THE DRILL SERGEANT: Australian resources company GBM Resources has company’s told the market that recent drilling has expanded the copper zone at the Milo iron oxide copper gold, rare earth elements and yttrium (REEY) project in north- west Queensland.
GBM drilled three diamond core holes during December, which it claims has provided important additional information on the nature and extent of copper mineralisation at Milo.
Milo drillhole plan showing location of existing drillholes(recently completed holes in red). Source: Company announcement
The company reported that drillhole MIL011 intersected strong mineralisation downhole, with a 124 metres interval returning an average of 0.5 per cent copper equivalent from 82 metres, including 21 metres averaging 1.0 per cent copper equivalent.
GBM said this was confirmation a wide mineralised zone continues at least 80 metres beyond the previously announced drillhole MIL008, which had defined the northernmost extent of copper mineralisation in the central Milo prospect area.
According to the company initial indications from drillholes MIL012 and MIL013 (results pending) are that they have also intersected zones of mineralisation.
GBM has taken this to suggest the mineralisation may extend for a further 300 metres along strike to the north of MIL011.
Drillhole MIL011 also encountered several zones of Rare Earth and Yttrium enrichment; including 27m and a 13m zone averaging 0.1 per cent Total REEYO.
GBM said the latest series of drillholes confirms the zone of sulphide mineralisation at Milo now extends at least 380 metres beyond previous drilling, representing a 70 per cent increase in the strike of drill tested mineralisation.
“Drilling has focused on confirming extensions of the known zone of breccia hosted IOCG style mineralisation beyond the 500 metres tested by drilling to date,” GBM Resources said in its ASX announcement.
“The company has previously estimated an initial Exploration Target of between 30 million tonnes and 80 million tonnes of mineralised material averaging between 0.8 per cent and 1.2 per cent copper equivalent for the Milo breccia hosted, polymetallic IOCG mineralisation.”
GBM has now commenced a scoping study which it expects to be completed during the June Quarter this year.