GBM Resources Limited (ASX:GBZ) has entered into a Binding Heads of Agreement with Minjar Gold to acquire the Twin Hills Gold Project located in Queensland.
Acquisition of the Twin Hills project will assist GBM in underwriting the development of the company’s Mt Coolon Gold Project.
The Twin Hills gold project is situated 90 kilometres from Mt Coolon and consists of the 309 and Lone Sister mineralised deposits.
Historical mining delivered bonanza grades
Exploration activity by Evolution Mining Ltd (ASX:EVN) interpreted the deposits to be structurally controlled epithermal gold and silver mineralised lodes.
Minjar acquired the Twin Hills project from Evolution Mining in 2016.
From a geological perspective, records indicate that bonanza grades occur within the deposits with 88 samples assaying above 100 g/t with a peak value of 2940 g/t gold.
However, the published Inferred Resource of 398,000 ounces is in accordance with 2004 JORC guidelines, and as such a JORC 2012 resource will need to be established.
Moderate price for strategically important asset
Minjar Gold is a circa 230,000 ounce per annum producer, and has provided support in developing a strategy to progress Mt Coolon.
Consideration for the asset is $1.5 million on a deferred settlement basis and the issue of 50 million ordinary fully paid shares in GBM.
There could be operational benefits as Mt Coolon could become a processing hub with the potential to bring the Twin Hill deposits into production as a feed source for Mt Coolon.