GBM’s Twin Hills drilling opens a larger gold target

Twin Hills drilling pushes beyond the existing resource

GBM Resources Limited (ASX:GBM) is ending its 2026 financial year with a more expansive geological story at Twin Hills, where Stage 1 and Stage 2 drilling identified broad gold mineralisation outside the current Mineral Resource Estimate. The 100%-owned Drummond Basin portfolio contains 1.84 million ounces of reported Mineral Resources, including about 1.0 million ounces at Twin Hills, but the latest intersections are exploration results rather than a revised resource.

At Lone Sister, drilling returned 101 metres at 2.63 grams per tonne gold from 256 metres, including 9 metres at 6.55g/t and 4 metres at 10.35g/t. Outside the existing resource envelope, results included 22 metres at 3.65g/t from 149 metres, including 10 metres at 6.20g/t. At 309, the company reported 35 metres at 2.29g/t from 242 metres, including 3 metres at 21.89g/t, alongside evidence that the prospective Milled Matrix Breccia host unit extends beneath Coreshed and towards Stella.

The geological implications are potentially more important than any single intercept. GBM says historical drilling across parts of the wider Twin Hills corridor was too shallow to properly test the prospective stratigraphic units, while drilling orientation may have contributed to apparent gaps in the existing block model. That interpretation has encouraged the company to focus on resource expansion and brownfields discovery around 309 and Lone Sister. Assay risk remains material: of roughly 20,000 metres completed at 309, about 8,800 metres was still pending at the reporting date, while about 2,400 metres remained outstanding at Lone Sister.

Yandan adds a second major drilling catalyst

GBM has also started an 8,000-metre Stage 1 program at Yandan, split evenly between reverse-circulation and diamond drilling. The program follows new geophysical work and a refined geological model, with East Hill prioritised ahead of a possible updated Mineral Resource Estimate in the first half of 2027.

East Hill currently contains 12.8 million tonnes at 1.1g/t gold for 0.44 million ounces. The filing highlights an historical high-grade result from hole YAN010 of 2.5 metres at 248g/t gold, while noting that substantial geophysical anomalies beyond the existing resource remain untested. Those figures offer a compelling target, but they do not yet establish additional resources or an economic mining project.

Funding reset leaves GBM debt-free

The exploration push is backed by a markedly stronger financial position. GBM raised gross proceeds of A$40 million through a placement to institutional and sophisticated investors, repaid A$6.17 million of convertible notes and ended 30 June with A$31.705 million in cash and no borrowings, compared with A$1.846 million in cash and A$6.06 million of borrowings a year earlier.

That balance-sheet improvement came at the cost of a much larger share count: ordinary shares on issue rose from 1.416 billion to 4.908 billion during the year. The company also issued substantial incentive securities, while finance expenses reached A$3.77 million, including A$2.91 million in early redemption costs and associated charges. Net loss widened to A$9.02 million from A$3.91 million, with the result also affected by a A$2.64 million loss on the sale of White Dam.

Divestments sharpen the Drummond Basin focus

GBM completed the sale of White Dam, Cloncurry and Mt Morgan, retaining selected upside through shares, deferred consideration and royalties. The transactions reduce the company’s portfolio breadth and leave Twin Hills, Yandan and Mt Coolon as the centre of its exploration strategy. GBM has not commenced production from its core projects, and the annual report explicitly warns that further exploration and development will require capital and may not result in an economically viable deposit.