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GBM Resources is well on the way to adding Minjar Gold’s Twin Hills project to its growing suite of Drummond Basin gold tenements.

The company has entered a new non-binding agreement for the acquisition of Twin Hills, hot on the heels of its purchase of the nearby Yandan gold project from Aeris Resources.

GBM managing director and chief executive officer Peter Rohner described it as another significant step in GBM’s ‘processing halo’ strategy.

The company aims to build a gold portfolio of more than one million ounces within the Mount Coolon region – providing an entry to develop into a mid-tier Australian gold company.

GBM had previously been in talks with to buy Twin Hills for $1.5 million in 2019, but Minjar Gold pulled out.

The Twin Hills deposits are estimated to contain 6.9 million tonnes at an average grade of 2.8 g/t gold for 633,000 ounces of contained gold.

The project is centred on the 309 and Lone Sister gold deposits, located 7km apart, and was mined by BMA Gold (which went into administration in 2007).

GBM considers that potential depth extensions and strike repetition of both the 309 and Lone Sister deposits have not been adequately

The company will undertake a 30-day due diligence period to review any changes to the technical and environmental status of Twin Hills since it assessed the project in 2018/19.