ANNUAL REPORT 2022
ABN 91 124 752 745
Entrance To Portal to 309 Underground Mine on the Twin Hills Project. The 309 deposit was previously mined
between 2006-7 by BMA Gold Ltd extracting 72,979 t @ 10.0 g/t Au for 23,490 ounces.
CORPORATE DIRECTORY
GBM Resources Limited (GBM or the Company)
ASX Code
GBZ and GBZOB (Listed Options)
Website
www.gbmr.com.au
Directors
Peter Mullens - Executive Chairman
Peter Rohner - Managing Director and CEO
Sunny Loh - Non Executive Deputy Chairman
Brent Cook - Non Executive Director
Peter Thompson - Non Executive Director
Company Secretary
Kevin Hart
Dan Travers
Registered Office
Suite 8, 7 The Esplanade
Mt Pleasant WA 6153
Australia
Telephone: +61 8 9316 9100
Facsimile: +61 8 9315 5475
Victoria Exploration Office
Unit 11, 21 High St
Harcourt VIC 3453
Australia
Telephone: +61 3 5470 5033
Postal Address
PO Box 658,
Castlemaine VIC 3450
Media
Fivemark Partners
Level 2, 79 Hay St
Subiaco WA 6008
Auditor
HLB Mann Judd
Level 4, 130 Stirling Street
Perth WA 6000
Australia
Share Registry
Computershare Investor Services Pty Ltd
Level 11, 172 St Georges Terrace
Perth WA 6000
Stock Exchange
ASX Limited
Level 40, Central Park
152-158 St Georges Terrace
Perth WA 6000
Australia
Principal Office
Level 5, Suite 502, 303 Coronation Drive
Milton QLD 4064
Telephone: +61 493 239 674
Postal Address
PO Box 1295,
Milton QLD 4064
Solicitors
Steinepreis Paganin – Lawyers and Consultants
Level 4, The Read Buildings
16 Milligan Street
Perth WA 6000
Australia
Corporate Governance
A summary statement reporting against the 4th
the ASX Corporate Governance
Edition of
Recommendations which has been approved by the
Board together with current policies and charters is
available
at
https://www.gbmr.com.au/about/corporate-
governance/
Company website
the
on
CONTENTS
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
Chairman’s Report
Our Strategy and Values
Highlights in 2022
Project Location and Commodity Summary
Review of Operations
Tenement Schedule
Annual Mineral Resource Statement
Sustainable Development
Directors’ Report
Auditor’s Independence Declaration
Consolidated Statement of Profit or Loss and Other Comprehensive income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Financial Statements
Directors’ Declaration
Independent Auditor’s Report
ASX Additional Information
Page
4 - 5
6 - 8
9 - 15
16
17 - 44
45
46 - 50
51 - 53
54 - 63
64
65
66
67
68
69 - 104
105
106 - 109
110 - 111
CHAIRMAN’S REPORT
Dear Fellow Shareholders,
It is my pleasure to present the GBM Resources Annual Report for 2022.
Through the past year, GBM’s core businesses continued to operate steadily and in full compliance
with COVID-19 precautionary measures. Thanks to our personnel and contractors, the Company has
managed to diligently assess risks and mitigate impacts associated with this environment. Most
importantly, these outcomes were achieved in a safe and responsible manner and with the highest
regard for the environment and communities in which we operate.
It has been an incredibly busy year for GBM. We have continued to pursue our Drummond Basin
consolidation strategy, with a concurrent focus on the divestment of non-core projects. We have also
been actively drilling, with significant success.
In December 2021, GBM completed the acquisition of the Twin Hills Project from Minjar Gold. This
was achieved for the highly attractive acquisition cost of approximately A$3.5m, which equates to
just US$4 per gold resource ounce. Completion of this acquisition represents the now successful
consolidation by GBM of three historic gold production assets in the Drummond Basin, Queensland
– Mt Coolon, Yandan and Twin Hills. These three gold assets have a combined JORC gold resource
base of over 1.6 Moz. They are also all located within 70 km of our proposed Drummond Basin
Processing Hub centred on the Yandan ML’s, which possesses significant existing infrastructure.
Substantial exploration activities across our Drummond Basin assets occurred throughout the year.
This included the commencement of drilling at Twin Hills in February 2022. Initial drilling of the 309
deposit (16 holes at 6,242 m) exceeded all expectations, both in terms of scope and grade, readily
demonstrating additional gold mineralisation adjacent to known resources. Strong results were also
returned through the year from the ongoing drilling at both Mt Coolon and Yandan. GBM is targeting
significant further growth in its consolidated Drummond Basin resource base via these ongoing
exploration activities.
At the Malmsbury Project in Victoria, a 50% JV with Novo Resources, Phase 1 exploratory drilling was
completed in June 2022 (11 holes for 3,162 m). This program returned highly encouraging results and
we plan to be drilling again here in late 2022 / early 2023.
Throughout the year, GBM also progressed its strategy to divest non-core projects. In November
2021, we executed a sale and purchase agreement with Consolidated Uranium Inc (TSXV:CUR) for
the sale of the Brightlands-Milo Project in Queensland. Completion of this transaction occurred in
April 2022 with total consideration being C$500,000 cash and 750,000 CUR shares.
Another significant portfolio initiative was the signing of an option agreement with C29 Metals
Limited (ASX:C29) in February 2022 for the sale of GBM’s Mayfield Project. This transaction was
completed in August 2022 with GBM receiving a final cash payment of A$210,000 and ~1.6m shares
in C29.
GBM Resources Annual Report 2022
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CHAIRMAN’S REPORT
We also executed the definitive agreement for the sale of our Mt Morgan Gold-Copper Project to
Smartset Services (TSXV:SMAR.P) in August 2022. This agreement finalised the previously announced
transaction that sees GBM vend its Mt Morgan tenements into Smartset in exchange for 47.5% of its
issued share capital. As a condition precedent to the transaction, Smartset is expected to raise
approximately C$8m in new equity to undertake systematic, well-funded exploration of the Mt
Morgan Project targeting discovery of large-scale gold and copper deposits. This transaction allows
GBM to dispose of a non-core asset into a focused vehicle set to deliver accelerated exploration
value, while aligning with a strong technical partner in the Smartset team.
I would like to take this opportunity to say thank you to our loyal shareholder base in what is now a
difficult market for gold companies. Throughout the year the capital raising initiatives we have
undertaken to support our growth ambitions have been well supported. We are resolutely focussed
on delivering exploration and development success within our Drummond Basin portfolio so as to
rightly reward this sustained support. To all our shareholders, thank you for your ongoing belief in
the GBM assets and team.
Lastly, I would like to say thank you to all my fellow GBM personnel for their diligence and work ethic
over the past year. Their efforts are greatly appreciated.
I look forward to further interacting with you at our upcoming 2022 Annual General Meeting.
Yours faithfully,
Peter Mullens
Executive Chairman
GBM Resources Limited
GBM Resources Annual Report 2022
P a g e | 5
OUR STRATEGY AND VALUES
OUR STRATEGY
Assemble, Explore and Develop world class high grade gold resources to maximise value to
our Shareholders.
OUR VALUES
We are committted to achieving our vision in a safe and responsible manner with the
highest regard for the environment and communiities in which we operate. The Board
endorses the core values of GBM as summarised below.
SAFETY
We take care of our safety, health and wellness by recognising, assessing and managing risk to
continue our goal of zero harm.
SUSTAINABILITY
We have the highest regard and support for the environment and local communities in which we
operate.
INTEGRITY
We behave ethically and respect each other and the customs, cultures and laws in which we operate.
RESPONSIBILITY
We deliver on our commitments and work together with all stakeholders.
Figure 1: Cultural Heritage clearance prior to drilling at Lone Sister.
GBM Resources Annual Report 2022
P a g e | 6
DELIVERING ON STRATEGY
KEY FOCUS ON THE DRUMMOND BASIN (Queensland, Australia)
✓ 1.6 Moz Gold JORC Resources over Twin Hills (acquired 2022), Mt Coolon and Yandan
✓ Maiden drill program at Twin Hills has exceeded all expectations both in scope and grade.
✓ Approximately 4,540 km2 tenement position.
✓ Aim to define 2-3 Moz Gold Resource in Drummond Basin.
✓ Regional exploration around potential processing hub on existing ML’s
✓ Highly Prospective for new discoveries – Exploration activities have identified 14 Epithermal
Gold systems in the Drummond Basin - such systems are characterised by concentration of
precious metals like gold in lode deposits potentially delivering “Bonanza Gold Veins”.
✓ Safe mining jurisdiction and low sovereign risk
OTHER KEY ACTIVITIES INCLUDE:
➢ Partner Funded JV and Vend-In Non-Core Projects:
✓ Cloncurry JV (Cu Au) with Nippon Mining Australia. Current budget $1m
✓ Malmsbury JV (Au) with Novo Resources Corp. Current budget $2.5m.
✓ Mt Morgan (Au Cu) Project. Vend-In to Smartset Services Inc., listed Canadian company on
the TSXV. Scrip consideration.
✓ Mayfield (Cu Au) Project. Vend-In to C29 Metals, ASX listed company for cash and scrip
consideration.
➢ White Dam Gold and Copper Heap Leach Operation – continues to generate positive cashflow,
though GBM will pursue divestment options to focus efforts on the Drummond Basin.
➢ Growing the shareholder base into European and North American Funds and further developing
the Australian capital markets.
GBM Resources Annual Report 2022
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DELIVERING ON STRATEGY
About Epithermal Gold Systems in the Drummond Basin
Epithermal deposits typically form from the interaction of magmatic sourced hydrothermal fluids
mixing with groundwaters. Gold is generally deposited as the temperature of the fluid drops through
mechanisms such as boiling. This results in a predictable series of gangue minerals and quartz
textures.
Examples:
➢ Drummond Basin epithermal deposits include Pajingo (4.1 Moz Au), Wirralie (1 Moz
Au).
➢ Epithermal deposits elsewhere include Fruta Del Norte - Ecuador (9.8 Moz Au),
Cracow- Central Queensland (3.6 Moz Au), Waihi - New Zealand (8.5 Moz Au),
Porgera – Enga Province Papua New Guinea (29 Moz Au)
Figure 2: Typical Epithermal Gold Systems (mineralisation versus depth)
GBM Resources Annual Report 2022
P a g e | 8
SIGNIFICANT HIGHLIGHTS IN FINANCIAL YEAR 2022
DRUMMOND BASIN GROWTH STRATEGY, Queensland
In December 2022 GBM completed the acquisition of the Twin Hills Project Tenements (Twin Hills)
from Minjar Gold Pty Ltd resulting in the successful consolidation of three historic gold producers
being Mt Coolon, Yandan and Twin Hills. These three gold assets held by GBM have a combined gold
JORC resource base of 1.6 million ounces.
Figure 3: A map showing the distribution of GBM’s tenements in the Drummond Basin.
Twin Hills Acquisition Consideration
• Acquisition cost included a cash consideration payable of ~A$2.1 million (including
settlement adjustments), along with assuming the financial assurance in respect of the
environmental authorities for the tenements (currently for an amount of ~A$1.48
million).
• The transaction consideration represents a highly competitive acquisition cost of A$5.53
(approx. US$4.00) per gold resource ounce. (Refer ASX:GBZ release 17 June 2022)
GBM Resources Annual Report 2022
P a g e | 9
SIGNIFICANT HIGHLIGHTS IN FINANCIAL YEAR 2022
Twin Hill Resource Upgrade
Updated JORC 2012 Mineral Resource estimate was completed for the Twin Hills deposits (Lone Sister
and 309) of 12.9 million tonnes at 1.8 g/t Au for 760,700 ounces (previously 633,000 ounces)
contained gold on granted mining leases. (Refer Table 2 of this report).
“Processing Halo” Strategy
Combined gold resources under GBM’s ownership in the Drummond Basin are approximately 1.6
million ounces across the Yandan, Mt Coolon and Twin Hills assets. All are located within 70 km of
GBM’s proposed “Drummond Basin Processing Hub” centred on the Yandan granted mining leases,
which has significant infrastructure (i.e. water storage dams, tailings facilities, airstrip, leach pads
and grid power).
Drilling Activity Undertaken in the Drummond Basin (Further Details in Operations Section)
Twin Hills Project
Excellent results from the initial 15 holes successfully diamond drilled for 6,242 m at the Twin Hills
Project 309 Deposit were recorded resulting in discovery of additional gold mineralisation adjacent to
the known resources. 10 out of the 15 holes drilled returned > 100 g*m gold intercepts highlighting
the quality of the 309 Deposit.
Top five 309 Deposit intersections from the recent drilling program are detail below:
(Refer ASX:GBZ release 1 September 2022)
Drill Hole
From (m)
To (m)
309DD22001
309DD22005
309DD22006
309DD22007
309DD22016
69
310
119
47
119
231
359
200
233
200
Interval
(m)
162
49
152.1
186
81
Au (g/t)
Ag (g/t)
Au g*m
2.65
5.18
1.16
1.77
2.5
7.03
2.27
3.72
3.43
2.32
429
254
176
329
203
These are very strong results, and the Company is currently reviewing all the geology and the latest
drilling of the 309 Deposit with the aim of updating the mineral resource estimate later in the year.
Currently the Twin Hills gold mineral resource estimate (being 309 Deposit and Lone Sister) totals
760,700 ounces of which the 309 Deposit contains 501,000 ounces.
GBM Resources Annual Report 2022
P a g e | 10
SIGNIFICANT HIGHLIGHTS IN FINANCIAL YEAR 2022
Mt Coolon Project
Glen Eva
The Glen Eva deposit and Eastern Siliceous (GEES) exploratory drilling program undertaken late in
2021 comprised 16 drill holes for 5,700 m including 13 drill holes for 4,167 m in the vicinity of the Glen
Eva pit and a further 3 initial holes for 1,533 m drilled between Glen Eva and Eastern Siliceous.
All holes recorded gold mineralisation along strike from the Glen Eva Pit intersecting multi-phase
epithermal veining and vein breccias in zones of between 3.5 m and up to an impressive 57 m wide.
Drilling has confirmed an initial target area over a 1 km strike length and a vertical extent of over 350
m from the Glen Eva Pit.
Geological interpretations of results to date suggest that the Glen Eva epithermal veining, the pyrite
halo and Carbonate Base Metal veining (with Zinc and Lead) may be part of a large multi-stage
mineral system.
Follow up review and field work with detail mapping, geochemistry and geophysical activities on the
GEES corridor - a >6 km long mineralised trend is required with the aim to finalise new drill targets.
Yandan Project
Acquisition of Yandan was completed on 13 January 2021. GBM commenced its maiden phase 1 drill
program in April 2021 with a total of 13 holes drilled for 5,676m which was completed in the
September 2021 quarter. Drilling focused on the East Hill mineralization and confirmed the high-grade
core to the resource, along with the broader lower grade zones.
Most Significant results recorded were in holes:
(Refer ASX:GBZ release 16 August 2021)
− 21YEDD006A
− 21YEDD007
214.1m @ 1.56 g/t Au from 236 m
including 26 m @ 5.37 g/t Au from 321 m
189 m @ 2.0 g/t Au from 255 m
including 16 m @ 4.6 g/t Au from 328 m
Drilling has confirmed the potential to further expand the known gold resources at East Hill. An
updated resource estimate is expected to be completed this year, through which it is expected that a
significant component of the resource will be upgraded to ‘Indicated’ category under 2012 JORC
guidelines.
GBM Resources Annual Report 2022
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SIGNIFICANT HIGHLIGHTS IN FINANCIAL YEAR 2022
OTHER PROJECTS
Malmsbury Gold Project (VIC)
(A Farm in and JV with Novo Resources Corp.- GBM 50% and Novo 50%, earning additional 10%)
GBM and Novo finalized the 2022 farm in exploration program with a budget of up to $2.5 million.
The phase 1 exploratory drilling program of 3,162 m for 11 holes was completed in June 2022. The
drilling targeted several gold mineralisation styles - including the ”Fosterville type” at Belltopper Hill
and Drummond North goldfields. An intrusion related system at Belltopper Hill.
Belltopper Hill – Leven Star deposit recorded significant results:
(Refer ASX:GBZ releases 16 May 2022 and 8 September 2022)
Drill Hole MD16
− 14 m @ 6.1 g/t Au from 120 m,
− 10 m @ 4.9 g/t Au from 173 m and
− 4 m @ 8.6 g/t Au from 188 m.
Drill Hole MD15
− 7.8 m @ 2.8 g/t Au from 87m.
Drill Hole MD14
− 9.1 m @ 2.4 g/t Au from 65.4 m.
Drill Hole MD13
− 7.8 m @ 3.6 g/t Au from 32.2 m.
There is potential to increase the current JORC (2012) Mineral Resource estimate at Leven Star (820
kt at 4.0 g/t Au for 104,000 ounces gold) with results of this drill program.
Further results are pending.
White Dam Gold Copper Project ( SA)
On 30 July 2021, GBM acquired a 100% interest in White Dam Operations which includes associated
infrastructure, all leaching, gold processing plant, mining leases (including all JORC resources) and
other tenements. The exercise price was $500k and replacement of $1.9 million environmental bond.
White Dam heap leach operations continue to generate a positive cashflow with gold production for
the year totalling 2,291 ounces and generating $4.3m in revenue plus gold and copper stocks yet to
be sold valued at $ 892k.
The Company currently is investigating divestment options for this asset. As part of this process the
company carried out a shallow RC program to evaluate the potential for additional heap leach ore
feed from the Vertigo open pit and nearby White Dam North resource. Evaluations are progressing,
but so far indicate that further mining is technically feasible though overall economics are sensitive
to prevailing gold price and exchange rate.
GBM Resources Annual Report 2022
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SIGNIFICANT HIGHLIGHTS IN FINANCIAL YEAR 2022
CORPORATE
SALE OF NON CORE PROJECTS
Mount Morgan Gold-Copper Project Sale
On 22 August 2022 the Company executed the Definitive Agreement (Agreement) setting out the
terms and conditions for the sale of GBM’s Mt Morgan Gold-Copper Project Tenements (Mt Morgan)
to Smartset Services Inc. (Canadian Company listed on TSXV: SMAR.P). (Refer ASX:GBZ release 22
August 2022). Smartset Services Inc (Smartset) will also acquire four additional gold and copper
projects in NE NSW and additional tenement applications in QLD from private Canadian company,
Great Southern Gold Corp.
Scrip consideration sees GBM expected to own 47.5% of Smartset (prior to concurrent C$8 million
equity raising by Smartset). Smartset to undertake systematic, well-funded exploration of the Mt
Morgan Project targeting discovery of large-scale gold and copper deposits.
Key transaction benefits for GBM;
▪ Disposal of a non-core asset into a focused vehicle delivers acceleration of exploration value
unlock while allowing GBM to maintain focus on its flagship Drummond Basin gold assets.
▪ Alignment with a strong technical, corporate and capital markets partner in the Smartset
team.
▪ Ongoing equity exposure to the highly prospective Mt Morgan Project to participate in
▪
potential value appreciation and future realisation.
Listed equity provides enhanced future transacting flexibility for GBM and greater value
transparency for GBM shareholders with respect to their ownership interest in the Mt Morgan
Project.
Brightlands – Milo Project Sale
On 11 November 2021 the Company executed a binding definitive sale and purchase agreement with
Consolidated Uranium Inc. (Canadian Company listed on the TSV:CUR) for the sale of its 100% owned
Brightlands – Milo Project in Queensland, Australia.
Final consideration received on execution of the Agreement include:
▪ A cash payment consideration of A$538k.
▪ The sale consideration included the issue of 750,000 CUR shares to GBM.
The agreement to sell 100% of GBM’s Milo Project to Consolidated Uranium Corporation has been
finalised with the transfer of the tenement completed. GBM has been issued with 750,000 CUR shares
(ex-escrow on the 21 August 2022).
GBM Resources Annual Report 2022
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SIGNIFICANT HIGHLIGHTS IN FINANCIAL YEAR 2022
Mayfield Project Option Agreement
On 18 February 2022 the Company signed an exclusive Option Agreement (Option) with C29 Metals
Limited (ASX:C29) for the sale of its Mayfield Project tenement (EPM 19483).
C29 Metals has exercised its Option, following notification of the renewal of the tenement and
indicative approval for the transfer of tenement has now been received which allows completion of
the sale.
GBM has received the final cash payment relating to the sale of $210,000 and 1,558,963 fully paid
ordinary shares in C29 Metals completing the transaction. C29 shares issued will remain in voluntary
escrow for a period of 6 months from 31 August 2022.
FUNDING
Placement
The Company (on 15 September 2021) successfully raised gross proceeds of $7 million which
supported the acquisition of the Twin Hills Gold Project.
Directors, Mr Peter Mullens and Mr Peter Rohner obtain shareholder approval to subscribe for
1,000,000 and 3,000,000 Shares respectively, raising a further $400,000, taking the total gross raising
to $7,400,000.
