Bullabulling Gold Quarterly Acitivty Report
27 7월 2012 - 3:00PM
UK Regulatory
TIDMBGL
BULLABULLING GOLD LIMITED
("Bullabulling Gold" or the "Company")
Market Announcement - 27 July 2012 AIM Code: BGL, ASX Code: BAB
QUARTERLY ACTIVITY REPORT
FOR THE THREE MONTHS ENDED30 JUNE 2012
Highlights
Bullabulling Gold Project - Pre-feasibility Study (PFS)
* PFS well advanced, with key mining parameters set and development of
detailed cost estimates underway
* Plant design criteria and process flow sheet finalised, major equipment
lists issued
* Water supply requirements fully sourced; power supply studies progressing
* Guidance on capital and operating costs to be available by end of current
quarter
* Completion of full PFS scheduled for December 2012
Exploration and Resource Development
* Regional 3D modelling identifies significant resource growth potential,
with diamond drilling to commence in the current quarter
* Gibraltar drilling program delivers high grade gold intercepts; resource
upgraded
* Infill resource drilling program commenced at Bullabulling; results to
support resource upgrade prior to PFS completion
Corporate
* Board restructured with Peter Mansell appointed Chairman and Ronnie Beevor
appointed independent Non-Executive Director
* Brett Lambert commenced as Managing Director, effective 1st May
* Cash position at 30 June $7.8 million; fully funded to completion of PFS
Bullabulling Gold Managing Director Brett Lambert said:
"The June quarter was a transformational period for Bullabulling with key
appointments to the Board and management team delivering the necessary skills
and experience to advance Bullabulling towards production. The pre-feasibility
study is now well advanced, with a number of key items finalised and solid
progress made towards determining capital and operating costs. In addition, we
continue to pursue opportunities to expand the resource, with infill RC
drilling underway and diamond drilling due to commence in the current quarter.
With a new team now in place, Bullabulling is fully focused on developing the
Bullabulling Gold Project and delivering value to our shareholders."
BullabullingGold ProjectPre-feasibility Study
Mining
Key mining parameters have been established enabling preliminary open pit
layouts and production profiles to be produced. These preliminary data are
being used as the basis for the work that is currently underway, including
equipment selection, productivity forecasting and estimation of operating
costs.
Costs are being established by obtaining indicative quotes from mining
contractors and, in parallel, having a specialist consultant develop a first
principles estimate.
These initial calculations will be used alongside the independently generated
processing and administration costs, and the updated resource model, to
generate a final round of pit optimisations, leading on to detailed open pit
design and production scheduling.
Processing
The engineering consultants have finalised plant design criteria and the
process flow sheet. Although alternative configurations were evaluated,
conventional single stage crushing followed by a SAG mill/ball mill combination
was selected on the basis of cost effectiveness and lowest technical risk.
While test work has shown that a significant proportion of gold can be
recovered by gravity concentration, subsequent evaluation has failed to
demonstrate sufficient financial benefit to warrant installation of a gravity
circuit. Therefore, our current intention is to use cyanide leaching
exclusively in a conventional carbon in leach (CIL) process.
A tailings thickener will be incorporated into the circuit after studies
demonstrated that this will generate significant cost savings through improved
reagent and water recycling and better tailings management.
Equipment lists have been prepared and enquiries are being generated for major
equipment and reagent pricing to provide data for capital and operating cost
estimates.
Services
Technical specifications and electrical load lists for proposed major items of
equipment are being provided to potential energy providers in order to obtain
proposals for the supply of power to the project site.
Reports from the hydrogeological consultants have indicated that ample ground
water supplies are available for all processing requirements at the planned 7.5
million tonnes-per-annum production rate. Borefield and pipeline designs are
being progressed by the principal engineering consultant.
General
Other elements of the pre-feasibility study have been progressing well, with no
significant issues identified. It is anticipated that the Company will be in a
position to release guidance on capital and operating cost estimates by the end
of September. The complete pre-feasibility study, incorporating an evaluation
of the Gibraltar deposit, final open pit designs, production schedules and full
financial analysis, is targeted for release by year end.
Explorationand Resource Development
Three Dimensional Geological Modelling
Over a period of several months, all geophysical data for the broader
Bullabulling region have been integrated with a two-dimensional geological
interpretation, structure and geochemical data to construct a regional
three-dimensional geographic information system (GIS) model.
