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.


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.

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Latest News

GBM Acquires The Twin Hills Gold Project
• Binding Heads of Agreement signed with Minjar Gold Pty Ltd1 to acquire 100% interest in Twin Hills Gold Project proximate to GBM’s Mt Coolon Gold Project.
• Acquisition cost is $1.5m on a deferred settlement basis and the issue of 50m ordinary fully paid shares in the Company
• The acquisition further underwrites the development of the Mt Coolon Gold Project, potentially doubling its resource base and adding significant exploration potential.
• The Twin Hill Gold Project published inferred resource is estimated
at 398,000 ounces2 Executive
22 December 2017
Non Binding Ore Purchase Term Sheet With Pajingo Gold Mine
• GBM will sell its Mt Coolon high grade Glen Eva and Koala resources over a 2.5 year period.
• Mining is planned to commence in the September quarter 2018.
• GBM will mine and transport the material to the Pajingo Gold Mine and Pajingo will batch process.
• The commercial terms are based on open book approach and the nett proceeds from gold sales will be allocated 50:50 to the parties.
• This opportunity with Minjar1 can transform GBM from a capital dependent Company to cash flow generating.
19 December 2017
Mt Coolon Gold Project Scoping Study
Scoping Study Demonstrates the Potential Economic Viability of Recommencing the Mount Coolon Gold Project, Queensland
4 December 2017

Latest Reports

Report for the Quarter ended 30th September 2017
- Mount Coolon Gold Project
The Company has engaged Mining One Consultants to complete a scoping study in conjunction with a range of other specialists, on the Mount Coolon Gold Project.
23 October 2017
Annual Report
Dear Fellow Shareholders
GBM Resources continues to actively pursue its key objective of developing
and extending the known resources within the Company’s highly
prospective tenement holding in the Drummond Basin, Queensland.
6 October 2017
Report for the Quarter Ended 30th June 2017
Mount Coolon Gold Project
• The Company has engaged Mining One Consultants to complete a scoping study in conjunction with a range of other specialists, on the Mount Coolon Gold Project. The Scoping Study is scheduled for completion in August.
• The Company appointed mining engineer, Mr Ian Horton, to the newly created role of General Manager of the Mount Coolon Gold Project.
• Gold resource increased at the Glen Eva deposit by 77% to 0.9Mt averaging 2.2 g/t Au containing an estimated 66,000 ounces. Potential exists to extend the Glen Eva Resource along strike and down dip.
31 July 2017


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Contact Address

GBM Resources

ABN 91 124 752 745

Suite 8, 7 The Esplanade,

T: (08) 9316 9100

F: (08) 9315 5475



Exploration Office

10 Parker St, Castlemaine VIC 3450

T: (03) 5470 5033