A total of 27,577,292 Shares were issued pursuant to the Company’s placement capacity under ASX
Listing Rule 7.1 and 42,422,708 Shares were issued pursuant to the Company’s placement capacity
under ASX Listing Rule 7.1A.
Unlisted loyalty Option
The Non-Renounceable Pro Rata Entitlement Offer (Offer) closed on 25 February 2022 and
applications for entitlement for 31,059,811 New Options were received. Subsequently applications to
the Shortfall Offer were oversubscribed and were scaled back. A total of 20,023,825 New Options
pursuant to shortfall applications were issued.
Total funds raised (before costs) amounted to $1,277,091 for the issue of 51,083,636 options at an
issue price of 2.5 cents and an exercise price of 7.5 cents.
After the issue of Entitlement Offer Options, the Company has issued a total of 12,293,237 shares on
the early exercise of Entitlement Offer Options, contributing a further $921,993. The Options expiry
date is 30 November 2022.
GBM Resources Annual Report 2022
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SIGNIFICANT HIGHLIGHTS IN FINANCIAL YEAR 2022
FUNDING (Cont.)
$10m+ Funding to Advance Drummond Basin Exploration via a Convertible Note
On 9 September 2022 the Company entered into an agreement to issue secured convertible notes
(Note Raise) up to $10m, which is convertible at a substantial premium to the current share price.
The notes are to be issued to the Collins Street Convertible Note Fund (Fund), managed by Collins
Street Asset Management, an Australian wholesale investment management company based in
Melbourne, Australia.
Key components of the convertible notes are:
− Term
− Amount
−
Interest Rate
− Conversion Price
− Establishment Fee
3 years
$5,000,000 First Note,
$5,000,000 Second Note (subject to shareholder approval)
10.5% payable monthly in advance
8.75 cents
3.0%
GBM has also received firm commitments to raise $305,000 pursuant to a share placement at 5 cents
per share (Equity Raise).
Collectively, the Note Raise and Equity Raise coupled with continued realisation of value from non-
core assets will enable an accelerated exploration schedule at GBM’s highly prospective gold projects
in the Drummond Basin, QLD, notably at Twin Hills (and region).
Refer to ASX:GBZ release 9 September 2022 for further terms and conditions of the Convertible Notes.
GBM Resources Annual Report 2022
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PROJECT LOCATION AND COMMODITY SUMMARY
The Company holds a portfolio of tenements – located in world-class gold and copper
regions in Australia
SOUTH AUSTRALIA
White Dam Gold Copper Project
100% wholly - owned
Gold-Copper Heap leach operation
Resource totalling 101,900 ounces of gold
VICTORIA
Malmsbury JV
50% owned
Orogenic Gold Mineralisation
Resource totalling 104,000 ounces of gold
QUEENSLAND
Drummond Basin
Mt Coolon Gold Project
100% wholly - owned
Epithermal breccia / quartz- Gold
Resources totalling 330,500 ounces of gold
Yandan Gold Project
100% wholly - owned
Epithermal disseminated bulk tonnage - Gold
Resources totalling 521,000 ounces of gold
Twin Hills Gold Project
100% wholly – owned
Epithermal electrum / quartz-Gold
Resources totalling 760,700 ounces of gold
Cloncurry Copper Joint Venture
46% owned by GBM.
Iron Oxide Copper Gold
GBM Resources Annual Report 2022
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REVIEW OF OPERATIONS
DRUMMOND BASIN
Twin Hills Project
The maiden diamond drill program undertaken in the second half of the year at the 309 Deposit
was completed with 15 holes successfully drilled for 6,242 m. A drill program of 14 holes for ~ 7,000
m at the nearby Lone Sister Deposit was also planned with 2 holes completed before wet weather
delayed the program.
GBM’s initial drill program at Twin Hills was designed to:
1. confirm historic drilling results and data;
2.
3.
infill areas of lower drill density drilling to upgrade resource confidence; and
importantly, provide an initial test of extensions to mineralisation outside of the current
resource boundaries.
The drilling program at 309 Deposit returned excellent results confirming both scale and potential
with major extensions of gold mineralisation. Drilling has identified numerous high-grade shoots, both
within and outside the existing mineral resource model, giving the potential to lift both grade and
increase the resource.
Below is a key summary of the excellent results recorded at the 309 Deposit (Refer ASX:GBZ release 1
September 2022):
▪ 309DD22001; 162 m @ 2.65 g/t Au from 69 m
▪ 309DD22002: 79 m @ 1.09 g/t Au from 131 m
▪ 309DD22003; 148 m @ 1.11 g/t Au from 26 m
▪ 309DD22005: 49 m @ 5.18 g/t Au from 310 m
▪ 309DD22006: 152.1 m @ 1.16 g/t Au from 47.9 m
▪ 309DD22007: 186 m @ 1.77 g/t Au from 47 m
▪ 309DD22009: 28 m @ 1.14 g/t Au from 94 m,
30 m @ 1.23 g/t Au from 127 m,
12.2 m @ 2.72 g/t Au from 248 m
▪ 309DD22011; 78 m @ 1.6 g/t Au from 87 m,
18 m @ 2.25 g/t Au from 218 m,
62 m @ 1.65 g/t Au from 246 m
▪ 309DD22012: 53 m @ 1.48 g/t Au from 134 m
▪ 309DD22013: 58 m @ 2.8 g/t Au from 121 m
▪ 309DD22014: 78 m @ 1.31 g/t Au from 249 m
▪ 209DD22015: 40 m @ 3.12 g/t Au from 399 m
▪ 309DD22016: 81 m @ 2.50 g/t Au from 119 m
84.7 m @ 1.79 g/t Au from 214 m
In Summary the drilling program has confirmed:
I.
II.
III.
The presence of a substantial near surface, bulk mineable style gold deposit at 309
Deposit with significant higher-grade intervals;
The presence also of higher gold grades which have excellent potential to increase
the grade of the resource; and
The discovery of new high-grade mineralisation outside of the known 309 Deposit
resource, highlighting the potential to expand the deposit.
GBM Resources Annual Report 2022
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REVIEW OF OPERATIONS
GBM is currently reviewing all available geology and the latest drilling of the 309 Deposit with the aim
of revising the 309 mineral resource estimate by the end of the December ’22 quarter.
Figure 4: A map showing the location of recently completed and proposed drill holes at the 309 Deposit. Key
intervals of newly defined mineralisation are also highlighted.
GBM Resources Annual Report 2022
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REVIEW OF OPERATIONS
NOTE: Drill hole 309DD22010 was lost (rods stuck) and 309DD22011 is a redrill of 309DD22010.
Table 1: Assay results > 10 g*m Au returned for recent 309 Deposit drill program.
GBM Resources Annual Report 2022
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REVIEW OF OPERATIONS
RESOURCE SUMMARY
The 309 and Lone Sister deposits are low sulphidation, epithermal gold deposits hosted within the
western arm of the Drummond Basin in Queensland. The Drummond Basin is host to a number of
significant gold deposits and is considered by GBM to hold potential for further discoveries.
The 309 and Lone Sister gold deposits are located 7 kilometres apart and linked by a major north-
south structural lineament. Both deposits have previously been interpreted as intrusion related,
high gold fineness, low sulphidation epithermal gold deposits, sometimes exhibiting bonanza gold
grades (as evidenced by the peak gold value in the 309 deposit of 2,940 g/t Au, with 300 individual
metre samples exceeding 30 g/t Au, and a peak gold value of 939 g/t Au at Lone Sister). (Refer
ASX:GBZ release 18 January 2019.)
GBM considers that potential depth extensions and strike repetition of both the 309 and Lone
Sister deposits have not been adequately tested and that significant potential remains for discovery
of additional ounces.
No changes were made to the 2019 resource model, however metallurgical and mining costs were
reviewed and as a result of the increase in the gold price the cut-off grade was reduced from 1.0
g/t Au to 0.4 g/t Au for the open pit resources.
The 309 Deposit has been re-estimated to comprise 10.8 Mt averaging 1.4 g/t Au containing
500,600 ounces of gold and 783,100 ounces of silver (assuming open pit mining to 1050 RL, or a
depth of approximately 200 m, and underground mining below 1050 RL).
The Lone Sister Deposit is re-estimated at 2.0 Mt at an average grade of 4.0 g/t Au containing
260,100 ounces of gold and 604,800 ounces of silver (refer Table 2).
Table 2: Twin Hills Resource Summary for the 309 and Lone Sister Gold Deposits (rounded for
reporting ‘000 tonnes, ’00 ounces, 0.0 grade). See previous release (ASX:GBZ release 18 January
2019 ‘Mt Coolon and Twin Hills Combined Resource Base Approaches 1 Million Ounces’ (Open Pit
Resources (above 1050 RL) stated at 0.4 g/t Au cut-off and Underground Resources (below 1,050
RL) stated at 2.0 g/t Au cut-off.
Category
Cut-off
Tonnage
Grade
Contained Metal
Au (g/t)
(t)
Au (g/t)
Ag (g/t)
Au (oz)
Ag (oz)
309 Deposit
Open Pit (above 1050RL)
Measured
Indicated
Inferred
Total open pit
Measured
Indicated
Inferred
Total underground
0.4
0.4
0.4
0.4
2.0
2.0
2.0
2.0
586.000
5,470,000
4,165,000
10,220,000
2.7
1.4
0.9
1.3
Underground (below 1050 RL)
110,000
510,000
620,000
4.8
3.7
3.9
4.8
2.6
1.5
2.3
3.4
1.8
2.0
50,300
85,500
253,200
457,500
120,200
199,400
423,500
742,400
16,800
11,900
60,100
28,800
76,900
40,700
GBM Resources Annual Report 2022
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Total 309 Deposit
0.4 / 2.0
586,000
0.4 / 2.0
5,580,000
0.4 / 2.0
4,675,000
0.4 / 2.0
10,841,000
2.7
1.5
1.2
1.4
Lone Sister Deposit
2.0
2.0
2.0
2.0
2,010,000
2,010,000
4.0
4.0
Total Twin Hills
0.4 / 2.0
586,000
0.4 / 2.0
5,580,000
0.4 / 2.0
6,685,000
0.4 / 2.0
12,851,000
2.7
1.5
2.0
1.8
4.8
2.6
1.5
2.2
9.4
9.4
4.5
2.6
3.9
3.4
50,300
85,500
270,000
469,400
180,300
228,200
500,600
763,100
260,100
604,800
260,100
604,800
50,300
85,500
270,000
469,400
440,400
833,000
760,700
1,387,900
Measured
Indicated
Inferred
TOTAL
Measured
Indicated
Inferred
Total
Measured
Indicated
Inferred
TOTAL
GEOLOGY
The 309 and Lone Sister gold deposits are approximately 7 km apart and linked by the St Ann’s
Fault, a major north-striking structural lineament (Figure 5). Both deposits exhibit bonanza gold
grades (as evidenced by the peak gold value of 2,940 g/t Au in the 309 Deposit, with 300 individual
metre samples exceeding 30 g/t Au, and a peak gold value of 939 g/t Au at Lone Sister). Historic
drill intersections have included 17 m @ 317.4 g/t Au from 222m in TRCD728 including 5 m @ 1,037
g/t Au from 222m and 4m @ 49.0 g/t Au from 230m (refer ASX:GBZ release 18 January 2019).
The currently reported Twin Hills resources of 760,700 oz Au comprises 10.22 Mt @ 1.3 g/t Au in
open pit and 0.62 Mt @ 3.9 g/t Au in underground for a combined 500,600 oz Au resource at 309
Deposit and 2.01 Mt @ 4.0 g/t Au for 260,100 oz Au in underground resources at Lone Sister (Refer
ASX:GBZ release 2 February 2022).
Mineralisation at the 309 and Lone Sister deposits belongs to the felsic dome related, high gold
fineness, low sulphidation quartz sulphide class of epithermal mineralisation that has produced
several notable high value gold deposits including the high-grade Sleeper deposit and large bulk
minable style deposits like Round Mountain in Nevada. This class of deposit usually develops an
early phase of quartz-sulphide gold mineralisation followed by later stages of very high grade often
free gold quartz and or gold electrum chalcedony events, as is seen at Twin Hills, and are important
to the deposit economics.
The 309 and Lone Sister Deposits are markedly different in host rock and style of mineralisation.
The 309 Deposit is hosted by multi-stage, milled matrix polymictic breccia of probable phreatic or
phreatomagmatic origin that is intruded into and overlies well laminated interbedded shales and
siltstones.
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REVIEW OF OPERATIONS
The Lone Sister Deposit is hosted within a porphyritic rhyolite dyke / dome that has intruded
andesite volcanics. Mineralisation manifests as silica-pyrite veinlets with occasional visible gold and
banded silica pyrite infill in breccia zones. Mineralisation extends to at least 350 m below surface
and is open down plunge. Exploration has initially focus on the down dip extension to known
mineralisation.
GBM is currently reviewing all available geology for the 309 and Lone Sister deposits with the aim
of building a new geological model to target additional areas of mineralisation.
Figure 5: Geological setting of 309 and Lone Sister Deposits
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REVIEW OF OPERATIONS
REGIONAL EXPLORATION
Figure 6: Projects identified by previous companies.
Historical Exploration
The Twin Hills mining leases and immediately surrounding tenements were previously explored using
a wide variety of techniques. These have comprised geophysical surveys, including gradient array IP /
resistivity, wide spaced CSAMT and detailed aeromagnetics, geochemical surveys and a combination
of percussion, RAB, aircore, and RC drilling. Geological and regolith mapping was completed across
the tenements and has established that much of the area is overlain by recent cover. Prospects in the
immediate Twin Hills locality are shown in Figure 6.
Somewhat surprisingly, Twin Hills prospects with the most drilling, including Powerline and Airstrip,
are those hosted by granite. By contrast, the key prospective Cycle 1 stratigraphy, which hosts all of
the major gold deposits in the Drummond Basin, remains poorly tested in the corridor between 309
and Lone Sister.
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REVIEW OF OPERATIONS
GBM believes that significant opportunities exist for discoveries in the immediate vicinity of 309 and
Lone Sister, as well as for new discoveries within the Cycle 1 stratigraphy further along strike. GBM’s
initial review of the regional prospects has highlighted two key targets, Southern Sister and Centipede.
Southern Sister
The outcropping Southern Sister breccia lies approximately 3km west of Lone Sister in a similar
structural setting to the 309 deposit. Only two 150 m deep RC holes have been drilled at Southern
Sister. Both have anomalous gold and arsenic values, with one hole intercepting 6.0 m @ 0.49 g/t Au
from 126 m.
Centipede
The Centipede Prospect is situated in between the 309 and Lone Sister deposits and interpreted to be
within the key Cycle 1 stratigraphy. Sinter has been mapped on surface and is yet to be drilled.
Other Targets
GBM is in the process of compiling and reviewing all historic regional data for the broader Twin Hills
area, with a plan to reassess the existing data through:
Levelling and detailed interrogation of available geochemical data;
•
• Further targeted surface geochemistry across Cycle 1 stratigraphy where warranted;
• Review of the previous geological mapping and interpretation to check accuracy and validity,
with a focus on the distribution of Cycle 1 stratigraphy;
• Reassessment of geophysical data to map coincidences of key structural orientations, as
identified in a recent detailed 309 deposit geological review, with Cycle 1 stratigraphy; and
• Review and ranking of all previously identified prospects.
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REVIEW OF OPERATIONS
DRUMMOND BASIN
Mt Coolon Project
Glen Eva Drilling
The exploratory drill program comprised 16 drill holes for 5,700 m including 13 drill holes for 4,167 m
in the vicinity of the Glen Eva pit and a further 3 initial holes for 1,533 m drilled between Glen Eva and
Eastern Siliceous.
All assay results are shown in Table 3.
The best results were returned in 21GEDD017 with 14.6 m @ 1.15 g/t Au and 3.5 g/t Ag from 182 m
(including 3 m @ 2.04 g/t Au and 9.4 g/t Ag from 200.5 m). Other significant results included 10 m @
0.54 g/t Au and 37.0 g/t Ag from 190.2m in a 20 m wide vein in 21GEDD013, 8.1m @ 0.34 g/t Au and
13.6 g/t Ag from 335.7 in a 15.4 m wide vein in 21GEDD014, 6.8 m @ 0.42 g/t Au and 22.4 g/t Ag in a
13.1 m wide vein in 21GEDD027, and 9 m @ 0.4 g/t Au and 21.6 g/t Ag in a 10.5 m wide vein in
21GEDD022.
Figure 7: A long section along the Glen Eva vein showing recent 2021 drilling and g*m intercepts. Note that
the vein has now been intercepted over more than 1 km of strike. Assay results and vein widths are shown
underneath the hole ID’s with intervals in metres and gold grades in g/t Au. Down hole vein zone widths in
metres are in the parentheses. Note that the best intercepts of the program correspond to the greatest vein
widths and define a steeply plunging shoot.
The Glen Eva veins have now been defined over a strike length of more than 1 km and down dip for
350 m, remaining open to depth. Vein zone widths range up to an impressive 57 m (down hole) width
in 21GEDD017 and eight of the 2021 drill holes intersected vein zones greater than 10 m wide (down
hole).
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REVIEW OF OPERATIONS
Eastern Siliceous (GEES) Trend Drilling
The GEES trend is a +6 km long WNW striking mineralised corridor defined by a series of structures
evident in detailed aeromagnetic data, mapped alteration, surface geochemistry, recently completed
IP and an alignment of gold prospects, including the Glen Eva JORC (2012) Resource of 78,300 oz Au
and historic production during the 1990’s of 156 kt at 4.8 g/t Au for 24 koz at the NW end and the
Eastern Siliceous prospect at the SE end of the trend (Figure 8).
Three holes (21GEDD018 – 020) were drilled as part of the 2021 Glen Eva area program in order to
test selected IP chargeability anomalies along the GEES trend (refer ASX:GBZ release 30 August 2021).
These IP anomalies were located 1.5 km to 2.5 km along strike from Glen Eva toward Eastern Siliceous
(Figure 8).
Figure 8: GBM drilling at Glen Eva and geophysical targets 1.5 km to the SE overlain on a 150 m IP
chargeability depth slice. Also shown are modelled veins and the Glen Eva pit, 21GEDD018 and 21GEDD020
“pyrite halo” and 21GEDD019 down hole interval of carbonate base metal veining.
GBM Resources Annual Report 2022
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21GEDD01221GEDD01421GEDD01521GEDD02121GEDD02221GEDD01621GEDD02421GEDD02321GEDD01821GEDD02021GEDD02621GEDD01721GEDD0253D Inversion IP 150m Depth SliceChargeabilitymV/V8.02.0Vein ModellingDownhole zones of >4% pyrite veiningDownhole zones of strongbase metal -carbonate veining2021 drill holes Assays receivedAssays pending 2020 drill holes Downhole zones of intensebase metal -carbonate veiningBase metal carbonate veining over 163 m downholePyrite >4% downhole???1,000 mGlen Eva PitEasternSiliceousChargeabilityAnomaly?21GEDD01921GEDD013InsetGlen Eva Pit Previous Production 156,000 t @ 4.8 g/t Au for 24,185 oz AuGlen Eva GBM Resource 20171,660,000 t @ 1.5 g/t Au for 78,000 oz Au+ 100,000 ounces
REVIEW OF OPERATIONS
Drill hole 21GEDD019 intersected two significant intervals of Carbonate Base Metal (CBM) veins whilst
abundant disseminated pyrite up to 7% was intersected by 21GEDD018 and 21GEDD020 and is
coincident with a 1.8 km long IP chargeability anomaly (refer ASX:GBZ release 11 November 2021).
While the mineralisation intersected by drill holes 21GEDD018 – 020 was not high grade, it supports
the concept of a large multi-stage minerals system and remains a strong follow up target.
GEES Mineralisation Model and Exploration Strategy
The results of the FY2021 and 2022 drill programs have demonstrated a substantial multi-stage
hydrothermal system is present at GEES. Zoning across epithermal systems has been well documented
at several deposits and a Pb-Zn to Au-Ag-Te to Au-As-Sb zoning consistent with other epithermal
deposits is present at GEES.
Given the position of the IP chargeability anomaly along strike from Glen Eva pit and the CBM veins
intersected in 21GEDD019, GBM interprets the anomaly, and associated abundant disseminated
pyrite, to represent the concealed alteration halo of a large hydrothermal system.
We infer that the Glen Eva epithermal veining, the pyrite halo, and CBM veining may be part of a large
mineral system that zones outward from a base metal bearing core to a low sulfidation precious metal
system to the NW at Glen Eva and potentially also to the southeast at Eastern Siliceous. This is a
preliminary interpretation and requires additional drill testing over 1.5 km of intervening untested
strike projection of the vein corridor back to Glen Eva and over 2 km of intervening untested strike
towards Eastern Siliceous.
