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Thursday, September 29, 2016

Bullabulling Gold to raise cash for DFS at flagship

Friday, March 15th, 2013


Bullabulling Gold (LON:BGL ASX:BAB) is to raise up to £5.3mln though an equity issue to complete the definitive feasibility study (DFS) at its flagship project in Western Australia.

Bullabulling published a pre-feasibility study in February based on a 7.5mln tonne per annum open pit mining operation to produce approximately 2mln ounces of gold over an initial mine life of ten years.

The initial phase of the DFS will focus on re-optimisation of the project to evaluate potential improvements identified during review of the pre-feasibility study results.

A preliminary assessment of these initiatives has indicated they could materially reduce estimated cash production costs and increase forecast gold production, Bullabulling said.

The entitlement offer will be open to existing shareholders on a 1 for 2 basis at 3.5p (5c). The share issue is not being underwritten.

The Bullabulling Gold project hosts JORC compliant mineral resources of 3.5mln ounces comprising indicated resources of 71.7mln tonnes at 0.96 grams per tonne (g/t) gold (2.2mln ounces) and inferred resources of 32.8mln tonnes at 1.06 g/t gold (1.1mln ounces) at Bullabulling, and inferred resources of 4.8mln tonnes at 1.15 g/t gold (0.2mln ounces) at the Gibraltar deposit.