GBM draws closer to completing Twin Hills gold acquisition
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GBM is closing in on the acquisition of the Twin Hills gold project in Queensland with the completion of technical and environmental due diligence.
It is now progressing a binding agreement with vendor Minjar Gold to acquire the project, which complements its strategy of building a +1Moz gold ‘processing halo’ in the Drummond Basin.
Twin Hills has a current JORC resource of 6.94Mt grading 2.8 grams per tonne (g/t) gold for 633,000oz of contained precious metal.
GBM Resources (ASX:GBZ) also has the right to secure additional tenement packages in the Drummond Basin that surround Twin Hills and a competing application west of the recently acquired Yandan gold project.
The company has a 60-day option to acquire these two exploration permit applications from Yacimiento Pty Ltd that it can exercise through a payment of 2 million GBZ shares.
These EPMAs are expected to further advance its processing halo strategy.
GBM currently has a resource of 331,000oz of gold at Mount Coolon and 521,000oz of gold at Yandan.
With about $8.5m in cash and cash equivalents as of 31 December 2020, GBM is well positioned to deliver on its gold processing halo strategy.
In 2021, the company plans to focus its exploration efforts on infill drilling between the Main Pit and East Hill deposits at Yandan to expand resources, upgrade the non-compliant resource at the IIlamahta Prospect and review Northeast Ridge for oxide resource.
At Mount Coolon, it intends to test the Glen Eva-Eastern Siliceous (GEES) epithermal gold trend and drill the remaining two holes at the Koala prospect to test priority targets under known high-grade shoots at the northern end of the resource.
GBM is also progressing the Malmsbury joint venture with Canada’s Novo Resources with planning underway for a $1.8m exploration program this year.
Additional mapping, geophysical and soil/rock chip sampling is underway ahead of a diamond drilling program that is expected to start in the June quarter.
Novo had acquired a 50 per cent interest in Malmsbury for 1,575,387 shares, which are currently worth a hefty $5.3m at NVO’s current share price of $C3.26 and CAD/AUD exchange rate of 1.03.
This article was developed in collaboration with GBM Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.