Proactiveinvestors Australia

GBM Resources signs MoU to acquire Malaysian gold mine

Tue, 14 May 2013 12:00:00 +1000

GBM Resources (ASX: GBZ) has entered into a non-binding Memorandum of Understanding to acquire the Lubuk Mandi Gold Mine in Terengganu state, Malaysia.

The mine had previously produced 108,000 ounces of gold from two shallow pits before it and its associated processing plant were placed on care and maintenance in 2000.

Lubuk Mandi Gold Mine was previously owned and operated by government body Terengganu State Economic Development in the mid 90’s and covers 404.7 hectares.

It includes 1.3 million tonnes of tailings which have the potential for further gold recovery while the processing plant is rated at 300,000 tonnes per annum and involves single stage crushing to a stockpile and mill.

GBM is currently carrying out due diligence and is investigating some key outcomes including an early start up scenario, requirements to achieve a Resource, funding options and valuation.

It said the project presents an excellent opportunity to transit from explorer to producer and is being supported in this strategy by its major Singaporean shareholders.

GBM had recently received approval from its Japanese partners, Pan Pacific Copper Co. and Mitsui & Co for a $2.5 million exploration budget to drill a number of high order targets on four projects in northwest Queensland.

The company had $1 million in cash as of 31 March 2013.

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GBM Resources undertakes strategic review

Fri, 10 May 2013 15:10:00 +1000

GBM Resources (ASX: GBZ) has begun a review for near term gold production acquisition opportunities with the objective of becoming a gold producer.

The review is being undertaken with the backing of the company’s major Singaporean shareholders.

GBM has also completed a strategic review of its operations to better position the company for growth through project development and to preserve and grow shareholder value in a challenging market.

The company will focus its priorities on:

- Continued target testing on the Mount Morgan Gold-Copper Project with the aim of drill testing the Sandy Creek and Smelter Return prospects in the second half of the year.

- Drilling of priority prospects, including Bronzewing Bore (Bungalien Project) and the Mount Margaret West Project within the farm-in joint venture area.

GBM has secured an approved $2.5 million budget on the farm-in projects with Japanese trading house partners, Pan Pacific Copper Co. and Mitsui & Co. Drilling is set to commence this month.

- Securing funding to progress Pre-Feasibility Studies for the Milo IOCG-REE Project.

The company is investigating opportunities to obtain funding for the study by bringing in a partner to the project.

- Implementing major expenditure reduction initiatives to achieve further annualised savings of $600,000.

This includes salary reductions for executive directors, senior staff and reductions in other external service costs, so as to prioritise exploration expenditure.

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

GBM Resources’ Japanese partners approve A$2.5M exploration budget

Tue, 23 Apr 2013 12:20:00 +1000

GBM Resources’ Japanese partners, Pan Pacific Copper Co. and Mitsui & Co., have approved a A$2.5M budget for 2013-14 to further explore GBM's farm in projects in northwest Queensland. Up to 10 key targets will be tested this year.

GBM Resources starts exploration at Mount Morgan

Thu, 11 Apr 2013 14:50:00 +1000

GBM Resources (ASX: GBM) has restarted exploration at its Mount Morgan Gold-Copper Project in Queensland as the wet season abates.

Geological mapping, rock and soil sampling are underway at the Sandy Creek and Smelter Return prospects, which are located on a significant gold and copper soil anomaly.

The company is testing the extensions of the large anomalies along the Mount Morgan Corridor before follow up soil and rock sampling in combination with detailed mapping along the mineralised fault trend is carried out.

Completion will allow both prospects to be drill ready by the second half of 2013.

The anomaly containing Sandy Creek and Smelter Return is concentrated along the major Mount Morgan structural corridor that hosts the historical and nearby Mt Morgan mine.

Field work completed last year had reinforced GBM’s decision to focus exploration on Mount Morgan and supported its strategy of acquiring a significant footprint (applications and licenses over 900 square kilometres) in close proximity to the old Mount Morgan mine.

This has identified Intrusive Related gold and copper mineralisation at Smelter Return and Sandy Creek as well as large high-tenor gold and copper soil anomalies associated with major structures.

Rock chips at Sandy Creek had assays of up to 39% copper, 8.5 grams per tonne gold and 44ppm silver.

