GBM Resources Commences Diamond Drilling program at Grassy Bore Copper Gold Project, North‐West Mineral Province, Queensland Australian resources company GBM Resources Limited (ASX:GBZ) (?GBM? or ?the Company?) is pleased to announce drilling has commenced at the Ibis Prospect, on the Grassy Bore Copper Gold project in the North‐West mineral province, Queensland. Drilling of two 600 m deep diamond holes has commenced to test two gravity highs with associated high magnetic responses.
The work is being carried out under the $55m exploration ?Farm‐in? Agreement between GBM and the Japanese company, Pan Pacific Copper, announced to the ASX on 22 June 2010. Pan Pacific whose two shareholders are JX Nippon Mining & Metals Co Ltd 66% and Mitsui Mining & Smelting 34% is an integrated copper business involved in the full value chain including the procurement and development of copper resources, the production of refined copper and related by‐products and the marketing of those products in Japan, Korea, other countries and in particular to meet the increasing demand from China.
The Grassy Bore area contains a number of magnetic features considered prospective for Iron Oxide Copper Gold system (IOCG) style mineralisation (see figure 1). Review of previous exploration drilling confirmed that one of these features had been tested with one drill‐hole (KID005 drilled in 1993) which intersected extensive tasomatic alteration assemblage with very strong to intense magnetite development over a 400 metre interval to the end of the hole at 750.5 metres. This included anomalous copper mineralisation with disseminated and vein hosted halcopyrite observed over a short interval. This drill‐hole confirms the existence of IOCG style mineralisation associated with at least one of these features and is considered to significantly upgrade the exploration potential of the area. During the September quarter detailed gravity surveys were completed over two such features to supplement previously collected data in the area. Gravity data collected on approximately 200 metre centres over the selected magnetic features significantly upgraded these features confirming discrete gravity highs indicating the presence of large bodies of very dense material (modelled density up to at 3.4 g/cm3in contrast to the country rock at an estimated 2.7g/cm3) at these locations.
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