The Drummond Basin is one of the most prolific gold provinces in Queensland, Australia. The Basin has produced over 4.5 million ounces of gold, and has a total known gold endowment in excess of 7.5 million ounces of gold.
- Since late 2019, GBM has executed an accelerated strategy of acquisition and exploration in the highly prospective Drummond Basin area in Central Queensland, Australia.
- 550% increase in resources since 2019, now with 1.84 million ounces of gold in JORC 2012 compliant resources, predominantly on granted mining leases.
- GBM funded exploration along with JV funded exploration at Mt Coolon Project by Newcrest Farm-in (A$25m over 6 years for 75% including 20,000 m of drilling).
- Expanded drilling campaign in 2023 to support strong news flow. Targeting company making Pajingo-like discoveries.
- Significant mining infrastructure already available within GBM’s project tenements (at the Yandan project) to support development of a centralised processing hub strategy.
GBM’s Drummond Basin strategy
Since 2019, GBM has executed a strategy of building and exploring a large tenement package in the Drummond Basin. Through acquisition and exploration GBM now has 1.84 million ounces of gold in JORC resources in a highly prospective area in a safe mining jurisdiction. From this base, GBM is looking to expand drilling programmes aiming to define a 2-3 million ounce resource in the area. Through GBM funded and Newcrest funded exploration (at Mount Coolon Project) significant news flow is likely to come through in 2023. The area is highly prospective, and GBM is targeting company making, Pajingo-like discoveries.
GBM’s cash and marketable securities, along with its continued rationalisation of non-core assets to realise additional cash will support GBM’s exploration activities in the Drummond Basin.
Mineralisation in the Drummond Basin is typified by low sulphidation epithermal style precious metal Deposits. Examples of past and present resources include Pajingo (>5.0 Moz), Wirralie (1.1 Moz), Yandan (0.9 Moz) and Koala (0.6 Moz). Epithermal mineralisation is typified by very fine-grained gold, sometimes occurring in electrum, in quartz veins or breccias. These deposits are variously interpreted to have formed in locally extensional jogs or bends of transform fault systems.
Key project areas
Three key project areas are the focus of GBM’s exploration and future plans for gold production in the Drummond Basin. These areas all fall within a 70 km radius of existing processing infrastructure on the Yandan ML.
Twin Hills Gold Project
- Acquisition of 100% of the Twin Hills project was completed in early 2022 as part of GBM’s Drummond Basin strategy.
- The project contains two identified deposits (Lone Sister and 309) with a JORC (2012) Mineral Resource Estimate of 23.1 million tonnes @ 1.3 g/t Au, for ~1,000,000 koz of contained gold and 4.8 Moz of contained silver.
- Historical drilling on the project demonstrates higher grades over extended intervals and is considered highly prospective. The project historically is poorly drilled below 250 m. Twin Hills continues to be a major focus of GBM’s exploration and drilling programmes planned for 2023.
Mt Coolon Gold Project
- Current resources in the Mt Coolon project include 6.65 Mt @ 1.5 g/t Au for 330 koz gold at the Koala, Glen Eva and Eugenia areas.
- Historic production to 1990’s totalled 0.59 Mt @ 12.2 g/t Au for 232 koz gold
- 2020 drilling significantly expanded the strike extent of the Glen Eva gold system and provided numerous priority targets for further drilling.
- In October 2022, GBM signed a $25m farm-in agreement with Newcrest to advance exploration activities while GBM focuses on Twin Hills and Yandan Projects.
Yandan Gold Project
- Existing resource definition at Yandan includes 15.9 Mt @ 1.0 g/t Au for 515 koz of gold at the East Hill and South Hill areas.
- An initial drilling program in April to August 2021 confirmed the high grade core to the Yandan East Hill mineralisation (see project page for details) and the potential to further expand current gold resources there.
- GBM upgraded the Mineral Resource Estimate based on 2021 drill results and SG measurements in late 2022.
- Following drilling and review of the geology GBM has identified some exciting new exploration targets.
- The Yandan project contains existing mining and processing infrastructure, including water dams, tailings dam, power line and an air strip. This supports the company’s proposed strategy of developing a centralised processing hub for the Drummond Basin gold resources.
Near term catalysts
GBM’s board and management are focused and dedicated to the task of accelerated exploration of the Drummond Basin projects. Having established the foundation for the Drummond Basin strategy through strategic acquisitions, additional significant drilling and assay results are expected throughout 2023. The company has a low enterprise value relative to existing gold ounces, and any significant drill announcements hold significant re-rating potential.