GBM to embark on drilling program in state’s northwest
EXPLORATION junior GBM Resources is set to launch a $ 5.8 million drilling program at its tenements in northwest Queensland.
The company told the stock exchange yesterday preparations were at an advanced stage and it was targeting an on-ground start by early April.
GBM said it would spend $ 2 . 5 m i l l i o n a t i t s Brightlands copper gold tenement, southeast of Cloncurry, where the drilling prog r a m w o u l d t a r g e t i t s Milo and Tiger 2 prospects.
GBM said the work at Milo would follow up on significant results last year which confirmed potential for a large iron-oxide-copper-gold system.
‘‘ The data from that work provided GBM Resources with the basis for an initial Exploration Target of between 30-80 million tonnes of mineralised material which averaged between 0.8 per cent and 1.2 per cent copper equivalent,’’ it said.
The company said it would also spend $ 3 million at the Grassy-Talawanta, Mount Margaret, Chumvale and Bungalien IOCG projects, southwest of Cloncurry, under a farm-in agreement with Pan Pacific-Mitsui.
Under the farm-in agreement, Pan Pacific Copper will spend $ 55-million on development of new coppergold exploration and mining projects in Queensland, with GBM managing exploration activities at the project area, which covers 1580km.
GBM also is about to outlay $ 280,000 investigating the Bungalien area’s phosphaterich Beetle Creek formation, where it is working in a joint venture with Singaporebased Swift Venture Holdings.
Managing director Peter Thomson said yesterday the total exploration spend of nearly $ 6 million ‘‘ represents an opportunity for GBM to advance and add significant value to its exploration projects in the Mount Isa region’’.