Bullabulling Gold Limited PRELIMINARY GIBRALTAR MINING STUDY COMPLETED (7216B)

TIDMBGL

RNS Number : 7216B

Bullabulling Gold Limited

07 March 2014

7 March 2014 ASX Code: BAB, AIM Code: BGL

PRELIMINARY GIBRALTAR MINING STUDY COMPLETED

Bullabulling Gold Limited is pleased to report that a preliminary mining study has been completed for the Company's Gibraltar Project. The study evaluated the potential to establish Gibraltar as a satellite mine to the 3.6 million ounce Bullabulling Gold Project and key findings include:

   --    Estimated mine production from Gibraltar of 1.94 million tonnes at 1.15g/t gold 
   -   71,700 ounces of contained gold 
   --    Potential to develop Gibraltar as a satellite mine to Bullabulling confirmed 
   --    The Bullabulling DFS is progressing well and targeted for completion by year end

The preliminary mining study was completed to assist in determining whether the Gibraltar deposit could be developed to provide supplementary mill feed for the proposed Bullabulling Gold Project. Using parameters derived from the Bullabulling feasibility study, a series of Whittle optimisations were run, providing the basis of an open pit design for Gibraltar. The resulting mine plan captured 1.94 million tonnes of resource grading 1.15g/t containing 71,700 ounces of in situ gold. Whilst the grade is somewhat higher than the forecast average mined grade at Bullabulling, the strip ratio is also higher at 5.5:1, having been impacted by the requirement to maintain practical bench widths adjacent to the historic pit.

The mining study has confirmed the potential to develop Gibraltar as a satellite mine to supply additional mill feed to the proposed Bullabulling Gold Project, where production is forecast to average 175,000 ounces of gold per annum over an initial mine life of 13 years (see release of 31 October 2013). Gibraltar does not form part of this production forecast. Given the relatively small potential contribution from Gibraltar, the near term priority will continue to be placed on progression of the Bullabulling definitive feasibility study (DFS) including on-going optimisation of the development plan where potential for further value creation has been identified.

Areas currently being addressed in the DFS include mining equipment selection, development of staged pit designs, preparation for an in-fill drilling program to support Ore Reserve estimation and the evaluation of potential improvements in the plant flow-sheet aimed at reducing reagent consumption and lifting gold recovery. Good progress is being made in all areas and the DFS is scheduled for completion by the end of 2014.

Gibraltar Overview

The Gibraltar Project is situated approximately six kilometres south-east of the Company's Bullabulling Gold Project and has been subject to prior open pit mining in the mid 1990's. During the September 2013 quarter a reverse circulation (RC) drilling program was carried out to improve definition of the Gibraltar resource and test for resource extensions potentially amenable to open pit mining (see release of 27 September 2013). The Mineral Resource estimate for Gibraltar was subsequently updated to incorporate the drill results (see release of 25 October 2013) and now stands at 4.9 million tonnes at 1.07g/t for 169,000 ounces of contained gold. The resource is classified as Inferred and was estimated using a 0.5 g/t cut-off grade. Further engineering studies and in-fill drilling to upgrade the resource to Indicated will be required in order to estimate an Ore Reserve for Gibraltar.

For information, contact:

 
 Brett Lambert                    Westhouse Securities Limited 
  Bullabulling Gold Limited        (UK Broker & Nominated Adviser) 
  Level 2, 55 Carrington Street    Martin Davison / Dominic Palmer-Tomkinson 
  Nedlands, WA, 6009, Australia    / Hugo Rubinstein 
  Tel: +61 8 9386 4086             Tel: +44 20 7601 6100 
-------------------------------  ----------------------------------------------- 
 Neil Boom                        John Gardner / Rupert Dearden 
  Gresham PR Ltd (UK media)        MAGNUS Investor Relations. Corporate 
  Tel: +44 7866 805 108            Communication. (Australian Media) 
                                   Tel: +61 8 6160 4900 
                                   jgardner@magnus.net.au rdearden@magnus.net.au 
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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 344 million shares on issue. The Company's primary asset is the wholly owned Bullabulling Gold Project, located 60 kilometres west of Kalgoorlie in Western Australia.

The Bullabulling Gold Project hosts JORC compliant Mineral Resources of 3.75 million ounces comprising Indicated Resources of 72.4 million tonnes at 0.98 g/t gold (2.28 million ounces) and Inferred Resources of 41.6 million tonnes at 1.11 g/t gold (1.47 million ounces). 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 which is scheduled for completion in 2014.

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 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 2012 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.

The information in this report that relates to the Exploration Results, Mineral Resources or Ore Reserves was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported. All material assumptions and technical parameters underpinning the estimates of mineral resources continue to apply and have not materially changed.

This information is provided by RNS

The company news service from the London Stock Exchange

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