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Company Bullabulling Gold Limited
TIDM BGL
Headline

CLARIFICATION - PRODUCTION FORECAST

Released 07:00 06-Jun-2014
Number 9386I07

RNS Number : 9386I
Bullabulling Gold Limited
06 June 2014
 



                      6 June 2014                                                             ASX Code: BAB, AIM Code: BGL

 

 

Bullabulling Gold Limited ("Bullabulling " or the "Company")

 

CLARIFICATION  - BULLABULLING GOLD PROJECT PRODUCTION FORECAST

Bullabulling Gold Limited (the Company or BAB) refers to the announcements to the Australian Securities Exchange Limited (ASX) and AIM on 7 February 2013, 2 July 2013, 15 October 2013, 19 February 2014, 7 March 2014, 12 March 2014, 30 April 2014, 27 May 2014 and BAB's Target's Statement released on 14 May 2014 which refer to the Bullabulling Gold Project.

Those announcements and the Target's Statement include a reference to the forecast gold production for the Bullabulling Gold Project. This forecast gold production was based on the results of the prefeasibility study first reported on 7 February 2013 and the optimisation of those results through the revised mine plans developed following resource updates, as reported on 13 May 2013 and 19 September 2013. The material assumptions underpinning that production forecast, including the capital expenditure requirements to bring the project to full production, were last reported to the ASX on 7 March 2014. The directors of BAB are not aware of any material change in circumstances that impacts the technical viability of the Bullabulling Gold Project or the estimates of capital and operating costs that have been announced for the project, as last reported on 7 March 2014.

As reported in the Target's Statement and the Chairman's address to the AGM released on 27 May 2014, additional funding will be required for the Bullabulling Gold Project to bring it to the production stage and there is currently no certainty of this funding. The directors strategy during the study phase of the project is to raise funds periodically when they are needed in the least dilutionary manner to shareholders. The Company intends to evaluate a range of funding alternatives for project development once an Ore Reserve has been estimated.

Investors are advised that, as there is no certainty that sufficient funding will be secured for the Bullabulling Gold Project, the economic viability of the project has not been established notwithstanding the independently assessed Mineral Resources of 3.75 million ounces of gold[1] and the results of the prefeasibility study and

 

further optimisation work carried out. As BAB is concerned that investors may imply that economic viability has been established for the project, it retracts the gold production forecasts and cautions investors against using those statements as a basis for investment decisions about shares in the Company.

 

David McArthur
Company Secretary

Competent Person Statement

The information in this report that relates to Mineral Resources is based upon information compiled by Mr Trevor Pilcher, who is a full time employee of the Company and is a member of The Australasian Institute of Mining and Metallurgy. Mr Pilcher has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and the activity in which he is undertaking to qualify as a Competent Person under the 2012 Edition of the Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves (JORC Code). Mr Pilcher consents to the inclusion in this report of the mattes based on his information in the form and context in which it appears.

 

 

 

Further enquiries:

 

Brett Lambert

Bullabulling Gold Limited

Level 2, 55 Carrington Street

Nedlands, WA, 6009, Australia

Tel: +61 8 9386 4086

Westhouse Securities Limited

(UK Broker & Nominated Adviser)

Martin Davison / Hugo Rubinstein

Tel: +44 20 7601 6100

Neil Boom

Gresham PR Ltd (UK media)

Tel: +44 7866 805 108

John Gardner / Rupert Dearden

MAGNUS Investor Relations. Corporate Communication. (Australian Media)

Tel: +61 8 6160 4900

jgardner@magnus.net.au  rdearden@magnus.net.au

 



[1] Mineral resources estimates comprise Indicated Mineral Resources of 72.4 million tonnes at 0.98g/t gold (2.8 million ounces) and Inferred Mineral 

Resources of 41.6 million tonnes at 1.11 g/t gold (1.47 million ounces).  This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.


This information is provided by RNS
The company news service from the London Stock Exchange
 
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CLARIFICATION - PRODUCTION FORECAST - RNS