GBM’s new gold acquisition to take Mt Coolon past 1Moz goal
Special Report: GBM resources has reached a non-binding agreement to acquire a 633,000oz gold project that supports its strategy of building a +1Moz processing halo in Queensland.
The Twin Hills project is just 90km northeast of the company’s Mt Coolon gold project and has a global resource of 6.94Mt grading 2.8 grams per tonne (g/t) gold within the 309 and Lone Sister deposits.
GBM Resources (ASX:GBZ) is now undertaking a 30-day due diligence period to review any changes to the technical and environmental status of Twin Hills since it last conducted due diligence with respect of the project in 2018/19.
Managing director Peter Rohner said the company will expedite fresh due diligence following the positive discussions with Minjar and its new parent Jinan High-tech Development.
“This is another significant step in GBM’s ‘processing halo’ strategy to build +1 million ounces within the Mt Coolon region which provides an entry to develop into a mid-tier Australian gold company.”
The Twin Hills agreement follows closely on the heels of the acquisition of the Yandan gold project from Aeris Resources (ASX:AIS) in January.
Twin Hills is located within Queensland’s Drummond Basin, an established gold mining region that is host to a number of significant gold deposits.
GBM notes that the 309 and Lone Sister deposits are 7km apart and are linked by a major north-south structural lineament.
Both deposits have previously been interpreted as intrusion related, high gold fineness, low sulphidation epithermal gold deposits.
The 309 deposit was mined by BMA Gold from 2005-2007 with gold production of 23,490oz and the roughly 1,200m of decline and significant level development to access the Area 2 mineralisation may represent a ready opportunity to access underground mineralisation.
The company believes that there is potential to grow the resource further as potential depth extensions and strike repetition of both the 309 and Lone Sister deposits have not been adequately tested.
With a current resource of 331,000oz at Mt Coolon and 521,000oz at Yandan, the addition of Twin Hills will meet GBM’s goal of establishing a +1Moz resource in the Mt Coolon region.
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.