GBM Resources announced on 19 July 2021 that it has signed a Binding Tenement Sale Agreement (TSA) to acquire 100% of the Twin Hills Gold Project (refer GBM ASX announcement 19 July 2021). The Twin Hills deposits (Lone Sister and 309) have a JORC (2012) Mineral Resource Estimate of 6.9 million tonnes at 2.8 g/t Au for 633,000 ounces of contained gold on granted mining leases (see Table 1). Both deposits have returned significant gold intersections from previous drilling, demonstrating potential for both bonanza gold grades and broad intersections of bulk mineable style gold mineralisation, hosted by an epithermal veinlet network and breccia matrix style of mineralisation. Twin Hills is considered highly prospective for the discovery of additional mineralisation, with preliminary analysis suggesting high grade gold shoots at 309 and Lone Sister may be open at depth.  GBM is set to prioritise drilling at Twin Hills to test these targets following completion of the TSA.

The acquisition of Twin Hills is consistent with GBM’s Drummond Basin “processing halo” strategy and is set to deliver another step change in the Company’s resource base. Combined gold resources under GBM’s ownership in the Drummond Basin now total approximately 1.5 Moz across the Yandan, Mt Coolon and (to be settled) Twin Hills assets (see Table 1).  All are located within 70 km of GBM’s proposed “Drummond Basin Processing Hub” centred on the Yandan ML’s, which has significant infrastructure (i.e. water storage dams, tailings facilities, airstrip, leach pads and grid power).

GBM’s analysis of the deposit geometry and grade distribution suggests that the 309 and Lone Sister resources maybe be successfully mined via a combination of bulk minable open pit and bulk underground mining methods.

Significant Down Hole Intersections include:

309 Deposit

  • THRCD875:         140.6 m @ 5.2 g/t Au from 154 m incl. 8 m @ 81.8 g/t Au from 177 m
  • TRCD384:           190 m @ 2.3 g/t Au from 25 m incl. 27 m @ 7.3 g/t Au from 100 m

Lone Sister Deposit

  • LRCD015:           146 m @ 9.8 g/t Au from 104 m incl. 28 m @ 45.2 g/t Au from 211 m
  • LRCD140:           254 m @ 1.2 g/t Au from 128 m incl. 12 m @ 4.1 g/t Au from 265 m

 

Table 1: Twin Hills Resource Summary for the 309 and Lone Sister Gold Deposits (rounded for reporting ‘000 tonnes, ’00 ounces, 0.0 grade). See ASX GBM 18 January 2019 ‘Mount Coolon and Twin Hills Combined Resource Base Approaches 1 Million Ounces’. Open Pit Resources (above 1050 RL) stated at 1.0 g/t Au cut-off and underground resources (below 1,050 RL) stated at 2.0 g/t Au.

CategoryCutoffTonnageGrade Contained Metal 
Au (g/t)(t)Au (g/t)Ag (g/t)Au (oz)Ag (oz)
309 Deposit
Open Pit (above 1050RL)
Measured1320,0004.46.444,40065,000
Indicated12,690,0002.23.4193,100295,400
Inferred11,300,0001.41.758,50070,100
Total open pit14,310,0002.13.1296,000430,500
Underground (below 1050 RL)
Measured2
Indicated2110,0004.83.416,80011,900
Inferred2510,0003.71.860,10028,800
Total underground2620,0003.9276,90040,700
Total 309 Deposit
Measured1.0 / 2.0320,0004.46.444,40065,000
Indicated1.0 / 2.02,800,0002.33.4209,900307,300
Inferred1.0 / 2.01,810,00021.7118,60098,900
TOTAL1.0 / 2.04,930,0002.43372,900471,200
Lone Sister Deposit
Measured2
Indicated2
Inferred22,010,00049.4260,100604,800
Total22,010,00049.4260,100604,800
Total Twin Hills
Measured1.0 / 2.0320,0004.46.444,40065,000
Indicated1.0 / 2.02,800,0002.33.4209,900307,300
Inferred1.0 / 2.03,820,0003.15.7378,700703,700
TOTAL1.0 / 2.06,940,0002.84.8633,0001,076,000