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.

 

Highlights:

  • Since late 2019, GBM has executed an accelerated strategy of acquisition and exploration in the highly prospective Drummond Basin area in Central Queensland, Australia.
  • 480% increase in resources since 2019, now with 1.6 million ounces of gold in JORC 2012 compliant resources, predominantly on granted mining leases.
  • The strategy is well financed, with GBM’s White Dam Gold operation providing free cash to support Drummond Basin exploration, in addition to GBM’s strong cash and liquid securities position.
  • >20,000 m drilling campaign in 2022 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 1.6 million ounces of gold in JORC resources in a highly prospective area in a safe mining jurisdiction. From this base, GBM is currently undertaking a >20,000 m drilling programme aiming to define a 2-3 million ounce resource in the area. We are spending $7.5m over 12 months (2022) on inground resource and exploration activities this year, with a strong news flow to come through that period. The area is highly prospective, and GBM is targeting company making, Pajingo-like discoveries.

 

Well financed

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.

In the interim, GBM’s 100% owned White Dam operation in South Australia, Australia, continues to generate free cash flow.

 

Mineralisation

Mineralisation in the Drummond Basin is typified by low sulphidation epithermal style precious metal Deposits. Examples include Pajingo (>5.0 Moz), Wirralie (1.1 Moz), Yandan (0.9 Moz) and Koala (0.36 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 12.9 million tonnes @ 1.8 g/t Au, for 761 koz of contained gold.
  • 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 is a major focus of GBM’s $7.5m exploration and drilling programme currently underway (2022).

 

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.

Yandan Gold Project 

  • Existing resource definition at Yandan includes 21.5 Mt @ 0.8 g/t Au for 521 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 is currently upgrading the Mineral Resource Estimate based on 2021 drill results and SG measurements.
  • 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 focussed 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, significant drilling and assay results are expected throughout 2022. The company has a low enterprise value relative to existing gold ounces, and any significant drill announcements hold significant re-rating potential.