GBM Resources Accelerates Twin Hills Drilling, Secures A$40m Placement

Twin Hills Drilling Campaign Kicks Off

GBM Resources Limited (ASX – GBZ) has initiated a significant Stage 1 drilling program at its flagship Twin Hills Gold Project in Queensland’s Drummond Basin. The campaign aims to expand the existing resource base of approximately 1 million ounces of gold by targeting high-priority extensions at the 309 and Lone Sister deposits, as well as exploring new regional targets within the project area. The 309 deposit alone holds a resource of 10.6 million tonnes at 1.5 grams per tonne gold, equating to 0.52 million ounces, with previous drilling revealing bonanza-grade mineralisation.

At Lone Sister, the focus is on infill drilling and testing lateral and down-plunge extensions of high-grade zones within a rhyolite dome and breccia complex. This work will also support upcoming metallurgical test work and detailed geological studies to better understand mineralisation controls. Additional first-pass drilling is planned at Wilbur’s and Bullock Creek prospects to investigate geophysical and geochemical anomalies, potentially uncovering new mineralised zones.

Strategic Consolidation and Corporate Strengthening

In a notable development, GBM has consolidated full ownership of the Mt Coolon Gold Project following Newmont’s withdrawal from a 2022 farm-in agreement. This acquisition enhances GBM’s control over a 2,613 square kilometre tenement package rich in exploration potential, with a current JORC resource of 0.33 million ounces of gold. The project benefits from extensive prior exploration funded by Newcrest/Newmont, including drilling and geophysical surveys, which GBM will now integrate into its strategic planning.

On the corporate front, GBM appointed Daniel Hastings as Chief Executive Officer. Hastings brings 25 years of global mining experience, including leading exploration success at the Simberi Gold Project and a +5 million ounce discovery in Papua New Guinea. Additionally, Liu Hang, Chairman of GBM’s largest shareholder Wise Walkers Limited, joined the board as a Non-Executive Director, further aligning shareholder interests with company governance.

Capital Raising and Asset Divestment

GBM successfully raised approximately A$40 million through a placement to institutional and sophisticated investors, both domestic and offshore. This capital injection follows a recent tranche 2 placement that helped the company repay outstanding convertible notes, leaving it debt-free. The funding bolsters GBM’s capacity to advance exploration and development activities across its Drummond Basin assets.

Continuing its focus on core assets, GBM progressed its non-core asset divestment strategy by entering an agreement to sell the White Dam gold project in South Australia to Pacgold Limited. The transaction includes upfront cash, shares in Pacgold, and deferred payments contingent on production milestones. Similarly, the sale of the Mt Morgan project to Lithium Energy Limited is underway, with initial payments received and further deferred and contingent payments structured.

Financial and Operational Outlook

GBM reported operating cash outflows during the quarter, driven by exploration and corporate restructuring costs, partially offset by revenue from the White Dam project operating on a reduced basis. The company ended the quarter with cash and equivalents of A$4.8 million and anticipates extending its funding runway through the recent placement and asset sales. CEO Daniel Hastings emphasized the transformational nature of recent developments, highlighting the strengthened platform to unlock value across GBM’s extensive Queensland gold portfolio.