The Mount Coolon Gold Project (MCGP) is located within the Drummond Basin, one of Queensland’s most prolific gold provinces. Located 250km to the West of Mackay in North Queensland, the tenement package covers a total area of over 1,898 km² and holds potential for further significant discoveries.

The Basin’s past production is more than 4.5 million ounces of gold and has a total known gold endowment in excess of 7.5 million ounces of gold. The Drummond Basin is an established gold mining region which has proven fertile for discovery of epithermal and intrusive relation gold systems

Mineralisation in the Drummond Basin is typified by low sulphidation epithermal style precious metal Deposits. Examples include Pajingo (3.0 Moz), Wirralie (1.1 Moz), Yandan (0.6 Moz) and Koala (0.36 Moz). Epithermal mineralisation is typified by very fine-grained gold, sometimes occurring in electrum, in quartz veins and or breccias. These deposits are variously interpreted to have formed in locally extensional jogs or bends of transform fault systems.

Mt Coolon

  • 100%-owned Mt Coolon tenure: 1,898 km2
  • Historic production to 1990’s totalling 0.59 Mt at 12.2 g/t Au for 232 koz gold
  • Current resources at Koala, Glen Eva and Eugenia of 6.65 Mt @ 1.54 g/t Au for 330 koz gold
  • 7 priority prospects that encompass up to 45 occurrences / targets
  • Extensive thin post-mineral cover may conceal further occurrences
  • Koala, Glen Eva and Eugenia drill targets: down-plunge of ore shoots and along-strike extensions of existing resources
  • Large-scale gold bearing epithermal systems that warrant further drill testing

GBM is prioritising exploration at Mt Coolon focussed on discovery of new ounces and rapid targeted resource build to +1 Moz. The current in-pit resources are calculated at A$1,667/oz vs prevailing spot price of +A$2,200/oz.

The Company is evaluating potential “processing radius” consolidation options to further aggregate resource inventory. There is potential for the low-cost heap leach option at Eugenia deposit to support near term cashflow.

Mt Coolon District Gold ResourcesTonnes
Au oz
GBM Mt Coolon District
Koala Tailings, ML1241.66.6
Koala - Sulphide + Transition + Oxide1,4302.6121.5
Glen Eva - Sulphide1,6601.4778.3
Eugenia - Oxide1,4821.0851.6
Eugenia - Sulphide1,9471.1672.4
GBM Sub Total6,6431.54330.4
Third Party Resources within 70km of Mt CoolonTonnes
Au oz
Yandan East4,0002.4300.0
Twin Hills + Lone Sister6,9402.8633.0
Other Company Gold Resource Sub Total10,9402.6933.0
Mt Coolon Project

Existing Mt Coolon Scoping Study

(refer ASX announcement 4 December 2017)

  • Completed in December 2017; utilised a gold price assumption of A$1,667/oz
  • Conducted by Mining One Consultants, with input from other external consultants
  • Demonstrated technical and economic viability of:
    • OP/UG mining of Koala, Glen Eva & Eugenia deposits
    • Processing via a combination of CIL and heap leach
  • Low risk operational parameters
  • Excellent projected margins, cashflow and returns
Operating parametersUnitsScoping Study (Dec 2017)
Production mine lifeyears5.5
Total mined oreMt3
Indicated Resources%72%
Inferred Resources%28%
Strip ratiot : t4.6
Total ore processedMt3
Ore processed - CILMt1.2
Ore processed - heap leachMt1.8
Gold head grade (LOM avg)g/t1.9
Gold head grade - CILg/t3.5
Gold head grade - heap leachg/t0.8
Overall gold recovery (LOM avg)%84%
Gold recovery - CIL%86%
Gold recovery - heap leach%81%
Total gold producedkoz155
Gold produced - CILkoz118
Gold produced - heap leachkoz37
Financial parametersUnitsScoping Study (Dec 2017)
Forecast gold price (LOM avg)US$/oz1,250
Forecast A$/US$ (LOM avg)A$/US$0.75
Total revenueA$M258
Operating costsA$/M141
Operating cash cost (C1)A$/oz909
Operating cashflowA$M117
Pre-production capitalA$M25
Underground development capitalA$M8
LOM sustaining capitalA$M4
Environmental bonds and royaltiesA$M19
Net cashflow pre-taxA$M61
All-in-sustaining-cost (AISC)A$/oz1,020
Pre-tax NPV (10% discount rate)A$M37
Pre-tax IRR%48
Payback periodyears2.0

There have been no changes in the Mount Coolon resource since the last Annual Statement of Mineral Resources as at 30 June 2018.

The company considers that any minor increases in mining and operating costs that may have occurred through the year are greatly outweighed by the increase in gold price in Australia resulting from a favourable combination of price and currency movements.

Mt Coolon resource table