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GBM Resources (ASX:GBM) gets initial results from drilling at Mount Coolon

Mining
ASX:GBZ      MCAP $12.72M
22 October 2020 18:00 (AEST)

GBM Resources (GBZ) has received assays from four holes out of the seven that have been completed at its Mount Coolon Gold Project in Queensland.

The company is conducting an ongoing diamond and reverse circulation (RC) drilling program to test the targets beneath the historic Glen Eva pit.

Pleasingly, most of the holes have intersected epithermal fissure veins of up to 8.3 metres wide and epithermal veinlet zones up to 23 metres wide.

Best results include 4.3 metres at 1.68g/t gold and 32.68g/t silver, including 0.9 metres at 5.41g/t gold and 64.84g/t silver from 232.4 metres, and 2.7 metres at 3.62g/t gold and 30.86g/t silver, including 0.8 metres at 11.87g/t gold and 85.35g/t silver.

At the start of this week, GBM announced it would raise $5.4 million through the issue of 40 million shares at 13.5 cents. These funds are being put towards exploration at Mount Coolon, assessing potential acquisitions, and for working capital.

“The additional funding recently announced allows us to expand our exploration programs and increase our drilling activities. This delivers the ability to systematically test our extensive known exploration targets to build on our current resources,” Managing Director and CEO Peter Rohner said.

Now, GBM has expanded the initial 1500-metre drilling program at Glen Eva with another four holes, totalling 1000 metres. The additional drilling will test down-dip from current drilling to target concealed high-grade or near-surface mineralisation.

Once drilling has been completed at Glen Eva, GBM will start drilling at the Koala and Eugenia deposits.

GBM ended the day down 2.63 per cent to close for 18.5 cents.

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