GBM Resources upgrades Milo

THE DRILL SERGEANT: Australian copper-gold play GBM Resources has received further encouraging results from diamond drilling at the Milo prospect, which is part of the company’s Brightlands copper-gold project in North-West Queensland.

GBM said the latest results support its growing confidence in the potential of prospect as an iron-oxide-copper-gold project.

“These additional strong drillhole intersections, the positive initial metallurgical results and the discovery of significant levels of rare earth mineralisation, strongly underline the potential for future development of the exciting polymetallic Milo IOCG Deposit, GBM Resources executive chairman Peter Thompson said in the company’s announcement to the Australian Securities Exchange.

“We are only early in the discovery phase with just over 7,500 metres drilled to date on the two kilometre mineralized system.

“Like all IOCG systems the key is tonnes and metal recovery and the Milo prospect is starting to meet those criteria.”

GBM has recently completed a nine hole diamond drilling program and results for the sulphide zones in all, except for one have now been received.

According to GBM a number of the holes intersected multiple zones of mineralisation, with three in particular returning further significant intersections.

Seven of the nine holes completed intersected zones of polymetallic copper.

GBM said the zone of cupriferous polymetallic mineralisation remains open to the north and south.

This, the company said, is evidence stronger mineralisation is plunging to the north giving it confidence its initial Exploration Target of between 30 million to 80 million tonnes of mineralised material, averaging between 0.8% and 1.2% copper equivalent, at Milo has significant potential to be expanded.

The company is currently carrying out metallurgical test work. Initial results are indicating copper occurs largely as course chalcopyrite grains, which GBM said provides good concentration through flotation.

“Preliminary results have also provided recoveries of between 75% and 80% to a concentrate grading from 24% to 27% copper,” GBM said.

“Petrography and initial concentrates also indicate that molybdenum occurs largely as discrete molybdenite grains.

“This is considered a positive indication for ultimate recovery levels.”

The company is also undertaking testwork covering the suite of other metals that include gold, silver, molybdenum, cobalt and uranium.