GBM had $1.5 million in cash as of 31 December 2012.

GBM Resources given A$0.35 price target by RM Research

Mon, 21 Jan 2013 16:10:00 +1100

GBM Resources has received a valuation of over nine times its current share price of A$0.037, with Perth broker RM Research placing a $0.35 price target and Speculative Buy on the company.

GBM Resources’ Scoping Study shows strong commercial potential of Milo project

Thu, 22 Nov 2012 14:00:00 +1100

A Scoping Study of GBM’s Milo Project highlights the potential for the project to become a mid-tier producer of rare earth oxide products with key credits for copper, phosphate and uranium. Base case indicates a net cash flow of $701M over an 11 year mine life, while upside case has a net cash flow of $1,160M over the same mine life.

GBM Resources ups the ante in phosphate with acquisition

Mon, 08 Oct 2012 13:12:00 +1100

With the acquisition of Swift Resources' 70% interest in a number of phosphate licences in northwest Queensland, GBM Resources will increase its stake to 100%. This is a significant deal for GBM providing a roadmap to development with funding.

GBM Resources attracts up to A$3.1M from Singaporean investment group

Tue, 02 Oct 2012 12:53:00 +1000

The significance of attracting the Singaporean Consortium led by Lion Resources Development Pte Ltd is that the consortium can potentially underwrite the company’s future growth plans. Funds will progress the Milo Rare Earths – IOCG Project and other gold focused assets.

GBM Resources raises funds to advance Milo Scoping Study

Thu, 23 Aug 2012 08:40:00 +1000

GBM Resources (ASX: GBM) has raised A$544,200 following the completion of its share purchase plan, with the funds to advance the Scoping Study at its Milo Iron Oxide Copper Gold (IOCG) and Rare Earth Elements and Yttrium (REEY) Project in North West Queensland.

Eligible shareholders were offered the opportunity to subscribe for up to $15,000 worth of shares at $0.05 per share.

GBM is now proceeding with the Scoping Study for the Milo Project after recently upgrading the project’s Inferred Resource to 187 million tonnes at 600 parts per million containing 113,000 tonnes of Rare Earth Oxide.

The Milo Resource has expanded to over a kilometre in length stretching over 200 metres wide and still remains open.

A maiden copper equivalent resource, due by the end of the September quarter, is now underway and will provide the basis for the move to a Pre-Feasibility Study.

Over 23% of the total rare earth elements and yttrium Resource comprises neodymium, yttrium, dysprosium and lanthanum – elements considered to be in undersupply for the medium to long term.

An extensive exploration program is also underway with GBM’s partners, Pan Pacific Copper and Mitsui, on the IOCG joint venture projects in North West Queensland.

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GBM Resources extends share purchase plan

Mon, 13 Aug 2012 08:40:00 +1000

GBM Resources (ASX: GBZ) has extended its share purchase plan to Monday, 20 August 2012 to give shareholders more time to consider the recent increase in the Rare Earths Oxide Resource at its Milo Iron Oxide Copper Gold (IOCG) and Rare Earth Elements and Yttrium (REEY) Project in North West Queensland.

The company is offering shareholders up to $15,000 worth of shares at $0.05 per share to raise up to A$3.5 million.

Last week GBM upgraded the Inferred Resource for Milo to 187 million tonnes at 600 parts per million containing 113,000 tonnes of Rare Earth Oxide.

The Milo Resource has expanded to over a kilometre in length stretching over 200 metres wide and still remains open.

GBM is now proceeding with the Scoping Study for the Milo Project.

A maiden copper equivalent resource, due by the end of the September quarter, is now underway and will provide the basis for the move to a Pre-Feasibility Study.

Over 23% of the total rare earth elements and yttrium Resource comprises neodymium, yttrium, dysprosium and lanthanum – elements considered to be in undersupply for the medium to long term.

An extensive exploration program is also underway with GBM’s partners, Pan Pacific Copper and Mitsui, on the IOCG joint venture projects in North West Queensland.

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GBM Resources grows Milo Rare Earths Oxide Resource to 113,000t

Thu, 09 Aug 2012 13:14:00 +1000

GBM Resources continues to unlock the value of its Milo deposit with the delivery of an increased 113,000t Rare Earth Oxide Resource and the achievement of production of a significant concentration of valuable total rare earth element and yttrium oxides. A Scoping Study is underway.

