GBM Resources : Glen Eva System Exploration Update

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Mt Pleasant, WA 6153

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ASX Announcement

22 February 2022

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

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Glen Eva System Exploration Update

HIGHLIGHTS

• All remaining assays from the 2021 drilling program have now received with the best results 14.6 m @ 1.15 g/t Au within a 57 m wide zone of intense epithermal veining intersected by 21GEDD017. Two scout holes completed in the Koala area are also reported.
• All holes recorded gold mineralisation along strike from the Glen Eva Pit intersecting multi-phase epithermal veining and vein breccias in zones of between 3.5 metres and up to an impressive 57 m wide. Drilling has confirmed an initial target area over a 1 km strike length and a vertical extent of over 350 m from the Glen Eva Pit.
• Drilling, which has only tested the shallow part of the epithermal systems and characteristics of the rock units, points to high grades, potentially localised within the steeply plunging shoots consistent with the geology at the Mount Coolon Gold Project.
• The best gold grades show a distinct Au-Ag-Te ± Mo-Bi association, similar to Cracow and indicating a magmatic source. Hole 21GEDD017 had a section deeper intersection (than intersection listed above) with high Ag-Teof 2.5 m @ 1.34 g/t Au and 145.7 g/t Ag (refer Table 2).
• Geological interpretations of results to date suggest that the Glen Eva epithermal veining, the pyrite halo and Carbonate Base Metal veining (with Zinc and Lead) may be part of a large multi-stagemineral system that zones outward from an intrusion centred base metal carbonate core to low sulfidation precious metal systems with Glen Eva to the northwest and Eastern Siliceous to the southeast.
• Follow up review and field work is underway to finalise drill targeting in the second half of 2022.
• Additional work along the GEES corridor (a 6 km long mineralised trend) will include detailed surface geochemistry, mapping and geophysics to identify favourably oriented fault segments that are coincident with the key gold element associations. The combined geochemical and structural anomalies will be ranked and drill tested for high grade shoots later in 2022.

GBM Managing Director and CEO, Peter Rohner, commented: "The 2021 Glen Eva drill program has underlined the substantial size of the GEES system and demonstrated the real potential to host significant gold-silvermineralisation as evidenced by the historically mined high-gradegold in the Glen Eva Pit. We have only tested a small part of the system to date and there is clear potential to discover significant resources both at depth and along strike. Integrated analysis of drilling results together with geochemistry and geophysics continues and we aim to commence a follow up drill program in the second half of 2022 following on from the initial Twin Hills Project drilling."

Glen Eva Area - 2021 Drilling Program

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The 2021 GEES drilling program comprised 16 drill holes for 5,700.7 m including 13 drill holes for 4,167.4 m in the vicinity of the Glen Eva pit and a further 3 initial holes for 1,533.3 m drilled between Glen Eva and Eastern Siliceous.

Glen Eva Drilling

The 13 hole program at Glen Eva (Figures 1 and 5 and Table 1) tested up and down dip and strike extensions of the vein intersected by drill hole 20GEDD011 that returned the best gold-silver results (on a gram x metre basis) of the 2020 drill program (refer ASX:GBZ release 29 January 2021). In addition, three of the holes tested the western extensions to the Glen Eva vein system.

All assay results have been received and are shown in Table 2. The best results were returned in 21GEDD017 with 14.6 m @ 1.15 g/t Au and 3.5 g/t Ag from 182 m (including 3 m @ 2.04 g/t Au and

1. g/t Ag from 200.5 m) (see Tables 1 and 2 and Figure 1). Other significant results included 10 m @

1. g/t Au and 37.0 g/t Ag from 190.2m in a 20 m wide vein in 21GEDD013, 8.1m @ 0.34 g/t Au and

1. g/t Ag from 335.7 in a 15.4 m wide vein in 21GEDD014, 6.8 m @ 0.42 g/t Au and 22.4 g/t Ag in a

1. m wide vein in 21GEDD027, and 9 m @ 0.4 g/t Au and 21.6 g/t Ag in a 10.5 m wide vein in 21GEDD022.