This combined structural and geochemical targeting will initially focus on Glen Eva and Eastern
Siliceous and then be extended along the entire GEES trend. The combined geochemical and structural
anomalies will be ranked and drill tested for high grade shoots.
Figure 9: Epithermal gold deposit characteristics and potential relationship to the GEES Trend.
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REVIEW OF OPERATIONS
Table 3: Glen Eva – Assay results for FY2022 Drilling (Refer ASX announcements dated 22 February
2022)
GBM Resources Annual Report 2022
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FromToWidth (m)From (m)To (m)Interval (m) ^Au (g/t)Au g*m ^^Ag (g/t)21GEDD015325.9336.510.6325.9329.03.10.7022.8All assays received335.8337.01.20.2401.0345.0347.02.00.2200.7354.0355.01.00.2300.6359.2367.17.9No significant result3.021GEDD018no vein zoneNo significant resultAll assays received21GEDD019135.0298.5163.5Base metal carbonate veining - No significant resultAll assays received130.0170.040.0NSI3.7185.0244.059.0NSI4.7359.0372.013.0Base metal carbonate veining - No significant result21GEDD020no vein zoneNo significant resultAll assays received21GEDD021minor veining69.070.11.10.2607.3All assays received74.075.61.60.2602.821GEDD022135.0136.01.00.8718.9All assays received230.5241.010.5230.0239.09.00.40421.621GEDD023minor veiningNo significant resultAll assays received21GEDD02491.594.02.5No significant resultAll assays received120.0121.01.00.2000.221GEDD025154.2159.04.8154.2159.04.80.25114.7All assays received21GEDD02664.067.03.064.067.03.00.3715.3All assays received84.986.71.8No significant result93.5106.012.593.5101.07.50.23218.821GEDD027159.7172.813.1166.0172.86.80.42322.4All assays received21GEDD012251.3261.19.8256.9261.34.40.5832.8All assays received287.0298.211.2292.0293.01.00.3000.721GEDD013190.2210.220.0197.0207.010.00.54537.0All assays received221.9229.07.1222.0224.02.00.2913.821GEDD014335.7351.115.4334.9343.08.10.34313.6All assays received377.2393.115.9383.2385.01.80.71135.221GEDD016290.2295.45.2No significant resultAll assays received21GEDD017174.7231.656.9182.0196.614.61.15173.5All assays receivedincl.193.0196.03.02.0469.4200.5203.02.51.343145.7incl.202.0203.01.02.152238.1205.7206.40.71.151195.8211.0212.01.00.32033.5226.9228.01.20.20017.0Intercepts calculated based on 0.2 g/t Au cut-off and 3 m internal dilution at 0.01 g/t Au. Higher grade included intercepts calculated based on 2.0 g/t Au cut off and 5 m internal dilution.Where no Au grades are present Ag was calculated based on 1.0 g/t cut off and 3 m internal dilution at 0.01 g/t Au. ^ All widths and intercepts are expressed as metres down hole.^^ Au g/t multiplied by metresReported PreviouslyDrill HoleVein Zone AssaysStatus 2021 Holes
REVIEW OF OPERATIONS
DRUMMOND BASIN
Yandan Project
Yandan was acquired in January 2021 and the JORC 12 Mineral Resource is estimated for the two
deposits at Yandan, East and South Hill total of 521,000 gold ounces. GBM considers Yandan to be
under explored and very prospective for further gold discoveries.
The most significant gold deposits known to date at the project are localized along a 1.2 km long E-W
oriented structural trend of Low Sulphidation Epithermal (LSE) gold deposits, the Yandan Mine
Corridor (YMC) that includes the Yandan Main, South Pit and East Hill deposits. Detailed 3D structural
and stratigraphic framework and deposit scale alteration and geochemical vectoring models have
been completed across the YMC.
Yandan Drilling
The Phase 1 diamond and RC drilling program commenced in April 2021 on East Hill with a focus being
on the YMC. Completion of Phase 1 drilling (in September quarter 2021) recorded a total of 13 holes
drilled for 5,676 m.
Key Outcomes from the program include:
▪
Significant results in selected holes:
- 21YEDD006A 214.1m @ 1.56 g/t Au from 236 m, including 26 m @ 5.37 g/t Au from 321 m.
- 21YEDD007 189 m @ 2.0 g/t Au from 255 m, including 16 m @ 4.6 g/t Au from 328 m.
▪
▪
▪
▪
Drilling focused on the East Hill mineralization and confirmed the high-grade core to the
resource, along with the broader lower grade zones.
Potential for the boundaries of the resource to have been extended with 21YEDD002 returning
30 m @ 1.06 g/t Au from 274 m that sits outside the current resource model.
Validation of the geology model developed for use in designed the drilling program and
associated target areas.
Confirmation of the potential to further expand the known gold resources at East Hill and also
the potential for a significant component of the resource to be upgraded to ‘Indicated’ category
under 2012 JORC guidelines.
Significant results from the 2021 Yandan drilling program are provided in Table 4, while the holes
designed for the program are shown in Figure 10.
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REVIEW OF OPERATIONS
Table 4. Significant drilling results from the completed East Hill drilling program.
Drill Hole
From (m)
To (m)
Interval (m)
307.0
322.1
21YEDD001
329.5
340.0
368.0
380.0
157.0
224.0
21YEDD002
274.0
304.0
21YEDD003
343.0
363.0
234.7
239.0
260.0
310.0
369.0
384.0
393.0
427.5
21YEDD004
421.0
484.0
21YEDD005A
362.0
406.0
431.0
448.0
481.0
507.0
21YEDD005B
156.0
165.0
15.1
10.5
12.0
67.0
30.0
20.0
4.4
50.0
15.0
34.5
63.0
44.0
17.0
26.0
9.0
21YEDD006A
235.5
450.1
214.6
incl.
incl.
incl.
incl.
235.5
267.0
272.0
350.0
321.0
347.0
354.0
450.1
21YEDD006B
223.0
292.0
31.5
78.0
26.0
96.1
69.0
21YEDD007
255.0
444.0
189.0
incl.
incl.
incl.
incl.
incl.
21YEDD007A
328.0
344.0
367.0
377.0
382.7
386.0
404.0
415.0
437.9
443.0
203.0
276.0
287.0
312.0
16.0
10.0
3.3
11.0
5.1
73.0
25.0
Gold Grade
(Au g/t)
0.53
0.50
0.67
0.43
1.06
0.40
0.92
1.00
1.26
0.63
0.96
0.93
1.02
0.60
0.53
1.56
1.34
2.25
5.37
1.20
0.81
2.01
4.64
5.31
13.92
6.98
8.43
0.41
0.39
g*m
8
5
8
29
32
8
4
50
19
22
60
41
17
16
5
335
42
176
140
115
56
380
74
53
46
77
43
30
10
GBM Resources Annual Report 2022
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REVIEW OF OPERATIONS
Drill holes 21YEDD006A and 21YEDD007 returned the most significant results with:
21YEDD006A
▪
214.1 m @ 1.56 g/t Au from 236 m including,
o 31 m @ 1.35 g/t Au from 236 m,
o 19 m @ 7.09 g/t Au from 321 m, and
o 96 m @ 1.2 g/t Au from 354 m
And 21YEDD007
▪
189 m @ 2.01 g/t Au from 255 m including,
o 16 m @ 4.64 g/t Au from 328 m
o 10 m @ 5.31 g/t Au from 367 m
o
3.3 m @ 13.92 g/t Au from 382.7 m
o 11 m @ 6.98 g/t Au from 404 m
o 5.1 m @ 8.43 g/t Au from 437.9 m
Drilling was targeted using a newly developed geological model that has now been validated. Drilling
intersected extensive zones of brecciation with silica-pyrite infill overlying with increasing depth:
(1)
chalcedonic veins with a similar mineralogy to the breccia fill;
(2)
colloform and bladed textured carbonate veins; and
(3)
veins with bladed carbonate replaced by silica and colloform and crustiform textures that also
host the best gold grades.
The mineralised system forms as sheeted veins that strike broadly east for a length of approximately
400 metres and dip to the south, terminating against a flat lying listric fault. The veins are typically <
10 cm wide but up to 1.5 m thick and returned assays of up to 347 g/t Au over 1 m from 335.5 m in
YAN010. (Refer ASX:GBZ release 23 December 2020).
Elsewhere in the Drummond Basin (e.g., Pajingo, Koala, Glen Eva) the main vein trend is NW, this
orientation has been identified at Yandan but is yet to be fully explored and will be investigated in
future programs.
The high-grade quartz veins which occur adjacent to the listric fault are surrounded up dip by a large,
lower grade zone of stockwork veining, brecciation, and alteration approximately 400 m by 200 m by
200 m in dimension.
Resources and prospects in the Yandan project area are shown in Figure 11.
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REVIEW OF OPERATIONS
Figure 10: Geological plan of Yandan East drill program.
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REVIEW OF OPERATIONS
KEY REGIONAL TARGETS
Figure 11: Detailed location of the Yandan Project area including key deposits located at North East Ridge and
Illamahta.
Illamahta
Illamahta is an LSE gold prospect located at the southern end of the Yandan Trough only 11 km from
the Yandan Mine. The prospect is localised in a structural and stratigraphic setting that is the mirror
image of the YMC. Mapped alteration extends over an area 1.5 km long by 700 m wide and comprises
strong argillisation, decalcification and silicification developed in the upper Saint Anns sediments.
Analysis of the previous exploration results has outlined 250 m by 100 m open-ended (See Figure 12),
shallow oxide and hypogene body of gold mineralization developed in an E-W orientated zone of
“Yandan Main” style stratabound veinlets and disseminations within the upper Saint Anns sediments.
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REVIEW OF OPERATIONS
Figure 12: A map and two cross sections showing previous drilling and scope for additional resources to be
defined. Note that most of the drilling has been concentrated in the area of the initial discovery and that the
alteration footprint is substantially larger.
North East Ridge (NE Ridge)
NE Ridge prospect is located 6 km north of YMC and is a 2 km long x 500 m wide NE trending zone of
intermittently outcropping silica - illite alteration and mineralisation (See Figure 13). The prospect was
discovered 1989 and 54 RC and core holes for a total of approx. 5,900 m have been drilled with best
intersection of 7 m at 2.8 g/t Au, including 1 m at 16.6 g/t Au (Refer ASX:GBZ release 31 March 2021).
Mineralisation at N Et Ridge occurs in poorly banded chalcedonic veinlets similar to those seen in the
lower grade top of the East Hill deposit.
The project is undertested for near surface gold mineralization and prospective for the discovery of
higher-grade mineralization in permissive structural and stratigraphic settings at depth.
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REVIEW OF OPERATIONS
Figure 13: A geological map of NE Ridge prospect. Note that the prospect is bound by basin margin faults.
The exploration focus is to continue to infill between the main pit and the East Hill deposits (YMC) to
expand resources, upgrade the existing non-compliant resource at the Illamahta deposit and complete
field work on the NE Ridge for resource potential.
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REVIEW OF OPERATIONS
VICTORIA
Malmsbury Gold Project
(Pursuant to Farm-In and Jointure Venture with Novo Resources Corp- GBM 50% and Novo 50%)
The Malmsbury Gold Project is located in the prolific Bendigo Zone of the Victorian Goldfields, an area
that has historically produced in excess of 60 Moz of gold from alluvial and hard rock production.
Malmsbury displays many of the characteristics of the epizonal orogenic gold deposit class that
includes Kirkland Lake’s Fosterville Mine. The cumulative 8.5 km strike extent of historic pits and
mines, and evidence of high-grade gold mineralization are indicators of a large, fertile mineral system.
The JV recognises the underexplored nature of the goldfield and considers it highly prospective in
character and considers it to hold potential for discovery of further significant gold mineralisation.
Figure 14: Regional geological and tectonic setting and location of the Malmsbury Gold Project.
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REVIEW OF OPERATIONS
Maiden Drill Program under JV
A total of 11 diamond drill holes for 3,162 m were completed during the second half of the year. The
program targeted several gold mineralisation styles present on the Drummond North goldfields that
include “Fosterville-type,” structurally controlled orogenic targets, kilometre scale fault zones. The
other gold mineralisation targeted is the breccias and an intrusion-related (IRGS) / intrusion-hosted
gold system associated with the mineralised Missing Link Monzogranite at Belltopper Hill.
Belltopper Hill – Leven Star deposit recorded significant results and include;
Drill Hole MD16
− 14 m @ 6.1 g/t Au from 120 m,
− 10 m @ 4.9 g/t Au from 173 m and
− 4 m @ 8.6 g/t Au from 188 m.
Drill Hole MD15
− 7.8 m @ 2.8 g/t Au from 87 m.
Drill HoleMD14
− 9.1 m @ 2.4 g/t Au from 65.4 m.
Drill Hole MD13
− 7.8 m @ 3.6 g/t Au from 32.2 m.
Results on a further two holes; one testing Leven Star and the other the Drummond North Goldfield
remain outstanding.
There is potential for increase to the current JORC (2012) Inferred Mineral Resource estimate at Leven
Star (820 kt at 4.0 g/t Au for 104,000 ounces gold) with results of this drill program.
The Missing Link Monzogranite has been targeted with a two -hole program.
Drill hole MD17 intersected a 65 m zone of strongly altered and mineralised Missing Link
Monzogranite from 204 m. The monzogranite and contact zones were selectively sampled for priority
assay and returned 79.9 m @ 0.26 g/t Au from 197m.
The second deep hole has been completed and now awaiting assays results.
The Missing Link Monzogranite target is defined over 340 m strike and 40 m width (at surface) and
remains completely open at depth.
(Refer ASX:GBZ releases 11 May, 22 June and 8 September 2022 for further information on the above)
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REVIEW OF OPERATIONS
Figure 15: Location of drill holes MD13 – MD18, MD21 and MD22 (green traces) from current diamond
program on RL006587 with key target gold reefs (red lines) and interpreted geology. Monzogranite is pink
stippled polygon.
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REVIEW OF OPERATIONS
Geophysical Data Update
A series of high order gravity and magnetic targets (Figure 16) have been generated at the Malmsbury
Project following a comprehensive review of existing regional and local geophysical datasets. A key
component of the review involved reprocessing historic ground gravity data collected in 2008 across
the highly prospective Belltopper Hill Area. High-resolution elevation data (DEM) acquired during a
recent LiDAR survey (2020) and utilized during reprocessing has been fundamental in improving the
quality of the historic regional and local ground gravity surveys in terms of reducing known legacy
issues with terrain effects.
Figure 16: Developing ground gravity and airborne magnetic geophysical targets at the Malmsbury Project.
Additional ground gravity and ground magnetic surveys are planned to refine targets.
Further characterisation of the developing geophysical targets at the Malmsbury Project will involve
an induced polarisation survey that is currently scheduled for Q4 2022 that aims to identify potential
“sulphide-rich target,” zones within the granite (IRGS) target corridor, in addition to delineating
disseminated sulphide haloes around high-priority gold reef targets. Additional ground magnetics and
ground gravity data is planned commensurate with the upcoming IP survey to expand on these
datasets and further refine the evolving geophysical targets.
Future exploration will involve a second phase of drilling at the Malmsbury Project that aims to build
on current success and test the remaining and developing high-priority targets not tested in the
recently completed campaign. This is currently scheduled for early 2023 pending rig availability.
Geophysics involves a significant upcoming IP survey accompanied by ground gravity and an extensive
ground magnetic survey which is currently scheduled for Q4 2022.
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REVIEW OF OPERATIONS
SOUTH AUSTRALIA
White Dam Operations
White Dam is located in South Australia, approximately 90 km south-west of Broken Hill. It is a heap
leach operation that, since 2010, has produced approximately 175,000 oz of gold from two open cuts
by heap leaching of 7.5 Mt of ore at 0.94 g/t Au. The current unmined resource for White Dam Project
is 4.6 Mt at 0.7 g/t Au for 101,900 oz Au.
The two most advanced future mining prospects are the Vertigo open pit cutback, located within a
granted mining lease (ML 6395) and nearby White Dam North, which would also be mined by open pit
methods.
Figure 17: Location map of the White Dam Gold-Copper Heap Leach Operation
Heap Leaching Operations (100% basis)
Gold production for the year totalled 2,291 gold ounces together with approximately 95 tonnes of
copper in concentrate (currently stockpiled at the White Dam site). Gold revenue sales totalled $4.3
million resulting in net income of $698k. Gold and copper inventory on hand total $892K.
Main activities during the year included:
▪ Undertaking project evaluation work, including oppit optimisations and , to analyse
potential new mining developments at Vertigo and White Dam North, and reviewing
permitting requirements related to these.
▪ Planning for a drilling program at the Mary Mine Prospect.
▪ Review of uranium potential on the projects’ regional tenements.
▪ Progressing asset divestment options with the aim of concluding an agreement as soon
practicable.
▪ Exploring ore tolling options to provide additional near-term new feed for the heap leach
from regional tenement owners.
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REVIEW OF OPERATIONS
As 30 July 2021 GBM has a 100% interest of all production from the White Dam Operations.
Figure 18: White Dam Gold Plant and Associated Infrastructure.
Vertigo Drilling
Initial assay results were reported in July (refer ASX:GBZ release 5 July 2021) which indicated potential
to add to the oxide/transitional resources at Vertigo, supporting a pit wall cutback and additional ore
feed to the operational White Dam heap leach pad.
Additional results add further support to the pit expansion concept with a number of drill holes
returning strong intersections in areas not previously reporting within the existing resource block
model. Cyanide soluble copper assays indicate copper mineralisation above or near the base of
oxidation will respond well to leaching (e.g. 4 m @ 0.39% Cu in V21-RC-055 returned 0.35 % Cu as
cyanide soluble) and copper recovery with the operating SART plant at White Dam.
A total of 53 RC drill holes (4,041 m) were drilled, with 43 RC holes (3,270 m) drilled at Vertigo and
10 holes (771 m) drilled at White Dam North. (Refer ASX:GBZ release 14 December 2021).
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REVIEW OF OPERATIONS
The drilling results from around the base of oxidation continue to demonstrate the gold and copper
mineralisation potential and resource upgrade potential at Vertigo.
Significant mineralised intercepts from the recent round of assays include:
▪ Hole V21-RC-039:
8 m @ 4.40 g/t Au & 0.83% Cu from 67 m,
Incl. 4 m @ 7.24 g/t Au and 1.11 % Cu from 70 m
▪ Hole V21-RC-043:
11 m @ 2.07 g/t Au & 0.39% Cu from 47 m,
Incl. 3 m @ 5.76 g/t Au & 0.72% Cu from 49 m
▪ Hole V21-RC-041:
4 m @ 2.66 g/t Au & 0.88% Cu from 60 m
▪ Hole V21-RC-008:
14 m @ 1.21 g/t Au & 0.30% Cu from 51 m,
Incl. 1 m @ 3.45 g/t Au & 0.75% Cu from 51 m
White Dam North
Drilling was focused on the interpreted fault zone targets outside the existing resource areas and while
fault or shear zones were intersected, these structural targets were generally not well mineralised.
The best gold intersection from the White Dam North drilling occurred in WDN_002 with 1 m @ 2.22
g/t Au from 50 m, which is part of a broader 9 metre intersection returning 0.65 g/t Au from 46 m.
This intersection is associated with a very soft and clay rich intensely chlorite altered biotite gneiss
which is interpreted to be within a shear zone.
Mary Mine Sampling Results and Review
GBM recently completed two reconnaissance sampling excursions to the historical Mary Mine, located
approximately 16 km NW of the White Dam mine leases. The Mary Mine was worked principally for
oxide copper ore in the late 1800’s to early 1900’s.
At the historic Mary Mine, recent sampling by GBM returned very high grade surface Au-Cu assays (to
6.4 g/t Au and 13.1% Cu) from mine dumps along the 300 m workings trend. These results confirmed
Aberfoyle sampling from the 1980’s and an analysis of the minimal Aberfoyle drilling on the prospect
indicates the mineralisation is open at depth and along strike beneath thin cover. No modern
exploration has occurred at the Mary Mine since the 1990’s and GBM believes significant potential
exists to define a small, high grade Cu-Au resource supplying heap leach feed to the White Dam
operation located 16 km to the SE.
Recent sampling by GBM followed on from earlier work by Aberfoyle in the 1980’s-90’s, confirming
the presence of very high grade copper (to 13.1% Cu GBM, and 12.4% Cu Aberfoyle) and encouraging
gold assays (to 6.4 ppm Au) from dump sampling along the 300 m strike length of the old workings.
(Refer ASX:GBZ release 14 December 2021)
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REVIEW OF OPERATIONS
A review of Aberfoyle surface and drilling data indicates a possible northerly dip to the lode with an
approximate true width of 10 m in the central workings zone. The moderate to steep dip and
continuation of the lode into fresh rock containing copper sulphides is corroborated by old mine
reports. The interpreted northerly dip has not been tested by deeper Aberfoyle drilling and would
mean the Mary Mine lode is completely open at depth and possibly along strike beneath shallow
colluvium.