GBM Resources launches share purchase plan

Wed, 18 Jul 2012 09:10:00 +1000

GBM Resources (ASX: GBZ) has launched a Share Purchase Plan at $0.05 allowing shareholders to subscribe for up to $15,000 worth of shares. The maximum which can be raised under the plan is A$3.5 million.

GBM Resources has some very interesting news on the horizon with to deliver an updated Resource for its Milo iron oxide copper gold and rare earth rare earth elements deposit later this month, which follows a successful drilling campaign that has expanded the deposit to the north.

The current resource is 103 million tonnes at 760 parts per million (ppm) total rare earth elements and yttrium (TREEYO).

GBM Resources potential not lost on RM Research

Earlier in the year Perth brokers RM Research penned a report of GBM Resources, rating the company a buy with six month price target of $0.35 - due to the potential of Milo.

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GBM Resources identifies IOGC, REE targets at Milo

Tue, 17 Jul 2012 12:50:00 +1000

GBM Resources (ASX: GBZ) has identified three areas with strong copper and Lanthanum anomalism that demonstrate the potential to grow its Milo iron oxide copper gold and rare earth elements deposit in Queensland.

The recently completed stage two of a soil geochemical sampling program at the project has also indicated that mineralisation remains open to the north and south.

The three areas identified are:

- A coherent linear zone of coincident high tenor copper, gold and lanthanum in soil extending for over 600 metres to the west from GBM drillhole BTD014 in the Milo West Prospect area. This contains peak values of 4,550 parts per million (ppm) copper, 650ppm lanthanum, and 0.7ppm gold.
- The likely continuation of this zone on the south west flank of the main ridge at Milo. This remains largely untested by drilling to date.
- A large copper soil geochemical anomaly with peak assay values of 1.44% copper, 0.35ppm gold and 120ppm lanthanum, associated with a strong magnetic and topographic high to the south west of the Milo Prospect.

GBM has also received complete results from 402 soil samples from the Greater Milo area.

It said this data, the recently completed successful diamond drilling and finalisation of revised resource estimate and scoping study, will all form part of a co-ordinated strategy to demonstrate the potential of the Milo area to host an extensive mineralising system containing additional, large tonnage iron oxide copper gold and rare earth elements deposits.

Further sampling is in progress to infill and further extend geochemical coverage of the area with results expected during the September quarter.

Milo potential

The recent drilling program had confirmed that the mineralisation identified to date is part of a much larger system at Milo, with mineralisation remaining open to the north and south.

This confirmed that the copper equivalent and rare earth elements and yttrium (REEY) mineralisation extends to the north beyond the current Resource at Milo, which is 103 million tonnes at 760 parts per million (ppm) total rare earth elements and yttrium (TREEYO).

Highlight copper equivalent intersections include 70 metres at 0.8%, including 18 metres at 1.3%; 51 metres at 0.8%; and 7 metres at 1.2%.

Notable rare earth element intersections returned were 20 metres at 3,979ppm and 11 metres at 1,382ppm.

The Milo deposit covers a broad TREEY zone, over 200 metres in places. The dominate rare earth elements include neodymium, yttrium, dysprosium and lanthanum.

Demonstrating the size potential of the deposit, drilling has only been carried out on around 7,500 metres of a 2 kilometre long mineralised system.

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GBM Resources: Milo extension to contribute to impending IOCG, REE Resource update

Tue, 03 Jul 2012 12:30:00 +1000

GBM Resources (ASX: GBZ) plans to deliver an updated Resource for its Milo iron oxide copper gold and rare earth rare earth elements deposit later this month, supported by a successful drilling campaign that has expanded the deposit to the north.

Importantly, recent drilling has confirmed that the mineralisation identified to date is part of a much larger system at Milo, with mineralisation remaining open to the north and south.

The drilling program has demonstrated that the copper equivalent and rare earth elements and yttrium (REEY) mineralisation extends to the north beyond the current Resource at Milo, which is 103 million tonnes at 760 parts per million (ppm) total rare earth elements and yttrium (TREEYO).

Highlight copper equivalent intersections include 70 metres at 0.8%, including 18 metres at 1.3%; 51 metres at 0.8%; and 7 metres at 1.2%.

