GBM Resources increases copper strike length at Milo by more than 70%

GBM Resources (ASX: GBZ) continues to prove up the potential of its Milo breccia hosted IOCG-Rare Earth Project in northwest Queensland, with recent drilling confirming that the zone of sulphide mineralisation at Milo now extends at least 380 metres beyond previous drilling.

One of the three diamond core holes drilled during December intersected a 124 metre interval at 0.5% copper equivalent from 82 metres, including 21 metres at 1% copper equivalent.

Drilling has now confirmed that the mineralised zone continues strongly and with significant widths at least 80 metres beyond the previously defined, northernmost extent of copper mineralisation in the central Milo Prospect area.

Initial indications from the second and third drill holes are that they have also intersected zones of mineralisation, suggesting that the mineralisation may extend for a further 300 metres along strike to the north of the first drill hole.

Adding to the potential of the Milo project, the first drill hole also encountered several zones of rare earth and yttrium enrichment, including 27 metres and a 13 metre zone at 0.1% total rare earth elements and yttrium oxide.

Drilling has focused on confirming extensions of the known zone of breccia hosted IOCG style mineralisation beyond the 500 metres tested by drilling to date.

Geological mapping confirmed continuation of the host calc-silicate gossan and breccia zone over an additional 400 metres along strike to the north of previous drilling, with malachite staining observed in outcrop at a number of locations being the target of the current drill testing.


Milo Potential

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.


Next Steps

GBM has begun a Scoping Study which is expected to be completed during the June quarter.

The company has also begun the logging and sampling of holes drilled immediately before the end of the 2011 field season.


GBM Growth

Last month GBM finalised agreements with Newcrest Operations Limited to purchase an exploration permit surrounding the high grade Trekelano copper mine in Queensland, where Ivanhoe Australia (ASX: IVA) recently intersected 44 metres at 5.7% copper and 1.4 grams per tonne (g/t) gold.

The acquisition of the new exploration permit provides GBM with considerable potential for future discoveries in the highly prospective northwest mineral province in Queensland.

Defining the potential of the permit is preliminary research showing significant copper intersections from the Clarries Prospect of 63 metres at 0.15% copper, 80 metres at 0.12% copper and 79 metres at 0.27% copper.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/24848/gbm-resources-increases-copper-strike-length-at-milo-by-more-than-70--24848.html