GBM Executes $2M Mt Morgan Sale, Newmont Advances $25M Mt Coolon Farm-In

Exploration Momentum Builds at Yandan and Twin Hills

GBM Resources Limited (ASX:GBZ) has intensified its exploration efforts in the Drummond Basin, engaging renowned geophysicist David McInnes to reprocess and model historic geophysical datasets. This initiative has already identified several promising targets, laying a robust foundation for the company's 2025 exploration program. The focus at Twin Hills is on expanding gold resources at the 309 and Lone Sister deposits, while at Yandan, GBM aims to uncover the elusive 'feeder zones' that could unlock high-grade mineralisation beneath existing pits.

The systematic approach includes geophysics, geological mapping, soil sampling, and drilling scheduled to commence in Q3 2025. McInnes’ involvement, given his track record with major Australian copper-gold discoveries, adds significant technical credibility to GBM’s exploration strategy.

Strategic Asset Sale Streamlines Portfolio

In a decisive move to sharpen its focus, GBM executed a sale agreement for its 100% owned Mt Morgan Gold-Copper Project to Lithium Energy Limited. The deal, valued at approximately A$2.03 million in staged cash payments over two years, includes contingent payments up to A$1.67 million based on exploration and economic milestones, plus a 1.33% net smelter return royalty with a partial buyback option. This transaction not only provides GBM with immediate and future cash inflows but also aligns the project with a well-funded partner committed to investing at least A$4 million in exploration.

Newmont Partnership Advances Mt Coolon Exploration

GBM’s joint venture with Newmont at the Mt Coolon Gold Project continues to gain traction. Newmont has fulfilled its minimum commitment under the A$25 million farm-in agreement, completing 3,000 metres of drilling and delivering encouraging assay results that extend mineralisation around the Koala and Glen Eva corridors. The 2025 exploration plan includes further drilling and geochemical sampling, with Newmont holding the right to increase its stake to 75% by meeting additional expenditure and drilling milestones.

Cloncurry Project Ownership and Sale Considerations

Following Nippon Mining Australia’s withdrawal from the Cloncurry Copper Gold Project farm-in agreement, GBM now holds 100% ownership of the tenements. The company has reported anomalous copper and nickel intersections from a 2024 drilling campaign at the Mt Margaret FC4 prospect, refining its IOCG mineralisation model. GBM is actively considering proposals from interested parties for the sale of this tenement package, signaling a potential portfolio reshaping.

White Dam Sale Discussions and Operational Update

GBM’s efforts to divest the White Dam Gold-Copper Project have encountered a setback after Olary failed to complete funding, leading to ceased discussions. Nonetheless, GBM is engaged with multiple other parties, with an announcement on the sale expected soon. Operationally, White Dam continues to generate positive cash flow, with 121 ounces of gold sold in the quarter, contributing approximately A$0.557 million in revenue. The company is also finalising a contract for the sale of fine carbon stocks containing gold, expected to bolster revenue in the next quarter.

Financial Position and Corporate Developments

GBM reported net cash outflows from operating and investing activities during the quarter, with exploration expenditure at approximately A$0.32 million and production-related spending around A$0.48 million. The company maintains a cash balance of A$1.158 million, sufficient to fund operations for just over three quarters at current expenditure levels. Corporate updates include the cancellation of expired options, issuance of shares and performance rights as incentives, and director remuneration payments totaling approximately A$50,000.

Overall, GBM Resources is navigating a pivotal phase, balancing active exploration with strategic asset management and financial prudence. The company’s partnerships and divestments position it to focus on its core gold projects in the Drummond Basin, while maintaining optionality through royalties and contingent payments.