Drilling at the former Twin Hills mine site in the Drummond Basin is continuing to identify gold mineralisation beyond the known resources.

GBM reports excellent results from its initial 309 deposit drill program, with recent intercepts including 78m grading at 1.6 g/t gold (including 7 m at 5.63 g/t gold and 5m at 9.73 g/t gold).

The company said outstanding results recorded in the program to date confirmed the potential to increase the resource estimate for the 309 deposit – which currently totals 501,000 ounces.

“Drilling at Twin Hills continues to discover additional gold mineralisation adjacent to the known
resources,” GBM managing director and chief executive officer Peter Rohner said.

“It is clear that the known boundaries of the resource have not been adequately defined by previous explorers and that there is real potential for GBM to add significant ounces extending from the boundaries of the existing resource and to discover higher grade shoots within the system.”

GBM bought the Twin Hills gold project, 250 km south of Charters Towers, for $2 million (plus environmental liabilities) last year from a subsidiary of Pajingo mine owner Minjar Gold.

Twin Hills includes the 309 and Lone Sister deposits and more than 1102sq km of mining and exploration tenements.

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

At the time of acquisition, Twin Hills contained a JORC 2012 Indicated and Inferred Mineral Resource Estimate for the 309 and Lone Sister deposits of 6.9Mt at 2.8 g/t gold for 633,000 oz gold.

GBM recently announced a resource upgrade for the Twin Hills project that now totals 12.90Mt at
1.8 g/t gold for 760,700 oz – an approximate upgrade of 20 per cent in contained ounces of gold.

It is a cornerstone asset in GBM’s plans to build a gold portfolio of more than two million ounces within the Mount Coolon region.