GBM Resources (ASX: GBZ) has 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.
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 data obtained from open file exploration reports also showed base metal intervals from drilling at Maiden Creek of 48 metres at 1.23% zinc, 0.17% lead, 0.1% copper and 7.4g/t silver; and 15 metres at 1.1% zinc, 0.16% lead, 0.12% copper and 2.7g/t silver.
In addition, a soil geochemical survey at Kiama identified a semi-circular feature at plus 100 parts per million copper.
This 1.2 kilometre long, 120 metre wide prospect is located immediately south of an untested magnetic high.
The surrounding Trekelano copper mine is a high grade, structurally hosted copper gold deposit with a known metal inventory of 63,000 tonnes of copper and 73,000 ounces of gold.
The granted permit extends southwards to within close proximity of the Tick Hill gold mine, which has produced 705,000 tonnes at 22.6g/t for 2.5 million ounces of gold, ranking it as one of the most significant, high grade gold producers in Australia’s modern mining era.
The agreement with Newcrest requires GBM to make a cash payment of $10,000 and to expend $100,000 on exploration of the area within 18 months of the title being transferred.
Newcrest will also retain a 2% royalty over minerals produced from the licence area.
Unlocking GBM's Potential
A recent broker 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 rare earth element analysis reported.
GBM plans to undertake a Scoping Study at Milo in the first half of 2012.
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.
Significant intersections returned from the analysis of 3,696 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; and
- 13 metres at 2839 parts per million TREEYO.
The Milo Project is proving itself to be a large tonnage, iron oxide copper gold discovery.