GBM Resources : Drilling Commences at Highly Prospective Twin Hills Project

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ASX Announcement	www.gbmr.com.au
ABN 91 124 752 745

18 February 2022

Drilling Commences at Highly

Prospective Twin Hills Project

KEY

• Phase 1 diamond core drilling program commenced at the highly prospective 309 Deposit at Twin Hills in the Drummond Basin, QLD testing a series of high grade shoots at depth and down plunge.
• The Twin Hills Project is considered to be under explored around the existing Mineral Resources. Current JORC (2012) Mineral Resource estimate at Twin Hills (309 and
  Lone Sister Deposits) is 12.9 Mt at 1.8 g/t Au for 760,700 ounces gold 1.
• Key drilling program objectives; intersection of high-grademineralisation on previously untested areas, resource expansion and improved resource certainty. JORC (2012) Mineral Resource estimate for the 309 Deposit is 10.8 Mt at 1.4 g/t Au for 500,600 ounces gold 1.
• Camp and modern core cutting facilities will support the larger drilling program envisaged.
• Approximately 7,000 metres of diamond drilling is planned in Phase 1 at the 309 Deposit with drilling then moving to the Lone Sister Deposit, 7 km to the south-east in a few months' time.
• Planning for drilling satellite targets (e.g., Southern Sister) is also progressing.

GBM Managing Director and CEO, Peter Rohner, commented: "Following the transformational acquisition of the Twin Hills Project, we are excited to be drilling so quickly at the highly prospective 309 Deposit and are looking forward to completing a safe and environmentally sound program with assays flowing in a few months. GBM now has two projects with drilling underway which is great, having just come back from reviewing the drilling progress at our Malmsbury Project in Victoria with JV partner Novo Resources Corp."

1 Refer to ASX: GBZ release 2 February 2021, Significant Resource Upgrade at Twin Hills Project and Appendix 1

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GBM Resources Limited (ASX: GBZ) (GBM or the Company) advises that it has commenced Phase 1 of the diamond core drilling program at the Twin Hills Project (309 Deposit) in the Drummond Basin, QLD.

The Phase 1 program at 309 is designed as resource definition and extension drilling. The program is designed to confirm some of the high-grade intersections that characterise this deposit to improve confidence in the resource ounces and to test new areas; potentially adding to the already significant resource base. The immediate goal is to convert a larger proportion of the current resource from Inferred to Indicated classification as a precursor to mine design and feasibility studies planned. The investment in upgrading the camp and core processing facilities provide a functional and safe base to conduct similar programs at Lone Sister and other highly prospective targets in the recently acquired tenement package.

Figure 1: Eagle Drilling Rig on First Hole at 309.

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Twin Hills Geology and Exploration Potential - High-Grade Shoots Open to Depth

Twin Hills is hosted by a sedimentary-volcanic package interpreted to have been deposited in a late Devonian age, structurally controlled, pull apart basin that formed along the margin of a Cambro- Ordovician age metamorphic basement high, the Anakie metamorphic inlier (refer Figure 2).

Figure 2: Geological setting of 309 and Lone Sister Deposits.

Gold-silver mineralisation is temporally and probably genetically linked to subvolcanic to volcanic felsic domes and related breccia pipes. The age of mineralisation at Lone Sister and by association the related domes has been shown to be early Carboniferous (341 to 346 ma).

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Mineralisation at the Twin Hills project, 309 and Lone Sister deposits (refer Figure 2) belongs to the felsic dome related, high gold fineness, low sulphidation quartz sulphide class of mineralisation that has produced a number of notable high value gold deposits including the high-grade Sleeper deposit and large bulk minable style deposits like Round Mountain in Nevada. This class of deposit usually develops an early phase of quartz-sulphide gold mineralisation followed by later stages of very high- grade often free gold quartz and or gold electrum chalcedony events, as is seen at Twin Hills, that are important to the deposit economics.

