GBM’s thick gold hits clears path to 309 Deposit upgrade

GBM has clearly demonstrated why it is so keen to focus on its Drummond Basin assets with the final holes at its Twin Hills project spitting out thick, significant zones of gold.

Excellent results such as 81m grading 2.5 grams per tonne (g/t) gold from a down-hole depth of 119m including a high-grade intersection of 14m at 7.84g/t gold and a deeper 84.7m intersection at 1.79g/t gold from 214m in hole 309DD22016 provides a clear line of sight for a resource upgrade at the 309 Deposit, which currently sits at 502,000oz.

This is particularly true given that GBM Resources (ASX:GBZ) has noted that the results from 309DD22016 correlate with a newly defined high grade mineralisation zone in holes 309DD22009 and 309DD22011.

And if that wasn’t enough, the other reported hole 309DD22015 also delivered a >100 g*m gold intercept (gold grade multiplied by intersection width), which is used as a yardstick to determine a drill intercept’s significance, of 40m at 3.12g/t gold from 399m.

“Drilling at Twin Hills has delivered further spectacular results and once again we have discovered additional gold mineralisation adjacent to the known resources,” managing director Peter Rohner said.

“10 out of the 15 holes drilled returned >100 g*m gold intercepts highlighting the quality of the 309 Deposit.

“These are very strong results to finish the program on, with work now moving to finalising the updated geological model to support the mineral resource estimate update planned for the December 2022 quarter.”

309 Deposit drilling

GBM had drilled 16 holes totalling 6,242m at the 309 Deposit as part of a broader drill program at the Twin Hills project to confirm historical drill results and data, infill areas of lower drill density to upgrade resource confidence, and provide an initial test of extensions to mineralisation outside of the current resource boundary.

While a program of 14 holes at the nearby Lone Sister Deposit has been put on hold after two holes were completed due to wet weather, the results from the drilling to date certainly seem to indicate that the objectives have been met at the 309 Deposit.

Earlier holes in the program had returned some sparkling results such as 162m at 2.65g/t gold from 69m (309DD22001), 49m at 5.18g/t gold from 310m (309DD22005), and three intersections of 78m at 1.6g/t gold from 87m, 18m at 2.25g/t gold from 218m and 62m at 1.65g/t gold from 246m in hole 309DD22011.

An upgrade to the current 309 Deposit resource looks likely and will contribute to the company’s goal of becoming a mid-tier Australian gold company with operations centred around the Drummond Basin, which already has combined resources of 41Mt at 1.2g/t gold for 1.6Moz of contained gold. GBM’s short term target is to increase the Twin Hills resource to >1Moz, with a broader target for the Drummond Basin of 3Moz of contained gold.

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.