Notable rare earth element intersections returned were 20 metres at 3,979ppm and 11 metres at 1,382ppm.

Milo potential

An earlier drill hole in the seven hole program returned 2 metres at 6.2% copper which demonstrated that a phase of high grade copper mineralisation exists at Milo.

The program confirms that both the southern extension and northern extension of the mineralised system are beyond the previous maiden rare earth resource outline.

The Milo deposit covers a broad TREEY zone, over 200 metres in places. The dominate rare earth elements include neodymium, yttrium, dysprosium and lanthanum.

Demonstrating the size potential of the deposit, drilling has only been carried out on around 7,500 metres of a 2 kilometre long mineralised system.

As a result of the successful drilling program, GBM now plans to revise the maiden rare earth inferred resource and incorporate the copper equivalent results to define a maiden copper equivalent resource.

Following this, GBM will finalise the preliminary Scoping Study, which will include the revised resource figures.

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GBM Resources expands IOCG, REE mineralisation at Milo, targets Resource update

Tue, 12 Jun 2012 12:20:00 +1000

GBM Resources (ASX: GBZ) is on track for a re-estimation of the Inferred Resource at the company’s Milo iron oxide copper gold and rare earth rare earth elements deposit, with an extension to the mineralised zone.

Results from two recent drill holes at Milo have confirmed the southern extension of the mineralised system beyond the resource outline.

GBM is targeting an increase in the maiden rare earth Inferred Resource at Milo, which stands at 103 million tonnes at 760 parts per million (ppm) total rare earth elements and yttrium (TREEYO).

Both drill holes intercepted copper and rare earth elements (REE). Rare earth intercepts from the drill holes returned:

- 77 metres at 1,664ppm REE, including 9 metres at 3,505ppm REE and 6 metres at 2,749ppm REE;
- 55 metres at 2,164ppm REE; and
- 35 metres at 2,028ppm REE.

Meanwhile, the drill holes also returned broad and high grade copper intercepts of:

- 141 metres at 0.3% copper equivalent, including 11 metres at 1.2% copper equivalent; and
- 2 metres at 6.2% copper.

Results from a third drill hole are pending.

The mineralised system at Milo is up to 200 metres wide and continues over more than 800 metres of strike, while remaining open in all directions.

Importantly, these latest results highlight the potential for mineralisation at Milo to be part of a much larger mineralising system.

A Preliminary Scoping Study that is nearing completion will help GBM to demonstrate the economic potential of the resource, while the company continues work to expand this resource to the north and south.

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GBM Resources’ farm in partners outline A$3.8m exploration budget for Mt Isa projects

Mon, 21 May 2012 13:40:00 +1000

GBM Resources’ (ASX: GBZ) farm-in partners, Pan Pacific and Mitsui, have demonstrated their commitment to advancing four projects located in the highly prospective Mt Isa region of northwest Queensland, outlining a A$3.8 million exploration budget to March 2013.

The projects cover 1,580 kilometres of prospective multi‐minerals ground in the eastern succession of the Mount Isa inlier.

The increased exploration budget for 2012 will support geophysical surveys and extensive drilling of over 10,000 metres on a range of targets over the Bungalien, Grassy/Talawanta, Mount Margaret, and Chumvale projects.

Exploration in 2011 uncovered buried iron oxide copper gold (IOCG) mineralisation at Bronzewing Bore, one of a number of targets identified in the Bungalien project area.

GBM intersected a broad interval of anomalous copper mineralisation from the first drill hole completed on the Bungalien project farm in area, confirming a new IOCG system.

The hole returned mineralisation over 200 metres averaging almost 0.1% copper, and including 24 metres averaging 0.28% copper, and may represent a halo style intersection.

Meanwhile, the Mt Margaret West tenement group includes a number of targets in close proximity to Xstrata’s (LSE: XTA) 200 million tonne at 1% copper and 0.5 grams per tonne gold Ernest Henry mine.

Farm-in terms

Under the agreement Pan Pacific and Mitsui, through their co-established Australian subsidiary Cloncurry Exploration and Development, can earn up to 51% by spending $15 million within six years.

The partners can then increase their collective interest in the projects to 90% by spending a further $40 million.

Once they have achieved their 90% interest, GBM will then be free carried through to the completion of a Bankable Feasibility Study with a 10% interest.

