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GBM Resources has launched a 5000m diamond and RC drilling program at its flagship Mount Coolon gold project in North Queensland.

GBM managing director and chief executive officer Peter Rohner described the program as a significant step towards becoming a gold producer in the Drummond Basin.

It comes after the announcement last month that GBM Resources was securing its Drummond Basin dominance with applications for nine new exploration licences covering 2515sq km prospective for gold and silver.

“The immediate goal is to build on our existing JORC 2012 resource of 330,000 oz at Mount Coolon,” Mr Rohner said.

“There are a number of known epithermal alteration systems hosting gold that we believe hold potential to establish a plus 1 million-ounce resource base and ‘processing halo’ at the Mount Coolon gold project.”

About 2000m of drilling across up to eight holes has been planned at the Koala deposit to test down dip extensions of high grade shoots outlined by historical resource drilling.

Previous results there have included drill intersections of up to 2.6m at 12.3g/t gold and 8.2m at 6g/t gold.

The program will also include drilling at the Glen Eva and Eugenia deposits.

GBM is in the process of evaluating the extensive historical exploration database for Mount Coolon, Bimurra and Conway, in order to rank known prospects into a project pipeline for further exploration.