GBM froths up Milo maiden

THE DRILL SERGEANT: Australian resources company GBM Resources has released a maiden rare earth resource for the company’s Milo iron oxide copper gold (IOCG) and Rare Earth Elements and Yttrium (REEY) project in northwest Queensland.

The maiden resource for Milo follows a string of strong drilling results and includes 103 million tonnes containing an estimated 82,500 tonnes of total rare earth elements and yttrium oxide (TREEYO) at an average grade of 760 parts per million TREEYO based on a 400 parts per million cut‐off grade.

 

Computer model of the Milo TREEYO mineralised zone looking
approximately grid west. The current model extends to approximately 400 m
below surface and is limited by drilling. Source: Company announcement

 

GBM claim the mineralised zone to be up to 200 metres wide and continuous over a strike length of more than
800 metres, open in all directions.

The current drilling has extended the current mineralised zone by at least 380m, which is outside the rare earth resource.

“It is noteworthy that 21 per cent of this material is comprised of neodymium, europium, yttrium and dysprosium, elements that have recently been deemed as in critical supply for the short to medium term by the US Department of Energy,” GBM Resources said in its ASX announcement.

“The resource is contained within a broad mineralised zone and using lower cut‐off grades the tonnage potential increase markedly representing significant upside to the current resource, subject to outcomes of the scoping study.”

GBM has commenced a scoping study at Milo, which is scheduled to be completed by June 2012.

The study will be used to delineate a maiden copper equivalent resource for the project and will also carry out metallurgical testing for both copper equivalent metals and rare earth elements.