The best silver results were associated with Au and Te in 21GEDD017, maximum grades of 1 m @ 238.1 g/t Ag, 2.15 g/t Au and 141.6 g/t Te from 202 m and 0.7 m @ 195.8 g/t Ag, 1.15 g/t Au and 100.5 g/t Te from 205.7 m and were included in a bulked interval of 13.25 m @ 49.9 g/t Ag, 0.41 g/t Au, and 29 g/t Te from 198.75 m.

Figure 1. A long section along the Glen Eva vein showing recent 2021 drilling and g*m intercepts. Note that the vein has now been intercepted over more than 1 km of strike. Assay results and vein widths are shown underneath the hole ID's with intervals in metres and gold grades in g/t Au. Down hole vein zone widths in metres are in the parentheses. Note that the best intercepts of the 2021 program correspond to the greatest vein widths and define a steeply plunging shoot.

The Glen Eva veins have now been defined over a strike length of more than 1 km and down dip for 350 m, remaining open to depth. Vein zone widths range up to an impressive 57 m (down hole) width in

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21GEDD017 and eight of the 2021 drill holes intersected vein zones greater than 10 m wide (down hole) (Table 2).

The vein system is vertically zoned from silica-sulphide to chalcedony-carbonate to crustiform-colloform chalcedony which is typical of the top half of epithermal systems indicating better grades may occur below. Two clearly defined metal associations are present with Au-As-Sb associated with silica-pyrite mineralisation at higher levels and Au-Ag-Te ± Mo-Bi associated with crustiform-coloform chalcedony dominant veins and better gold grades (Figure 2). The Au-Ag-Te ± Mo-Bi element association was also noted at Cracow and suggests magmatic input into ore fluid formation.

Detailed logging of vein textures in drill holes 21GEDD014 and 017 and 20GERD011 has revealed clear facies changes down plunge and along strike. To the southeast of the pit the absence of sinter suggests that the vein system did not reach the paleosurface but has the top of the system broadly marked by hematite alteration that likely resulted from interaction of groundwaters and rising hydrothermal fluids, possibly localised by aquitards such as rhyolite sills. Well-developed ginguro style bands overprinting breccia in 20GERD011 and predominantly silica matrix breccia in 21GEDD014 demonstrate the variation in vein facies along strike and suggest a mineralisation is likely to be controlled by steeply plunging ore shoots, possibly at changes in strike of the vein.

A

B

Figure 2. Photos of drill core from 21GEDD017. (A) Silica pyrite style mineralisation at 188.8 m. This style of mineralisation shows a distinct Au-As-Sb element association. Hematite is also present suggesting mixing of groundwater with hydrothermal fluids (B) A banded chalcedony vein (top of photo) cut by a quartz matric breccia (bottom of photo) at 227.7 m. This style of mineralisation displays a distinct Au-Ag-Te ± Mo-Bi element association.

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Glen Eva - Eastern Siliceous (GEES) Trend Drilling

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The GEES trend is a +6 km long WNW striking mineralised corridor defined by a series of structures evident in detailed aeromagnetic data, mapped alteration, surface geochemistry, recently completed IP and an alignment of gold prospects, including the Glen Eva JORC (2012) Resource of 78,300 oz Au and historic production during the 1990's of 156 kt at 4.8 g/t Au for 24 koz at the NW end and the Eastern Siliceous prospect at the SE end of the trend (Figure 3).

Three holes (21GEDD018 - 020) were drilled as part of the 2021 Glen Eva area program in order to test selected IP chargeability anomalies along the GEES trend (refer ASX:GBZ release 30 August 2021). These IP anomalies were located 1.5 km to 2.5 km along strike from Glen Eva toward Eastern Siliceous (Figure 3).

	Glen Eva Pit Previous Production					Glen Eva Pit	Inset
	156,000 t @ 4.8 g/t Au for 24,185 oz Au	+ 100,000						Chargeability
	Glen Eva GBM Resource 2017	ounces
						Anomaly
	1,660,000 t @ 1.5 g/t Au for 78,000 oz Au							Eastern
21GEDD021									Siliceous
	21GEDD017
	21GEDD026	21GEDD025					1,000 m
21GEDD022
21GEDD016
					Base metal carbonate
	21GEDD013	21GEDD024
						veining over 163 m
	21GEDD014	21GEDD023	?	?			downhole
	21GEDD015	21GEDD012

21GEDD019

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2021 drill holes Assays received Assays pending

2020 drill holes

Vein Modelling

Downhole zones of >4% pyrite veining

Downhole zones of intense base metal - carbonate veining

Downhole zones of strong base metal - carbonate veining

3D Inversion IP 150m Depth Slice

Chargeability

2.0 mV/V 8.0

?

