GBM Resources says results from three diamond drill holes in the first phase of drilling at its Malmsbury JV in Victoria are due this quarter.

A 50-50 partnership with Canadian listed Novo Resources Corp., the drilling is following up 12 months of detailed grassroots exploration after the execution of the JV.

GBM (ASX:GBZ) and Novo already have a head start at Malmsbury, with a high grade resource of 820,000t at 4g/t for 104,000oz of gold at Leven Star Reef.

It is just 55km south of Australia’s highest grade gold mine, Fosterville.

The initial three drill holes at Malmsbury have already shown visual evidence of mineralisation, and are targeting both resource extension and metallurgical drilling on the Leven Star Reef.

“It is great to see drilling again at the Malmsbury Project after a long hiatus,” GBM managing director and CEO Peter Rohner said.

“The geological team of GBM and Novo have completed some excellent work over the last 12 months to significantly advance our understanding of the structural controls, lithology and intrusive overlays.

“Three holes have been completed and assays will start to follow later this quarter which we are all looking forward to.”

Novo is motivated to spend big on the project. It can earn an extra 10% stake by spending $5 million over a four-year period.

If it doesn’t hit that spending level, GBM will become a majority 51-49 owner of the JV.


Drilling to roll on with assays on the way

To date three holes are complete for a total of 609.1m. More drilling is set to come.

Work to date has identified several gold mineralisation target styles present on the Malmsbury Project that include “Fosterville-type” structurally controlled orogenic targets.

All of the holes to date have hit their target structures with several zones of intense alteration, disseminated and stringer sulphide mineralisation.

An important find was the confirmation of an anticlinal hinge position in MD14. Anticlinal folding is a key feature of the structure of the Fosterville mine in Victoria, one of the largest and highest grade producers in Australia.

All up 1750m of drilling is planned on Belltopper Hill, where eight diamond holes will be sunk, including five holes for 660m at the current JORC resource area at the Leven Star Reef.

One deeper hole will explore for extensions of Leven Star and potential extensions and structural intersections with the Missing Link, Antimony and Panama/Panama West Reefs.

1000m will also be drilled in the Drummond North goldfield which has very limited drilling and where historic production recorded indicated 98,000 tonnes of material was mined at ~29 g/t Au for ~91,000 oz.

Additional work at Malmsbury this year will include the  completion of an extensive gold and multi-element soil program covering over 50% of the Retention Licence area, further mapping and rock chip and mine dump sampling and the completion of a detailed 2D/3D IP survey.

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.