ASX ANNOUNCEMENT 8 November 2012
ASX Code: BDR

DUCKHEAD HIGH GRADE RESOURCE
94,000 tonnes @ 30.9 g/t for 93,000 oz gold

Beadell Resources Limited (Beadell) is pleased to announce an exceptional preliminary open pit resource for the Duckhead deposit at Tucano in Brazil. A JORC Indicated and Inferred resource of 94,000 tonnes @ 30.9 g/t gold for 93,000 oz of gold defines one of the highest grade and lowest cost open pittable gold deposits in the world.

Beadell’s Managing Director, Peter Bowler commented “This is an extraordinary oxide open pit resource which is still expanding. We are liaising closely with Anglo Ferrous personnel to facilitate a timely commencement date for this extremely low cost gold resource. The reserve statement will be released shortly and with the inclusion of the significant amount of friable iron ore contained within the proposed open pit, which is compensated on a cost recovery basis by Anglo Ferrous under the Duckhead Agreement, will result in one of the lowest cost gold mining operations globally. Additionally, the new drilling results released today are highly significant and indicate that the Duckhead deposit will continue to grow with ongoing drilling.”

New drilling results from the recently discovered hangingwall lode are FVM59, 33 m @ 2.9 g/t from 16 m including 14 m @ 5.0 g/t gold from 17 m and FVM61, 43 m @ 1.7 g/t gold from surface including 7 m @ 3.1 g/t gold from 21 m. These new hangingwall intersections are located immediately southeast of the main high grade lode and are not yet included in the resource model (Figure 1). RC drilling is currently extending the hangingwall lode to the southeast.

New drill results were also received from a direct down dip extension of the main high grade lode. The result in FVM10 of 14 m @ 7.4 g/t gold from 152 m to bottom of the hole, including 4 m @ 23.0 g/t gold from 152 m represents the deepest intersection of the main high grade lode to date which remains in completely oxidised ore. Diamond drilling has commenced to further extend the main high grade lode and resource at depth.

Overview Beadell Resources Limited

UPDATE:
PERTH (miningweekly.com) – Gold developer Beadell Resources has started ore commissioning at its 7 MW semi-autogenous grinding mill, at its Tucano gold project in Brazil.