GBZ tops up Yandan gold resource, eyes further growth
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Special Report: GBM Resources (ASX:GBZ) now has a resource of 852,000oz of gold at the Yandan and Mt Coolan projects in Queensland following a resource upgrade at Yandan.
The Yandan project that the company is acquiring from Aeris Resources (ASX:AIS) now has a resource of 521,000oz of gold in the East Hill and South Hill deposits, up from the previous non-JORC resource of 401,000oz.
Managing director Peter Rohner says the upgrade represents a boost to GBM’s ‘processing halo’ strategy to build a +1 million oz resource within the Mt Coolan region.
“We will expand our exploration and drilling plans for 2021, to advance the combined projects and continue to build resource ounces through discovery and acquisition,” he added.
GBM noted that significant potential remains for additional discoveries and resource growth, particularly around the high grade portion of the East Hill deposit, which remains open at depth and down plunge from the currently defined mineralised system.
Yandan exploration in 2021 will focus on infill drilling between the Main Pit and East Hill deposits to expand resources, upgrade the existing non-compliant resource at the IIlamahta prospect and review Northeast Ridge for oxide resource.
The Yandan project in Queensland’s underexplored Drummond Basin is just 40km west of Mt Coolan and historically produced 350,000oz of gold.
It includes established mine infrastructure such as power, water dams and access to the Suttor River, tailings and previous plant footprint.
GBM has already met all conditions for the acquisition, which is now expected to be completed on 13 January 2021.
It will issue Aeris $3m worth of GBZ shares priced at 13.5c each and grant the vendor a 1.5 per cent net smelter royalty on the first 300,000oz of gold equivalent production from the project.
Aeris will also subscribe for $1m worth of GBZ shares priced at 13.5c each.
GBM holds a large strategic tenement holding covering more than 4,000sqkm in the Drummond Basin, which hosts multiple targets for further discovery of epithermal gold mineralisation and resource extension.
Discussions are underway for the acquisition of another key asset in the basin.
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.