Auzex Resources (ASX: AZX) has seen a boost in gold resources at the Bullabulling Gold Project following the completion of the phase one of the drilling program at the property. The JORC compliant resource estimate received a 30% increase to 2.6 million ounces at 1.03 grams per tonne of gold.
Auzex Resources has 12 exploratory licenses spread through Australia and New Zealand. The prospective targets are being put through exploratory work which is focused on finding intrusion related gold deposits. The Bullabulling Gold Project located 65 km away from Kalgoorlie in Western Australia is owned 50% by the company.
Traditionally the area has been known to be rich with gold deposits and more than 160 such deposits have been found with resources greater than 1 tonne of gold. There are 19 deposits that have resources greater than 100 tonnes of gold.
The two companies in the joint venture at Bullabulling gold project are Auzex Resources and GGG Resources. The Managing Director John Lawton said that the Bullabulling Gold project continues to demonstrate that Bullabulling is a very large and highly continuous system.
Mr Lawton added that initial optimization modeling based on the new resource estimate had indicated potential to achieve an initial reserve of between 1.5 million and 2.0 million ounces of gold with a minimum mine life of approximately 10 years depending on the annual rate of production selected.
A 20,000 metre exploration drill program is also in progress targeting Gryphon, Kraken, Minotaur and Edwards on the southern extension of Bullabulling Trend. The Managing Director also said that further resource upgrades can be expected from the current phase two drill program from within the Bullabulling Trend which commenced in May 2011 and will run through to November 2011.