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GBM Resources unveils potential new copper, gold discovery near 8Moz Mt Morgan mine

Fri, 27 Apr 2012 13:50:00 +1000

GBM Resources (ASX: GBZ) could have a new copper-gold discovery on its hands after identifying a second prospect just 8 kilometres from the historic Mt Morgan mine in central Queensland.

Highlighting the potential of the new prospect, the gold and copper anomaly discovered is concentrated along the major structure that hosts the Mt Morgan mine.

During its operational life, Mt Morgan produced over 8 million ounces of gold and 400,000 tonnes of copper metal.

Further upside is that the mineralised system at the Smelter Returns Prospect is open along strike to the northeast towards Mt Morgan.

Like the recent Sandy Creek gold-copper discovery, mineralisation at Smelter Returns covers a strike of over 5 kilometres.

Recent sampling along the Smelter Returns prospect produced an area greater than 100 parts per billion gold in soil.

A number of higher tenor zones of above 150 parts per billion gold are shown to occur within the main anomaly, the largest being over 700 square metres.

Both alteration style and geochemical signature point to an intrusive related gold and copper system.

GBM plans to undertake follow up sampling combined with detailed mapping along the mineralised fault trend ahead of initial drill testing during the second half of 2012.

Smelter Returns at a glance

The Smelter Returns prospect forms part of the 1,000 square kilometre Mt Morgan Project, which covers eight licences.

The gold-copper anomaly at the prospect was first defined by Dominion in the early 1990s from regional stream and rock sampling.

Twenty four shallow reverse circulation holes, drilled to a maximum depth of 60 metres, were completed, returning highlights of 8 metres at 0.33% copper and 0.84 grams per tonne (g/t) gold from 32 metres and 4 metres at 0.68% copper from 16 metres.

Peak assays from 2 metre intervals were 0.99% copper and 1.78g/t gold.

Sandy Creek

Recent surface sampling and mapping at the Sandy Creek prospect area has defined a large zone of anomalous copper and gold, with porphyry-style hydrothermal alteration.

The central alteration zone is estimated at 1,500 metres by 700 metres.

Of the samples taken, 14 returned greater than 0.5% copper. Best results included:

- 39% copper and 20g/t silver;
-1.4% copper and 44g/t silver; and
- 1.7% copper.

Meanwhile, gold results included 8.5g/t, 3g/t and 2.3g/t.

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GBM Resources well supported by market with $1.3m placement to advance Milo Scoping Study

Mon, 16 Apr 2012 10:40:00 +1000

GBM Resources (ASX: GBZ) has received strong investor support for a A$1.3 million capital raising, with firm commitments secured from institutional and sophisticated investors.

The company will place 16.7 million shares at $0.08 each with shareholders to fund a Scoping Study for the Milo iron oxide copper gold and rare earth elements deposit in Queensland.

The study is on track to be completed by mid-year and will lead GBM into the next development phase for Milo – the Pre-Feasibility Study.

The Scoping Study will comprise the delineation of a maiden copper resource, metallurgical testing for both the copper and rare earth elements, preliminary mine and processing plane design, and financial modelling.

Growing project

GBM is continuing to extend its flagship Milo deposit, with the latest assays defining extensions to the north.

A current drilling program is aimed at extending the maiden Inferred Resource of 103 million tonnes at 760 parts per million total rare earth element and yttrium oxide (TREEYO) for 83,500 tonnes contained TREEYO.

Two new scout holes have returned mineralisation from beyond the resource outline to the north, returning:

- 25 metres at 1% copper equivalent, including 9 metres at 2% copper equivalent;
- 24 metres at 2457 parts per million TREEYO; and
- 18 metres at 1460 parts per million TREEYO.

A further two holes are being drilled to test the southern extension of the deposit, intersecting strong sulphide mineralisation.

The initial exploration target for Milo of 30-80 million tonnes at between 0.8% and 1.2% copper equivalent is under review following the discovery of value-adding rare earth elements and yttrium mineralisation.

The Milo prospect is located near Cloncurry in far north Queensland, where exploration and mining activity is heating up.

Late last year the company uncovered a broad zone of rare earth element mineralisation which was found to extend through the entire project area.

Importantly, the Milo Project is proving itself to be a large tonnage, iron oxide copper gold discovery.