Recent compilation and interpretation by GBM indicate that the mineralisation is poorly tested by
drilling to date and remains open at depth and along strike. Further exploration is warranted to
determine if potential exists to define mineralisation to supplement the White Dam heap leach
operation.
Figure 19: Location Plan with White Dam pit and resource outlines and the historic Mary Mine.
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REVIEW OF OPERATIONS
NORTH - WEST QUEENSLAND
Cloncurry Farm – In Joint Venture (46% Interest)
Exploration
Program and JV Funding Status
Joint venture partner Nippon Mining of Australia (NMA, a wholly owned subsidiary of JX Nippon
Mining & Metals Corporation (JXNMM)) currently holds a 53.9% interest in the Farm-In/Joint
Venture.
The JV confirmed that an exploration budget of ~$1.0 million has been approved for the year to March
31, 2023 for the Cloncurry Farm-In Projects in the Mount Isa Region of Queensland.
The fully funded exploration programme has commence again at GBM’s North-West Mineral Province
(QLD) JV Tenements. Field activities include ground EM surveys targeting Iron Oxide Copper Gold
(IOCG) and Iron Sulphur Copper Gold (ISCG) mineralisation under cover in the prospective Cloncurry
Region north of Evolution’s Ernest Henry Mine.
Figure 20: Location of GBM and Farm in Tenements in the Cloncurry Region. Note, Mayfield
tenements in green have since been sold to C29 Metals Limited.
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TENEMENT SCHEDULE
GBM Resources Annual Report 2022
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Project / NameTenement No.OwnerManagerInterest InterestStatusGrantedExpiryApprox Area sub-blocks31/03/202230/06/2022(km2 or Hectare-ha)VictoriaMalmsburyDrummondRL006587GBMR/Belltopper Hill/NovoGBMR50%50%Granted23-Jun-2022-Jun-306.7South AustraliaProject AreaWhite DamEL6299GBMR (Millstream)GBMR100%100%Renewal App9-Nov-139-Nov-2249EL6435GBMR (Millstream)GBMR100%100%Renewal App14-Oct-1413-Oct-2496EL6565GBMR (Millstream)GBMR100%100%Granted28-Jul-2027-Jul-22343ML6395GBMR (Millstream)GBMR100%100%Granted8-Dec-117-Dec-26249.9 haMPL107GBMR (Millstream)GBMR100%100%Granted24-Jan-0823-Jan-29132.3 haMPL106GBMR (Millstream)GBMR100%100%Granted24-Jan-0823-Jan-29162.6 haMPL105GBMR (Millstream)GBMR100%100%Granted24-Jan-0823-Jan-29250 haMPL95GBMR (Millstream)GBMR100%100%Granted11-Sep-0723-Jan-2924.1 haMPL6275GBMR (Millstream)GBMR100%100%Granted11-Sep-0723-Jan-29249.8 haMPL139GBMR (Millstream)GBMR100%100%Granted8-Dec-117-Dec-26249.77 haQueenslandMount Morgan (Project Status)Mt Morgan WestEPM27096GBMRGBMR100%100%Granted28-Aug-1927-Aug-24325100Mt Morgan EastEPM27097GBMRGBMR100%100%Granted11-Jan-2110-Jan-2629992Mt Morgan CentralEPM27098GBMR*2GBMR100%100%Granted16-Dec-2015-Dec-25325100Mount UsherEPM27865GBMRGBMR100%100%Application22.757Mount UsherMDL2020GBMRGBMR100%100%Application573.4haMt MorganEPM17850GBMRGBMR100%100%Granted16-Apr-1015-Apr-234213Project Area975Mount Isa Region (QLD)Mount Margaret (Project Status)Mt Malakoff ExtEPM16398GBMR*2, 4 /Isa TenementsGBMR45.71%45.56%Granted19-Oct-1018-Oct-237824CotswoldEPM16622GBMR*2, 4 /Isa TenementsGBMR45.71%45.56%Granted30-Nov-1229-Nov-22165Dry Creek EPM18172GBMR*2, 4/Isa TenementsGBMR45.71%45.56%Granted13-Jul-1212-Jul-2316350Dry Creek ExtEPM18174GBMR*2, 4/Isa TenementsGBMR45.71%45.56%Granted25-Oct-1124-Oct-22237Mt MargeEPM19834GBMR*4/Isa TenementsGBMR45.71%45.56%Granted4-Mar-133-Mar-2331Tommy CreekEPM25544GBMR*4/Isa TenementsGBMR45.71%45.56%Granted11-Nov-1410-Nov-223310CorellaEPM25545GBMR*4/Isa TenementsGBMR45.71%45.56%Granted20-Mar-1519-Mar-234614Middle Creek EPM27128GBMR*4/Isa TenementsGBMR45.71%45.56%Granted28-Jan-2027-Jan-253589SigmaEPM27166GBMR*4/Isa TenementsGBMR45.71%45.56%Granted28-Jan-2027-Jan-2528711BungalienBungalien 2EPM18207GBMR*2,4/Isa TenementsGBMR45.71%45.56%Granted24-May-1223-May-2312037The BrothersEPM25213GBMR*2/Isa TenementsGBMR45.71%45.56%Granted16-Oct-1415-Oct-2372MayfieldMayfieldEPM19483GBMR*2,/Isa TenementsGBMR100%100%Granted11-Mar-1410-Mar-259128Project AreaMt COOLONMt CoolonEPM15902GBMR/MCGMGBMR100%100%Granted13-Jun-0812-Jun-2329992Mt Coolon NorthEPM25365GBMR/MCGMGBMR100%100%Granted18-Sep-1417-Sep-238526Mt Coolon EastEPM25850GBMR/MCGMGBMR100%100%Granted07-Sep-1506-Sep-2317654BulgonunnaEPM26842GBMR/MCGMGBMR100%100%Granted15-Aug-1914-Aug-24325100Black CreekEPM26914GBMR/MCGMGBMR100%100%Granted15-Aug-1914-Aug-24325100Sullivan CreekEPM27555GBMR/MCGMGBMR100%100%Granted15-Sep-2014-Sep-25325100BelleviewEPM27556GBMR/MCGMGBMR100%100%Granted05-Jul-2104-Jul-26325100PashaEPM27557GBMR/MCGMGBMR100%100%Granted15-Sep-2014-Sep-25325100SuttorEPM27558GBMR/MCGMGBMR100%100%Granted05-Jul-2104-Jul-26325100WhynotEPM27598GBMR/MCGMGBMR100%100%Granted26-Jul-2125-Jul-266520ConwayEPM7259GBMR/MCGMGBMR100%100%Granted18-May-9017-May-253912Glen EvaML 10227GBMR/MCGMGBMR100%100%Granted05-Dec-9631-Jan-241.30Koala 1ML 1029GBMR/MCGMGBMR100%100%Granted30-May-7431-Jan-240.71Koala CampML 1085GBMR/MCGMGBMR100%100%Granted27-Jan-9431-Jan-240.05Koala PlantML 1086GBMR/MCGMGBMR100%100%Granted27-Jan-9431-Jan-240.98YANDANYandan WestEPM27644GBMR/MCGMGBMR100%100%Application325100Yandan EastEPM27591GBMR/MCGMGBMR100%100%Granted06-Jul-2105-Jul-2623171ClewittsEPM27592GBMR/MCGMGBMR100%100%Granted08-Jul-2107-Jul-2632299YandanEPM8257GBMR/Straits GoldGBMR100%100%Granted02-Sep-9101-Sep-2374.7523Yandan WestML1095GBMR/Straits GoldGBMR100%100%Granted27-Jun-9130-Jun-361369haYandan EastML1096GBMR/Straits GoldGBMR100%100%Granted27-Jun-9130-Jun-36602.4haTWIN HILLSDingo RangeEPM19504GBMR/MCGMGBMR100%100%Granted12-Mar-1311-Mar-2316.255Twin HillsEPM19856GBMR/MCGMGBMR100%100%Granted10-Mar-1409-Mar-2474.7523AnakieEPM25182GBMR/MCGMGBMR100%100%Granted14-Jan-1413-Jan-2435.7511Twin Hills SouthEPM27594GBMR/MCGMGBMR100%100%Application325100Twin Hills NorthEPM27597GBMR/MCGMGBMR100%100%Granted08-Jul-2107-Jul-2627384GunjullaEPM27974GBMR/MCGMGBMR100%100%Application35.7511Frank FieldEPM28140GBMR/MCGMGBMR100%100%Application97.530YacimientoEPM27554GBMRGBMR100%100%Granted29-Mar-2128-Mar-26243.7575Twin HillsML70316GBMR/MCGMGBMR100%100%Granted16-Dec-0431-Dec-34238haProject AreaTOTALS80472026Note*2 subject to a 2% net smelter royalty is payable to Newcrest Mining Ltd. On all or part of the tenement area.*4 subject to Farm In by Cloncurry Exploraiton and Develoment, a subsisdiary of Nippon Mining Australia *3 Approximately 16km2 which was the area of previous EPM19849 Moonmera, is subject to 1% smelter royaly and other conditions to Rio Tinto
2022 ANNUAL MINERAL RESOURCES STATEMENT
The following Annual Statement of Mineral Resources statement reflects the Company’s mineral
resources (including wholly owned subsidiary companies) as at the 30 June 2022. This section of the
Annual Report includes relevant information set out in that Statement. Events that have occurred in
the three months ending 30 September 2022 that are likely to impact on resources in the future
including ongoing exploration and acquisitions are noted.
The GBM combined gold resources from all projects at the 30 June 2022 are estimated to contain 1.8
million ounces of gold. This represents a significant increase from 1.0 million ounces of gold at the 30
September 2021 which was a milestone year as the first time in the Company’s history that gold
resources have reached the 1 Moz level. This represents an increase estimated total contained gold
of 760,000 ounces or 76% from the previous year with the increase resulting from the acquisition of,
and subsequent resource upgrade at the Twin Hills Project. Of GBM’s total gold resource base of 1.6
Moz, 91% is contained in deposits located in the Drummond Basin in Queensland. The Company
remains optimistic that that the resource base will increase further during the 2023 financial year as
the impact of ongoing exploration, in particular at the Twin Hills and Yandan Projects, are incorporated
into revised resource models.
For the purpose of preparing this Annual Statement of Mineral Resources (ASMR) as at 30 June 2022,
GBM has completed a review of each resource taking into account long term metal price, foreign
exchange rates, cost assumptions based on current industry trends and conditions, any changes that
may affect the capability for these resources to be exploited or which may result in material changes
to cut-off grades and physical mining parameters. It should be emphasised that this is a summary only
of the Company’s resources and for further detail the reader is referred to the respective ASX releases
listed at the end of this section.
In relation to commodities key to GBM’s resource base the company holds the following views;
➢ Operating costs in the industry have generally increased during the last 12 months. Labour costs
have continued to edge further upwards. Diesel fuel and gas prices, which were down during 2021,
have increased significantly during 2022 as a result of the sanctions imposed on Russia as a result
of that Country’s military action in Ukraine, however there is an expectation that prices could
return to more normal levels when this crisis abates. In addition, the trend to increasing use of
energy from renewable sources in mining operations is likely to reduce the reliance of new mining
operations on fossil fuels. As none of the deposits are at the development stage and therefor are
a number of years from production, resources and cut-off grades have not been adjusted.
➢ Gold price finished the year US$1,817 after starting the year at US$1,763 and has since moved to
US$1,666 (28 September 2022) after reaching a peak of US$1,988 on 9 March 2022. The long-term
upward trend which has continued since 2006 in AUD gold prices appears to have stalled for the
moment but at a level above the Company’s resource base assumptions.
The copper price opened the year at US$9,347/t and finished at US$8,153/t, reaching an all-time high
of US$10,816 on 10 March 2022 (prices from tradingeconomics.com) . Since the end of the financial
year copper prices have fallen sharply in response to concerns about global economics. The current
price is still above historical levels and in line with the World Bank forecast which estimated in its April
2022 commodity forecast report that the spot price for copper will average $9,000 per metric ton by
the end of 2023. It should be highlighted that copper remains an important component of the
technological revolution
including new battery and electric vehicle technology. Since the
commissioning of the SART plant during 2020, copper is now a by-product of gold production at the
Company’s White Dam Gold Mine.
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2022 ANNUAL MINERAL RESOURCES STATEMENT
➢ The Australian dollar has traded in a range from 0.76 USD to 0.68 USD throughout the year and in
relation to the US dollar trended down throughout the year with the Australian Dollar finishing the
year at 0.69 USD moving from 0.75 USD at 30 June 2021. At the time of writing the Australian
dollar is trading around 0.64 USD. This steady decline of the Australian dollar against the US dollar,
in conjunction with ongoing strong metal prices has resulted in a positive outlook for Australian
gold deposits.
The company believes that, considering the outlook for commodity prices and other factors, there is
a reasonable expectation that resources at all projects will eventually support mining operations.
Changes Since 30 June 2022 Resource and Ore Reserve Statement
GBM is not aware of any new information or data that materially affects the information contained in
the “Annual Mineral Resource and Ore Reserve Statement – 30 September 2022” other than changes
due to ongoing exploration to extend mineralisation. These changes are summarised by project below:
1. At Yandan, exploration drilling completed in 2021 will be used to support a resource re-
estimation to be completed during 2022 calendar year.
2. Recently completed drilling at the Twin Hills Project is supporting a re-estimation of resources
also expected to be completed during 2022 calendar year.
3. Encouraging drilling results at the 50% owned Malmsbury Project may impact positively on
the Leven Star Resource however no re-estimation is planned for 2022.
Drummond Basin Gold Project Resources
The Mt Coolon Gold Project located within the Drummond Basin in Queensland. Tenements and
resources are owned by the Company’s 100% owned subsidiary, Mt Coolon Gold Mines Pty. Ltd. There
have been no changes in the Mt Coolon resources since the last Annual Statement of Mineral
Resources as at 30 September 2021.
Yandan Project, also located in the Drummond Basin, was acquired in 2021 and completed a re-
estimation of the project resources compliant with JORC 2012. Yandan Project tenements are owned
by the Company’s 100% owned subsidiary Straits Gold Pty Ltd. There has been no change to the
Yandan Project Resources since the last Annual Statement of Minerals Resources as at 30 September
2021.
During the 2022 financial year the Company acquired the Twin Hills Project which comprises the 309
and Lone Sister Gold Deposits. A resource upgrade was announced by the company (refer ASX release
2 February 2022) increasing the combined Twin Hills Resource base to an estimated 760,700 ounces
of contained gold. Twin Hills tenements are held by GBM subsidiary Mt Coolon Gold Mines Pty Ltd.
The Company considers that any minor increases in mining and operating costs that may have
occurred through the year have been outweighed by the increase in average gold price in Australia
resulting from a favourable combination of commodity price and minor currency movements. The
company believes that, considering the outlook for commodity prices and other factors, there is a
reasonable expectation that resources at the Drummond Basin projects will eventually support mining
operations.
The information in this report that relates to Koala and Glen Eva Mineral Resources is based on
information compiled by Kerrin Allwood, who is a Member of The Australasian Institute of Mining and
Metallurgy and The Australasian Institute of Geoscientists. Refer ASX:GBZ release 4 December 2017.
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2022 ANNUAL MINERAL RESOURCES STATEMENT
The information in this report that relates to the Eugenia Mineral Resource is based on information
compiled by Scott McManus, who is a Member of The Australasian Institute of Mining and Metallurgy
and The Australasian Institute of Geoscientists. Refer ASX:GBZ release 4 December 2017.
The information in this report that relates to the Yandan Project is based on information compiled by
Ian Taylor, who is a Member of The Australasian Institute of Mining and Metallurgy and The
Australasian Institute of Geoscientists. Refer ASX:GBZ release 23 December 2020.
The information in this report that relates to the Twin Hills Project is based on information compiled
by Kerrin Allwood, who is a Member of The Australasian Institute of Mining and Metallurgy and The
Australasian Institute of Geoscientists. Refer ASX:GBZ release 2 February 2022.
White Dam Gold Project Resources
The White Dam Project is located approximately 50 kilometres west of Broken Hill within the
Curnamona Province of South Australia. This project includes an active heap leach gold operation
which produced 2.291 ounces of gold during the 2022 financial year. GBM announced that it had
acquired 100% interest in the project on 30 July 2021 after earning rights to a share of production
from the project from 30 June 2020. GBM announced a JORC (2012) compliant gold resource for the
White Dam project on the 10 August 2020 (CP K Allwood). Additional drilling was completed by GBM
at the White Dam deposits Vertigo and White Dam North and a re-estimation of resources is
underway.
The Company considers that any minor increases in mining and operating costs that may have
occurred through the year have been outweighed by the increase in average gold price in Australia
resulting from a favourable combination of commodity price and minor currency movements. The
company believes that, considering the outlook for commodity prices and other factors, there is a
reasonable expectation that resources at the White Dam Project will eventually support renewed
mining operations.
The information in this report that relates to the White Dam Mineral Resources is based on information
compiled by Kerrin Allwood, who is a Member of The Australasian Institute of Mining and Metallurgy
and The Australasian Institute of Geoscientists. Refer ASX:GBZ release 10 August 2020.
Malmsbury Gold Project Resources
The Malmsbury Gold Project is located within the Bendigo structural zone of Victoria. There has been
no change during the year to 30 June 2022, this resource was reviewed and upgraded to comply with
the requirements of JORC 2012, for details, Refer ASX:GBZ release 4 July 2019 (CP K Allwood). For
original release refer ASX:GBZ release 19 January 2009 (CP K Allwood). The Malmsbury Project is
subject to a Farm In and Joint Venture agreement with Novo Resources subsidiary Rocklea Gold Pty
Ltd. Novo has purchased a 50% interest in the project and is spending a further $5M to increase its
equity share to 60%. At the time of writing GBM’s attributable equity in the Leven Star resource is
50%.
The Company considers that any minor increases in mining and operating costs that may have
occurred through the year have been outweighed by the increase in average gold price in Australia
resulting from a favourable combination of commodity price and minor currency movements. The
company believes that, considering the outlook for commodity prices and other factors, there is a
reasonable expectation that resources at the Malmsbury Project will eventually support mining
operations.
The information in this report that relates to Malmsbury Mineral Resource is based on information compiled by Kerrin
Allwood, who is a Member of The Australasian Institute of Mining and Metallurgy and The Australasian Institute of
Geoscientists.
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2022 ANNUAL MINERAL RESOURCES STATEMENT
GBM Resources Limited – Mineral Resources at 30 June 2022
Table 5: GBM consolidated table of Mineral Resources at 30 June 2022. (All tonnages are dry metric
tonnes, data is rounded to (‘000 tonnes, 0.0 g/t and ‘000 ounces). Discrepancies in totals may occur
due to rounding. Resources have been reported as both open pit and underground with varying cut-
off based on several factors as discussed in the corresponding Table 1 (which can be found with the
original ASX announcement for each of the resources).
The announcements containing the Table 1 Checklists of Assessment and Reporting Criteria relating
to each of the 2012 JORC compliant Resources are:
• Koala/Glen Eva and Eugenia – Refer ASX:GBZ release 4 December 2017, Mt. Coolon Gold
Project Scoping Study.
• Yandan – Refer ASX:GBZ release 23 December 2020, Mt Coolon and Yandan Combined
Resources Total 852,000 oz, following completion of Yandan acquisition.
• Twin Hills (309 & Lone Sister) – Refer ASX:GBZ release 2 February 2022, Significant Resource
Upgrade for Twin Hills Project.
• White Dam – Refer ASX:GBZ release 10 August 2020, White Dam Maiden JORC 2012 Resource
of 102 koz.
• Malmsbury – Refer ASX:GBZ release July 2019, Malmsbury Resource Upgraded to JORC 2012.
