GBM Resources Ltd (ASX:GBZ) has upgraded the resource at its Mount Coolon Gold Project in Queensland to 963,000 ounces of gold at 2.2 g/t.
The 66% increase in total resource was achieved by adding the 633,000 ounces gold resource at the Twin Hills gold deposits.
Both the existing Mount Coolon deposits (Koala, Glen Eva and Eugenia) and the Twin Hills deposits (309 and Lone Sister) are considered by GBM to hold significant exploration upside.
Mount Coolon Gold Project resource
Mount Coolon is planned to be developed as a central processing hub with the proposed co-development of Twin Hills to provide high-grade satellite feed.
Notably, the Twin Hills mineral system has been interpreted as an intrusion-related, low sulphidation, epithermal system containing high gold fineness deposits.
Both 309 and Lone Sister remain open at depth with the current resource limited by drilling to about 300 metres below surface.
It is worth noting that the 2017 Mount Coolon Scoping Study has already demonstrated the potential to generate strong positive cash flow from existing deposits (Koala, Glen Eva and Eugenia) prior to inclusion of Twin Hills.
Mt Coolon Gold Project tenement group location plan
The Twin Hills tenements are not owned by GBM and are subject to a binding sale and purchase agreement which was signed with Minjar Gold Pty Ltd in September 2018 to acquire a 100% interest in the Twin Hills Gold Deposits.
Certain conditions precedent have to be satisfied by GBM by February 28, 2019.