GGG partner Auzex intersects new gold outside Bullabulling Resource

Brisbane-based Auzex Resources (ASX: AZX) continues to have success at the Bullabulling Gold Project with drilling confirming vertical and lateral continuity

established from the recent structural study and new Inferred Resource estimate, as well as intersecting mineralisation outside the new Inferred Resource.

The project is being developed in joint venture with GGG Resources PLC (LON:GGG), which recently changed its name from Central China Goldfields.

Auzex and GGG surprised on the upside earlier this week with a larger than expected 450% jump in JORC reported Mineral Resource to over 1.98 million ounces of contained gold at Bullabulling.
Auzex said in a new statement to the Australian Securities Exchange there is good reconciliation between intersected mineralised intercepts and adjacent historic drill intersections.

A program of seven drillholes totalling 1,396m has been completed over a 2.5km section of the 6km Bullabulling Trend and all assays have been received.

Better intersections include:

- Hole AZBBRD0001: 15m at 1.64g/t Au from 126m, including 4m at 4.91g/t Au from 132m;
- Hole AZBBR0004:14m at 1.67g/t Au from 77m, including 4m at 4.41g/t Au from 87m;
- Hole AZBBRD0006: 25m at 1.69g/t Au from 144m, including 1m at 37.4 g/t Au from 144m.

The drill program planned to intersect known mineralisation between Bacchus and Phoenix pits and was designed to primarily provide detailed structural information related to grade and allow detailed geological data to be collected from the hanging wall through to the footwall of the Bullabulling shear zone, which is approximately 500m wide.

The drillholes were also planned to continue deeper than the historic drilling to test for new zones of mineralisation and provide information to check the new JORC complaint Inferred Resource model and this was confirmed.

Seven drillholes were budgeted totalling 1,432m, with seven holes completed for 1,396m including 200m of RC pre-collars. Fewer metres were drilled than planned due to the failure of one hole to reach the target depth due to bogged drill rods.

Drill-hole AZBBRD0001 intersected mineralisation between 126m and 141m with 15m at 1.64 g/t Au intersected, including 4m at 4.91 g/t Au from 132m.

A low grade zone was also intersected above the target zone with 11m at 0.51 g/t Au intersected from 111m, including 2m @ 1.30 g/t Au from 111m.

Importantly, a new zone of mineralisation was intersected beneath the mineralisation mined historically with 15.58m at 1.26 g/t Au intersected from 354.42m, including 5.58m at 1.93 g/t Au from 354.42 and 5m at 1.66 g/t Au from 365m.

John Lawton, managing director, said this intersection confirms the structural model of stacked lodes in the footwall of the Bacchus mineralisation. This intersection is also located outside the current resource model.

Drill-hole AZBBRD0004 successfully intersected the targeted mineralisation between 77m and 91m with 14m at 1.67 g/t Au, including 4m at 4.41 g/t Au from 87m. A shoot was also intersected below the targeted shoot with 5.75m grading 3.09 g/t Au intersected from 107.25m.

In addition, a number of low grade zones were intersected in the upper part of the hole. The lower zone of mineralisation represents a new target that will add to the current resource.

Drill-hole AZBBRD0006 intersected the mineralised lodes mined in the Bacchus South pit with 2.5m at 2.1 g/t Au returned from 1.5m and 2m at 1.06 g/t Au from 30m and 11m at 0.52 g/t Au from 53m.

A number of narrow high grade zones of mineralisation including 1m at 37.4 g/t Au from 144m (visible gold was identified at this intersection) and wider low grade intersections, including 25m at 1.69 g/t Au from 144m were also returned below the target that represents new mineralisation targets in the footwall that are not included in the current resource.