Published: August 31, 2016 |

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GBM Resources Ltd has commenced a scoping study to evaluate options for the recommencement of mining operations at the Koala Gold Mine in Queensland’s Drummond Basin.

A two staged drilling program will form part of the study to test the resource area around the old underground workings at the Koala Gold Mine.

The two stage program will total 4,600 meters of drilling and is expected to provide sufficient data to improve the confidence level of the old underground workings.

The Koala Gold Mine is part of the Mt Coolon Gold Project where a separate scoping study was completed earlier this month demonstrating the potential economic viability of heap leaching the Eugenia gold deposit.

The Eugenia mine is a small open pit, heap leach gold operation planned to operate over 16 months.

GBM is expecting to recover 32,588 ounces of gold from Eugenia at an operating cost of $848 per ounce, after incurring capital costs of $8.3 million.

The expected free cash flow is planned to be allocated to accelerate the expansion of the known open pit resources and the mineralized systems within the Mt Coolon project.

GBM’s objective is to build the Mt Coolon Gold Project inventory to a level that will support the commissioning of a carbon in leach plant.

Drilling is planned to commence in the coming weeks.

Source: (August 29, 2016) Proactive Investors

About GBM Resources
GBM Resources Ltd is an Australian resources company actively building a gold portfolio of projects within Malaysia and the east coast of Australia.

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