Mineral exploration and development GBM Resources (ASX:GBZ) has begun diamond drilling at the Mount Margaret Project, located adjacent to the Ernest Henry copper-gold mine within the Cloncurry Project in Northwest Queensland.
The company reports the Cloncurry project is subject to a farm-in and joint venture (JV) agreement with Nippon Mining of Australia, a wholly owned subsidiary of JX Nippon Mining and Metals Corporation. Exploration at the project is fully funded by Nippon Mining of Australia which currently holds a 55% interest in the JV.
GBM Resources reports a ground-based electromagnetic (EM) geophysical survey completed in 2022 by the JV at Mount Margaret FC4 prospect detected a ‘strong’ and relatively deep conductor associated with a narrow magnetic linear feature and adjacent to a historical MIMDAS (Mount Isa Mining) chargeability anomaly.
The magnetic belt is the north-easterly continuation of the same suite of Fort Constantine Volcanics rocks that host the Ernest Henry deposit about 7km to the southwest. Shallow historical drilling by MIM in the area returned anomalous copper and intersected a wide copper-bearing shear and breccia zone in a lithological setting prospective for Eloise-type iron sulphide copper gold (ISCG) mineralisation.
The company says a single scout diamond drillhole has been designated to intersect the modelled EM plate anomaly at between 300m and 400m below surface. Drilling is scheduled to begin this week.
This hole is designed to intersect the 3-plate convergence zone on the central EM survey line near the upper plate edge between 300m and 400m below the surface. GBM says the total hole length is planned to be 550m, and drilling is set to be completed in the next 3 weeks with results expected in late June.
GBM’s share price had risen by 21.48% to $0.034 on the Australian Securities Exchange (ASX) as of 10am AWST.
“Following some recent geophysical work and resulting interpretation, it is good to finally be back drilling at our Mt Margaret Copper-Gold Project after a period of limited drilling activity”
Commenting on the drill program, GBM Resources Chief Executive Officer (CEO) and Managing Director, Peter Rohner says: “Following some recent geophysical work and resulting interpretation, it is good to finally be back drilling at our Mt Margaret Copper-Gold Project after a period of limited drilling activity.”
GBM Resources is a Queensland-based mineral exploration and development company focused on the discovery of gold and copper deposits in Eastern Australia.
The company holds a portfolio of assets including the flagship Drummond Basin Project as well as the Mt Coolon, Yandan, and Twin Hills gold projects.
Along with the Cloncurry and Mount Margaret JV with Nippon Mining of Australia, GBM also holds the Malmsbury, White Dam, and Mount Morgan projects.
Images: GBM Resources Limited
