GBM Resources makes REE discovery

THE DRILL SERGEANT: Perth-based resources exploration company GBM Resources has discovered Rare Earth Element Yttrium Oxide (REEY) mineralisation at its Brightlands copper-gold project in northwest Queensland.

The discovery was made while the company was undertaking a program of RC drilling on the Brightlands project at the Milo prospect.

This current program is part of a $2.5 million drilling program GBM is undertaking to expand and progress the potential development of Milo and other prospects within the Brightlands project area and is scheduled to run through to November 2011.

Early results from three pre-collars drill holes have indicated elevated levels of lanthunum and phosphate.

The company had these samples analysed for a complete REE suite. The subsequent results confirmed significant intervals of REEY mineralisation in all three holes.

Previously drilled holes are now being re-examined to determine if additional potential for REEY mineralisation exists elsewhere in the Milo prospect.

Following the recent discovery the company said it is likely additional analyses of part, or all, of these holes will be required.

An average of 87% of the TREEYO contained in Milo samples received to date comprise of four REEY elements; cerium (39%), lanthanum (25%), neodymium (13%) and yttrium (9%).

Oxides of a suite of rare earth elements are included in the estimate of average TREEYO.

“GBM is focused on progressing development of Milo as an IOCG development, however the discovery of rare earths at the Milo Prospect is an unexpected bonus,” GBM Resources executive chairman Peter Thompson said in the company’s ASX announcement.

“We intend to conduct further test work to determine the extent and grade of the rare earths mineralisation at Milo to evaluate its potential to add value to the project.”

Milo is a breccia-hosted IOCG discovery, the type of which represents some of the largest copper-gold discoveries made in Australia via modern exploration techniques.

These include Ernest Henry, Olympic Dam and Prominent Hill mines.

GBM also advised that pre-collared diamond drilling of hole 9 in its 10-hole drill program on the Milo Prospect is currently underway.

The company intends using the results from this program as the basis for a Preliminary Feasibility Study (PFS) for its proposed Iron Oxide Copper Gold (IOCG) development.

The PFS is currently planned to commence in 2012.