Mount Coolon Gold Project, Queensland
(100% owned by GBM)
The Company holds a 100% interest in the Mount Coolon Project which lies in the Drummond Basin, one of Queensland’s most prolific gold provinces.
The Drummond Basin is an established gold mining region which has proven fertile for discovery of epithermal and intrusive relation gold systems. In this highly prospective region, more than 4.5 million ounces of gold has been produced with a total known gold related endowment in excess of 7.5 million ounces of gold. Deposit styles range from bonanza grade epithermal veins (e.g. Pajingo 3.0 M ozs) to bulk tonnage intrusive related gold deposits (e.g. Mt Leyshon 2.1 M ozs).
The Project is located 250km to the West of Mackay in North Queensland. The tenement package includes four granted Mining Leases, four granted exploration permits and one exploration permit application covering a total area of 1098².
The Mount Coolon Gold Project Scoping Study (refer ASX full release 4 December 2017) was undertaken in 2017 to evaluate the economic potential of the Koala, Glen Eva and Eugenia deposit and build on the previous work completed by incorporating all three deposits with the latest resource models and assumptions and a scoping level estimate of the economic viability of an underground mine at Koala.
Highlights of the Scoping Study are as follows:
- Demonstrates the current potential economic viability of mining the Koala, Glen Eva and Eugenia resources using a combination of Heap Leaching and CIL processing.
- 72% of gold produced is from indicated resources based on updated mineral resource estimates for the Koala, Glen Eva and Eugenia deposits.
- Pre-production and Plant Capital paid back within 24 months.
- The resource areas remain open and hold high potential to extend the mine life.
- Koala and Glen Eva deposits are on granted Mining Leases (ML1029/1085/1086 for Koala and ML10227 for Glen Eva) thereby reducing the approval wait time for the amended EA.
- Life of mine highlights summary:
1 A$/US$ exchange A$0.75 and US$1,250/oz gold price
2 C1 operating costs include all mining, processing and site administration
3 All in sustaining cost is C1 operating costs plus royalties, refining and sustaining capital, but excludes office
The Scoping Study demonstrates that the redevelopment of the Mount Coolon Project, with its current resources, has the potential to generate a strong positive cash flow.
Exploration strategy – resource growth will be achieved by simultaneously progressing exploration on 3 levels:
Incremental growth of known deposits (Koala, Glen Eva and Eugenia).
Resource definition at advanced prospects within previously identified mineralised (gold) systems. For example the Bimurra hydrothermal system has an exploration target and holds high potential for near term resource with significant exploration upside (see ASX announcement 21 September 2015).
- New grass roots discoveries, a number of high order geochemical targets already defined in key structural corridors.
Twin Hills acquisition
A Binding Heads of Agreement was signed with Minjar Gold Pty Ltd to acquire 100% interest in Twin Hills Gold Project proximate to GBM’s Mount Coolon Gold Project during the December 2017 Quarter. Inclusion of Twin Hills will potentially double the resource for the Mount Coolon Gold Project.
GBM is confident that the acquisition of the Twin Hills Gold Project will open up additional development, funding and investment opportunities for the Mount Coolon Gold Project.