BULLABULLING GOLD LIMITED
13 May 2013 ASX Code: BAB, AIM Code: BGL
DRILLING UPGRADES BULLABULLING RESOURCE
* 3.9 Mt at 1.68g/t - 210,500 ounces - added at Edwards/Gryphon
* Grade exceeds expectations and lifts global resource grade by 2%
* Total project resource now exceeds 3.7 million ounces of gold
* Continuity of mineralisation between Edwards and Gryphon confirmed
* Additional high grade ore expected to boost early project cash flow
Bullabulling Gold Limited reports that the Mineral Resource
estimate for the Bullabulling Gold Project has been updated to
incorporate results from the recent drilling program at the Edwards
and Gryphon prospects (see release of 11
April 2013). Only the portion of the resource south of
6,564,800 mN was remodeled.
Total project resources have increased by 3.9 million tonnes at
1.68g/t to 113.2 million tonnes at 1.02g/t. Contained gold has
increased by 210,500 ounces to 3,715,500 ounces. Resource details
are presented in Table 1.
Table 1: Bullabulling Gold Project Mineral Resource Estimate (0.5g/t cut-off)
Deposit Classification Tonnage Grade Cont. Gold
Bullabulling Laterite Inferred 1.7 Mt 0.89 g/t 48,000 oz
Bullabulling Primary Indicated 72.7 Mt 0.97 g/t 2,274,000 oz
Inferred 34.0 Mt 1.11 g/t 1,216,000 oz
Bullabulling Total Ind. & Inf. 108.4 Mt 1.02 g/t 3,538,000 oz
Gibraltar Inferred 4.8 Mt 1.15 g/t 177,500 oz
Project Total Ind. & Inf. 113.2 Mt 1.02 g/t 3,715,500 oz
The grade of the extended resource exceeded expectations and led
to a two percent increase in the global resource grade. The
additional high grade material will be scheduled for early
processing and is expected to contribute to improved project
economics.
The Edwards/Gryphon drilling program successfully identified
down-dip extensions to both deposits and demonstrated that
mineralisation was continuous between them, as shown in Figure 1.
Preliminary mine planning is indicating that a single pit some 1.2
km in length can now be designed to efficiently extract the
combined Edwards/Gryphon resource. The resource remains open at
depth and further drilling is considered to be warranted.
Re-optimisation of the mine design using the updated resource
model and refined cost estimates is currently underway as the first
phase of the Bullabulling definitive feasibility study.
Amalgamation of the Edwards and Gryphon prospects is expected to
contribute to lower mining costs with the grade increase expected
to further reduce gold production costs.
The revised Bullabulling resource estimate was prepared by
Snowden Mining Industry Consultants in accordance with the JORC
Code (2004) and ASX Companies Updates.
A copy of this announcement including figures is available on
the Company's website: www.bullabullinggold.com
For information, contact:
Brett Lambert Westhouse Securities Limited
Bullabulling Gold Limited (UK Broker & Nominated Adviser)
Level 2, 55 Carrington Street Martin Davison/Jonathan Haines
Nedlands, WA, 6009, Australia Tel: +44 20 7601 6100
Tel: +61 8 9386 4086
Neil Boom John Gardner / Rupert Dearden
Gresham PR Ltd (UK media) MAGNUS Investor Relations. Corporate
Communication. (Australian Media)
Tel: +44 7866 805 108
Tel: +61 8 6160 4900
jgardner@magnus.net.au rdearden@magnus.net.au
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 341.7 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 3.7 million ounces comprising Indicated Resources of
72.7 million tonnes at 0.97 g/ t gold (2.3 million ounces) and
Inferred Resources of 35.7 million tonnes at 1.11 g/t gold (1.2
million ounces) at Bullabulling and Inferred Resources of 4.8
million tonnes at 1.15 g/t gold (0.2 million ounces) 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. All resources are situated
on granted Mining Leases in close proximity to infrastructure.
The Company is conducting a definitive feasibility study into
the development of a large scale, low cost mining operation at
Bullabulling, with first production targeted for Q4 2015.
Competent Person Statements
The information in this report that relates to the May 2013 Bullabulling Mineral Resource estimate
is based upon information compiled by Richard Sulway. Mr Sulway is a Member of the
Australasian Institute of Mining and Metallurgy (MAusIMM (CP)) and
has sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to the
activity to which he is undertaking to qualify as a Competent
Person as defined in the 2004 edition of the "Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves". Mr Sulway is a full-time employee of Snowden Mining
Industry Consultants Pty Ltd. Mr Sulway consents to the inclusion
in the report of the matters based on his information in the form
and context in which it appears.
The information in this report that relates to the Exploration
Results, Mineral Resources or Ore Reserves other than the
May 2013 Bullabulling Mineral
Resource estimate is based upon information compiled by Mr
Trevor Pilcher, who is a full time
employee of the Company and is a member of The Australasian
Institute of Mining and Metallurgy. Mr Pilcher 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). Mr Pilcher consents to the
inclusion in this report of the matters based on his information in
the form and context in which it appears.
Glossary of Technical Terms
Cut off The lowest grade of mineralised material included in the
Mineral Resource estimate
g/t Grams per tonne
JORC Joint Ore Reserves Committee
Indicated Resource In situ Mineral Resource calculated with a moderate
confidence level to which economic parameters have not
been applied
Inferred Resource In situ Mineral Resource calculated with a low
confidence level to which economic parameters have not
been applied
Mt Millions of tonnes