GBM Resources Annual Report 2022
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000' tMeasuredAu g/tAu oz000' tIndicatedAu g/tAu oz000' tInferredAu g/tAu ozOpen Pit6702.655,1004401.926,7001,1202.381,8000.4UG Extension503.25,300260434,4003203.939,7002.0Tailings1141.76,20091.64001241.66,6001.0Sub Total1141.76,2007292.660,8007002.761,1001,5632.5128,100Oxide - Open Pit8851.132,4005971.019,3001,4821.151,7000.4Sulphide - Open Pit9051.233,5001,0421.238,9001,9471.272,4000.4Sub Total1,7901.165,9001,6391.158,2003,4301.1124,100Sub Total - Open Pit1,0701.655,2005801.223,1001,6601.578,3000.4East Hill - Open Pit20,6000.8505,00020,0600.8505,0000.3South Hill - Open Pit9000.616,0009000.616,0000.3Sub Total21,5000.8521,00021,5000.8521,000309 - Open Pit5862.750,3005,4701.4253,2004,1650.9120,20010,2201.3423,7000.4309 - UG1104.816,8005103.760,1006203.976,9002.0Lone Sister - UG2,0104.0260,1002,0104.0260,1002.0Sub Total5862.750,3005,5801.5270,0006,6852.0440,40012,8501.8760,700Drummond Basin Total7002.556,5009,1691.5451,90031,1041.11,103,80041,0031.21,612,200Hannaford - Open Pit7000.716,4001,0000.826,9001,7000.843,3000.2Vertigo - Open Pit3001.09,4001,4000.629,0001,7000.738,4000.22000.52,8001,0000.617,6001,2000.520,4000.2Sub Total1,2000.728,6003,4000.773,5004,6000.7101,900Sub Total - UG8204.0104,0008204.0104,0002.5Sub Total - UG - GBM Share4104.052,0004104.052,0002.5GBM Total1,766,100White DamWhite Dam North - Open Pitcut-off grade is 0.20 g/t Au for all, Vertigo is restricted to above 150RL (~70m below surface)MalmsburyYandanTwin HillsKoalaEugeniaGlen EvaDepositResource Category000' tTotalAu g/tAu ozCut-off
2022 ANNUAL MINERAL RESOURCES STATEMENT
Competent Person Statement
The information in this Annual Mineral Resources Statement is based on and fairly represents
information and supporting documentation prepared by the competent persons named in the
relevant sections of this report. The preceding statements of Mineral Resources conforms to the
“Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves (JORC
Code) 2012 Edition”.
The information in this Annual Mineral Resources Statement as a whole that relates to Mineral
Resources is based on information compiled by Neil Norris, who is a Member of The Australasian
Institute of Mining and Metallurgy. Mr Norris is a holder of shares in the company and is an employee
of the company. Mr Norris has sufficient experience which is relevant to the style of mineralisation
and type of deposit under consideration and to the activity which he is undertaking to qualify as a
Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves’. Mr Norris consents to the inclusion in the
report of the matters based on his information in the form and context in which it appears.
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SUSTAINABLE DEVELOPMENT
Sustainable Development
The Board of GBM has reviewed the Company’s Health, Safety and Environment Policies and
reaffirmed a strong commitment to the environment, and to the safety and health of all of employees,
contractors, and visitors at all sites. GBM has been a signatory to the Mineral Council of Australia’s
‘Enduring Value: The Australian Minerals Industry Framework for Sustainable Development’ since
2008, and reconfirmed this commitment in 2016. Over the past 12 months the Company has
continued to grow with additional staff and the acquisition of the Twin Hills Project, while maintaining
our very good record, with no LTIs or environmental incidents. This is the eleventh successive year
that GBM has achieved zero harm.
The Board and Management of GBM support and promote the Company’s values in all endeavours.
Our high safety and environmental standards are supported by the actions of our people across our
operations and projects. Our aim is always to operate in a safe and environmentally responsible
manner meeting industry’s highest standards. We are committed to development and maintenance
of strong and lasting relationships with our employees, and with the communities in which we
operate.
Safety and Health
GBM aims to create a work environment where everyone can work safely, and remain healthy, every
day. We develop and maintain appropriate safety management systems and use risk assessment
techniques to assess and improve our safety management approach. Our systems and practices
include the identification, elimination, monitoring and control of hazards, implementation of
appropriate procedures and regular performance reviews. We access wider industry knowledge and
experience to strengthen our own systems where possible.
GBM’s commitment to safety includes ensuring that all employees are appropriately instructed,
trained and assessed. The Company provides all necessary facilities, equipment, tools, procedures,
programs and training to enable employees to carry out their assigned tasks safely. These principles
are extended to contractors, suppliers and consultants. We encourage each individual employee to
take responsibility for their own safety and the safety of others. We strive to create an environment
where everyone is empowered to share their concerns, insights and learnings with others.
Figure 21: Purpose-built core cutting facility incorporating machine guarding, dust management and air
conditioning
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SUSTAINABLE DEVELOPMENT
During the extended period in which the Covid virus was most contagious, we maintained a
management plan and associated practices to minimise the effects on our people. We experienced a
minimal number of positive Covid cases, but were able to quickly identify these when they occurred,
and ensure that affected people were isolated and cared for. We were able to keep our operations
going continuously. When travel restrictions were put in place by state governments to contain the
spread of the pandemic, we provided flexibility to our people and their working arrangements, and
extended the availability of accommodation at our sites.
Community & Environment
GBM is committed to managing our activities to minimise impacts to the environment and maintain
positive relationships with the communities surrounding our sites.
GBM proactively manages and assesses environmental risks on a site-specific basis to achieve planned
environmental outcomes. We comply with relevant environmental laws and regulations as a minimum
standard, though strive also to improve our performance. We inform and consult with relevant
government departments and local community about our project and activities on a regular basis.
At our Yandan project, we continued to progress work to improve the quality of monitoring data
across the site, in particular for surface water and groundwater. As well, we undertook work to
upgrade the condition of the former heap leach ponds. We also commissioned a review into the
potential effects of extreme weather events on the site, including the holding capacities of the various
dams, to access risks and identify potential mitigations to manage these.
Figure 22: Repair works to HDPE liner at Yandan former process ponds
During the year, we received notice from the Queensland Department of Environment and Science
(DES) that the Environmental Protection Order (EPO) imposed in 2021 upon GBM assuming ownership
of the Yandan project had been finalised, with all required work satisfactorily completed. This EPO
encompassed multiple bodies of work, including fencing of dams, repairs to dams, engineering
assessments of regulated dams and installation of additional groundwater monitoring bores.
At our Twin Hills project, we undertook a surface drilling program for the 309 geological deposit, and
commenced a drilling program on the Lone Sister deposit. Prior to commencing these programs, we
engaged with the Jangga people, who are the Native Title holders, to arrange for cultural heritage
clearances to be undertaken. At the completion of drilling, the drill pad areas were rehabilitated. We
undertook a review of the surface water and groundwater monitoring network at Twin Hills, and
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SUSTAINABLE DEVELOPMENT
installed an additional monitoring bore to improve coverage. We also undertook work to upgrade the
condition of the surface water evaporation dam.
Across the Yandan, Mt Coolon and Twin Hills project sites, we continued our programs to repair and
upgrade fencing to control livestock access and improve safety in the vicinity of open holes and edges,
and control invasive weed species, including parthenium.
For each of Mt Coolon, Yandan and Twin Hills, work on Progressive Rehabilitation and Closure Plans
(PRCPs) and Estimated Rehabilitation Costs (ERCs) was progressed, as required as a condition of the
sites’ holding granted Mining Leases and Environmental Authorities (EA’s), and in line with processes,
guidelines and timeframes as advised by, or agreed, with DES.
At The White Dam mine, monitoring and reporting as required under the Program for Environment
Protection and Rehabilitation (PEPR) continued, including quarterly surface and groundwater
monitoring and photographic records of rehabilitation progress. The very good relationships with the
local community were maintained, underpinned by the assistance provided by the White Dam team
to pastoral neighbours for station work, and support of local businesses.
Figure 23: White Dam staff assisting with maintenance of shearers’ quarters on neighbouring Bindarrah
Station.
Achievements:
• No lost time injuries were sustained during 2021/22 across the operations.
• Continuous operations and isolated Covid cases only, which were successfully managed.
• No environmental incidents occurred during 2021/22.
• Finalisation of the Yandan EPO, which required rectification and other works associated with
legacy environmental issues which were passed to GBM.
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DIRECTORS’ REPORT
The Directors present their report together with the consolidated financial statements for the Company and its
controlled entities (‘Group’) for the financial year ended 30 June 2022.
DIRECTORS
The names of Directors in office at any time during or since the end of the year are:
Peter Mullens – B.Sc (Geology), Fellow AUSIMM
Executive Chairman
Mr. Mullens has over 35 years’ experience in the mining industry from early exploration to development and
mine production. He has been involved with major companies having worked for Rio Tinto and Mt Isa Mines at
world class Broken Hill and Mt Isa Ag, Pb, Zn mines located in Australia.
Mr Mullens has been closely involved in companies raising in excess of USD $250 million since 2002. He is
currently Non-Executive Chairman of Royal Road Minerals (TSX-RYR) who are exploring in Colombia.
He has had a history of success with junior exploration companies over the last 20 years including acquiring
Aquiline Resources’ Argentinean projects and the resulting sale to Pan American Silver for CAD $ 630 million in
2009, Chief Geologist and director for Laramide Resources, and co-founder and director of Lydian Resources (TSX-
LYD) which discovered the 4 Moz Amulsar Gold Deposit located in Armenia.
Mr Mullens was appointed as non-executive Director and then non-executive Chairman of E2 Metals, a silver
exploration company listed on the ASX (ASX:E2M), on 13 July 2021 and 1 November 2021 respectively. He is also
a director of a private Company Mogote Metals exploring for copper in Argentina.
Peter Rohner – B.Sc (Metallurgy), Grad Dip Applied Finance & Investment,
Managing Director
Mr Rohner has over 30 years’ experience in the mining industry. In particular, he has been heavily involved in
mineral process technology development including development of the Jameson flotation cell, IsaMill fine
grinding and, more recently, significant involvement in further development of Glencore’s Albion Process (fine
grind oxidative leach) technology.
Mr Rohner is also currently a Technical Director of the Core Group, which provides metallurgical processing
solutions to its global clients. He is also a director of Stibium Mining Pty Ltd and in the last 3 years a former
director of Tartana Resources Limited (from September 2017 to August 2020) and Stibium China Holdings Ltd
(from October 2018 to August 2021).
Peter Thompson – B.Bus, CPA, FCIS
Non-Executive Director
Experience
Mr Thompson is a CPA qualified accountant and Fellow of Governance Institute of Australia. He has over 40
years’ experience in the mining industry in Australia, UK and South America in senior roles with several
international mining companies.
Mr Thompson was appointed as an independent non-executive director of Nova MSC Berhad, a Malaysian public
company on 1 June 2017.
Mr Thompson has held no other directorships of listed companies in the last 3 years.
Mr Guan Huat Sunny Loh – BBA, ACS, ACIS, MBA
Non-Executive Deputy Chairman
Mr Loh’s expertise lies in corporate strategy, finance markets, investor relations and capital restructures. Mr Loh
holds a BBA from National University of Singapore and an MBA of Strategic Marketing from the University of
Hull. He is also an Associate of the Institute of Chartered Secretaries and Administrators.
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DIRECTORS’ REPORT
DIRECTORS (CONTINUED)
Mr Loh has been appointed to the role of Deputy Chairperson. In this role he will further support the Board
through interaction with the Company’s overseas shareholder base, and via evaluation of additional funding and
corporate options to further develop and grow GBM. He has a long and supportive relationship with the
Company as both a shareholder and, previously, as a Non-Executive Director.
Mr Loh has been appointed as an Executive Chairman of Nova MSC Berhad, a public company listed on Bursa
Malaysia with effect from 1 April 2021.
Mr Loh has held no other directorships of listed companies in the last 3 years.
Brent Cook – B.Sc (Geology)
Non-Executive Director (appointed 17 September 2020)
Experience
Mr. Cook is an economic geologist with over 40 years’ experience in exploration, mining and finance. During his
career he has worked on numerous deposit types in over 60 countries. From 1999 to 2003, Mr Cook was chief
analyst at Global Resource Investments (now Sprott Global) and an advisor to three micro-cap junior exploration
funds. Since 2003 Mr Cook has also acted as an independent advisor and mining analyst, working with a number
of junior mining companies, money management groups and individual investors. From 2008 to 2016 he was
owner and author of the resource investment letter Exploration Insights. Mr Cook brings a wealth of knowledge
from his experiences within the Financial and Mining sectors.
Mr Cook has held no other directorships of listed companies in the last 3 years.
COMPANY SECRETARIES
Mr Kevin Hart – B.Comm, FCA
Mr Hart is a Chartered Accountant and was appointed to the position of Company Secretary on 3 February 2010.
He has over 35 years’ experience in accounting and the management and administration of public listed entities
in the mining and exploration industry.
He is currently a Director in an advisory firm which specialises in the provision of company secretarial services
to ASX listed entities.
Dan Travers – B.Sc (Hons), FCCA
Mr Travers is a Fellow of the Association of Chartered Certified Accountants and was appointed to the position
of Joint Company Secretary on 19 November 2020. Mr Travers is an employee of Endeavour Corporate, which
specialises in the provision of company secretarial and accounting services to ASX listed entities in the mining
and exploration industry.
MEETINGS OF DIRECTORS
During the financial year, the following meetings of Directors (including committees) were held:
P Mullens
P Rohner
P Thompson
S Loh
B Cook
DIRECTORS’ MEETINGS
Number Eligible to Attend
11
11
11
11
11
Number Attended
11
11
11
11
9
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DIRECTORS’ REPORT
PRINCIPAL ACTIVITIES
The principal activities of the Group during the financial year were exploration in respect of its gold projects in
Australia and operation of the White Dam Gold Copper project. Corporate activities focussed on various equity
raisings and strategic acquisitions and disposals to further the Group’s Drummond Basin growth strategy.
OPERATING AND FINANCIAL REVIEW
Exploration
During the year the Group finalised the acquisition of the Twin Hills Project from Minjar Gold Pty Ltd and an
updated JORC 2012 Mineral Resource estimate was completed during the March 2022 quarter taking the
Drummond Basin JORC resource position to ~ 1.6 Moz of gold.
Exploration activities for the year were focussed on the Group’s projects in the Drummond Basin, Queensland.
Phase 1 drilling at the Yandan Project confirmed the potential to further expand the current gold resources at
East Hill and will lead to resource upgrade work and new geological target identification. A diamond drill
program, undertaken at the Glen Eva deposit in the Mt Coolon Project, has extended the mineralisation to the
south-east of the current Glen Eva resource and has highlighted a major new zone of gold mineralisation. The
maiden drill program at Twin Hills returned outstanding assay results. The Company is currently reviewing all
the historical geological information and latest drilling results with the aim of revising the mineral resource
estimate within the latter half of the year.
Exploration activities, including diamond drilling, were undertaken at the Malmsbury Gold Project which is
subject to a farm in and joint venture with Novo Resources Corp. The Group holds a 50% interest in Malmsbury
with Novo Resources Corp. who can earn a further 10% interest through exploration funding of $5m over 4
years.
Production – White Dam
On 30 July 2021, the Company completed the acquisition of a 100% interest in White Dam Gold Project, South
Australia which includes associated infrastructure, all leaching, gold processing plant, mining leases (including
all JORC resources) and other tenements. As part of the acquisition process, the White Dam assets (plant and
exploration assets) were independently valued. The acquisition was accounted for in accordance with AASB 3
Business Combinations and resulted in a bargain purchase of approximately $1.2 million. Production is
continuing with opportunities to source new feed on the heap leach pads being reviewed.
Corporate
During the year, the Company completed a capital raise receiving proceeds totalling $7.4 million (before costs)
which helped fund the acquisition of the Twin Hills Project from Minjar Gold Pty Ltd. The acquisition of Twin Hills
was completed in January 2022.
The Group also entered into agreements to sell non-core assets with the Brightlands-Milo Project in Queensland
being sold to Consolidated Uranium Inc, and the Mayfield Project tenement being sold to C29 Metals Limited.
COVID-19
GBM’s business continues to operate in full compliance with the COVID-19 advice from the Australian
Government and relevant health authorities.
The situation is evolving, and whilst there are currently no significant impacts, there remains some uncertainty
and risks with potential impacts on the White Dam Heap Leach Operation and planned exploration programs.
Operating Results
In the financial year to 30 June 2022, the Group made a net loss after income tax of $642,341 (2021: profit
$267,851). The loss included $3,332,817 revenue from gold sales, $2,808,396 profit from the sale of assets, a
bargain purchase on the acquisition of the White Dam Project of $1,216,826 and non-cash costs of $3,237,290
(depreciation, impairment and fair value losses).
Financial Position
At the end of the financial year, the Group had $836,149 (2021: $5,676,340) in cash on hand and on deposit.
Exploration expenditure incurred for the year on the Group’s wholly owned projects was $10,030,074, with
carried forward exploration and evaluation expenditure totalling $37,442,813 (2021: $19,574,428).
GBM Resources Annual Report 2022
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DIRECTORS’ REPORT
EQUITY SECURITIES ON ISSUE
Ordinary fully paid shares
Options over unissued shares
Performance Rights over unissued shares
30 June 2022
522,928,466
120,696,052
1,650,219
30 June 2021
433,246,182
80,746,765
-
Subsequent to the end of the financial year, the Company issued 28,369,262 placement shares and a further
8,416,157 shares on the exercise of options and performance rights to raise approximately $1.68 million (before
costs).
Options over Ordinary Shares
At the date of this report, there are 112,366,852 unissued shares of the Group under option as follows:
Date Granted
Expiry Date
Exercise Price
Number of options
at 30 June 2022
Number of options
at date of report
5 February 2019
31 January 2023
17 December 2019
16 December 2022
6 April 2020
6 April 2023
6 July 2020
6 July 2023
15 September
2020
12 February 2021
14 September
2024
11 February 2025
29 April 2021
11 February 2025
9 December 2021
31 October 2025
$0.085
$0.05
$0.105
$0.11
$0.21
$0.18
$0.18
$0.18
1,880,000
8,000,000
16,074,152
50,567,301
300,000
2,000,000
1,900,000
855,000
1,880,000
-
16,074,152
50,567,301
300,000
2,000,000
1,900,000
855,000
2 March 2022
30 November 2022
$0.075
39,119,599
38,790,399
During the year, 51,938,636 options were issued (comprising of 51,083,636 options exercisable at $0.075 and
expiring 30 November 2022 and 855,000 options exercisable at $0.18 expiring 31 October 2025) and 11,989,349
options were exercised. No options were cancelled during the financial year.
Subsequent to 30 June 2022 and up to the date of this report, 8,329,200 options were exercised. No options
have been issued or cancelled since the end of the financial year.
Performance Rights over Ordinary Shares
During the year ended 30 June 2022, the Company issued 1,780,654 performance rights pursuant to the terms
and conditions of the Company’s Performance Rights and Option Plan and 130,435 performance rights were
exercised and converted into shares. No performance rights were cancelled during the reporting period.
Subsequent to 30 June 2022, 86,957 performance rights were exercised. No performance rights have been
issued, vested or cancelled since the end of the financial year.
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
Other than as stated in the Operational and Financial Review section above, there were no other significant
changes in the state of affairs of the Group during the financial year, not otherwise disclosed in this Directors’
Report or in the Review of Operations.
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DIRECTORS’ REPORT
EVENTS SUBSEQUENT TO BALANCE DATE
Other than as stated below, there has not arisen in the interval between the end of the financial year and the
date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the
Directors of the Company to affect substantially the operations of the Group, the results of those operations or
the state of affairs of the Group in subsequent financial years.
• On 12 July 2022, 23,269,262 ordinary shares in the Company were issued to institutional and sophisticated
investors to raise approximately $1.26 million (before costs).
•
•
•
•
•
•
In August 2022, the Company executed the Definitive Agreement setting out the terms and conditions or
the sale of the Mt Morgan Gold Copper Project Tenements to Australis Metals Pty Ltd a wholly owned
subsidiary of Smartset Services Inc, a listed Canadian company. Refer to Note 22(c).
In August 2022, the Group received the consideration for the sale of the Mayfield Project which consisted
of a cash payment of $210,000 and 1,558,963 fully paid ordinary shares in C29 Metals Limited. Refer to
Note 22(d).
In September 2022, the Company entered into an agreement to issue secured convertible notes up to $10
million to the Collins Street Convertible Note Fund, in two tranches of $5 million per tranche, with tranche
2 subject to shareholder approval. The convertible notes attract interest at 10.5% per annum payable
monthly in advance, are for a 3 year term and are convertible at 8.75 cents.
In September 2022, the Company received firm commitments to raise $305,000 pursuant to a share
placement at 5 cents per share.
In September 2022, the Department of Environment and Science (DES) reviewed the estimated
rehabilitation costs (ERC) for the Yandan Gold Mine and proposed an increase of the surety above the
amount calculated by the Group. The Group is challenging this decision and on 26 September 2022, the
Group lodged a request that the DES perform an internal review of its ERC calculation.
Since the end of the financial year, 28,369,262 shares have been issued in relation to the events listed
above, and 8,416,157 shares have been issued on the exercise of options and performance rights.
The impact of the coronavirus (COVID-19) pandemic is ongoing. The situation is dependent on measures
imposed by the Australian Government and other countries, such as maintaining social distancing requirements,
quarantine, travel restrictions and any economic stimulus that may be provided. It is not practicable to estimate
the potential impact, positive or negative, after the reporting date.
DIVIDENDS
No dividends were paid during the year and the Directors recommend that no dividends be paid or declared for
the financial year ended 30 June 2022.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS
Comments on expected results of the operations of the Company are included in this report under the Review
of Operations.
