GBM Resources reports further ‘outstanding’ results from drilling at Twin Hills in Central Queensland, confirming major extensions of gold mineralisation.

They included a peak result of 1.1 m at 60.61 g/t gold in an interval of 1.8 m at 38.96 g/t gold in a high-grade shoot.

While another hole returned 19m grading at 5.22 g/t gold from outside the existing mineral resource model.

The company has completed 15 of the planned 17 holes at the 309 deposit at Twin Hills and plans a drill program of 14 holes for about 7000 m at the nearby Lone Sister deposit.

“Drilling at Twin Hills continues to discover additional high grade gold mineralisation adjacent to the known resources and in this instance higher up in what is likely to sit inside an open pit shell,” GBM managing director and chief executive officer Peter Rohner said.

“The resource geological model is currently being updated and once all the drilling results from the
Phase 1 program are received, the 309 mineral resource estimate will be updated (later Q3 22).”

GBM bought the Twin Hills project last year for about $2 million from a subsidiary of Pajingo mine owner Minjar Gold.

It includes the 309 and Lone Sister deposits and more than 1102sq km of mining and exploration tenements considered by GBM to be highly prospective for discovery of additional gold mineralisation.

The site was previously mined by BMA , which established an underground mine at the 309 deposit and completed a decline to about 160m.

The existing mineral resource estimate for the 309 deposit stands at 501,000 ounces of gold, while the total Twin Hills mineral resource estimate is 760,700oz.

GBM’s flagship project in the Drummond Basin holds about 1.6 Moz of gold in JORC resources across the Mount Coolon, Yandan and Twin Hills project areas.

The company is on a capital-raising drive to expand exploration activities there as it strives to build a 2Moz-plus gold resource.

It announced this week that it had received firm commitments for a placement to raise $1.36 million to support current exploration activities and provide working capital.

GBM also reported that it was in advanced discussions to assess various capital raising/funding options to provide longer term funding to expand exploration activities in the Drummond Basin.

In addition to those fund-raising activities, GBM is continuing discussions with select parties in
relation to the realisation of value from non-core assets, notably the White Dam gold-copper project in South Australia.