GBM Resources identifies northern extension to Milo IOCG REE deposit

Thu, 12 Apr 2012 10:30:00 +1000

GBM Resources (ASX: GBZ) is continuing to extend the company’s flagship Milo iron oxide copper gold and rare earth elements deposit in Queensland, with the latest assays defining extensions to the north.

The drilling program is aimed at extending the maiden Inferred Resource of 103 million tonnes at 760 parts per million total rare earth element and yttrium oxide (TREEYO) for 83,500 tonnes contained TREEYO.

Two new scout holes have returned mineralisation from beyond the resource outline to the north, returning:

- 25 metres at 1% copper equivalent, including 9 metres at 2% copper equivalent;
- 24 metres at 2457 parts per million TREEYO; and
- 18 metres at 1460 parts per million TREEYO.

A further two holes are being drilled to test the southern extension of the deposit, intersecting strong sulphide mineralisation.

Milo scoping study

GBM is on track to complete a Scoping Study for the Milo Project by mid year, which will comprise:

- Delineation of a maiden copper equivalent Resource;
- Metallurgical testing for copper equivalent and rare earth elements;
- Preliminary mine and processing plan designs; and
- Financial modelling for commercialisation of the ore body.

Once complete, the Scoping Study will provide the basis for a Pre-feasibility Study which is scheduled for the second half of 2012.

GBM Resources rated buy with six month price target of $0.35 by RM Research

Tue, 10 Apr 2012 14:35:00 +1000

A Perth-based broker has placed a buy recommendation on GBM Resources, with a six month price target that is more than 300% higher than the company’s current trading price based on the company’s Milo IOCG and Rare Earth Elements project.

GBM Resources delivers maiden 82,500 tonne Rare Earth Inferred Resource at Milo

Wed, 29 Feb 2012 14:11:00 +1100

The maiden resource was developed from just 22 holes for 3700 metres, and remains open providing the potential for new drilling to deliver an upgrade. Importantly - the resource contains over a fifth of neodymium, yttrium, dysprosium and europium.

GBM Resources appoints financial markets specialist as non-executive director

Mon, 27 Feb 2012 13:20:00 +1100

GBM Resources (ASX: GBZ) has strengthened its board with the appointment of financial markets specialist Sunny Loh as a non-executive director, effective from 1 March.

Executive chairman and managing director Peter Thompson said Loh’s vast experience, particularly in the Asian financial markets, will be invaluable for GBM as it takes the Milo Project towards commercialisation.

Loh is the managing director of Swift Venture Holdings Corporation, an investment company focused on investing in undervalued small to mid-size listed companies and resource-based companies in Asia.

GBM has a strong association with Swift Venture which recently agreed to acquire 30% of GBM’s Queensland Joint Venture phosphate rights under a conditional Share Sale and Purchase Agreement.

Loh, who is a substantial shareholder in GBM, is also the vice chairman and a board member of Shanghai Fortune Capital, a Shanghai-based professional investment banking firm.

GBM has made the potential company making Milo Iron Oxide Copper Gold, Rare Earth Elements and Yttrium Project in northwest Queensland a primary focus after disposing of its non-core 30% stake in the Queensland Phosphate project.

Late last year the company uncovered a broad zone of rare earth element mineralisation at Milo, which is dominated by lanthanum, neodymium, cerium and yttrium – and was found to extend through the entire project area.

The initial exploration target for Milo of 30-80 million tonnes at between 0.8% and 1.2% copper equivalent is under review following the discovery of the value-adding rare earth elements and yttrium mineralisation.

GBM Resources to focus on Milo rare earth project; sells non core phosphate project

Thu, 16 Feb 2012 13:10:00 +1100

GBM Resources (ASX: GBZ) is set to focus on the potential company making Milo Iron Oxide Copper Gold (IOCG), Rare Earth Elements and Yttrium (REEY) Project in north-west Queensland - after disposing of a non core asset/

The company will realise $3.3million from the sale of its 30% stake in the Queensland Phosphate project. GBM Resources will now distribute the shares via in-specie distribution to shareholders.

Peter Thompson, managing director, said the conditional sale of the project would be a “win/win” result for GBM and its shareholders.

“GBM’s shareholders will have the opportunity to participate in a new, well managed, well funded company at no cost.

