GBM Resources (ASX: GBZ) has received strong investor support for a A$1.3 million capital raising, with firm commitments secured from institutional and sophisticated investors.
The company will place 16.7 million shares at $0.08 each with shareholders to fund a Scoping Study for the Milo iron oxide copper gold and rare earth elements deposit in Queensland.
The study is on track to be completed by mid-year and will lead GBM into the next development phase for Milo - the Pre-Feasibility Study.
The Scoping Study will comprise the delineation of a maiden copper resource, metallurgical testing for both the copper and rare earth elements, preliminary mine and processing plane design, and financial modelling.
GBM is continuing to extend its flagship Milo deposit, with the latest assays defining extensions to the north.
A current drilling program is aimed at extending the maiden Inferred Resource of 103 million tonnes at 760 parts per million total rare earth element and yttrium oxide (TREEYO) for 83,500 tonnes contained TREEYO.
Two new scout holes have returned mineralisation from beyond the resource outline to the north, returning:
- 25 metres at 1% copper equivalent, including 9 metres at 2% copper equivalent;
- 24 metres at 2457 parts per million TREEYO; and
- 18 metres at 1460 parts per million TREEYO.
A further two holes are being drilled to test the southern extension of the deposit, intersecting strong sulphide mineralisation.
The initial exploration target for Milo of 30-80 million tonnes at between 0.8% and 1.2% copper equivalent is under review following the discovery of value-adding rare earth elements and yttrium mineralisation.
The Milo prospect is located near Cloncurry in far north Queensland, where exploration and mining activity is heating up.
Late last year the company uncovered a broad zone of rare earth element mineralisation which was found to extend through the entire project area.
Importantly, the Milo Project is proving itself to be a large tonnage, iron oxide copper gold discovery.