GBM Resources Ltd (ASX:GBZ) (FRA:36G) has started phase 1 of its reverse circulation (RC) drilling program at its White Dam Gold-Copper joint venture, focussing on two of the three resource areas – Vertigo and White Dam North, about 50 kilometres south-west of Broken Hill in South Australia.
Phase 1 of the current program consists of around 43 holes for 3,250 metres at Vertigo and 10 holes for 750 metres at White Dam North.
The drilling results and resource outcomes are expected to feed into the study on the mining and treatment of additional material at White Dam.
It is also targeted at evaluating the magnitude of life extension and expansion potential available at White Dam.
The White Dam operation continues to produce strongly with forecast June 2021 quarter gold sales unchanged at 550 – 650 ounces on a 100% basis.
The current JORC (2012) resource at White Dam is 4.6 million tonnes at 0.7 g/t gold for 101,900 ounces gold.
Potential to drive expanded production
GBM managing director and chief executive officer Peter Rohner said: “We are pleased with the operational performance of White Dam and the improving free cash flow generation from copper and gold sales, particularly with stronger commodity prices.
“GBM has now initiated the Phase 1 RC drilling program to provide additional information that could support a potential further mining and ore leaching campaign at White Dam.
“This has clear potential to drive expanded production, greater cash flow generation, and substantial extension to project life.”
The Phase 1 program targets both infill and extensional drilling of the mineralisation to the southeast.
This resource material was not extracted during the last White Dam mining campaign due to lower prevailing gold prices and higher cyanide soluble copper grades.
The initial focus of the program is on the Vertigo zone, which has a current JORC 2012, mineral resource estimate of 1.7 million tonnes of 0.7 g/t gold and 38,300 ounces of gold.
After this, the program will focus on transitioning the White Dam North zone, which has a current JORC (2012) mineral resource estimate of 1.2 million tonnes at 0.5 g/t gold for 20,300 ounces gold.
Key drilling objectives
The key objectives of the Phase 1 RC drilling at White Dam are:
- Upgrading inferred category resource material and improving resource confidence in these zones;
- Increasing overall resources in these zones; and
- Providing additional copper assay data.
White Dam
The White Dam joint venture commenced on 1 July 2020 and the company has the option to purchase 100% of the project by 30 June 2021, which includes all the tenements and processing infrastructure.
White Dam also contains a broader exploration tenement package with considerable potential for further resource accretion, given further exploration.