read this announcement for gold gold

this is to stop a speeding ticket over the next couple of days,read the entire notice,big things about to happen here....Enhanced two-tiered gold strategy for 2008
• Expand Burbanks (WA) resource & mine production
• Expand number and size of gold projects in same province
ASX listed Barra Resources Limited (ASX code: “BAR”) is pleased today to announce its formal 2008
strategy. This strategy has been designed to drive enhanced gold outcomes at the Company’s now
well established and highly prospective flagship gold mining projects in the broader Kambalda
province of Western Australia.
The 2008 gold strategy follows a comprehensive review by Barra’s management during the
December 2007 quarter of the optimal development path for the existing Burbanks gold mine and
other priority gold projects.
The review was prompted by a series of significant positive developments in the closing half of
calendar 2007 for the mine, 8 kilometres southwest of Coolgardie. These included a greater than
expected rate of decline development, which allowed enhanced resource definition drilling of deeper
mineralisation, and, first-time access to the entire mining reserve. Burbanks also increased
delineation of higher grade reefs – encouraging a focus on full mine development before any decision
to resume full production.
Significantly, these achievements were gained within an environment of sustained strength in global
gold prices. Barra expects this price strength to continue into 2008. The Company’s gold strategy
therefore for the next 12 months will be underpinned by maximising the benefits of the mine
infrastructure and ore access we have now established at Burbanks and paralleling that with stepping
out the Company’s gold footprint to provide involvement in, or ownership of, other gold projects in the
province which offer genuine opportunities for near-term exploitation.
2008 gold strategy decisions and objectives
• Upgraded Burbanks indicated resource estimate due early February
• Additional indicated and inferred resource update likely April-May
• Further resource upside beneath high grade historical workings
• 70% increase in exploration drilling to 34,000 metres
• Increased exploration (drilling) budget - A$3.7 million
• Completed decline to aid mining cost efficiencies from 2008
• Finalisation of new inventory and mill options to determine restart date
• Forecast 2008 production cash costs of A$580 per ounce
• Wider gold footprint - new Kambalda West and Londonderry projects.
BURBANKS GOLD PROJECT – 8kms Southwest Coolgardie, WA
Wholly-owned by Barra and one of Western Australia’s new breed of underground gold mines,
Burbanks will resume full production some months into 2008. The exact timing is subject to
completion of the current assessment of regional gold processing options, and completion of a
satisfactory upgrade in resource inventory.
29 JJAANUAARRYY 2008 ASX ANNOUNCCEEMEENTT
Barra Resources Limited (ABN 86 093 396 859)
Mercury House, Level 3, 33 Richardson Street, West Perth, Western Australia 6005
Telephone: (08) 9481 3911 Facsimile: (08) 9481 3955
Mine production was halted when faster than expected development of the decline provided strategic
advantage for greater ore access opportunities for resource definition drilling.
Competitive cash cost
Based on initial production by Barra during 2006-2007, Burbanks going forward will have estimated
cash costs ranging from A$580-$660 per ounce, depending on development requirements. Overall
cash costs for the mine in 2007 were A$614 per ounce, including all mining, milling and transport
costs but excluding advanced decline development. All development costs have now been expensed.
At gold prices of around A$900 per ounce, Barra can from 2008, mine 3.6g/t grade ore for a net yield
of 39%, due to Burbanks’ shallow depths of current resources and advanced decline development,
completed during 2007 ahead of schedule.
Production to increase
Production from the Burbanks gold mine is forecast to rise to between 35,000 and 40,000 ounces per
annum from 2008.
The mine produced 235,577 tonnes for 27,160 ounces at an average of 3.6g/t for calendar 2007. This
average grade was less than initial reserve grades of 4.88g/t due to unexpected dilution from old
historical underground stopes and breakthroughs into the waste backfilled Lady Robinson pit. Future
production will not suffer from the same dilution effects as new stoping blocks are well away from
historically mined areas.
Resource upgrade imminent
The aggressive approach this year to the mine development schedule, ahead of production, created
access to the entire underground mining reserve at Burbanks far sooner than forecast.
This included access for the first time for exploration drilling stations beneath the very lowest level of
the mine.
As a result, Barra’s management now expects an indicated resource upgrade by early February 2008
from the extensive infill and extensional drilling programs, with an additional inferred upgrade from
broad spaced drilling expected in April-May 2008.
Burbanks - Underground Exploration
The Company plans to spend approximately A$1million on underground diamond drilling at Burbanks
during the first half of 2008.
The majority of this expenditure will be on strike, depth and plunge extensions of the high grade 7
level, Hadfield Reef, Wahloo South, Dahmu Reef and the Eastern Reef system. Drilling will also be
heavily focussed on the new deep high grade reef discovered late last year with first results released
late last month.
