Name and Location
Bullabulling gold project, Australia.

Client
Bullabulling Gold.

Project Description
The mine plan is based on the development of four openpits, with a total mining inventory of 114-million tonnes, grading 1.02 g/t for 3.75-million ounces of contained gold.

A revised mine design for Bullabulling, based on four openpits, has been built on a 150 000 oz increase in the total mineral resource, and shows that relocating the power and telecommunication lines will allow for the expansion of two of the four pits to capture the additional tonnage.

With the additional resources, the Bullabulling mine is estimated to deliver 2.56-million ounces over its 13-year mine life, rather than 2.1-million ounces. At the current spot gold price, this additional production would increase the potential net cash flow by about A$35-million.

However, the production estimate is not based on a mining reserve, as about 15% of the resource tonnage is currently classified as inferred.

Value
Total capital expenditure is estimated at $326.4-million.

Duration
A development decision is expected by the end of 2013.

Engineering, procurement and construction of the mine, plant and associated infrastructure have been estimated at 21 months, leading to gold production that will start at the beginning of the fourth quarter of 2015.

Mining will start six months prior to production to provide waste rock for the construction of the run-of-mine ore pad and tailings storage facility; in addition, about 160 000 t of ore will be produced during this period to facilitate plant commissioning.

A three-month ramp-up period has been allowed, during which time an estimated 1.4-million tons of ore will be processed, with 50 000 oz produced.

Latest Developments
Norton Gold Fields has obtained a controlling stake in takeover target Bullabulling Gold, with its shareholding surpassing 50%.

Norton is offering Bullabulling shareholders an increased 8c a share for their shareholding in the company, after gaining more than a 30% interest in the takeover target.

Bullabulling’s directors have supported this increased offer, recommending that shareholders accept the offer in the absence of a better proposal.

Norton’s takeover period will be extended by 14 days, and the offer will close on July 28.

As the company has gained a majority interest in Bullabulling, Norton will start a review process on the composition of the takeover target’s board of directors, as well as its business operations and assets.
Meanwhile, a  preliminary mining study on the Gibraltar gold project, owned by junior Bullabulling Gold, has confirmed the potential to develop the project as a satellite mine.

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

The study estimated that the Gibraltar deposit could deliver about 1.94-million tonnes of ore, grading 1.15 g/t gold for an estimated 71 700 oz of contained gold.

Gold production at the Bullabulling operation was expected to average 175 000 oz/y over an initial 13-year mine life.

While the grade is somewhat higher than the forecast average mine grade at the Bullabulling project, the strip ratio is also higher.

However, 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 (DFS), including ongoing optimisation of the development plan.

Areas currently being addressed in the DFS include mining equipment selection, the development of staged pit designs, preparation for an in-fill drilling programme to support the ore reserve estimation and the evaluation of potential improvements in the plant flow-sheet to reduce reagent consumption and lifting gold recovery.

The DFS is scheduled for completion at the end of 2014.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Bullabulling Gold, tel +61 8 9386 4086 or fax +61 8 9389 8327.