Seeking Alpha

Proactive Investor's  Instablog

Proactive Investor
Send Message
Proactiveinvestors is a leading multimedia news organization, investor portal and events management business with offices in New York, Sydney, Toronto and London. Proactiveinvestors operates five financial websites in four languages providing breaking news, comment and analysis on hundreds of... More
My company:
Proactiveinvestors
My blog:
Proactiveinvestors
  • GBM Resources Starts Hard Rock Drilling At Lubuk Mandi Gold Project 0 comments
    Nov 29, 2013 12:56 AM

    GBM Resources (ASX: GBZ) has started hard rock drilling testing three initial targets at its Lubuk Mandi Gold Mine in Terengganu, Malaysia.

    This follows the company successfully defining a gold-in-tailings resource of 1.5 million tonnes at 0.7 grams per tonne for 34,800 ounces of gold late last month.

    Metallurgical testwork for the Tailings Dam project is also nearing completion.

    The hard rock drilling targets an Exploration Target of between 174,000 ounces and 443,000 ounces.

    Hard Rock Drilling

    Recent mapping within the mine lease defined two parallel shear zones on either side of the southern pit; the Eastern Shear Zone (ESZ) and the Western Shear Zone (WSZ).

    The ESZ is up to 70 metres wide at surface and at least 400 metres in strike length and is characterized by highly strained graphitic shale with abundant quartz breccia and disseminated sulphides.

    The initial 10-hole Phase 1 program is designed to test the ESZ, WSZ and the Main Lode beneath the pit on three drill sections.

    Multiple intersections on each structure will allow target ranking for further resource definition drilling in Phase 2.

    The recently completed drill hole LMD0001 successfully intersected the target ESZ, revealing a continuous, intensely deformed, quartz-rich and sulphide-bearing zone of approximately 100 metres downhole width, which correlates well with surface mapping of the zone.

    The Phase 1 program is scheduled for completion by Christmas and results from the initial drilling should be received by January.

    Lubuk Mandi

    The successful definition of a Tailings Resource had opened up the potential for cashflow as early as April 2014 from retreatment of tailings.

    This in turn underpins future hard rock mining.

    The Lubuk Mandi Gold Mine was previously owned and operated by government body Terengganu State Economic Development in the 1990's and produced 108,000 ounces of gold from two shallow pits.

    Its associated CIP processing plant is rated at 300,000 tonnes per annum and involves single stage crushing to a stockpile and mill.

    Both were placed on care and maintenance in 2000 with the plant requiring minimal refurbishment.

    Lubuk Mandi is located along one of four recognised gold belts in Peninsula Malaysia that together have at least 28 significant gold deposits.

    The project covers 221 hectares and is close to existing infrastructure and the regional centre of Terennganu State.

    Analysis

    Having previously defined a Resource of 34,800 ounces in the tailings at Lubuk Mandi, GBM is now proceeding with drilling to determine the hard rock resource that would ultimately form the main focus of the project.

    Early cashflow is on the cards from the tailings resource and investors will be watching the results of the drilling, a key catalyst for the company,

    Other catalysts include the start of gold production from the tailings dam and listing of Lubuk Mandi on the Singapore Stock Exchange, which allows the company to tap Asian capital.

    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.

Back To Proactive Investor's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.