GGG Resources (LON:GGG) chairman Peter Ruxton said the first half of 2010 was an ‘active, exciting and fruitful period’ for the company, after it committed to the development of the Bullabulling project.
Over the past six months GGG optioned into, and subsequently acquired, a 50% stake in the Australian gold project. Now with a ‘new brand and a strengthened board’ the company is targeting production in early 2013.
In August the company changed its name from Central China Goldfields to GGG Resources, to reflect its ‘transformation and redirection’.
The company acquired a 50% stake in the project from Auzex Resources (ASX: AZX) in a deal worth approximately US$10 per oz of gold.
With GGG’s involvement, Bullabulling moved forward swiftly, and the former mine’s resource has grown substantially (approximately 450%) from 430,000 ounces of gold.
“Since acquiring our 50% interest in Bullabulling ... its resources have dramatically increased to 2 million ounces of gold.”
“We have now embarked on the start of the feasibility study at Bullabulling, and hope to start converting the resources into reserves.”
Furthermore, Ruxton emphasised that he is confident that Bullabulling’s resource can be expanded further.
In the first six months, the company was boosted by the repatriation of US$3.7 million from China. For the period GGG reported a £504,463 loss (H109: £228,493 loss), and on the 30th June it had a balance of £5.4 million (H109: 6.9 million).
The company’s positive momentum continued into the current reporting period, driven by board appointments, a fundraising and the ‘green-lighting’ of the next phase of exploration.
Last week GGG announced the details of a A$2m drilling programme at Bullabulling, to upgrade the inferred gold resource into the measured and indicated categories.
Drilling is expected to get underway in October, and the first results are slated for November. The programme will consist of just over 18,000 metres of drilling.
The programme marks the start of the company’s efforts towards the completion of a feasibility study on the fast-tracked project.