Disclosure of other information regarding likely developments in the operations of the Company in future
financial years and the expected results of those operations is likely to result in unreasonable prejudice to the
Company. Accordingly, this information has not been disclosed in this report.
ENVIRONMENTAL ISSUES
The Group holds participating interests in a number of exploration tenements. The various authorities granting
such tenements require the tenement holder to comply with the terms of the grant of the tenement and all
directions given to it under those terms of the tenement.
There have been no known breaches of the tenement conditions, and no such breaches have been notified by
any government agencies during the year ended 30 June 2022.
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DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED)
The remuneration report is set out in the following manner:
Policies used to determine the nature and amount of remuneration
•
• Details of remuneration
•
Service agreements
•
Share based compensation
Remuneration Policy
The Board of Directors is responsible for remuneration policies and the packages applicable to the Directors of
the Company. Whilst the broad remuneration policy is to ensure that packages offered properly reflect a
person’s duties and responsibilities and that remuneration is competitive and attracts, retains, and motivates
people of the highest quality, the Board has consciously been focused on conserving the Company’s funds to
ensure the maximum amount is spent on exploration, and this is reflected in the modest level of Director fees.
The policy of the Group is to offer competitive salary packages which provide incentive to Directors and
executives and are designed to reward and motivate. Total remuneration for all Non-Executive Directors was
voted on by shareholders, whereby it is not to exceed in aggregate $200,000 per annum. Non-Executive
Directors receive fees agreed on an annual basis by the Board.
At the date of this report, the Company had not entered into any remuneration packages with Directors or senior
executives which include specific performance-based components. Long term and short term incentives, may
be awarded subject to Board discretion.
Details of Remuneration for Directors and Executive Officers
The remuneration of each Director of the Company and relevant executive officers (together known as Key
Management Personnel or KMP) are set out in the table below.
Remuneration levels are competitively set to attract and retain appropriately qualified and experienced
Directors and senior executives. The Board of Directors obtains independent advice when appropriate in
reviewing remuneration packages.
During the year, there were no senior executives who were employed by the Company for whom disclosure is
required.
2022
Short
term
Post Employment
Share Based
Payments
Salary
and fees
$
Super -
annuation
$
Terminatio
n benefits
$
Options /
shares
$
Total
$
Directors
P Mullens
P Rohner
P Thompson
S Loh
B Cook
133,192
228,310
84,000
48,000
48,000
Total Directors
541,502
8,219
22,831
8,400
-
-
39,450
-
-
-
-
-
-
-
-
-
-
-
-
141,411
251,141
92,400
48,000
48,000
580,952
Performance
Based
Payments as %
of
remuneration
%
-
-
-
-
-
-
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DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED)
2021
Short
term
Post Employment
Share Based
Payments
Salary
and fees
$
Super -
annuation
$
Terminatio
n benefits
$
Options /
shares
$
Total
$
Directors
P Mullens
P Rohner
P Thompson
S Loh
B Cook1
N Norris2
164,384
228,310
87,325
48,000
37,973
22,330
Total Directors
588,322
1 Appointed 17 September 2020
2 Resigned 17 September 2020
15,616
21,690
3,990
-
-
665
41,961
-
-
104,000
-
-
80,000
184,000
-
-
-
-
35,355
-
35,355
180,000
250,000
195,315
48,000
73,328
102,995
849,638
Performance
Based
Payments as %
of
remuneration
%
-
-
-
-
-
-
-
See disclosure relating to service agreements for further details of remuneration of executive directors.
Options Provided as Remuneration
During the year ended 30 June 2022 no options were issued as remuneration and no shares were issued to KMP
of the Company in respect of the exercise of options previously granted as remuneration.
Key management personnel have the following interests in unlisted options over unissued shares of the
Company.
Name
P Mullens
P Rohner
B Cook
Balance at
beginning of
the year
4,200,000
4,456,144
300,000
Received
during the year
as
remuneration
-
Other changes
during the
year
-
-
-
60,157
-
Balance at the
end of the year
4,200,000
4,516,301
300,000
Vested and
exercisable at
30.06.2022
4,200,000
4,516,301
300,000
Further details of the options granted are disclosed in Note 23 to the financial report.
Service Agreements
Remuneration and other terms of employment for the Executive Directors are set out in Service Agreements:
Peter Mullens – Executive Chairman
On 1 July 2020, Mr Mullens entered into a 3 year service agreement with the Company with a base salary
inclusive of statutory superannuation of $180,000 per annum which was subject to annual review. On 1 January
2022, the Company entered into a service agreement with Ironbark Pacific Pty Ltd, an entity associated with Mr
Mullens, for the provision of Executive Chairman services by Mr Mullens for a monthly fee of $9,000 exclusive
of GST. The contract is for a term of 12 months from 1 January 2022 to 31 December 2022 but may be re-
negotiated at this time. Either party may terminate the contract with the provision of 4 weeks written notice or
the contract may be terminated immediately in the case of serious misconduct.
GBM Resources Annual Report 2022
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DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED)
Peter Rohner – Managing Director
On 1 July 2020, Mr Rohner entered into a 3 year service agreement with the Company with a base salary inclusive
of statutory superannuation of $250,000 per annum which is subject to annual review.
The Service agreement contains certain provisions typically found in contracts of this nature. There is no specific
cash bonus or other performance based compensation contemplated in the agreement. Long term and short
term incentives, may be awarded subject to Board discretion. The Company may terminate the Service
Agreement without cause by providing six months written notice to the individual or by making a payment in
lieu of notice. The Service Agreement may be terminated immediately in the case of serious misconduct.
Share Based Compensation
At the date of this report the Company has not entered into any agreements with KMP which include
performance based components. Options issued to Directors are approved by shareholders and were not the
subject of an agreement or issued subject to the satisfaction of a performance condition.
Options may be issued to provide an appropriate level of incentive and are a cost effective means given the
Company’s size and stage of development.
Group Performance
In considering the Company’s performance, the Board provides the following indices in respect of the current
financial year:
2022
2021
2020
2019
2018
(Loss)/profit for the year
attributable to
shareholders
Closing share price at 30
June
($642,341)
$267,851
($1,198,012)
($4,239,459)
($5,781,089)
$0.061
$0.115
$0.080
$0.037
$0.046
As a Group focussed on exploration activities, the Board does not consider the loss attributable to shareholders
as one of the performance indicators when implementing Short Term Incentive payments.
In addition to technical exploration success-resource growth, the Board considers the effective management of
safety, environmental and operational matters and successful management, acquisition and consolidation of
high quality projects together with successful management of the Group’s farm-in arrangements, as more
appropriate indicators of management performance for the financial year.
DIRECTORS’ INTERESTS
The relevant interest of each Director in the ordinary shares and options issued by the Company as notified by
the Directors to the Australian Securities Exchange at the date of this report, is set out in the table below.
Ordinary shares
Director
P Thompson
S Loh
P Mullens
P Rohner
B Cook
Ordinary shares
held at 1 July
2021
7,011,467
6,080,671
7,975,758
7,835,941
-
Received during
the year as
remuneration
-
-
-
-
-
Movement
during the
financial year
-
608,067
1,797,576
4,157,313
-
Ordinary
Shares held at
30 June 2022
7,011,467
6,688,738
9,773,334
11,993,254
-
Ordinary shares
held at the date
of the Directors’
Report
7,011,467
6,688,738
13,773,334
15,859,379
-
1 Movement during the year relates to participation in placements, on-market purchases or shares issued on
exercise of options.
GBM Resources Annual Report 2022
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DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED)
Options
Director
P Thompson
S Loh
P Mullens
P Rohner
B Cook
Options held at 1
July 2021
-
-
4,200,000
4,456,144
300,000
Received during
the year as
remuneration
-
-
-
-
-
Movement
during the
financial year
-
-
-
60,157
-
Options held
at 30 June
2022
-
-
4,200,000
4,516,301
300,000
Options held at
the date of the
Directors’
Report
-
-
200,000
516,301
300,000
LOANS TO DIRECTORS AND EXECUTIVES
There were no loans entered into with Directors or executives during the financial year ended 30 June 2022.
OTHER TRANSACTIONS WITH KEY MANAGEMENT PERSONNEL
During the year, the Company incurred costs of $11,445 (2021: $20,060) with Core Metallurgy Pty Ltd an entity
associated with Mr Peter Rohner, for project consulting fees relating to White Dam. At 30 June 2022, no
amount was owing to Core Metallurgy Pty Ltd (2021: $528).
Office rent of $4,000 (2021: $12,000) was incurred with Ironbark Pacific Pty Ltd, an entity associated with Mr
Peter Mullens. At 30 June 2022, there was no amount owing to Ironbark Pacific Pty Ltd (2021: $nil).
End of Remuneration Report
INDEMNIFICATION AND INSURANCE OF OFFICERS AND AUDITORS
During the year, the Company paid an insurance premium to insure certain officers of the Company. The officers
of the Company covered by the insurance policy include the Directors named in this report.
The Directors and Officers Liability insurance provides cover against all costs and expenses that may be incurred
in defending civil or criminal proceedings that fall within the scope of the indemnity and that may be brought
against the officers in their capacity as officers of the Company. The insurance policy does not contain details
of the premium paid in respect of individual officers of the Company. Disclosure of the nature of the liability
cover and the amount of the premium is subject to a confidentiality clause under the insurance policy.
Other than the above, the Group has not, during or since the end of the financial year, given an indemnity or
entered an agreement to indemnify, or paid or agreed to pay insurance premiums for the Directors, officers or
auditors of the Company or the controlled entity.
PROCEEDINGS ON BEHALF OF THE COMPANY
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring
proceedings on behalf of the Company, or to intervene in any proceedings to which the Company is a party, for
the purpose of taking responsibility on behalf of the Company for all or part of those proceedings.
No proceedings have been brought or intervened in on behalf of the Company with leave of the Court under
section 237 of the Corporations Act 2001.
GBM Resources Annual Report 2022
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DIRECTORS’ REPORT
NON-AUDIT SERVICES
No non-audit services were provided by the external auditors in respect of the current or preceding financial
year.
AUDITOR’S INDEPENDENCE DECLARATION
A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001,
is set out on the following page.
Signed in accordance with a resolution of the Board of Directors.
Dated this 30th day of September 2022
PETER MULLENS
Executive Chairman
GBM Resources Annual Report 2022
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AUDITOR’S INDEPENDENCE DECLARATION
GBM Resources Annual Report 2022
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CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2022
Share of joint venture income
Share of joint venture expenses
Net income from joint venture
Revenue from gold and silver sales
Interest income
Gain on sale of assets
Bargain purchase on acquisition
Other revenue
Processing expenses
Royalty expenses
Employee expenses
Consulting and professional services
Interest and finance costs
Exploration expenditure expensed and written off
Depreciation and amortisation expenses
Impairment losses
Fair value loss on investments
Administration and other expenses
(Loss)/profit before income tax
Income tax benefit
(Loss)/profit for the year
Note
4
22(a)
4
5
5
5
5
13
6
Consolidated
2022
$
504,334
(444,626)
59,708
3,332,817
15,555
2,808,396
1,216,826
292,416
(2,017,057)
(262,768)
(674,087)
(729,611)
(14,400)
(445,900)
(354,082)
(405,277)
(2,477,931)
(986,946)
2021
$
1,460,014
(1,020,842)
439,172
-
9,407
2,815,279
-
314,874
-
-
(783,727)
(473,597)
(34,096)
(953,108)
(130,562)
-
(363,615)
(572,176)
(642,341)
267,851
-
-
(642,341)
267,851
Other comprehensive income
-
-
Total comprehensive (loss)/income for the year
(642,341)
267,851
Basic (loss)/earnings per share
Diluted (loss)/earnings per share
7
7
Cents
(0.1)
(0.1)
Cents
0.7
0.7
The accompanying notes form part of these financial statements
GBM Resources Annual Report 2022
P a g e | 65
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT
30 JUNE 2022
Note
Consolidated
2022
$
Current assets
Cash and cash equivalents
Trade and other receivables
Prepayments
Asset held-for-sale
Inventories
Total Current Assets
Non-current assets
Exploration and evaluation expenditure
Right-of-use assets
Property, plant and equipment
Capitalised option costs
Financial assets
Bonds and security deposits
Total Non-current Assets
TOTAL ASSETS
Current liabilities
Trade and other payables
Employee leave liabilities
Lease liabilities
Borrowings
Total Current Liabilities
Non-current liabilities
Lease liabilities
Borrowings
Provisions
Total Non-current Liabilities
TOTAL LIABILITIES
NET ASSETS
Equity
Issued capital
Option capital
Accumulated losses
Share based payment reserve
TOTAL EQUITY
26
8
9
10
11
12
13
14
15
16
17
16
17
18
19
21
21
2021
$
5,676,340
1,030,582
22,913
241,654
673,654
836,149
243,683
-
945,891
1,049,947
3,075,670
7,645,143
37,442,813
176,239
3,533,402
-
1,634,642
9,842,639
19,574,428
-
1,380,604
45,000
3,516,640
5,932,649
52,629,735
30,449,321
55,705,405
38,094,464
2,914,290
232,018
84,033
32,344
2,394,223
-
-
20,304
3,262,685
2,414,527
97,460
35,250
13,865,305
-
43,415
6,296,101
13,998,015
6,339,516
17,260,700
8,754,043
38,444,705
29,340,421
62,217,473
977,990
(25,523,814)
773,056
53,575,033
-
(24,881,473)
646,861
38,444,705
29,340,421
The accompanying notes form part of these financial statements
GBM Resources Annual Report 2022
P a g e | 66
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR
ENDED 30 JUNE 2022
Consolidated
Note
Issued
capital
$
Option
capital
$
Accumulated
losses
$
Share
based
payment
reserve
$
Total
$
Balance at 1 July 2020
Shares issued (net of costs)
Profit attributable to
members of the Company
Other comprehensive income
Total comprehensive income
for the year
Exercise of convertible notes
Exercise of options/rights
Vesting of options/rights
19
21
36,986,753
15,575,384
-
-
-
700,000
312,896
-
Balance at 30 June 2021
53,575,033
19
21
53,575,033
7,428,252
-
-
Balance at 1 July 2021
Shares issued (net of costs)
Loss attributable to
members of the Company
Other comprehensive income
Total comprehensive loss for
the year
Issue of options
Exercise of options/rights
Vesting of options/rights
-
-
1,214,188
-
-
1,277,091
(299,101)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(25,149,324)
-
362,913 12,200,342
- 15,575,384
267,851
-
267,851
-
-
-
-
-
267,851
-
-
-
(252,038)
535,986
267,851
700,000
60,858
535,986
(24,881,473)
646,861 29,340,421
(24,881,473)
-
646,861 29,340,421
7,428,252
-
(642,341)
-
(642,341)
-
-
-
-
-
(642,341)
-
-
-
(15,000)
141,195
(642,341)
1,277,091
900,087
141,195
Balance at 30 June 2022
62,217,473
977,990
(25,523,814)
773,056 38,444,705
The accompanying notes form part of these financial statements
GBM Resources Annual Report 2022
P a g e | 67
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED
30 JUNE 2022
Cash flows from operating activities
Cash receipts from gold sales
Payments to suppliers and employees
Recognition of share of joint venture operating
cash assets
Interest received
Other income
Government grant
JV management fee income
Interest and other costs of finance paid
Note
Consolidated
2022
$
2021
$
3,837,151
(4,801,900)
1,460,014
(3,044,332)
48,386
15,555
10,376
184,000
207,220
(14,400)
126,207
9,407
-
50,000
12,072
(39,929)
Net cash flows used in operating activities
26(d)
(513,612)
(1,426,561)
Cash flows from investing activities
Payments for bonds and security deposits
Refunds of bonds and security deposits
Funds provided by JV partner under Farm-in
agreement
Payments for exploration and evaluation,
including JV Farm-in spend
Payments for acquisition of White Dam
Payments for acquisition of tenements
Proceeds on sale of tenements
Proceeds on sale of investments
Payments to acquire property, plant and
equipment
(3,951,364)
38,874
(44,592)
-
3,177,980
100,600
(11,821,702)
(560,950)
(2,228,397)
578,488
1,573,196
(6,462,120)
-
(45,000)
-
591,618
(229,481)
(792,539)
Net cash flows used in investing activities
(13,423,356)
(6,652,033)
Cash flows from financing activities
Proceeds from the issue of shares
Share issue costs
Proceeds from the issue/exercise of options
Proceeds from borrowings
Repayment of borrowings
Repayment of lease liabilities
Proceeds from issue of convertible notes
7,400,000
(431,748)
2,201,704
30,184
(26,309)
(72,291)
-
13,062,663
(748,668)
-
66,895
(3,176)
-
-
Net cash flows provided by financing activities
9,101,540
12,377,714
Net increase/(decrease) in cash held
Cash and cash equivalents at the beginning of the
financial year
Effect of foreign exchange on cash and cash
equivalents
Cash and cash equivalents at the end of the
financial year
(4,835,428)
4,299,120
5,676,340
1,382,072
(4,763)
(4,852)
26(a)
836,149
5,676,340
The accompanying notes form part of these financial statements
GBM Resources Annual Report 2022
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
GBM Resources Limited (‘the Company’) is a listed public company domiciled in Australia. The consolidated
financial report of the Company for the financial year ended 30 June 2022 comprises the Company and its
subsidiaries (together referred to as ‘the Group’).
The following is a summary of the material accounting policies adopted by the Group in the preparation of the
financial report. The accounting policies have been consistently applied, unless otherwise stated.
a) Basis of Preparation
The financial report is a general purpose financial report, which has been prepared in accordance with the
requirements of the Corporations Act 2001, and Australian Accounting Standards and Interpretations. The
financial report has also been prepared on an historical cost basis, unless otherwise stated. The financial
report is presented in Australian dollars. For the purpose of preparation of the consolidated financial
statements the Company is a for-profit entity.
Going Concern Basis for the Preparation of Financial Statements
The financial statements have been prepared on the going concern basis which contemplates the continuity
of normal business activities and the realisation of assets and discharge of liabilities in the normal course
of business.
As at 30 June 2022, the Group has cash assets of $836,149, total current assets of $3,075,670 and total
current liabilities of $3,262,685. The loss for the 2022 financial year was $642,341 and operating and
investing cash outflows were $13,936,968. Notwithstanding the fact that the Company incurred an
operating loss and has a working capital deficit, the Directors are of the opinion that the Company is a going
concern for the following reasons:
•
•
•
subsequent to the reporting date, the Company entered into a $10 million secured convertible
note facility with notes convertible at 8.75 cents, a substantial premium to the share price at the
time of the agreement. The notes are available for drawdown in two $5 million tranches and have
a 3 year term;
subsequent to the reporting date, the Company raised approximately $2 million (before costs)
from the exercise of options and share placements with sophisticated and institutional investors,
with a further $0.3 million in firm commitments.
expenditure on future exploration activity is largely discretionary and is entirely dependent on
available cash.
The Directors will continue to manage the Group’s activities with due regard to current and future funding
requirements. The directors reasonably expect that the Company will be able to raise sufficient capital to
fund the Group’s exploration and working capital requirements if required, and that the Group will be able
to settle debts as and when they become due and payable.
The Group’s ability to continue as a going concern and meet future working capital requirements is
dependent on the above points being realised. Should the Company not be successful in generating the
required cash flows, there is a material uncertainty that may cast significant doubt on the Group’s ability
to continue as a going concern and realise its assets and extinguish its liabilities in the normal course of
business and at the amounts stated in the financial statements.
Adoption of New and Revised Standards - Changes in accounting policies on initial application of
accounting standards
The Group has adopted all of the new, revised or amending Accounting Standards and Interpretations
issued by the Australian Accounting Standards Board (“AASB”) that are mandatory for the current reporting
period. The adoption of these Accounting Standards and Interpretations did not have any significant impact
on the financial performance or position of the Group during the financial year.
Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not
been early adopted by the Group for the reporting year ended 30 June 2022. There are no material new or
amended Accounting Standards which will materially affect the Group.
GBM Resources Annual Report 2022
P a g e | 69
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
b) Statement of Compliance
The financial report was authorised for issue on 30 September 2022.
The financial report complies with Australian Accounting Standards, which include Australian equivalents to
International Financial Reporting Standards (AIFRS). Compliance with AIFRS ensures that the financial
report, comprising the financial statements and notes thereto, complies with International Financial
Reporting Standards (IFRS).
c) Principles of Consolidation
The consolidated financial statements comprise the financial statements of GBM Resources Limited and its
subsidiaries as at 30 June each year (the Group). The financial statements for the subsidiaries are prepared
for the same reporting period as the parent company, using consistent accounting policies.
In preparing the consolidated financial statements, all intercompany balances and transactions, income and
expenses and profit and losses resulting from intra-group transactions have been eliminated in full.
