GGG Resources (LON:GGG) is finding just what it is looking for at the Bullabulling gold project in Western Australia.
A three-rig resource drilling is currently underway at the joint venture project – with Auzex Resources (ASX:AZX) - and results are in for the first 11 holes.
The company said that the assay results were in line with expected historic mineralisation, with grades reaching 14.4 grammes per tonne gold.
"These drill results received so far are encouraging and further bolster our confidence in the Bullabulling project,” managing director Jeff Malaihollo said.
“The results confirm the widths and grades expected at the Bullabulling Gold project.”
The drilling programme is designed to upgrade the recent inferred resource estimate - which puts contained gold at 1.98 million ounces - into the measured and indicated categories.
It also aims to expand the known resource estimate through infill drilling.
“These results are helping to build an ongoing platform for us to deliver an updated JORC compliant resource Measured, Indicated and Inferred mineral resource on the Bullabulling project in the first half of next year," Malaihollo added.
The first 11 assays have confirmed the presence of a westerly dipping low grade zone of mineralisation, which hosts high grade zones.
The higher grade zones include intersections of 11 metres at 2.92 grams per tonne gold and 9 metres grading 6.85 grams per tonne, including 4 metres at 14.40 grams per tonne.
GGG also noted that drilling intersected gold mineralisation below the modelled cut-off - 120 metres - for the current resource.
Assays results from a further 25 drill holes are pending.
Metallurgical drilling has now begun, and the first 120 of a planned 270 metres have been drilled so far.
Also work on scoping studies for the plant design and hydrology have begun.
Collins Stewart mining analyst John Mcgloin featured the promising results in his daily ‘Morning Dig’ note to clients.
“Overall, this is a reasonable set of early drilling results, which will increases the confidence in the previous drilling and confirms the 1.98Moz in resources,” Mcgloin said.
The analyst highlighted that assays are still pending for 70 percent of the holes drilled to date.
He also noted the potential for a resource upgrade as a result of the metallurgical drilling and testing.
Mcgloin adds: “Most positive is the specific gravity testing where the results are showing the ore's specific gravity is over 10% higher than the value used to calculate the current resource estimate.”
“The higher specific gravity measurement has the potential to lift the amount of gold in the resource in the next update.”