Drilling has started at GBM’s underexplored and highly prospective 309 deposit targeting previously untested areas, resource expansion and increased resource certainty.

While the company had upgraded resources at the recently acquired Twin Hills project in Queensland’s Drummond Basin in early February to 12.9Mt grading 1.8 grams per tonne gold for 760,700oz of contained gold, it still considers the project to be significantly under-explored.

This lack of exploration is what GBM Resources’ (ASX:GBZ) drill program at the 309 deposit – the largest component of Twin Hills with a contained resource of 500,600oz of gold – seeks to address.

About 7,000m of diamond drilling is planned during the Phase 1 program to test a series of high-grade shoots at depth and down plunge.

This will seek to confirm some of the high-grade intersections that characterise this deposit to improve confidence in the resource ounces – specifically to convert a larger proportion of the current resource from the Inferred classification to the higher-confidence Indicated level as a precursor to planned mine design and feasibility studies.

Drilling will also test new areas which could add to the existing resource.

“Following the transformational acquisition of the Twin Hills Project, we are excited to be drilling so quickly at the highly prospective 309 Deposit and are looking forward to completing a safe and environmentally sound program with assays flowing in a few months,” managing director Peter Rohner said.

“GBM now has two projects with drilling underway which is great, having just come back from reviewing the drilling progress at our Malmsbury Project in Victoria with JV partner Novo Resources Corp.”


2Moz of gold: Twin Hills the lynchpin in GBM’s gold strategy

GBM’s acquisition of Twin Hills in January 2022 and the subsequent resource upgrade more than doubled its total gold inventory up to 1.61Moz and brought it within reach of its initial goal of defining 2Moz of gold.

Both the 309 and Lone Sister deposits – located about 7km apart – have previously been interpreted as intrusion related, high gold fineness, low sulphidation epithermal gold deposits in the western arm of the Drummond Basin.

Analysis of their geometry and grade distribution has led the company to conclude that they are both amenable to mining via a combination of bulk open pit and underground mining methods.

Once drilling at 309 is completed, GBM will move immediately to drill at Lone Sister.

Planning is also progressing for the drilling of satellite targets such as Southern Sister.

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.