?

21GEDD020

21GEDD018

Pyrite >4% downhole

Prepared by

For

Figure 3. 2021 and 2020 GBM drilling at Glen Eva and geophysical targets 1.5 km to the southeast overlain on a 150 m IP chargeability depth slice. Also shown are modelled veins and the Glen Eva pit, 21GEDD018 and 21GEDD020 "pyrite halo" and 21GEDD019 down hole interval of carbonate base metal veining.

Drill hole 21GEDD019 intersected two significant intervals of Carbonate Base Metal (CBM) veins whilst abundant disseminated pyrite up to 7% was intersected by 21GEDD018 and 21GEDD020 and is coincident with a 1.8 km long IP chargeability anomaly (refer ASX:GBZ release 11 Nov. 2021).

While the mineralisation intersected by drill holes 21GEDD018 - 020 was not high grade, it supports the concept of a large multistage minerals system and remains a strong follow up target this year.

In 21GEDD019 the best Zn grades were 32 m @ 0.33 % Zn, along with 0.23% Pb, 4.6 g/t Ag, 107 ppm As, 2.19 ppm Mo, and 3.35 ppm Sb from 180 m including the best individual assay of 1 m @ 2.3 % Zn, 1.65 % Pb, 25.9 g/t Ag, 355 ppm As, 1.5 ppm Mo, and 10.47 ppm Sb from 203 m (calculated using a 0.1% Zn cut off and 5 m of internal dilution).

Broad zones of elevated Bi-Te-Mo were noted in 21GEDD018 and 020 and correlate with Ag-As and elevated levels of Cu, Pb, and Zn. The best Zn grades in 21GEDD018 were 12 m @ 0.25 % Zn, 0.16

• Pb, 1.9 g/t Ag, 10 ppm As, 13 ppm Mo, 1.3 ppm Sb and 0.91 ppm Bi and 0.6 ppm Te from 276 m.

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GEES Mineralisation Model and Exploration Strategy

The results of the 2021 and 2020 drill programs have demonstrated a substantial multi-stage hydrothermal system is present at GEES. Zoning across epithermal systems has been well documented at several deposits and a Pb-Zn to Au-Ag-Te to Au-As-Sb zoning consistent with other epithermal deposits is present at GEES.

Given the position of the IP chargeability anomaly along strike from Glen Eva pit and the CBM veins intersected in 21GEDD019, GBM interprets the anomaly, and associated abundant disseminated pyrite, to represent the concealed alteration halo of a large hydrothermal system. We infer that the Glen Eva epithermal veining, the pyrite halo, and CBM veining may be part of a large mineral system that zones outward from a base metal bearing core to a low sulfidation precious metal system to the northwest at Glen Eva (Figure 4) and potentially also to the southeast at Eastern Siliceous. This is a preliminary interpretation and requires additional drill testing over 1.5 km of intervening untested strike projection of the vein corridor back to Glen Eva and over 2 km of intervening untested strike towards Eastern Siliceous.

Gold mineralisation along the GEES trend displays clear Au-As-Sb and Au-Ag-Te ± Mo-Bi element associations while vein textures suggest the best grades may be shoot controlled. GBM plans to use detailed surface geochemistry in conjunction with surface mapping, IP and magnetics to identify favourably oriented fault segments that are coincident with the key Au element associations. This combined structural and geochemical targeting will initially focus on Glen Eva and Eastern Siliceous and then be extended along the entire GEES trend. The combined geochemical and structural anomalies will be ranked and drill tested for high grade shoots.

The 3D and 2D IP surveys completed in 2020 and 2021 respectively failed to directly image the Glen Eva vein. This is surprising given the substantial width and strike of the vein and proximity of the vein to the surface. In conjunction with geophysics programs on other prospects, GBM plans to run selected Controlled Source Audio Magnetotellurics (CSAMT), a low-impact ground geophysical survey method to test lines across the Glen Eva vein. If CSAMT successfully maps the Glen Eva vein then this technique will also be used to test coincident geochemical and structural anomalies prior to further drilling.

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