MOUNT COOLON GOLD PROJECT

EPM7259, EPM15902, EPM25365, EPMA25850, ML1029, ML1085, ML1086 & ML10227

In January 2015 GBM announced the signing of a binding Share Sale Agreement (“SSA”) with Drummond Gold Limited (ASX: DGO) where GBM will acquire a 100% interest in all of the issued capital of Mt Coolon Gold Mines Pty Ltd, a wholly owned subsidiary of DGO. This transaction was completed during April (see ASX release dated 13th April 2015). The project is located 250km west of Mackay in Queensland in the northern Drummond Basin.  The Drummond Basin is an established gold mining region with past production of more than 4.5 Mozs and a total known gold endowment of over 7.5 Mozs of gold.  Deposit styles range from bonanza grade epithermal veins (eg. Pajingo 3.0 M ozs) to bulk tonnage intrusive related gold deposits (eg. Mt Leyshon 2.1 M ozs).

The tenement package includes four granted Mining Leases, three granted exploration permits and one exploration permit application covering a total area of 761 km2. These tenements are summarised in the table below. Independent review of these tenements confirm that all are in good standing and key mining licences have recently been renewed until 2024.

Table: Mount Coolon Gold Mines Limited tenement summary (current at 31st March 2015).

Figure: Mount Coolon project tenement group location plan.

Resources

Mount Coolon Gold Mines have published resources containing a total of 283,000 ounces of gold (these resources are tabulated below).  The inventory is comprised of three deposits of which the largest, Eugenia contains 63% of the total defined resource is considered to be of immediate potential by GBM.  Eugenia (previously referred to as Police Creek) is considered to represent the upper levels of a low sulphidation epithermal system.  Mineralisation is hosted by quartz veins and sulphide stringers and breccias forming a broad mineralised zone dipping gently to the west. Mineralisation is hosted by a thick dacitic ignimbrite unit. The area is extensively covered by shallow, post mineralisation sediments beneath which potential to extend the deposit with further drilling exists. In addition, to date no feeder zone has been identified and potential exists for the discovery of high grade fissure veins through further exploration.

The Resource inventory also includes  mineralisation at Koala and nearby Golden Bar and Footwall Reef prospects which are associated with the original mining areas at Mount Coolon  These areas considered to be part of the same epithermal, or possibly intrusive related, gold system hosted within volcanic and sub-volcanic andesitic rocks of the basal Drummond Basin Cycle 1 sequence. A well-developed vertical zonation indicates the mineralisation is open to depth and along strike to the south and the deposit is considered to hold potential for further resource additions.

In addition, the Glen Eva resource is part of an low sulphidation quartz-adularia-pyrite gold epithermal vein system located in the basal sequence (Cycle 1) of the Drummond Basin.  Mineralisation occurs under the pit as colloform and crustiform quartz veins within hydrothermal brecciated dacitic volcanics.  The system is structurally complex with several episodes of mineralisation.  The lode is between 3-6m in true width, is continuous for 330m of strike and is intersected in drillholes at vertical depths up to 120m below surface.  A typical high level bonanza fissure vein, the significant sinter volume suggests significant depth continuity and size potential beyond the current drilling extent.

Future Work

It was recognized by GBM that  an opportunity existed to rapidly upgrade the confidence levels of the key Eugenia resource, and to quickly add further resources from known project areas.  Work to accomplish this upgrade are wel advanced at the end of the quarter. This upgraded resource base will provide the foundation to investigate near term production options, including from heap leaching of oxidised ores at Eugenia.  GBM will evaluate a range of funding options to progress the Mount Coolon holdings.  These options may include approaching companies with which we are developing strong relationships, capital raisings or a combination of these and other funding options.

Current Share Price
1.3c
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Current Gold Price
US$1199.90

Latest News

Significant resource Increase at Glen Eva Gold Deposit, Mt Coolon, Qld
• Gold resource increased by 77% to 0.9Mt averaging 2.2 g/t Au containing an estimated 66,000 ounces of gold.
• Potential exists to extend the Glen Eva Resource along strike and down dip.
• Significant grade zones, including:
o 24.8m @ 6.2 g/t Au from 100m and
o 24.6m @ 4.8g/t Au from 132m reported earlier this year from GBM drill hole GLD0002 (refer ASX release 22 March 2017)
1 June 2017
Notice of Change of Interests of Substantial Holder
Change in Substantial Holding.
28 April 2017
Koala Deposit Drilling Upgrade, Mt Coolon Gold Project
Stage 2 drilling program has now been completed and has identified gold mineralisation adjacent to the historic mine workings in the Koala Gold Deposit.
27 April 2017

Latest Reports

Report for the Quarter ended 31st March 2017
March Quarter Report 2017
31 March 2017
Report for the Quarter ended 31st December 2016
Highlights

Mount Coolon Gold Project:

Koala Gold deposit:
• Stage 1 of drilling programme has been completed at the Koala Gold Mine with 23 diamond holes drilled for a total of 1,303 metres
• Results have confirmed the presence of remnant high-grade gold mineralisation in quartz vein and breccia style settings throughout the old stope areas tested.
• The Company has commenced Stage 2 drilling in January 2017 and the program forms part of the Study to evaluate recommencement of mining operations at the Koala Gold Mine.
31 January 2017
Report for the Quarter ended 30th September 2016
Highlights
Mount Coolon Gold Project:
Eugenia Gold Deposit:
• Publication of Eugenia Heap Leach Scoping Study showing potential
economic viability.
• Recovered gold ounces total 32,588 at a C1 cost of $813 per ounce,
capital estimated at $8.3 million.
• Free cashflow generated will be allocated to accelerate expanding
the known open pit resources and the mineralising systems with the
aim to build the Mt Coolon Gold Project inventory to a level that will
support the commissioning of a CIL plant.
31 October 2016

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Contact Address

GBM Resources

ABN 91 124 752 745

Suite 8, 7 The Esplanade,
MT PLEASANT WA 6153

T: (08) 9316 9100

F: (08) 9315 5475

E: info@gbmr.com.au

 

Exploration Office

10 Parker St, Castlemaine VIC 3450

T: (03) 5470 5033