GGG Resources (LON:GGG) reported results from an additional 105 drill holes of the current resource drilling programme at the formerly producing Bullabulling gold mine in Western Australia.
They continue to confirm and expand the current resource model and include new high grade intersections.
The resource base currently stands at a JORC indicated 1.98 million ounces at an average 1.5 grams per tonne and a cut off grade of 0.7 grams.
The mine is being redeveloped in a 50/50 joint venture with Auzex Resources (ASX:AZX). Last month GGG launched a A$94.9 million takeover bid for its partner, but Auzex has rejected the offer on valuation grounds.
The 105 new drill holes total 15,575 metres and were completed during February and March 2011, bringing the overall total drilled to 30,854 metres in 227 drill holes.
Drilling highlights included 1 metre at 23.8 grams per ton gold from 34 metres in BJ0118, 1 metre at 11.7 g/t Au from 128 metres in BJ1059, 7 metres at 24.5 g/t Au from 36 metres - including 1 metre at 164 g/t Au from 38 - in BJ0180, and 2 metres 13.3 g/t Au from 29 metres in BJ0210.
GGG said new zones of mineralisation continue to be intersected outside the resource model both below and along strike from known mineralisation.
Most holes continue to return intersections similar to those predicted by the resource model and about a quarter are intersecting new mineralisation not in the resource model
A Programme of Works has been submitted to the West Australian Department of Mines to allow a total of 194,000 metres to be drilled in the coming year or as required.
GGG managing director Jeff Malaihollo said: "The gold results continue to be both consistent and encouraging. It is therefore with confidence that we are now looking to expand considerably the Bullabulling work programme. We are delighted that we already have in place the finance necessary to fund this ambitious enlarged drilling programme."