GBM Resources completes Tailings Dam estimate

THE BOURSE WHISPERER: GBM Resources (ASX: GBZ) has finalised a resource estimate for the company’s Tailings Dam project, located at the Lubuk Mandi gold mine in Terengganu State in Peninsular Malaysia.

The total resource is 1.5 million tonnes containing 34,800 ounces of gold at an average grade of 0.7 grams per tonne gold.

GBM explained 94 per cent of the resource is classified as indicated with the remaining six per cent inferred reflecting a lack of sampling data largely due to access conditions on the dam.

 

Source: Company announcement

 

“The successful estimation of indicated resource at Lubuk Mandi is a key milestone for the project as it potentially underpins the redevelopment to achieve recommencement of hard rock mining at the Mandi gold mine,” GBM Resources chairman Peter Thompson said in the company’s announcement to the Australian Securities Exchange.

“The resource blocks indicate that 83 per cent are above 0.5 grams per tonne of gold, indicating a relatively tight grade distribution, adding further confidence in the economic retreatment of the Tailings Dam.”

GBM outlined its redevelopment plan key milestones to consist of:

–    Retreatment of tailings dam to achieve production by April 2014;

–    Complete hard rock drilling program and achieve exploration target between 174,000 ounces and 443,000 ounces;

–    Complete Initial public offering of the Lubuk Mandi on the Singapore Stock Exchange (SXG) in 2014; and

–    Post Listing on SXG, recommence open cut operations and re commission the existing Carbon-in-Pulp plant.

GBM’s initial assessment and development plan identified an exploration target for the Tailings Dam project of between one million tonnes at 0.7g/t gold containing 23,000 ounces of gold and 1.4 million tonnes at 0.9g/t gold containing 38,000 ounces of gold based on limited available data from previous operators at the site.

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