Subsidiaries are fully consolidated from the date on which control is transferred to the Group and cease to
be consolidated from the date on which the control is transferred out of the Group.
The acquisition of subsidiaries has been accounted for using the purchase method of accounting. The
purchase method of accounting involves allocating the cost of the business combination to the fair value of
the assets acquired and the liabilities and contingent liabilities assumed at the date of acquisition.
Accordingly, the consolidated financial statements include the results of subsidiaries for the period from
their acquisition. Non-controlling interests represent the portion of profit and loss and net assets in
subsidiaries not held by the Group and are presented separately in the consolidated statement of profit or
loss and other comprehensive income and within equity in the consolidated statement of financial position.
d) Revenue Recognition
Revenue is recognised to the extent that control has passed and it is probable that the economic benefits
will flow to the Group and the revenue can be reliably measured. The following specific recognition criteria
must also be met before revenue is recognised:
Interest Revenue
Interest revenue is recognised on a time proportionate basis that takes into account the effective yield on
the financial asset.
Management Fees
Revenue from farm-in management fees is recognised at the time the fees are invoiced for services
rendered.
Gold Sales
With the sale of gold bullion, control is determined to occur when physical bullion from a contracted sale
is transferred from the Company’s account into the account of the buyer. Revenue from gold sales is
recognised at this point.
e)
Income Tax
Current tax assets and liabilities for the current and prior periods are measured at the amount expected
to be recovered from, or paid to, the taxation authorities. The tax rates and tax laws used to compute the
amount are those that are enacted or substantively enacted by the balance date.
Deferred income tax is provided on all temporary differences at the balance date between the tax bases of
assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred income tax liabilities are recognised for all taxable temporary differences except:
• when the deferred income tax liability arises from the initial recognition of goodwill or of an asset
or liability in a transaction that is not a business combination and that, at the time of the
transaction, affects neither the accounting profit nor taxable profit or loss; or
• when the taxable temporary difference is associated with investments in subsidiaries, associates
or interests in joint ventures, and the timing of the reversal of the temporary difference can be
controlled and it is probable that the temporary difference will not reverse in the foreseeable
future.
GBM Resources Annual Report 2022
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused
tax assets and unused tax losses, to the extent that it is probable that taxable profit will be available against
which the deductible temporary differences and the carry-forward of unused tax credits and unused tax
losses can be utilised, except:
• when the deferred income tax asset relating to the deductible temporary difference arises from
the initial recognition of an asset or liability in a transaction that is not a business combination
and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss;
or
• when the deductible temporary difference is associated with investments in subsidiaries,
associates or interests in joint ventures, in which case a deferred tax asset is only recognised to
the extent that it is probable that the temporary difference will reverse in the foreseeable future
and taxable profit will be available against which the temporary difference can be utilised.
The carrying amount of deferred income tax assets is reviewed at each balance date and reduced to the
extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the
deferred income tax asset to be utilised.
Unrecognised deferred income tax assets are re-assessed at each balance date and are recognised to the
extent that it has become probable that future taxable profit will allow the deferred tax asset to be
recovered. Deferred income tax assets and liabilities are measured at the tax rates that are expected to
apply to the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that
have been enacted or substantively enacted at the balance date.
Income taxes relating to items recognised directly in equity are recognised in equity and not in profit or loss.
Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off
current tax assets against current tax liabilities and the deferred tax assets and liabilities relate to the same
taxable entity and the same taxation authority.
f) Other Taxes
Revenues, expenses and assets are recognised net of the amount of GST except:
• when the GST incurred on a purchase of goods and services is not recoverable from the taxation
authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as
part of the expense item as applicable; and
•
receivables and payables, which are stated with the amount of GST included.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of
receivables or payables in the consolidated statement of financial position.
g) Financing Costs
Net financing costs comprise interest payable on borrowings calculated using the effective interest
method.
Borrowing costs are expensed as incurred and included in net financing costs, where there is no qualifying
asset.
h) Leases
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised
at the present value of the lease payments to be made over the term of the lease, discounted using the
interest rate implicit in the lease or, if that rate cannot be readily determined, the Group's incremental
borrowing rate. Lease payments comprise of fixed payments less any lease incentives receivable, variable
lease payments that depend on an index or a rate, amounts expected to be paid under residual value
guarantees, exercise price of a purchase option when the exercise of the option is reasonably certain to
occur, and any anticipated termination penalties. The variable lease payments that do not depend on an
index or a rate are expensed in the period in which they are incurred.
GBM Resources Annual Report 2022
P a g e | 71
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts
are remeasured if there is a change in the following: future lease payments arising from a change in an
index or a rate used; residual guarantee; lease term; certainty of a purchase option and termination
penalties. When a lease liability is remeasured, an adjustment is made to the corresponding right-of use
asset, or to profit or loss if the carrying amount of the right-of-use asset is fully written down.
Right-of-use asset
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured
at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at
or before the commencement date net of any lease incentives received, any initial direct costs incurred,
and, except where included in the cost of inventories, an estimate of costs expected to be incurred for
dismantling and removing the underlying asset, and restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the
estimated useful life of the asset, whichever is the shorter. Where the Group expects to obtain ownership
of the leased asset at the end of the lease term, the depreciation is over its estimated useful life. Right-of
use assets are subject to impairment or adjusted for any remeasurement of lease liabilities.
The Group has elected not to recognise a right-of-use asset and corresponding lease liability for short-
term leases with terms of 12 months or less and leases of low-value assets. Lease payments on these
assets are expensed to profit or loss as incurred.
i) Cash and Cash Equivalents
Cash and short-term deposits in the consolidated statement of financial position comprise cash at bank
and in hand. Cash equivalents are short-term, highly liquid investments that are readily convertible to
known amounts of cash and which are subject to an insignificant risk of changes in value.
For the purposes of the consolidated statement of cash flows, cash and cash equivalents consist of cash
and cash equivalents as defined above, net of outstanding bank overdrafts.
j)
Trade and Other Receivables
Trade receivables, which generally have 30–90 day terms, are recognised at fair value and then are
subsequently measured at amortised cost and carried at original invoice amount less an allowance for any
expected credit loss. The Group makes use of a simplified approach in accounting for trade and other
receivables as well as contract assets and records the loss allowance as lifetime expected credit losses.
These are the expected shortfalls in contractual cash flows, considering the potential for default at any
point during the life of the financial instrument. In calculating, the Group uses its historical experience,
external indicators and forward-looking information to calculate the expected credit losses using a
provision matrix. The Group assesses impairment of trade receivables on a collective basis as they possess
shared credit risk characteristics, they have been grouped based on the days past due. Bad debts are
written off to the allowance when the debt is considered uncollectible.
k)
Inventories
Inventories are valued at the lower of cost or net realisable value. Cost is determined on a weighted
average basis and includes all costs incurred, based on a normal production capacity, in bringing each
product to its present location and condition. Cost of inventories comprises direct labour, materials,
contractor expenses, depreciation and an allocation of overhead. Net realisable value is the estimated
future sales price of the product produced based on the estimated gold and copper price less the estimated
costs of completion and the estimated costs necessary to make the sale.
l) Plant and Equipment
Plant and equipment is stated at cost, less accumulated depreciation and any accumulated impairment
losses. Such cost includes the cost of replacing parts that are eligible for capitalisation when the cost of
replacing the parts is incurred. Similarly, when each major inspection is performed, its cost is recognised
in the carrying amount of the plant and equipment as a replacement only if it is eligible for capitalisation.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Depreciation is calculated on a straight-line basis over the estimated useful life of the assets as follows:
Property and improvements
Office furniture and equipment
Plant and equipment
Motor Vehicles
10 – 40 years
2.5 - 20 years
0 - 40 years
8 years
The assets' residual values, useful lives and amortisation methods are reviewed, and adjusted if
appropriate, at each financial year end.
(i) Impairment
The carrying values of plant and equipment are reviewed for impairment at each reporting date, with
recoverable amount being estimated when events or changes in circumstances indicate that the carrying
value may be impaired.
The recoverable amount of plant and equipment is the higher of fair value less costs to sell and value in
use. In assessing value in use, the estimated future cash flows are discounted to their present value using
a pre-tax discount rate that reflects current market assessments of the time value of money and the risks
specific to the asset. For an asset that does not generate largely independent cash inflows, recoverable
amount is determined for the cash-generating unit to which the asset belongs, unless the asset's value in
use can be estimated to be close to its fair value.
An impairment exists when the carrying value of an asset or cash-generating units exceeds its estimated
recoverable amount. The asset or cash-generating unit is then written down to its recoverable amount.
(ii) Derecognition and Disposal
An item of property, plant and equipment is derecognised upon disposal or when no further future
economic benefits are expected from its use or disposal.
Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal
proceeds and the carrying amount of the asset) is included in profit or loss in the year the asset is de-
recognised.
m) Financial Instruments
Investments and other financial assets are initially measured at fair value. Transaction costs are included as
part of the initial measurement, except for financial assets at fair value through profit or loss. Such assets
are subsequently measured at either amortised cost or fair value depending on their classification.
Classification is determined based on both the business model within which such assets are held and the
contractual cash flow characteristics of the financial asset unless, an accounting mismatch is being avoided.
Financial assets are derecognised when the rights to receive cash flows have expired or have been
transferred and the consolidated entity has transferred substantially all the risks and rewards of ownership.
When there is no reasonable expectation of recovering part or all of a financial asset, its carrying value is
written off.
Financial assets at fair value through profit or loss
Financial assets not measured at amortised cost or at fair value through other comprehensive income are
classified as financial assets at fair value through profit or loss. Typically, such financial assets will be either:
(i)
held for trading, where they are acquired for the purpose of selling in the short-term with an intention
of making a profit, or a derivative; or
(ii) designated as such upon initial recognition where permitted. Fair value movements are recognised in
profit or loss.
Financial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive income include equity investments which the
consolidated entity intends to hold for the foreseeable future and has irrevocably elected to classify them
as such upon initial recognition.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Fair value hierarchy
All assets and liabilities measured at fair value are classified using a three level hierarchy based on the
lowest level of input that is significant to the entire fair value measurement, being Level 1: Quoted prices
(unadjusted) in active markets for identical assets or liabilities that the entity can access at the
measurement date; Level 2: Inputs other than quoted prices included within Level 1 that are observable for
the asset or liability, either directly or indirectly; and Level 3: Unobservable inputs for the asset or liability.
Considerable judgement is required to determine what is significant to fair value and therefore which
category the asset or liability is placed in can be subjective.
The Group measures some of its assets and liabilities at fair value on either a recurring or non-recurring
basis, depending on the requirements of the applicable Accounting Standard.
Fair value is the price the Group would receive to sell an asset or would have to pay to transfer a liability in
an orderly unforced transaction between independent, knowledgeable and willing market participants at
the measurement date and is based on the fair value hierarchy
Impairment of financial assets
The consolidated entity recognises a loss allowance for expected credit losses on financial assets which are
either measured at amortised cost or fair value through other comprehensive income. The measurement
of the loss allowance depends upon the Group's assessment at the end of each reporting period as to
whether the financial instrument's credit risk has increased significantly since initial recognition, based on
reasonable and supportable information that is available, without undue cost or effort to obtain.
Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12
month expected credit loss allowance is estimated. This represents a portion of the asset's lifetime
expected credit losses that is attributable to a default event that is possible within the next 12 months.
Where a financial asset has become credit impaired or where it is determined that credit risk has increased
significantly, the loss allowance is based on the asset's lifetime expected credit losses. The amount of
expected credit loss recognised is measured on the basis of the probability weighted present value of
anticipated cash shortfalls over the life of the instrument discounted at the original effective interest rate.
For financial assets measured at fair value through other comprehensive income, the loss allowance is
recognised within other comprehensive income. In all other cases, the loss allowance is recognised in profit
or loss.
n) Exploration and Evaluation Expenditure
Exploration and evaluation expenditures in relation to each separate area of interest are recognised as an
exploration and evaluation asset in the year in which they are incurred where the following conditions are
satisfied:
(i)
(ii) at least one of the following conditions is also met:
the rights to tenure of the area of interest are current; and
(a) the exploration and evaluation expenditures are expected to be recouped through successful
development and exploitation of the area of interest, or alternatively, by its sale; or
(b) exploration and evaluation activities in the area of interest have not at the reporting date reached
a stage which permits a reasonable assessment of the existence or otherwise of economically
recoverable reserves, and active and significant operations in, or in relation to, the area of interest
are continuing.
Exploration and evaluation assets are initially measured at cost and include acquisition of rights to explore,
studies, exploratory drilling, trenching and sampling and associated activities and an allocation of
depreciation and amortised of assets used in exploration and evaluation activities. General and
administrative costs are only included in the measurement of exploration and evaluation costs where they
are related directly to operational activities in a particular area of interest.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that
the carrying amount of an exploration and evaluation asset may exceed its recoverable amount. The
recoverable amount of the exploration and evaluation asset (for the cash generating unit(s) to which it has
been allocated being no larger than the relevant area of interest) is estimated to determine the extent of
the impairment loss (if any). Where an impairment loss subsequently reverses, the carrying amount of the
asset is increased to the revised estimate of its recoverable amount, but only to the extent that the
increased carrying amount does not exceed the carrying amount that would have been determined had no
impairment loss been recognised for the asset in previous years.
Where a decision has been made to proceed with development in respect of a particular area of interest,
the relevant exploration and evaluation asset is tested for impairment and the balance is then reclassified
to development.
o)
Impairment of Assets
The Group assesses at each reporting date whether there is an indication that an asset may be impaired.
If any such indication exists, or when annual impairment testing for an asset is required, the Group makes
an estimate of the asset’s recoverable amount. An asset’s recoverable amount is the higher of its fair value
less costs to sell and its value in use and is determined for an individual asset, unless the asset does not
generate cash inflows that are largely independent of those from other assets or groups of assets and the
asset's value in use cannot be estimated to be close to its fair value. In such cases the asset is tested for
impairment as part of the cash-generating unit to which it belongs. When the carrying amount of an asset
or cash-generating unit exceeds its recoverable amount, the asset or cash-generating unit is considered
impaired and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-
tax discount rate that reflects current market assessments of the time value of money and the risks specific
to the asset. Impairment losses relating to continuing operations are recognised in those expense
categories consistent with the function of the impaired asset unless the asset is carried at re-valued
amount (in which case the impairment loss is treated as a re-valuation decrease).
An assessment is also made at each reporting date as to whether there is any indication that previously
recognised impairment losses may no longer exist or may have decreased. If such indication exists, the
recoverable amount is estimated. A previously recognised impairment loss is reversed only if there has
been a change in the estimates used to determine the asset’s recoverable amount since the last
impairment loss was recognised. If that is the case the carrying amount of the asset is increased to its
recoverable amount. That increased amount cannot exceed the carrying amount that would have been
determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such
reversal is recognised in profit or loss unless the asset is carried at re-valued amount, in which case the
reversal is treated as a re-valuation increase. After such a reversal the depreciation charge is adjusted in
future periods to allocate the asset’s revised carrying amount, less any residual value, on a systematic basis
over its remaining useful life.
p) Trade and Other Payables
Trade payables and other payables are carried at amortised cost and represent liabilities for goods and
services provided to the Group prior to the end of the financial year that are unpaid and arise when the
Group becomes obliged to make future payments in respect of the purchase of these goods and services.
Trade and other payables are presented as current liabilities unless payment is not due within 12 months.
q)
Interest Bearing Liabilities
All loans and borrowings are initially recognised at the fair value of the consideration received less directly
attributable transaction costs. After initial recognition,
interest-bearing loans and borrowings are
subsequently measured at amortised cost using the effective interest method. Gains and losses are
recognised in profit or loss when the liabilities are de-recognised.
Where borrowings contain a conversion option and the number of shares to be issued is fixed the amount
of borrowing is initially recognised at fair value of a similar liability that does not have an equity conversion
option. The equity conversion feature is the residual. Subsequently the borrowing is measured at
amortised cost and the equity portion is not remeasured.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
r) Employee Benefits
(i) Wages, Salaries, Annual Leave and Sick Leave
Liabilities for wages and salaries, including non-monetary benefits, annual leave and non-accumulating
sick leave expected to be settled within 12 months of the reporting date are recognised in other payables
in respect of employees’ services up to the reporting date. They are measured at the amounts expected
to be paid when the liabilities are settled. Liabilities for non-accumulating sick leave are recognised when
the leave is taken and are measured at the rates paid or payable.
(ii) Long Service Leave
The liability for long service leave is recognised in the provision for employee benefits and measured as
the present value of expected future payments to be made in respect of services provided by employees
up to the reporting date using the projected unit credit method. Consideration is given to expected future
wage and salary levels, experience of employee departures, and period of service. Expected future
payments are discounted using market yields at the reporting date on national government bonds with
terms to maturity and currencies that match, as closely as possible, the estimated future cash outflows.
s) Share Based Payments
Equity Settled Transactions:
The Group provides benefits to employees (including senior executives) of the Group in the form of share
based payments, whereby employees render services in exchange for shares or rights over shares (equity-
settled transactions).
The cost of these equity-settled transactions with employees is measured by reference to the fair value
of the equity instruments at the date at which they are granted. The fair value of options is determined
by using a Black and Scholes model. Share rights are valued at the underlying market value of the ordinary
shares over which they are granted unless they contain market conditions in which case such rights are
valued using an appropriate valuation model.
In valuing equity-settled transactions, no account is taken of any performance conditions, other than
conditions linked to the price of the shares of GBM Resources Limited (market conditions) if applicable.
The cost of equity-settled transactions is recognised, together with a corresponding increase in equity,
over the period in which the performance and/or service conditions are fulfilled, ending on the date on
which the relevant employees become fully entitled to the award (the vesting period).
The cumulative expense recognised for equity-settled transactions at each reporting date until vesting
date reflects (i) the extent to which the vesting period has expired and (ii) the Group’s best estimate of
the number of equity instruments that will ultimately vest. No adjustment is made for the likelihood of
market performance conditions being met as the effect of these conditions is included in the
determination of fair value at grant date. The charge or credit to the consolidated statement of profit or
loss and other comprehensive income for a period represents the movement in cumulative expense
recognised as at the beginning and end of that period.
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is only
conditional upon a market condition. If the terms of an equity-settled award are modified, as a minimum
an expense is recognised as if the terms had not been modified. In addition, an expense is recognised for
any modification that increases the total fair value of the share based payment arrangement, or is
otherwise beneficial to the employee, as measured at the date of modification.
If an equity-settled award is cancelled, the cumulative expense recognised in respect of that award is
transferred from its respective reserve to accumulated losses. However, if a new award is substituted for
the cancelled award and designated as a replacement award on the date that it is granted, the cancelled
and new awards are treated as if they were a modification of the original award, as described in the
previous paragraph.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
t) Share Capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares
or options are shown in equity as a deduction, net of tax, from the proceeds.
u) Earnings Per Share
Basic earnings/loss per share ("EPS") is calculated by dividing the net profit or loss attributable to
members of the Company for the reporting period, after excluding any costs of servicing equity (other
than ordinary shares and converting preference shares classified as ordinary shares for EPS calculation
purposes), by the weighted average number of ordinary shares of the Company, adjusted for any bonus
element.
Diluted EPS is calculated by dividing the basic EPS earnings, adjusted by the after tax effect of financing
costs associated with dilutive potential ordinary shares and the effect on revenues and expenses of
conversion, by the weighted average number of ordinary shares and potential dilutive ordinary shares,
adjusted for any bonus element.
v) Business Combinations
The acquisition method of accounting is used to account for all business combinations, including business
combinations involving entities or business under common control, regardless of whether equity
instruments or other assets are acquired. The consideration transferred for the acquisition of a subsidiary
comprises the fair value of the assets transferred, the liabilities incurred and the equity interests issued
by the Group. The consideration transferred also includes the fair value of any contingent consideration
arrangement and the fair value of any pre-existing equity interest in the subsidiary. Acquisition-related
costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities
assumed in a business combination are, with limited exceptions, measured initially at their fair values at
the acquisition date. On an acquisition-by-acquisition basis, the Group recognises any non-controlling
interest in the acquiree either at fair value or at the non-controlling interest’s proportionate share of the
acquiree’s net identifiable assets.
The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree
and the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of
the Group’s share of the net identifiable assets acquired is recorded as goodwill. If those amounts are
less than the fair value of the net identifiable assets of the subsidiary acquired and the measurement of
all amounts has been reviewed, the difference is recognised directly in profit or loss as a bargain purchase.
Where a business combination is achieved in stages, the Group’s previously held equity interest in the
acquiree is remeasured to fair value at the acquisition date (i.e. the date when the Group attains control)
and the resulting gain or loss, if any, is recognised in profit or loss. Amounts arising from interests in the
acquiree prior to the acquisition date that have previously been recognised in other comprehensive
income are reclassified to profit or loss where such treatment would be appropriate if that interest were
disposed of.
