Mining Gold [IMG] The company believes there is potential for a...

Mining Gold
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The company believes there is potential for a significant vein to have developed underneath the East Hill. Pic: via Getty Images.
GBM flags new gold targets and potential for a project-making discovery at Yandan
Mining
5 hours ago | Special Report


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GBM Resources says a new geological model has provided a ‘significant high-grade’ vein target at its Yandan gold project.
The model for the East Hill deposit and the broader Yandan mineral system demonstrates that the known mineralisation is the top of a hot spring epithermal and vein texture system.
And the vein textures and mineralogy suggest drilling to date has only tested the upper parts of the system with potential for stronger grades and more ounces at depth.
GBM Resources (ASX:GBZ) is confident this could present an opportunity for a high-grade vein gold discovery.
Potential project-making discovery

The company says the presence of hydrothermal alteration and epithermal veins below the generator fault together with gold grades that increase down plunge suggest that the Yandan system remains open at depth with potential for better grades and significantly more ounces.
With strong similarities to well-known epithermal deposits Favona in New Zealand and Golden Promise in USA, GBM believes it’s likely that high-grade veins exist below the generator fault.
“Work by our geological team to interpret the Yandan geological setting following drilling in FY22 has identified compelling targets with the potential to yield a new project-making discovery,” MD and CEO, Peter Rohner said.
“Our confidence is supported by the geological evidence in several of the holes that penetrated the underlying fault and strong geological parallels that Yandan has with several large, well known, world class epithermal gold deposits.
“Further work will be focussed on geological characterisation, additional geophysics and spatial definition, to enable us to efficiently drill to maximise our probability of success.”
Next step is to confirm drill targets

At both Favona and Golden Promise (and at other hot spring style epithermal deposits) the main ore body sits below the sinter and breccia as a steeply dipping vein.
Gold grades and contained ounces are typically higher in the feeder vein than the breccia above.
GBM believes there is potential for a significant vein to have developed underneath the East Hill and this represents the main exploration target at Yandan.
Future exploration will initially focus on confirming the new geological model and establishing vein texture, alteration, and metal zoning patterns to reconstruct the system and vector to the centre and feeder veins.
The results of this work will be used to define the most effective geophysics method and to confirm drill targets.