NEWMONT BEGINS DRILLING AT MT COOLON GOLD PROJECT

Initial Focus on Glen Eva Targeting High-Grade Epithermal Mineralisation

GBM Resources Limited (ASX: GBZ) announced that Newmont has commenced a diamond drilling program at its Mount Coolon Project in the Drummond Basin, Queensland.

In October 2022, Newcrest Operations Limited (now a subsidiary of Newmont Corporation) entered into a farm-in agreement with GBM Resources to advance gold exploration at Mount Coolon. The agreement allows Newmont to acquire up to a 75% interest in the project by spending A$25 million and completing a series of exploration milestones over six years.

The 3 stages of the agreement are:

  1. Minimum Commitment Period: A$2 million spend within 24 months and 3,000 metres of drilling.
  2. Stage 1 Phase: Upon satisfying the Minimum Commitment Period, Newmont may acquire a 51% interest by spending an additional A$5 million and completing 7,000 metres of drilling within 36 months.
  3. Stage 2 Phase: Upon satisfying Stage 1, Newmont may earn a further 24% interest by spending an additional A$18 million and completing 10,000 metres of drilling within 36 months.

The project is currently in the Minimum Commitment Period.

GBM Managing Director & CEO, Peter Rohner, commented:

Following exploration targeting work conducted by Newmont over the last 18 months, covering soil and rock chip sampling, geophysical surveys (ground and aerial) and review of historical drilling, it is good to see drilling again at our Mt Coolon Gold Project. GBM is looking forward to the safe completion of the program and results as they become available.

Read the full announcement

Goldman

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