GBM Resources announced that it has discovered a broad zone of rare earth element yttrium oxide mineralization after drilling three Reverse Circulation pre collars at the Milo Prospect within the Brightlands Copper and Gold Project in northwest Queensland.
The company believes the discovery will add to the confirmed potential for a large Iron Oxide Copper Gold system at Milo where there is an initial exploration target of between 30 million tonnes to 80 million tonnes of mineralized material which averaged between 0.8% and 1.2% copper equivalent.
Highlights include
1. 120 meters at 1,911 parts per million Total Rare Earth Element and Yttrium Oxides including 32 meters at 7,239 ppm TREEYO
2. 138 meters at 1,792 TREEYO including 16 meters at 9,367 ppm TREEYO
The two drill holes are separated by 400 meters and the REEY zone is open along strike and at depth. Further drilling is required to test extension and depth. Previously drilled holes at Milo are now being re examined to determine if additional potential for REEY mineralization exists.
The dominant rare earth elements associated with mineralization at Milo are Lanthanum, Neodymium and Cerium with associated Yttrium. Current metal prices for these elements are; CeO2, La2O3, Nd2O3 and Y2O3.
According to the company, the mix of metals in samples analyzed to date would have a weighted average value of approximately USD 150 per kilogram. For comparison, the current value of copper is about USD 9.50 per kilogram.
Milo is a breccia hosted IOCG discovery and has similarities to the Ernest Henry, Olympic Dam and Prominent Hill mines, which are some of the largest Cu Au discoveries made in Australia by modern exploration.
GBM has also commenced pre collared diamond drilling of hole 9 in its 10 hole drill program on the Milo Prospect with positive results expected to provide the basis for a Preliminary Feasibility Study for GBM’s proposed IOCG development.
The PFS is currently planned to commence in 2012. GBM’s current USD 2.5 million drilling program is scheduled to run through to November 2011.
Diamond drilling is progressing well with 8 of the 10 planned holes completed and the remainder of this stage expected to be completed in July.
Mr Peter Thompson executive chairman of GBM Resources said that “GBM is focused on progressing development of Milo as an IOCG development however the discovery of rare earths at the Milo Prospect is an unexpected bonus. We intend to conduct further test work to determine the extent and grade of the rare earths mineralization at Milo to evaluate its potential to add value to the project.”
