GBM adds to Milo goodness

THE BOURSE WHISPERER: GBM Resources has received the results from the analysis of a total of 3,696 samples taken from its Milo project in Queensland.

The testing was carried out covering a full suite of Rare Earth Elements and Yttrium (REEY) at Milo and according to the company it has confirmed mineralisation to be widespread across the project at Milo.

The review carried out by the company of this data set has confirmed its expectations that the mineralisation is dominated in abundance by Cerium, Lanthanum, Neodynium and Yttrium, comprising 86 per cent by weight of the total REE assemblage present.

The Milo REEY assemblage contains 14 per cent HREEY including Dyprosium and Europium.

GBM considers Milo to be emerging as a large tonnage poly-metallic deposit with other contributions to its economics coming from copper, silver, gold, molybdenum and uranium.

The Rare Earth Element discovery now has the potential to add significant value to the project’s future.

GBM has commenced preliminary test work on the REEY samples to determine if beneficiation is feasible for the rare earth minerals.

Initial flotation tests have confirmed that over 30 per cent of TREEYO can be concentrated using traditional flotation techniques to produce a rare earth concentrate.

In addition, initial test work conducted at the University of Tasmania has confirmed that very high concentrations of REEY are also contained in rare earth carbonate minerals.

Testing is now underway to determine if gravity separation techniques will provide an effective means of beneficiation.

“These latest results confirm our confidence to undertake a scoping study in the first half of next year with the key aims of completing a resource and doing the metallurgical testwork on the rare earth elements,” GBM Resources executive chairman Peter Thompson said in the copany’s announcement to the Australian Securities Exchange.

“A positive outcome from the scoping study will take us into the next development phase of commencing a Pre-Feasibility Study on Milo by the middle of 2012.”

GBM said it will be continuing to drill to test extensions of the Milo deposit while it is completing preliminary metallurgical test work targeting beneficiation of REEY along with ongoing modelling of the deposit.