Precious metals miner GBM Resources could potentially double the resource base of its flagship Mt Coolon gold project, with the acquisition of the Twin Hills gold project, about 90 km away.
GBM has signed a binding sale and purchase agreement with midtier miner Minjar Gold to acquire the project, in Queensland, for A$1.5-million, the ASX-listed company announced on Friday.
The company explained that it planned to redevelop Mt Coolon as a central processing hub and that the proposed co-development of Twin Hills could provide a high-grade satellite feed source.
GBM said that the acquisition could also open up additional funding and investment opportunities for the development of Mt Coolon.
Twin Hills consists of three exploration permits and one mining lease, with a total tenement area of about 200 km2.
The 309 deposit was mined by BMA Gold between 2005 and 2007, producing 72 979 t at 10 g/t gold for 23 490 oz. In this time, about 1 200 m of decline and significant level development to access Area 2 mineralisation was completed. GBM said that the development completed to Area 2 could represent a ready opportunity to access residual underground mineralisation.