Previous drill coverage in these areas is virtually non-existent. The Company strongly believes
Burbanks can deliver well in excess of 200,000 ounces of future gold resources and will continue to
persist with aggressive drilling programs.
Burbanks - Surface Regional Drilling
An aggressive drilling program combining both surface Reverse Circulation (RC) and Diamond
Drilling totalling 12,450 has been scheduled for 2008.
A total of A$1.3 million will be spent exploring both north and south along strike from the Burbanks
mine.
Barra Resources Limited (ABN 86 093 396 859)
Mercury House, Level 3, 33 Richardson Street, West Perth, Western Australia 6005
Telephone: (08) 9481 3911 Facsimile: (08) 9481 3955
One prospect to receive particular attention will be Pipeline, located 2km north along strike. Recent
surface rock chip and calcrete sampling programs have returned encouraging results up to 9g/t gold.
The area of significant anomalism extends for several hundred metres.
Barra also intends to test, from the surface, the area between the Christmas Pit and historical
Mainlode workings located 400m north along strike. Mainlode produced 86,000 ounces of gold at
18.3g/t during 1905 – 1914. Only shallow drilling to a maximum depth of 40m has been previously
undertaken in this area.
LONDONDERRY PROJECT
This new project, recently acquired from Monarch Gold Mining Company Ltd, is located immediately
east of the Burbanks mining lease. It comprises six granted prospecting licenses encompassing an
area three times that of Burbanks.
It is of particular interest to the Company as it contains the thrust repeated geological sequence that
hosts the producing Burbanks mine.
Only minimal broad spaced Aircore and RAB drilling has been undertaken over the project area with
several encouraging results from shallow depths.
Barra intends to spend approximately $200,000 on this project during the first half of 2008.
KAMBALDA WEST PROJECT
This new project, just announced to the market, is located some 20km west of Kambalda in Western
Australia. It contains the northerly extension of the geological sequence hosting Ramelius Resources’
high grade and producing Wattle Dam open-pit (soon to be underground) gold mine.
The decision by Barra to lift its gold exploration and production footprint across the world renowned
Kambalda region will be implemented through a farm-in arrangement with project owner, Breakaway
Resources Ltd.
Kambalda West represents a highly strategic move for Barra as it combines a comprehensive
in-house knowledge of the Kambalda area at a time when gold prices are being sustained at
historic high levels.
Barra has designed an aggressive gold exploration program totalling 6,900m of RC and Diamond
Drilling to test a number of priority targets.
Management regards the area as highly prospective for high grade gold deposits.
Barra will spend $750,000 on this project in 2008 with work due to commence early in 2008.
PHILLIPS FIND PROJECT
The Phillips Find project, wholly owned by Barra, is located some 50km north of Coolgardie. The
tenement package contains the Phillips Find mining centre where 40,000 ounces of gold has been
mined, predominantly from historical workings and two modern open pits; Bacchus Gift and
Newhaven. The Newminster prospect within the Phillips Find mining centre currently hosts an
Indicated and Inferred resource of 28,500 tonnes grading 4.6g/t gold for 4,200 ounces, to 40m depth.
Barra’s approach to Burbanks has been applied to the Phillips Find mining centre. Careful research,
structural mapping and computer generated three dimensional modelling has been recently
undertaken to unravel the structural complexity of the area. Diamond and RC drilling programs
totalling 6,300m have been designed to test priority targets generated by this new work.
We are currently looking at expanding our footprint in this area.
Barra will spend $600,000 on the project with drilling scheduled to commence in April 2008.
Barra Resources Limited (ABN 86 093 396 859)
Mercury House, Level 3, 33 Richardson Street, West Perth, Western Australia 6005
Telephone: (08) 9481 3911 Facsimile: (08) 9481 3955
2008 OUTLOOK
Barra is confident 2008 will generate significant growth for the Company and reward for shareholders,
as past development costs at Burbanks have now been expensed and mine infrastructure is fully
established. Barra has also gained a greater knowledge of the mine’s geology since commencement
of mining last year.
These factors will combine to deliver enhanced production at competitive cash cost into a strong gold
price market, and continue to position Barra and Burbanks as one of Australia’s most successful new
breed of gold explorers and producers.
In addition, the introduction of two new highly prospective exploration projects at Kambalda West and
Londonderry will enable the Company’s exploration team to continue to build the Company’s gold
assets in the region.
DEAN GOODWIN
Managing Director
Barra Resources Limited
For further information, please contact:
Dean Goodwin Gary Berrell
Managing Director Chairman
Mobile: 0410 482 867 Mobile: 0439 691 955