource model and include new high grade intersections. 
 
  * Approximately 22% of reported mineralised sections are outside the current 
    resource model. 
 
  * Highlights include: 4m at 4.73 g/t Au, 1m at 13.75 g/t Au, 12m at 1.52 g/t 
    Au, 11m at 1.73 g/t Au, 14m at 1.27 g/t Au, 29m at 0.73 g/t Au, 1m at 9.12 
    g/t Au, 22m at 0.75 g/t Au, 16m at 1.44 g/t Au and 10m at 1.8 g/t Au. 
 
  * The QAQC has been approved by our resource consultants, meaning the 
    historic RC drill data can be used for resource and reserve estimation. 
 
  * The joint venture will meet to approve a deep drilling programme to test 
    for high grade mineralisation (+5 g/t Au) below the current resource limit, 
    based on its understanding of the Bullabulling model of mineralisation. 
 
Snowden the resource consultants to the joint venture have signed off on the 
QAQC drilling and confirmed that the historic Reverse Circulation ("RC") drill 
results can be used in resource and reserve estimation. 
 
They have also confirmed that a drill spacing of 25m by 50m is required to 
upgrade inferred resources to the indicated resource category and detailed 
planning has now been completed to bring the drill spacing of the resource over 
the six kilometre strike of the Bullabulling Trend to the recommended drill 
density. Approximately 92,000m of infill drilling will be required to complete 
this task, depending on the discovery of any new zones of mineralisation. 
 
Approval has been received from the WA government for the Programme of Works 
for up to 194,000m of drilling over the next 12 months. 
 
The joint venture has commenced the Phase Two RC resource drilling programme, 
which initially comprises the 30,000m of infill and exploration drilling 
approved by the joint venture. 
 
An updated resource estimate will be available within the next month following 
joint venture approval. 
 
The metallurgical testwork and resource estimation have been completed and is 
in the final stages of review. 
 
A final scoping study and financial model will now be completed to allow the 
Joint Venture committee to sign off on the optimum processing rate. 
 
The programme of work remains on track to deliver the results of a feasibility 
study at the end of this year. 
 
There are 3 drill rigs working on the Phase Two programme infilling the 
historic drilling between Phoenix and Hobbit and exploration drilling to 
increase the current resource base, including significant exploration targets 
to the south of the main Bullabulling Trend such as Gryphon and Eileen where 
previous RAB drilling has intersected widespread gold mineralisation. 
 
Objective of Phase Two resources drilling programme is to establish sufficient 
reserves for a ten year mine life reserve. 
 
A key aim of the Phase Two resource drilling programme is to infill the current 
and historic drilling to a 25m by 50m drill spacing to allow all the current 
Inferred resource to be reclassified to the Indicated resource category, and in 
turn enable initial JORC compliant reserves to be established for the project. 
The current reported JORC compliant mineral resource is 41,517,000 tonnes at 
1.48 g/t Au (1.98 million ounces contained gold) at a 0.7g/t Au cut off to an 
assumed economic mining depth of 315m RL, approximately 120m below surface. 
 
Drilling work 
 
The final phase of QAQC drilling (Phase One) was completed in early May with 
4,285m from 19 holes drilled from April 2 2011 until May 13 2011. The Phase Two 
drilling started on May 14 2011 and 1,508m from 8 holes has been completed from 
then until May 19. Since the last announcement where results were reported to 
01 April 2011, there has been a total of 5,793 metres drilled in 27 holes. 
Total drilling production to date is 36,540m from 254 holes, including 
pre-collars for metallurgical holes. Drilling during the period focussed on 
finishing the Phase One QAQC drilling and starting Phase Two exploration 
drilling of the footwall lodes between Hobbit, Phoenix and Bacchus East. 
 
Drilling results 
 
Drill assays continue to confirm the resource estimate and geological model. 
 
Better intersections from the Phase One and Phase Two drilling include: 4m at 
4.73 g/t Au 
 
from 7 m in BJ0236, 1m at 13.75 g/t Au from 44m in BJ0238, 6m at 1.42 g/t Au 
from 124m 
 
in BJ0243, 12m at 1.52 g/t Au from 136m in BJ0243, 7m at 1.19 g/t Au from 123m 
in 
 
BJ0247, 11m at 1.73 g/t Au from 105m in BJ0251, 14m at 1.27 g/t Au from 133m in 
 
BJ0251, 3m at 3.36 g/t Au from 119m in BJ0280, 6m at 1.57 g/t Au from 12m in 
BJ0344, 
 
29m at 0.73 g/t Au from 159m in BJ0350, 1m at 9.12 g/t Au from 249m in BJ0350, 
3m at 
 
2.31 g/t Au from 28m in BJ0369, 19m at 0.72 g/t Au from 68m in BJ0369, 4m at 
2.06 g/t 
 
Au from 119m in BJ0369, 22m at 0.75 g/t Au from 67m in BJ0394, 16m at 1.44 g/t 
Au 
 
from 96m in BJ0394 and 10m at 1.8 g/t Au from 132m in BJ0396. 
 
As in the previously announced holes, there are generally at least 4 
intersections per hole relating to the multiple stacked lodes defined by the 
structural mapping. Approximately 58% of these intersections returned similar 
or better grades or widths of mineralisation to the resource model and 20% were 
worse or did not intersect mineralisation predicted by the resource model. 
Approximately 22% of the reported intersections have returned gold 
mineralisation outside the current resource model, as previously reported to 
315 RL or approximately 120m below surface, which will add to the current 
resource base of the project. 
 
As previously announced he joint venture will explore for high grade material 
below the near surface resource. This is consistent with GGG's strategy from 
the outset. 
 
The Joint Venture committee will be required to sign off on the proposed infill 
and exploration drilling programs when it next convenes. 
 
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. 
 
Contacts 
 
Dr. Jeffrey Malaihollo         Westhouse Securities Limited (UK Nominated 
                               Adviser) 
Tel: +44 1992 531820 
                               Tom Price / Martin Davison 
Email: www.gggresources.com 
                               Tel: +44 20 7601 6100 
 
 
Gresham PR Limited (UK Media)  Collins Stewart Europe Limited (UK Broker) 
 
Neil Boom                      John Prior / Adam Miller 
 
Tel: 07866 805 108             Tel: 020 7523 8350 
 
David McArthur                 Max Fowles 
 
 
Broadway Management Pty Ltd    Pendulum Capital Pty Limited (Aust Corporate 
(Aust Agent)                   Advisor) 
 
Phone: +61 89 423 3200         Phone: +61 8 9282 5402 
 
Mobile: +61 412 902 477        Mobile: +61 419 938 759 
 
Bullabulling Overview 
 
The Bullabulling Gold project (Bullabulling) is a large tonnage, low grade 
deposit with high grade shoots, associated with the regional Bullabulling shear 
zone which extends over tens of kilometres. The mineralised structure is 500m 
wide, consisting of multiple west dipping low grade stacked zones with narrower 
higher grade gold mineralisation. 
 
Bullabulling is located near Coolgardie and approximately 65km south-west of 
Kalgoorlie, Western Australia. Bullabulling was previously mined by Resolute 
producing 371k oz Au in the 1990's. The current program focuses on 
approximately 2.3km of the 6km portion of the shear zone known as the 
Bullabulling Trend where previous operations were concentrated. The focus for 
the Bullabulling joint venture with GGG Resources plc is to establish an 
initial reserve exceeding one million ounces gold to commence production in 
2013. 
 
 
 
END 
 

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