Bullabulling confirms Gibraltar project as potential satellite mine

9 March 2014 (Last Updated March 9th, 2014 18:30)

A preliminary mining study on Bullabulling Gold's Gibraltar project in Australia has confirmed the potential to develop the deposit as a satellite mine.

A preliminary mining study on Bullabulling Gold's Gibraltar project in Australia has confirmed the potential to develop the deposit as a satellite mine.

The preliminary mining study was completed to determine whether the deposit could be developed to provide supplementary mill feed for the proposed Bullabulling gold project in Western Australia.

The study estimated that Gibraltar could deliver 1.94 million tonnes at 1.15g per tonne of gold, with 71,700oz of contained gold.

Gold production at the Bullabulling operation is anticipated to average 175,000oz of gold per annum over an initial 13-year mine life.

The company noted that, given the relatively small contribution from Gibraltar, the near-term priority will continue to be placed on the progression of the Bullabulling definitive feasibility study, including on-going optimisation of the development plan.

Areas currently being addressed in the definitive feasibility study include mining equipment selection, development of staged pit designs and preparation for an in-fill drilling programme to support the ore reserve estimation.

The study, which is planned to be completed by the end of the year, also includes the evaluation of potential improvements in the plant flow-sheet intended at reducing reagent consumption and lifting gold recovery.

Located about 6km south-east of the company's Bullabulling gold project, the Gibraltar development has been subject to prior open pit mining in the mid 1990s.

The Bullabulling gold project hosts JORC-compliant mineral resources of 3.75 million ounces, comprising indicated resources of 72.4 million tonnes at 0.98g per tonne of gold and inferred resources of 41.6 million tonnes at 1.11g per tonne of gold.

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