“For GBM the sale of a non-core asset will allow us to further our focus on our ‘company-making’ Milo IOCG/Rare Earths Project.”

Milo TREEYO potential

Towards the end of 2011 GBM Resources uncovered a broad zone of rare earth element mineralisation at Milo, which is dominated by lanthanum, neodymium, cerium and yttrium - and extends through the project area.

Highlights from the analysis of almost 3700 samples included:

- 45 metres at 1014 parts per million total rare earth element and yttrium oxide (TREEYO), including 11 metres at 1479 parts per million;
- 13 metres at 2839 parts per million TREEYO;
- 26 metres at 2212 parts per million TREEYO; and
- 49 metres at 2044 parts per million TREEYO, including 25 metres at 3471 parts per million.

A review of the data also confirms that the mineralisation is dominated in abundance by cerium, lanthanum, neodynium and yttrium, which comprise 86% by weight of the total rare earth elements found.

The Milo rare earth elements and yttrium make-up contains 14% heavy rare earth elements and yttrium including dyprosium and europium.

GBM Resources identifies new porphyry copper gold mineralisation at Mount Morgan

Thu, 09 Feb 2012 12:25:00 +1100

GBM Resources (ASX: GBZ) has discovered a new porphyry-style copper gold deposit near the company’s Mount Morgan Project, with rock chip samples returning up to 39% copper, 8.5 grams per tonne (g/t) gold and 44g/t silver.

Recent surface sampling and mapping at the Sandy Creek prospect within the Mount Morgan project area has defined a large zone of anomalous copper and gold, with porphyry-style hydrothermal alteration.

The central alteration zone is estimated at 1,500 metres by 700 metres.

Of the samples taken, 14 returned greater than 0.5% copper. Best results included:

- 39% copper and 20g/t silver;
-1.4% copper and 44g/t silver; and
- 1.7% copper.

Meanwhile, gold results included 8.5g/t, 3g/t and 2.3g/t.

A drill program will be carried out at Sandy Creek this year following further mapping and sampling, with up to six reverse circulation drill holes planned to a maximum depth of 200 metres.

This drilling will form part of a regional prospect evaluation program in the Mt Morgan area.

Proximity to Mt Morgan Mine

GBM’s Mount Morgan project is located 40 kilometres southwest of Rockhampton in Queensland and comprises eight licences, five of which have been granted.

Targets ranging from early stage stream sediment anomalies to drill ready geophysical and geochemical targets have been identified within the tenements.

The Mount Morgan project area tenements surround the historical Mt Morgan copper gold mine which produced more than 8 million ounces of gold and 400,000 tonnes of copper between 1883 and 1981.

Norton Gold Fields (ASX: NGF) acquired the Mt Morgan mine in 2007 and is looking to bring the mine back into production.

GBM Resources increases copper strike length at Milo by more than 70%

Fri, 03 Feb 2012 12:35:00 +1100

GBM Resources (ASX: GBZ) continues to prove up the potential of its Milo breccia hosted IOCG-Rare Earth Project in northwest Queensland, with recent drilling confirming that the zone of sulphide mineralisation at Milo now extends at least 380 metres beyond previous drilling.

One of the three diamond core holes drilled during December intersected a 124 metre interval at 0.5% copper equivalent from 82 metres, including 21 metres at 1% copper equivalent.

Drilling has now confirmed that the mineralised zone continues strongly and with significant widths at least 80 metres beyond the previously defined, northernmost extent of copper mineralisation in the central Milo Prospect area.

Initial indications from the second and third drill holes are that they have also intersected zones of mineralisation, suggesting that the mineralisation may extend for a further 300 metres along strike to the north of the first drill hole.

Adding to the potential of the Milo project, the first drill hole also encountered several zones of rare earth and yttrium enrichment, including 27 metres and a 13 metre zone at 0.1% total rare earth elements and yttrium oxide.

Drilling has focused on confirming extensions of the known zone of breccia hosted IOCG style mineralisation beyond the 500 metres tested by drilling to date.

Geological mapping confirmed continuation of the host calc-silicate gossan and breccia zone over an additional 400 metres along strike to the north of previous drilling, with malachite staining observed in outcrop at a number of locations being the target of the current drill testing.

