Drilling provides significant extension to Copper Zone at the Milo Project
Australian resources company GBM Resources Limited (ASX:GBZ) (“GBM” or “the Company”) is pleased to announce results from recent drilling have significantly expanded the copper zone at the Milo Iron Oxide Copper Gold (IOCG), Rare Earth Elements and Yttrium (REEY)

Project in North- west Queensland.

GBM drilled three diamond core holes during December, which provided important additional information on the nature and extent of copper mineralisation at Milo, including:
Drillhole MIL011 intersected strong mineralisation over a significant distance downhole, with a 124m interval returning an average of 0.5% CuEq.*1,2 from 82m, including 21m averaging 1.0% CuEq;
Confirmed that the mineralised zone continues strongly and with significant widths at least 80 metres beyond drillhole MIL008, being the previously defined, northernmost extent of copper mineralisation in the central Milo Prospect area;
Initial indications from Drillholes MIL012 and MIL013 (results pending) 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 MIL011;
Drillhole MIL011 also encountered several zones of Rare Earth and Yttrium (REEY) enrichment; including 27m and a 13m zone averaging 0.1% TREEYO

This series of drillholes confirms that the zone of sulphide mineralisation at Milo now extends at least 380 metres beyond previous drilling, a 70% increase in the strike of drill tested mineralisation.

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.

The Company has previously estimated an initial Exploration Target of between 30 million tonnes (Mt) and 80Mt of mineralised material averaging between 0.8% and 1.2% Cu equivalent *3 for the Milo breccia hosted, polymetallic IOCG mineralisation.

GBM has now commenced a scoping study which is expected to be completed during the June Quarter this year. Logging and sampling of holes drilled immediately before the end of the 2011 field season has now commenced.