GBM Resources upgrades Bungalien

THE DRILL SERGEANT: GBM Resources has completed a 26 hole, RC drilling program on its Bungalien phosphate project areas located in the Georgina Basin, southeast of Mount Isa in North Queensland.

The company received results that included peak phosphate values exceeding 25 per cent phosphorous pentoxide from the 1,436 metre RC drill program.

Results included many intersections of significant widths greater than 10% phosphorous pentoxide mineralisation including:

–    13 metres at 7.0 per cent phosphorous pentoxide, including 5 metres at 12.7% phosphorous pentoxide;

–    15m at 3.7% phosphorous pentoxide including 3m at 12.2% phosphorous pentoxide;

–    13m at 7.6% phosphorous pentoxide including 5m at 13.3% phosphorous pentoxide;

–    5m at 12.3% phosphorous pentoxide including 1m at 26.0% phosphorous pentoxide;

–    24m at 4.2% phosphorous pentoxide including 5m at 12.3% phosphorous pentoxide; and

–    4m at 14.3% phosphorous pentoxide.
“The latest drilling results from Bungalien are very encouraging and confirm the extent of phosphate prospectivity encountered in the initial drilling campaign conducted in 2008,” GBM Resources managing director Peter Thompson said in the company’s announcement to the Australian Securities Exchange.

Additional scout drill holes undertaken in new areas also intersected phosphate mineralisation including:

–    7m at 4.19% phosphorous pentoxide at Horse Creek; and

–    9m at 2.14% phosphorous pentoxide at Limestone Creek.

The company said these results demonstrate areas of its tenements hold potential for untested phosphate mineralisation at shallow depths.

GBM’s main objective for the latest round of drilling was to build on phosphate results from the first round it had completed in December 2008 and to extend the area of phosphate mineralisation.

Drilling focused on areas of phosphate mineralisation interpreted to be within 50m of surface, which showed large areas underlain at shallow depth by rocks of the Beetle Creek Formation.

The largest phosphate deposits in Australia are found in the Georgina Basin, the largest of which is the Phosphate Hill mine owned by Incitec Pivot, located just 50 kilometres south of GBM’s Bungalien project.