Milo Potential

The initial exploration target for Milo of 30-80 million tonnes at between 0.8% and 1.2% copper equivalent is under review following the discovery of value-adding rare earth elements and yttrium mineralisation.

The Milo prospect is located near Cloncurry in far north Queensland, where exploration and mining activity is heating up.

Late last year the company uncovered a broad zone of rare earth element mineralisation which was found to extend through the entire project area.

Importantly, the Milo Project is proving itself to be a large tonnage, iron oxide copper gold discovery.

Next Steps

GBM has begun a Scoping Study which is expected to be completed during the June quarter.

The company has also begun the logging and sampling of holes drilled immediately before the end of the 2011 field season.

GBM Growth

Last month GBM finalised agreements with Newcrest Operations Limited to purchase an exploration permit surrounding the high grade Trekelano copper mine in Queensland, where Ivanhoe Australia (ASX: IVA) recently intersected 44 metres at 5.7% copper and 1.4 grams per tonne (g/t) gold.

The acquisition of the new exploration permit provides GBM with considerable potential for future discoveries in the highly prospective northwest mineral province in Queensland.

Defining the potential of the permit is preliminary research showing significant copper intersections from the Clarries Prospect of 63 metres at 0.15% copper, 80 metres at 0.12% copper and 79 metres at 0.27% copper.

GBM Resources gains new substantial shareholder

Thu, 19 Jan 2012 15:20:00 +1100

GBM Resources (ASX: GBZ) has added Swift Venture Holdings Corporation to its share register as a substantial holder with a 5.01% interest.

Swift Venture acquired 2.7 million shares for a consideration of A$238,987 on 9 January 2012, providing an average entry price of $0.09 and taking the company’s total shareholding to 11.1 million shares.

GBM Resources is in the process of expanding its copper-gold portfolio in the highly prospective northwest mineral province in Queensland with the acquisition of an exploration permit surrounding the high grade Trekelano copper mine in Queensland, where Ivanhoe Australia (ASX: IVA) recently intersected 44 metres at 5.7% copper and 1.4 grams per tonne (g/t) gold.

Defining the potential of the permit is preliminary research showing significant copper intersections from the Clarries Prospect of 63 metres at 0.15% copper, 80 metres at 0.12% copper and 79 metres at 0.27% copper.

The agreement with Newcrest requires GBM to make a cash payment of $10,000 and to spend $100,000 on exploration of the area within 18 months of the title being transferred.

GBM Resources increases potential copper, gold discoveries with Queensland permit acquisition

Thu, 19 Jan 2012 13:54:00 +1100

The acquisition of the new exploration permit provides GBM Resources with considerable potential for future discoveries in the highly prospective northwest mineral province in Queensland, with previously identified broad copper intersections of 63 metres at 0.15% copper.

GBM Resources jump in price and volume earns speeding ticket

Fri, 06 Jan 2012 13:37:00 +1100

GBM Resources (ASX: GBZ) has come under the magnifying glass following a jump in its share price from $0.08 at close of trade yesterday to an intraday high of $0.105 on increased volume.

Shares in GBM have since eased to $0.10.

The increase in both share price and volume has earned the company a speeding ticket from the ASX.

GBM has responded to the query, saying that it is not aware of any reason to explain the recent trading, and confirmed that it is in compliance with Listing Rule 3.1.

A recent broker report placed a speculative buy rating on GBM, citing the company’s potential to discover a world class iron oxide-copper-gold resource at its 100%-owned Milo prospect.

The initial exploration target for Milo of 30-80 million tonnes grading between 0.8% and 1.2% copper equivalent is under review following the discovery of value-adding rare earth elements and yttrium mineralisation.

The Milo prospect is located near Cloncurry in Far North Queensland, where exploration and mining activity is heating up.

GBM Resources attracts speculative buy recommendation from broker

Tue, 03 Jan 2012 14:34:00 +1100

A research report on GBM Resources has concluded that the potential of the company is about to be unlocked following the start of drilling at its Milo Prospect in far north Queensland and the value adding results of REE analysis reported.

GBM Resources heads towards Scoping Study with discovery of widespread rare earths at Milo

Mon, 28 Nov 2011 10:55:00 +1100

GBM Resources can now undertake a Scoping Study in the first half of next year with confidence after a broad zone of rare earth element mineralisation discovered at the Milo Prospect was found to extend through the project area.