The modelling has, for the first time, identified the structural setting for
gold mineralisation at the Bullabulling deposit with positive implications for
future exploration targeting. It also supports the Directors' belief that there
is potential to significantly increase the gold inventory at Bullabulling and
satellite deposits.
The modelling has shown that gold mineralisation at Bullabulling is associated
with the largest fold in the region at the top and bottom contacts of a
regionally extensive ultramafic unit. Both Gibraltar and Geko are also
associated with similar folds, but on a smaller scale.
This structural setting for gold mineralisation has not been described before
at Bullabulling and its identification has important implications for future
exploration as, with the exception of the Bullabulling western limb, the limbs
of the folds have not previously been tested by resource drilling. The
Bullabulling eastern limb remains almost completely untested by drilling,
however a small number of holes did penetrate the prospective structure and
mineralisation was intersected, supporting the proposition that this structure
has the potential to host a similar resource to that delineated on the western
limb. The Gibraltar fold limb has not been drilled to date and these structures
are considered to represent significant exploration targets.
A detailed analysis of the structure in 3D suggests that high grade
mineralisation at Bullabulling and Gibraltar is related to small scale
discontinuities developed where fold amplitude flattens. A large scale
structure of this type has been mapped on seismic line 2, immediately beneath
the current resource. The plane to this discontinuity is at approximately 350
metres vertical depth and may also host higher grade mineralisation, similar to
the smaller structures mapped in the Bacchus and Phoenix pits.
There are also a number of vertical structures mapped on the seismic images
that transect the crust and have the potential to have focused gold-bearing
fluids into the Bullabulling anticline. These structures appear to terminate
just below the flat discontinuity that marks the lower limit to the
Bullabulling anticline and to date have not been tested for their potential to
host higher grade mineralisation.
Preliminary prospectivity analysis has defined seven new exploration targets on
Bullabulling Gold's tenure, with five targets at Bullabulling and two at
Gibraltar.
A program of stratigraphic diamond drilling has been planned to commence the
testing of these targets and collect geological data to improve the 3D
geological interpretation. Diamond drilling is scheduled to commence in
September. Additional seismic data acquisition will be considered following
implementation of the diamond drilling program to further refine the model.
Gibraltar Project
The Gibraltar Project is situated approximately eight kilometres southeast of
the Bullabulling Gold Project on granted Mining Lease M15/529. Previous mining
at Gibraltar included the heap leaching of approximately 1.6 million tonnes of
overlying laterite grading 1.5 g/t, while in the late 1980s, open pit mining
extracted 0.34 million tonnes of primary ore with an average grade of 1.57 g/t.
During the June quarter, final results were received for 24 reverse circulation
(RC) holes totaling 4,986 metres that were drilled at Gibraltar in the March
quarter. High grade mineralisation at depth reported previously has been
confirmed and expanded. Significant intercepts, at a 0.5 g/t gold cut off,
included:
* 3 metres at 6.82g/t gold from 163 metres in hole BJ5009
* 2 metres at 3.88g/t gold from 66 metres in hole BJ5016
* 13 metres at 2.87g/t gold from 166 metres in hole BJ5066
* 11 metres at 2.44g/t gold from 196 metres in hole BJ5067
* 7 metres at 2.02g/t gold from 182 metres in hole BJ5289 and
* 2 metres at 3.16g/t gold from 160 metres in hole BJ5287
Details of all holes drilled in the Gibraltar program were released to the
market on 18 May 2012. A copy of the announcement can be found on the Company's
website.
The latest drill results were combined with data derived from historical
drilling to prepare a revised JORC compliant Mineral Resource estimate for
Gibraltar that was completed and released to the market post quarter-end. The
project now hosts an Inferred Resource of 4.8 million tonnes grading 1.15 g/t
for 177,500 ounces of contained gold at a 0.5g/t gold lower cut-off. Tonnage
and grade both increased marginally relative to the previous resource estimate,
leading to a 10% increase in contained gold.
A mining consultant has been engaged carry out a mining study based on the
updated Gibraltar resource. Subject to the mining study delivering a positive
outcome, Gibraltar will be incorporated into the Bullabulling Gold Project
pre-feasibility study and has the potential to enhance the project by extending
mine life and providing higher grade mill feed early in the production
schedule.
Gold mineralisation at Gibraltar remains open to the east, west and at depth.
3D geological modelling using recent seismic data suggests that the currently
defined mineralisation at Gibraltar is situated on the hinge zone of a regional
fold, similar to the Bullabulling fold. However, neither the east or west limb
of the Gibraltar fold have been tested by drilling. Consequently, the Directors
believe there is the potential to expand the resource at Gibraltar, not only at
depth, but also along the untested limbs of the fold.
