GBM flags new target areas at Twin Hills gold project
A review of extensive historical data and last year’s drilling program at GBM Resources’ Twin Hills project in Queensland has identified new, key exploration targets in the highly prospective gold corridor.
The Twin Hills project has a defined resource on permitted mining lease of 23.1Mt at 1.3g/t Au and 6.5g/t Ag for ~ 1.0Moz Au and 4.8Moz Ag and contains the Lone Sister and 309 deposits – both of which have potential for open pit and underground extraction – and hosts numerous under tested and untested targets.
Significant new targets are immediately to the south of the 309 deposit with resistivity anomalies comparable to 309, the large 10km2 soil anomaly around Lonesisterand two further targets are 8km long soil anomalies coincident with major mineralised structures at Bullock Creek – Hill 253 and Lanak – Tourmaline Hill which the company says represent excellent exploration targets.
Further field work is planned (including geophysics) which will be followed up with drilling as the plans are finalised for priority activities.
GBM Resources (ASX:GBZ) says the high priority resource extension and near resource exploration targets at both 309 and Lone Sister deposits each have the potential to deliver a significant discovery.
“Recent drilling combined with analysis of existing geochemical and geophysical datasets at Twin Hills has defined several exciting targets, each with the potential to deliver significant additional resources,” MD and CEO Peter Rohner said.
“We will continue to leverage our geological understanding against historical datasets across the very underexplored and highly prospective Twin Hills tenement package as we aim to increase our Drummond Basin Resources.
Future exploration will focus on finalising the targets for drill testing and GBM will continue to undertake integrated data analysis and targeting using the extensive historic databases.
Additional targeted surface geochemical samples will be collected, and electrical geophysics (IP or similar) will be undertaken on selected target areas and the 309 and Lone Sister deposit models will be further refined with focus on alteration and metal zoning patterns for use in vectoring across the tenement package.
The company also released its quarterly report today, flagging a resource upgrade for its Yandan gold project (also in Queensland) to 15.9 Mt at 1g/t Au for 514,500oz Au (previously 521,000oz Au).
A total of 47% of the Yandan Project is now classified as Indicated, prior to the review the MRE was all classified as Inferred, significantly improving both confidence and quality of the resource.
While the new MRE has less tonnes (reduced by 5.6Mt) the grand has been increased from 0.8g/t Au to 1g/t Au, due mainly to increasing the cut-off grade.
Plus, a new geological model specific to the East Hill deposit which has a MRE of 443,000oz Au with the key geological focus being the high-grade core of 1.1Mt at 5.7g/t Au for 201,000oz Au, has highlighted a “significant opportunity for a high-grade vein gold discovery under the existing resource,” GBM said.
Also, during the quarter, diamond drilling commenced in April at the Mount Margaret tenement the company’s Cloncurry iron copper oxide gold project, which is immediately north of the large Ernest Henry copper-gold mine (EHM).
The company also announced it would sell its remaining 50% interest in the Malmsbury gold project in Victoria to Novo for $A1 million but will retain exposure and a 2.5% maximum net smelter returns royalty.
The company is also looking to advance exploration of the Mt Morgan Gold-Copper Project targeting discovery of large-scale gold and copper deposits.
This article was developed in collaboration with GBM Resources Limited, 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.