GBM's preliminary interpretation shows that the Twin Hills deposits are characterised by the 309 (phreatomagmatic to phreato-hydrothermal) milled matrix breccia body and the Lone Sister breccia and veinlet zone that is hosted within a rhyolite feeder dyke to a flow dome and the adjacent wall rock sediments. Better gold mineralisation in these deposits is strongly associated with epithermal quartz breccia matrix fill and cross cutting quartz fracture veinlet networks, forming discontinuous veinlet corridors that crosscut the host rock. GBM believes that the 309 and Lone Sister deposit characteristics are better suited to open pit or underground bulk mining approach compared to the selective underground mining previously used at Twin Hills.

The overall geometry of gold mineralization at 309 is a steeply west plunging body that is open at depth. Three main ore domains are recognized, known simply as Areas 1,2 and 3 (Figure 3). Near surface mineralization comprises two broadly cylindrical breccia orebodies (Areas 1 and 3) 70-100 m in diameter within an arch shaped dome approximately 300 m long x 200 m wide, defined by a sinter horizon that dips gently away from the central point, with the apex of the arch appearing to dip more steeply toward the north-east. The western margin of the sinter dome is truncated by a steeply southwest dipping fault. Surface mapping of quartz veinlets and faults indicate a late-stageeast-west structural fabric within the dome complex.

Figure 3: Cross section of major resource domains and structural interpretation, existing underground development, and historical drill intercept pierce points in g/t Au over 1 metre.

N

Area 1

Decline

Area 3

For

Area 2

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309 - Historical Drilling

Surface drilling comprises a mix of vertical and inclined holes. Large gaps still exist in the inclined surface holes within defined resource blocks. Drilling at depth is relatively sparse, particularly on the margins of ore domains. Extremely high-grade intercepts occur intermittently throughout the deposit and would benefit from drilling twinned/scissor holes to test consistency of these assays. Vertical holes from surface, although at times recording significant width and grades, are often barren due to parallelism with the predominant strike/dip and may exert some negative bias to resource characterization.

309 - Proposed Drilling

Seventeen holes (6,840 m) are planned to infill gaps, validate existing high-grade intercepts, and explore for extensions to mineralisation. All holes are planned from surface, typically inclined at -55 to -60 degrees drilling either to the south or north; generally perpendicular to the evident strike of mineralisation. Hole particulars are shown in Table 1 and Figure 4

Similar program is currently being prepared for the Lone Sister deposit, as well as regional exploration activities across the broader tenement package.

Table 1: 309 - DRILL HOLE DETAILS & COLLAR LOCATIONS (Planned)

	Hole ID			MGA East			MGA North			RL			Dip			MGA Azi			EOH (m)
	22-309-AA	505492.441		7575685.302	257.14		-82		189.4		250
	22-309-AB	505492.112		7575683.333	257.14		-67		189.4		380
	22-309-AC	505491.328		7575678.594	257.28		-55		189.4		400
	22-309-AD	505477.764		7575719.165	256.63		-55		9.4		80
	22-309-AE	505476.956		7575714.236	256.63		-67		189.4		400
	22-309-AF	505476.799		7575713.247	256.65		-57		189.4		360
	22-309-AG	505465.535		7575645.110	257.63		-57		189.4		320
	22-309-AH	505455.459		7575706.788	257.06		-60		189.4		440
	22-309-AI	505448.285		7575663.397	257.72		-55		189.4		410
	22-309-AJ	505428.594		7575544.261	256.70		-58		9.4		350
	22-309-AK	505409.117		7575610.318	257.71		-55		189.4		300
	22-309-AL	505349.054		7575860.007	253.14		-60		189.4		600
	22-309-AM	505338.071		7575793.500	255.28		-55		189.4		550
	22-309-AN	505288.645		7575494.371	256.51		-55		9.4		500
	22-309-AO	505273.498		7575402.650	255.49		-55		9.4		500
	22-309-AP	505242.675		7575461.438	256.51		-55		9.4		500
	22-309-AQ	505229.152		7575379.594	255.49		-55		9.4		500
17																	6,840

Note: Planned holes may vary during the program.

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