The Company intends to evaluate the mining of Gibraltar as a satellite mine to
Bullabulling as part of the current pre-feasibility study. Although generally
deeper than the Bullabulling resource, the higher average grade of the
Gibraltar deposit may make it an attractive source of potential mill feed for
the early years of operation.
Full details of the Gibraltar Mineral Resource estimate were released to the
market on 11 July 2012. A copy of the announcement can be found on the
Company's website.
Details of all the regional exploration holes were released to the market on 18
May 2012. A copy of the announcement can be found on the Company's website.
Current Resource Statement
The Company's resources in the Bullabulling area total approximately 3.4
million ounces, as detailed below. The resources are calculated under the JORC
Code.
Bullabulling Gold Project Mineral Resource Estimate at a Cut-off Grade of 0.5 g
/t
Deposit Class Tonnes (Mt) Grade g/t Contained
Ounces
Bullabulling Inferred 1.6 0.89 46,000
Laterite
Bullabulling Indicated 72.1 0.92 2,132,000
Primary
Inferred 29.0 1.10 1,026,000
Bullabulling Total 102.8 0.96 3,204,000
Gibraltar Inferred 4.8 1.15 177,500
Project Total 107.6 0.98 3,381,500
Infill Resource Drilling Program
An infill drilling program commenced at Bullabulling on 2 July 2012. A total of
26 RC holes are planned, with depths of between 60 metres and 260 metres for a
total of approximately 3,800 metres. The program is principally targeting two
areas where additional information is being sought to finalise open pit designs
for the pre-feasibility. It is considered likely that this work will lead to a
further modest expansion of the existing resource.
Drilling will test an area of the Bacchus Prospect where prior work intercepted
mineralisation that is situated within or immediately adjacent to the proposed
open pit, but current drill hole density is insufficient for resource
definition. The results of these holes will enable detailed pit designs to be
finalized and all significant mineralisation captured to be reported within the
mining inventory.
The program will also test a largely undrilled section of the corridor between
the Hobbit Prospect and the Dickson's Prospect which is traversed by Great
Eastern Highway. If continuity of mineralisation can be demonstrated through
this corridor it may prove financially attractive to realign the highway, which
would open up more of the Bullabulling Trend to exploration and potential
mining.
Drilling should be completed by mid-August with final assays anticipated by the
end of that month. The resource model will subsequently be updated to enable
final mine design and scheduling to be completed.
Regional Exploration Drilling Results
During the quarter final results were received for 23 RC drill holes, totaling
2,659 metres, that were drilled to test a number of regional soil anomalies.
Drilling focused on the area south of Bullabulling between Gryphon and Kraken
prospects and also on E 15/1263 south along strike of the Bullabulling Trend.
Better results received include 5 metres at 2.10 g/t gold from 75 metres in
hole BJ1017 from the Edwards prospect and 5 metres at 0.40 g/t gold from 48
metres, including 1 metre at 1.49 g/t gold from 52 metres in hole BJ3171 from
the Rhea prospect on E 15/1263. The gold occurs in mafic schist, not previously
recognized, surrounded by pegmatite and constitutes a new discovery.
Results to date from the exploration work to the south of Bullabulling have
increased the prospectivity of the area, increasing the probability of finding
new resources that may extend the Bullabulling Gold Project mine life.
Geko Gold Project
The Geko Gold Project is situated approximately 17 kilometres north of
Bullabulling. The project was subject to exploration by previous owners and a
small gold resource (that does not meet current JORC standards) was defined in
the 1990's. Under an agreement entering into with the current owners of the
Geko Gold Project in January 2012, Bullabulling Gold Limited held a call option
to acquire the project.
After careful consideration, the Company elected not to exercise the option
having concluded that acquisition of the project under the terms of the call
option would be excessively dilutive and therefore not in shareholders' best
interests. The call option expired on 6 July 2012.
Corporate
Board Restructuring
Mr Peter Mansell was appointed Non-Executive Chairman of the Company on 12
April 2012. Peter was a lawyer by profession and has 35 years of experience in
corporate and resources law. Peter has served as a director of numerous public
companies, including ASX 100 companies West Australian Newspapers Limited and
Zinifex Limited, both of which he chaired. Peter is currently a director of
Ampella Mining Limited (Chairman), BWP Management Ltd and Nyrstar NV, as well
as a number of unlisted and not-for-profit organisations.
