GBM Resources Uncovers New High-Grade Gold Zones at Twin Hills

Twin Hills Drilling Success

GBM Resources Limited (ASX – GBM) has delivered a promising update from its December 2025 quarter, highlighting a successful Stage 1 drilling campaign at the Twin Hills Gold Project in Queensland's Drummond Basin. The campaign focused on the 309 and Lone Sister deposits, where drilling intersected broad zones of high-grade gold mineralisation beyond the existing mineral resource estimate (MRE) of approximately 1.0 million ounces.

Noteworthy assay results include a 29-metre intercept grading 3.13 grams per tonne (g/t) gold at the 309 deposit, with a standout 4-metre section hitting 15.11 g/t. Lone Sister also delivered impressive results, including an 89-metre intercept at 1.28 g/t and a 52-metre section grading 2.77 g/t, featuring multiple higher-grade intervals. These results not only expand the known resource but also enhance geological understanding, particularly regarding deeper feeder zones that could host further high-grade mineralisation.

Strategic Asset Divestments and Capital Raise

In parallel with exploration progress, GBM continued its strategy to streamline its portfolio by divesting non-core assets. The company completed the sale of its White Dam gold-copper heap leach project to Pacgold Limited, receiving a combination of cash and shares valued at over A$3.5 million, plus deferred payments contingent on production milestones. Additionally, the Cloncurry project was sold to Evolution Mining Limited for A$500,000 cash and a net smelter royalty, allowing GBM to retain upside exposure.

These transactions underpin GBM's focus on its core Drummond Basin assets and were complemented by a successful placement raising gross proceeds of A$40 million. The placement attracted both new and existing institutional investors, with the company's largest shareholder, Wise Walkers Limited, leading the subscription. The capital injection strengthens GBM’s balance sheet, supporting ongoing exploration and development activities.

Operational and Environmental Progress

GBM also secured an environmental bond of approximately A$2.6 million for its Yandan Gold Project, enhancing tenure security and regulatory compliance. This step reflects the company’s commitment to responsible project development alongside its exploration ambitions.

Financially, GBM reported cash outflows from operating and investing activities during the quarter but maintains a robust cash position of around A$33.4 million at period end. The company’s expenditure was primarily directed towards drilling and geological consultancy, including engagement of renowned epithermal specialist Greg Corbett to refine exploration targeting.

Looking Ahead

With Stage 1 drilling results confirming significant upside potential, GBM plans to expedite its Stage 2 drilling program at Twin Hills in the coming weeks. The company’s enhanced geological model and structural framework will guide targeting of deeper, high-grade zones, potentially unlocking further resource growth. Meanwhile, the divestment of non-core assets and fresh capital position GBM to focus on advancing its flagship projects in Queensland’s prolific Drummond Basin.