GBM Regains 100% Ownership of Mt Coolon with 330,000oz Gold Resource
GBM Resources has regained 100% ownership of the Mt Coolon Gold Project after Newmont's exit, consolidating its position in Queensland's Drummond Basin with a substantial gold resource and promising exploration targets.
- GBM regains full ownership of Mt Coolon Gold Project
- Exploration data from Newmont-funded programs revert to GBM
- Project hosts 330,000 ounces of gold in JORC resources
- Significant exploration upside with multiple untested targets
- Strengthens GBM’s regional portfolio alongside Twin Hills and Yandan
Strategic Ownership Consolidation
GBM Resources Limited (ASX, GBZ) has announced a pivotal development in its Queensland gold portfolio, regaining 100% ownership of the Mt Coolon Gold Project (MCGP). This follows Newmont Corporation’s decision to withdraw from the 2022 Farm-in Agreement, effectively returning all exploration data and results generated during the partnership back to GBM. The move significantly enhances GBM’s control over a large and highly prospective landholding within the Drummond Basin.
A Resource-Rich Asset with Exploration Potential
The Mt Coolon project comprises a 2,613 square kilometre tenement package hosting multiple deposits, including Koala, Glen Eva, and Eugenia. The project currently holds a JORC-compliant resource of 6.65 million tonnes at 1.54 grams per tonne gold, equating to approximately 330,000 ounces. Previous drilling campaigns, notably in 2020 and 2021, have doubled the strike length of the Glen Eva deposit and identified a large epithermal gold system with multiple untested targets along the Eastern Siliceous Zone trend.
Unlocking Value Through Integrated Exploration
GBM plans to integrate the extensive exploration data funded by Newmont and Newcrest, updating geological models to refine its understanding of the mineralisation. The company’s exploration team is poised to follow up on identified targets within the large hydrothermal system, aiming to expand resources and advance the project’s development potential. The 2017 scoping study highlighted promising economics for combined open pit and underground mining, with processing options including Carbon in Leach and heap leach techniques.
Strengthening the Drummond Basin Portfolio
This consolidation complements GBM’s nearby projects at Twin Hills and Yandan, which together hold approximately 1.84 million ounces of gold in JORC resources. CEO Daniel Hastings emphasised the strategic importance of controlling a substantial contiguous land package, which provides scale and flexibility to unlock significant value across the basin. The integrated approach could enhance operational efficiencies and project economics in the longer term.
Looking Ahead
With full ownership restored, GBM is well positioned to accelerate exploration and development activities at Mt Coolon. The company’s next steps include detailed data review and geological modelling to prioritise drill targets. Investors and analysts will be watching closely for upcoming exploration results and any updates on project economics or development timelines.
Bottom Line?
GBM’s full control of Mt Coolon marks a new chapter in its Drummond Basin ambitions, setting the stage for exploration-driven growth.
Questions in the middle?
- How will GBM prioritise exploration targets within the large epithermal system?
- What impact will Newmont’s withdrawal have on project funding and timelines?
- Could integration of Mt Coolon with Twin Hills and Yandan lead to a centralised processing strategy?
