GBM Resources heads towards Scoping Study with discovery of widespread rare earths at Milo

GBM Resources (ASX: GBZ) has uncovered a broad zone of rare earth element mineralisation at its Milo breccia hosted IOCG-Rare Earth Project which is dominated by lanthanum, neodymium, cerium and yttrium and extends through the project area.

Significant intersections returned from the analysis of 3,696 samples included:

- 45 metres at 1014 parts per million total rare earth element and yttrium oxide (TREEYO), including 11 metres at 1479 parts per million;
- 13 metres at 2839 parts per million TREEYO;
- 26 metres at 2212 parts per million TREEYO; and
- 49 metres at 2044 parts per million TREEYO, including 25 metres at 3471 parts per million.

Executive chairman Peter Thompson said the confirmation that Rare Earth Elements were widespread at Milo was another important step in the project’s potential commercialisation.

“These latest results confirm our confidence to undertake a Scoping Study in the first half of next year with the key aims of completing a resource and doing the metallurgical testwork on the rare earth elements,” he said. 

“A positive outcome from the Scoping Study will take us into the next development phase of commencing a Prefeasibility Study on Milo by the middle of 2012.”

A review of the latest data also confirms that the mineralisation is dominated in abundance by cerium, lanthanum, neodynium and yttrium, which comprise 86% by weight of the total rare earth elements found.

The Milo rare earth elements and yttrium make-up contains 14% heavy rare earth elements and yttrium including dyprosium and europium.

Milo is emerging as a large tonnage poly-metallic deposit with significant contributions to its economics derived from the copper, silver, gold, molybdenum and uranium.

GBM previously estimated an initial exploration target of between 30 million tonnes and 80 million tonnes at 0.8-1.2% copper equivalent.

The company is reviewing this as a result of the discovery of rare earth elements and yttrium mineralisation at Milo.


Good Recoveries

In October, GBM confirmed good recoveries across all key metals contained within the IOCG Rare Earth deposit, which is located within the company’s Brightlands Copper Gold Project in northwest Queensland.

Preliminary test work has now begun on the rare earth elements and yttrium samples to determine if beneficiation is feasible for the rare earth minerals.

Initial flotation tests have confirmed that over 30% of TREEYO can be concentrated using traditional flotation techniques to produce a rare earth apatite concentrate.

In addition, initial test work conducted at the University of Tasmania has confirmed that very high concentrations of rare earth elements and yttrium are also contained in rare earth carbonate minerals.

Testing is underway to determine if gravity separation techniques will provide an effective means of beneficiation.


Forward Plans

During the December quarter additional drilling to test extensions of the Milo deposit will continue in conjunction with the completion of preliminary metallurgical test work targeting beneficiation of rare earth elements and yttrium, along with ongoing modelling of the deposit.

Continuing positive results from Milo will provide the basis for a Preliminary Feasibility Study for a proposed IOCG development. The study is currently planned to begin during 2012.


Cashed Up

GBM had A$3.9 million cash in the bank at the end of the September quarter.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/22628/gbm-resources-heads-towards-scoping-study-with-discovery-of-widespread-rare-earths-at-milo-22628.html