On 1 May 2012, Mr Brett Lambert commenced as Managing Director of Bullabulling
Gold Limited. Brett is a mining engineer with 30 years' experience in
operations, project development and corporate management. Brett's experience
includes taking several projects through feasibility study, development and
into production, including a significant gold mining operation in the
Coolgardie region of Western Australia, where the Bullabulling Gold Project is
located.
Mr Ronnie Beevor was appointed to the Board of Bullabulling Gold Limited as an
independent, Non-Executive Director on 2 July 2012. Ronnie has an Honours
Degree in Philosophy, Politics and Economics from Oxford University and
qualified as a chartered accountant. Ronnie is an investment banker and was
Head of Investment Banking at NM Rothschild & Sons (Australia) Ltd. Ronnie is a
Senior Advisor to Gryphon Partners Advisory Pty Ltd, a subsidiary of Standard
Chartered PLC, and serves on a number of listed resource company boards.
Concurrent with the appointment of Ronnie Beevor; Chris Baker, Jeff Malaihollo,
John Lawton and David McArthur, all previously directors of Bullabulling Gold's
predecessor companies, stood down from the Board. David McArthur continues as
Company Secretary and Chief Financial Officer.
The Company has initiated a search for an additional independent, non-executive
director with technical resource industry skills and appropriate corporate
experience. The Board will then be of a size and have the range of skills
considered appropriate for the Company's stage of development.
Cash Position
At the end of the quarter, the Company had cash and deposits totalling $7.8
million. The Company is fully funded for completion of the pre-feasibility
study and other planned near term activities.
For further information contact:
Brett Lambert, Managing Director
Bullabulling Gold Limited
Level 2, 55 Carrington Street
Nedlands, WA, 6009, Australia
Tel: +61 8 9386 4086
John Prior / Adam Miller Tom Price / Martin Davison
Cannacord Genuity (Broker) Westhouse Securities Limited
Tel: +44 20 7523 8350 (UK Nominated Adviser)
Tel: +44 20 7601 6100
UK Media enquiries: Australian Media and analyst enquiries:
Neil Boom Dudley White / Blake Wilshaw
Gresham PR Limited MAGNUS Investor Relations + Corporate
Communication
+44 7866 805 108
+61 2 8999 1010 / +61 8 9212 0101
About Bullabulling Gold Limited
Bullabulling Gold Limited is listed on the Australian Securities Exchange (ASX:
BAB) and London's AIM Market (AIM:BGL) and has approximately 289 million shares
on issue. The Company's primary asset is the wholly owned Bullabulling Gold
Project, located near Coolgardie in Western Australia.
The Bullabulling Gold Project hosts JORC compliant Mineral Resources of 3.4
million ounces comprising Indicated Resources of 72.1 million tonnes at 0.92 g/
t gold and Inferred Resources of 30.7 million tonnes at 1.07g/t gold at
Bullabulling and Inferred Resources of 4.8 million tonnes at 1.15 g/t gold at
Gibraltar. Exploration has demonstrated strong potential for further expansion
of the resource base.
The Bullabulling deposit is amenable to bulk tonnage open pit mining and
conventional CIL processing has delivered high gold recoveries. The deposit is
situated on granted Mining Leases in close proximity to infrastructure.
The Company is currently undertaking a pre-feasibility study into the
development of a large scale, low cost mining operation at Bullabulling, with
first production targeted for 2015.
Competent Person Statement
The information in this report that relates to the Exploration Results, Mineral
Resources or Ore Reserves is based upon information compiled by Dr. Gregor
Partington, who acts as an exploration consultant to the company and is a
member of The Australasian Institute of Mining and Metallurgy and the
Australian Institute of Geoscientists. Dr. Partington has sufficient experience
relevant to the style of mineralisation and type of deposit under consideration
and the activity in which he is undertaking to qualify as a Competent Person
under 2004 Edition of the Australasian Code for Reporting Exploration Results,
Mineral Resources and Ore Reserves (JORC Code). Dr. Partington consents to the
inclusion in this report of the matters based on his information in the form
and context in which it appears.
END
Bullabulling (LSE:BGL)
과거 데이터 주식 차트
부터 6월(6) 2024 으로 7월(7) 2024
Bullabulling (LSE:BGL)
과거 데이터 주식 차트
부터 7월(7) 2023 으로 7월(7) 2024
