GBM to em­bark on drilling pro­gram in state’s north­west

Townsville Bulletin - - Investor - Martin Rasini Townsville Bul­letin Satur­day, March 26, 2011

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’’.

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.