If the initial accounting for a business combination is incomplete by the end of the reporting period in
which the combination occurs, the Group reports provisional amounts for the items for which the
accounting is incomplete. These provisional amounts are adjusted during the measurement period (see
above), or additional assets or liabilities recognised, to reflect new information obtained about facts and
circumstances that existed as of the acquisition date that, if known, would have affected the amounts
recognised as of that date.
Where settlement of any part of cash consideration is deferred, the amounts payable in the future are
discounted to their present value as at the date of exchange. The discount rate used is the entity’s
incremental borrowing rate, being the rate at which a similar borrowing could be obtained from an
independent financier under comparable terms and conditions.
Where the consideration transferred by the Group in a business combination includes assets or liabilities
resulting from a contingent consideration arrangement, the contingent consideration is measured at its
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
acquisition-date fair value. Changes in the fair value of the contingent consideration that qualify as
measurement period adjustments are adjusted retrospectively, with corresponding adjustments against
goodwill. Measurement period adjustments are adjustments that arise from additional information
obtained during the ‘measurement period’ (which cannot exceed one year from the acquisition date)
about facts and circumstances that existed at the acquisition date.
The subsequent accounting for changes in the fair value of contingent consideration that do not qualify
as measurement period adjustments depends on how the contingent consideration is classified.
Contingent consideration that is classified as equity is not remeasured at subsequent reporting dates and
its subsequent settlement is accounted for within equity. Contingent consideration that is classified as an
asset or liability is remeasured at subsequent reporting dates in accordance with AASB 9, or AASB 137
‘Provisions, Contingent Liabilities and Contingent Assets’, as appropriate, with the corresponding gain or
loss being recognised in profit or loss.
w) Provision for Restoration and Rehabilitation
A provision for restoration and rehabilitation is recognised when there is a present obligation as a result
of development activities undertaken, it is probable that an outflow of economic benefits will be required
to settle the obligation, and the amount of the provision can be measured reliably. The estimated future
obligations include the costs of abandoning sites, removing facilities and restoring the affected areas.
The provision for future restoration costs is the best estimate of the present value of the expenditure
required to settle the restoration obligation at the balance date. Future restoration costs are reviewed
annually and any changes in the estimate are reflected in the present value of the restoration provision
at each balance date.
The initial estimate of the restoration and rehabilitation provision is capitalised into the cost of the related
asset and amortised on the same basis as the related asset, unless the present obligation arises from the
production of inventory in the period, in which case the amount is included in the cost of production for
the period. Changes in the estimate of the provision for restoration and rehabilitation are treated in the
same manner, except that the unwinding of the effect of discounting on the provision is recognised as a
finance cost rather than being capitalised into the cost of the related asset.
x) Parent Entity Financial Information
The financial information for the parent entity, GBM Resources Limited, disclosed in Note 34 has been
prepared on the same basis as the consolidated financial statements, except as set out below.
Investments in subsidiaries, associates and joint venture entities
Investments in subsidiaries, associates and joint venture entities are accounted for at cost in the parent
entity’s financial statements. Dividends received from associates are recognised in the parent entity’s
profit or loss, rather than being deducted from the carrying amount of these investments.
y) Critical Accounting Estimates and Judgements
Estimates and judgements are continually evaluated and are based on historical experience and other
factors, including expectations of future events that may have a financial impact on the Group and that
are believed to be reasonable under the circumstances.
Accounting for capitalised mineral exploration and evaluation expenditure
The Group’s accounting policy is stated at 1(n). A regular review is undertaken of each area of interest to
determine the reasonableness of continuing to carry forward costs in relation to that area of interest.
Share based payments
The Group uses independent advisors to assist in valuing share based payments.
Estimates and assumptions used in these valuations are disclosed in the notes in periods when these
share based payments are made.
Rehabilitation Provision
A provision has been made for the anticipated costs for future rehabilitation of land explored. The Group's
mining and exploration activities are subject to various laws and regulations governing the protection of
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
y) Critical Accounting Estimates and Judgements (continued)
the environment. The consolidated entity recognises management's best estimate for assets retirement
obligations and site rehabilitations in the period in which they are incurred. Actual costs incurred in the
future periods could differ materially from the estimates. Additionally, future changes to environmental
laws and regulations, life of mine estimates and discount rates could affect the carrying amount of this
provision.
Business Combinations
As disclosed in Note 22(a), during the year the Group completed the acquisition of 100% of the White
Dam Project which was previously an interest in a joint operation. Management has determined based
upon its assessment that the transaction constitutes a business combination as the acquiree constitutes
a business. Accordingly, AASB 3 Business Combinations has been applied with respect to the accounting
for the transaction. In addition, management have performed an assessment to determine the fair value
of the consideration and the previously held interest in relation to the acquisition, the fair value of the
net identifiable assets acquired and any resulting goodwill/bargain purchase. Management also engaged
independent experts to assist with the determination of the fair value of the net assets acquired.
Provision for Royalty
Under the acquisition of the White Dam Project (refer Note 22(a)), the consideration payable by the
Group includes $2,355,619 of future royalties payable on the JORC resources forming the White Dam
Project. The independent valuation undertaken made a number of assumptions including those on
production parameters, revenue received from production and discount rates. Actual royalties incurred
in future periods could differ materially from the estimate.
z) Government assistance and grants
Assistance received from the government by way of grant or other forms of assistance designed to provide
an economic benefit to the Group, is presented in the statement of financial position as deferred income,
in instances where the grant is related to assets. In all other cases, grant money is presented in the profit
and loss as other income. Grants are recognised when there is reasonable assurance that conditions will
be complied with and the grant will be received.
aa) Joint operations
A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement
have rights to the assets, and obligations for the liabilities, relating to the arrangement. The Group
considers the White Dam Production Joint Venture as a joint operation and has recognised its share of
jointly held assets, liabilities, revenue and expenses. These have been incorporated in the financial
statements under the appropriate classifications up until 31 July 2021 at which time the Group acquired
the White Dam Project. Refer to Note 22 (a).
2. FINANCIAL RISK MANAGEMENT
The Group has exposure to a variety of risks arising from its use of financial instruments. This note presents
information about the Group’s exposure to the specific risks, and the policies and processes for measuring and
managing those risks. Further quantitative disclosures are included throughout this financial report. The Board
of Directors has overall responsibility for the risk management framework.
(a) Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument
fails to meet its contractual obligations and arises principally from transactions with customers and
investments.
Trade and other receivables
The current nature of the business activity does not result in trading receivables. The receivables that the
Group recognises through its normal course of business are short term in nature and the most significant
(in quantity) is the receivable from the Australian Taxation Office and interest receivable. The risk of non-
recovery of receivables from this source is considered to be negligible.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
2. FINANCIAL RISK MANAGEMENT (CONTINUED)
Cash deposits
The Group’s primary banker is Commonwealth Bank. At balance date all operating accounts and funds held
on deposit are with this bank. The Directors believe any risk associated with the use of only one bank is
mitigated by its size and reputation. Except for this matter the Group currently has no significant
concentrations of credit risk.
(b) Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The
Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient
liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring
unacceptable losses or risking damage to the Group’s reputation.
The Group manages its liquidity risk by monitoring its cash reserves and forecast spending. Management is
cognisant of the future demands for liquid finance resources to finance the Group’s current and future
operations, and consideration is given to the liquid assets available to the Group before commitment is
made to future expenditure or investment.
(c) Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity
prices will affect the Group’s income or the value of its holdings of financial instruments. The objective of
market risk management is to manage and control market risk exposures within acceptable parameters,
while optimising any return.
Currency risk
The Group is not exposed to any currency risk other than the respective functional currencies of each
Company within the Group, the Australian dollar (AUD).
Interest rate risk
The Group is not exposed to significant interest rate risk and no financial instruments are employed to
mitigate risk (Note 24 – Financial Instruments).
Equity price risk
The Group was not exposed to any material equity price risk during the financial year (Note 24 – Financial
Instruments).
(d) Capital management
The Board’s policy is to maintain a strong capital base so as to maintain investor, creditor and market
confidence and to sustain future development of the business. The Board of Directors monitors capital
expenditure and cash flows as mentioned in (b).
3. SEGMENT REPORTING
Operating segments are identified and segment information disclosed, where appropriate, on the basis of
internal reports reviewed by the Company’s Board of Directors, being the Group’s Chief Operating Decision
Maker, as defined by AASB 8.
The Group has identified its operating segments based on the internal reports that are reviewed and used
by the Board of Directors in assessing performance and determining the allocation of resources. Reportable
segments disclosed are based on aggregating operating segments, where the segments have similar
characteristics. The Group has two operating segments, these being is mineral exploration and resource
development within Australia and production of minerals in Australia.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
3. SEGMENT REPORTING (CONTINUED)
The following tables present revenue and profit information and certain asset and liability information
regarding operating segments.
30 June 2022
Interest income
Other income
Segment income
Segment expenses
Segment profit/(loss)
Current assets
Non-current assets
Current liabilities
Non-current liabilities
Net assets
30 June 2021
Interest income
Other income
Segment income
Segment expenses
Segment profit/(loss)
Current assets
Non-current assets
Current liabilities
Non-current liabilities
Net assets
4. OTHER REVENUE AND OTHER GAINS/LOSSES
Other Revenue
Gain on disposal of exploration assets 1
Gain on disposal of investments
Joint venture management fee
Government grant income
Option fee income for Mayfield Project sale
Other income
Mineral
Exploration
$
15,555
3,100,812
3,116,367
(5,209,053)
(2,092,686)
1,999,266
47,792,183
(2,734,199)
(9,667,147)
37,390,103
9,407
3,130,153
3,139,560
(3,310,881)
(171,321)
6,612,595
30,449,321
(2,005,292)
(6,339,516)
28,717,108
Mineral
Production
$
-
5,053,977
5,053,977
(3,603,632)
1,450,345
1,076,404
4,837,552
(528,486)
(4,330,868)
1,054,602
-
1,460,014
1,460,014
(1,020,842)
439,172
1,032,548
-
(409,225)
-
623,323
Consolidated
$
15,555
8,154,789
8,170,344
(8,812,685)
(642,341)
3,075,670
52,629,735
(3,262,685)
(13,998,015)
38,444,705
9,407
4,590,167
4,599,574
(4,331,723)
267,851
7,645,143
30,449,321
(2,414,517)
(6,339,516)
29,340,421
Note
Consolidated
2022
$
2021
$
2,808,396
4,087
237,952
-
40,000
10,377
2,813,622
1,657
75,924
234,000
-
4,950
3,100,812
3,130,153
1 2022: Gain on disposal of Brightlands Milo tenement. (2021: Gain on disposal of a 50% interest on the
Malmsbury Gold Project). Refer Note 22(e).
GBM Resources Annual Report 2022
P a g e | 81
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Note
Consolidated
2022
$
2021
$
5. EXPENSES
Employee expenses
Gross employee benefit expense:
Wages and salaries
Directors’ fees
Superannuation expense
Share based remuneration
Other employee costs
Less amount allocated to production
Less amount allocated to exploration
Net consolidated statement of profit or loss and
other comprehensive income employee benefit
expense
Depreciation expense:
Property and improvements
Office equipment and software
Site equipment
Motor vehicles
Buildings
Mine properties
Right-of-use asset
12
12
12
12
12
12
11
Other costs:
Unallocated exploration costs expensed
Impairment of SART plant on independent
valuation. Refer Note 22(a).
3,247,680
487,521
351,648
141,195
185,449
4,413,493
(1,056,004)
(2,683,402)
1,273,571
504,218
159,272
351,668
46,225
2,334,954
-
(1,551,227)
674,087
783,727
2,645
39,280
70,295
17,527
72,635
74,155
77,545
2,645
32,620
30,523
2,978
-
61,796
-
354,082
130,562
445,900
405,277
953,108
-
Consulting and professional services expenditure includes share-based payments of $nil (2021: $57,103).
GBM Resources Annual Report 2022
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Note
Consolidated
2022
$
2021
$
6.
INCOME TAX
Income tax recognised in profit or loss
a)
The prima facie tax benefit on the operating result is
reconciled to the income tax provided in the financial
statements as follows:
Accounting profit/(loss) before income tax from
continuing operations
Income tax expense/(benefit) at 25% (2021: 26%)
Non-deductible share based payments
Non-assessable income
Non-deductible costs
Capital raising costs claimed
Plant and equipment
Unrealised movement in fair value of financial assets
Unused tax losses and temporary differences not
brought to account
Income tax (benefit) reported in the consolidated
statement of profit or loss and other comprehensive
income
(642,341)
267,851
(160,585)
62,829
(304,207)
1,755
(76,081)
75,274
619,483
69,641
106,280
(13,000)
-
(63,276)
-
94,540
(218,468)
(194,185)
-
-
The tax rate used in the above reconciliation is the corporate tax rate of 25% (2021: 26%) payable by
Australian corporate entities on taxable profits under Australian tax law.
b) Unrecognised deferred tax assets and liabilities
The following deferred tax assets and liabilities have not
been brought to account:
Unrecognised deferred tax
assets relate to:
Losses available for offset
against future taxable income
Investments
Capital raising costs
Accrued expenses and leave liabilities
Rehabilitation provisions
Unrecognised deferred tax liabilities relate to:
Inventory
Property, plant and equipment
Exploration expenditure
12,841,639
407,859
230,018
71,234
3,481,217
17,031,967
(83,801)
(247,941)
(8,186,163)
(8,517,905)
10,057,409
-
172,065
135,722
1,636,986
12,002,182
-
-
(4,926,420)
(4,926,420)
Net unrecognised deferred tax asset
8,514,062
7,075,762
The deductible temporary differences and tax losses do not expire under current tax legislation. Potential
deferred tax assets attributable to tax losses carried forward have not been brought to account because
the Directors do not believe it is appropriate to regard realisation of the future tax benefit as probable.
GBM Resources Annual Report 2022
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
6.
INCOME TAX (continued)
The potential future income tax benefit will only be obtained if:
I.
II.
III.
the Group derives future assessable income of a nature and an amount sufficient to enable the
benefit to be realised in accordance with Division 170 of the Income Tax Assessment Act 1997;
the Group companies continue to comply with the conditions for deductibility imposed by the law;
and
no changes in tax legislation adversely affect the Group in realising the benefits.
Consolidated
2022
$
2021
$
7. EARNINGS/(LOSS) PER SHARE
Profit/(loss) used in calculation of earnings/(loss) per share
(642,341)
267,851
Basic earnings/(loss) per share
Diluted earnings/(loss) per share
Weighted average number of shares used in:
Calculation of basic earnings/(loss) per share
Calculation of diluted earnings/(loss) per share
Cents
(0.1)
(0.1)
#
Cents
0.7
0.7
#
495,181,256
495,181,256
390,621,589
409,860,204
Options and performance share rights
Options and share rights to acquire ordinary shares granted by the Company and not exercised at the
reporting date have been included in the determination of diluted earnings per share to the extent to which
they are dilutive. There are no options or share rights on issue at 30 June 2022 that are considered to be
dilutive.
8. TRADE AND OTHER RECEIVABLES
Current
Trade receivables
Refundable exploration costs1
GST recoverable
Other debtors
Consolidated
2022
$
2021
$
5,427
92,144
146,112
-
243,683
223,796
452,366
136,168
218,252
1,030,582
1 Amounts receivable from joint venture partners. (2021: Refundable from Novo Resources Corp in respect
of exploration activities undertaken at the Malmsbury project since the exercise of the option).
There is no expected credit loss in relation to the trade and other receivables at the balance date. The
carrying amount of trade and other receivables are assumed to approximate their fair values due to their
short-term nature.
GBM Resources Annual Report 2022
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
9.
INVENTORIES
Copper on hand
Gold on hand
Reagents and consumables
Consolidated
2022
$
366,908
525,547
157,492
1,049,947
2021
$
538,667
80,047
54,940
673,654
Note
Consolidated
2022
$
2021
$
10. EXPLORATION AND EVALUATION EXPENDITURE
Exploration and evaluation phase:
Capitalised costs at the start of the financial
year
Acquisition costs capitalised – Straits Gold PL
Acquisition costs capitalised – Tenements 1
Acquisition costs capitalised – Twin Hills
Acquisition costs capitalised – White Dam 2
Exploration and evaluation costs incurred
(excluding joint venture costs incurred)
Capitalised rehabilitation costs (note 18)
Less: costs relating to tenements sold or to be
sold
Less: previously capitalised costs written off 1
Less: exploration costs not capitalised
Capitalised costs at the end of the financial year
5
5
19,574,428
-
460,000
2,228,397
3,043,000
10,030,704
3,273,586
(721,402)
-
(445,900)
37,442,813
10,848,146
2,999,998
-
-
-
7,331,097
464,694
(1,116,399)
-
(953,108)
19,574,428
1 Fair value of shares issued to acquire exploration permit application EPM 27554 in the Drummond Basin
from Yacimiento Pty Ltd and to acquire EPM17850 from Native Mineral Resources Pty Ltd.
2 Fair value of exploration tenements and JORC resources at White Dam. Refer Note 22(a).
The ultimate recoupment of exploration and evaluation expenditure carried forward is dependent on
successful development and commercial exploitation or alternatively, sale of the respective areas.
11. RIGHT-OF-USE ASSET
Note
Consolidated
2022
$
Opening balance
Right-of-use asset additions
Depreciation expense
253,784
(77,545)
176,239
The Group leases office space in Brisbane, Australia under an agreement for a term of 3 years.
2021
$
-
-
-
-
GBM Resources Annual Report 2022
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Note
Consolidated
2022
$
2021
$
12. PROPERTY, PLANT AND EQUIPMENT
Carrying values at 30 June:
Property and improvements:
Cost
Depreciation
Office equipment and software:
Cost
Depreciation
Site equipment and plant:
Cost
Depreciation
Motor vehicles:
Cost
Depreciation
Buildings:
Cost
Depreciation
Mine properties-
Cost
Depreciation
Impairment
193,117
(138,126)
54,991
292,758
(246,965)
45,793
1,144,187
(231,958)
912,229
279,840
(151,138)
128,702
2,264,000
(72,635)
2,191,365
741,550
(135,951)
(405,277)
200,322
193,117
(135,481)
57,636
281,499
(207,685)
73,814
611,824
(161,663)
450,161
252,850
(133,611)
119,239
-
-
-
741,550
(61,796)
-
679,754
Total
3,533,402
1,380,604
GBM Resources Annual Report 2022
P a g e | 86
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Note
Consolidated
2022
$
2021
$
12. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
Reconciliation of movements:
Property and improvements:
Opening net book value
Depreciation
Closing net book value
Office equipment and software:
Opening net book value
Additions
Depreciation
Closing net book value
Site equipment and plant:
Opening net book value
Additions
Depreciation
Closing net book value
Motor vehicles:
Opening net book value
Additions
Depreciation
Closing net book value
Buildings
Opening net book value
Additions
Depreciation
Closing net book value
Mine properties-Capital Work in Progress:
Opening net book value
Additions
Depreciation
Impairment
Closing net book value
5
5
5
5
5
5
57,636
(2,645)
54,991
73,814
11,259
(39,280)
45,793
450,161
532,363
(70,295)
912,229
119,239
26,990
(17,527)
128,702
-
2,264,000
(72,635)
2,191,365
679,754
-
(74,155)
(405,277)
200,322
60,281
(2,645)
57,636
1,158
105,276
(32,620)
73,814
3,770
476,914
(30,523)
450,161
-
122,217
(2,978)
119,239
-
-
-
-
632,315
109,235
(61,796)
-
679,754
Total
3,533,402
1,380,604
GBM Resources Annual Report 2022
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Note
Consolidated
2022
$
2021
$
13. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS
Balance at the start of the financial year
Investments acquired - Novo 1
Investments acquired – Consolidated Uranium 2
Shares transferred 3
Disposal of investments 4
Loss on investment recognised through profit or
loss5
Balance at the end of the financial year
3,516,640
-
2,287,075
(110,120)
(1,581,022)
(2,477,931)
1,634,642
794,833
3,688,367
(13,338)
(589,607)
(363,615)
3,516,640
1 Fair value of fully paid ordinary shares received from Novo Resources Corp (Novo), a TSX-V listed company.
2 Fair value of fully paid ordinary shares received from Consolidated Uranium Inc. (a Canadian company
listed on TSXV: CUR) as part consideration for the Milo Project. Refer Note 22(e).
3 Shares transferred to suppliers as consideration for services received.
4 The fair value of shares sold.
5 Adjustment to carrying value of investment in shares based on TSX closing price and the AUD/CAD
exchange rates at 30 June for each reporting period. The loss on the investment has been recognised in the
Statement of Profit or Loss and Other Comprehensive Income.
Investments designated at fair value through profit or loss have been measured at Level 1 in the fair value
hierarchy. Refer to accounting policy at Note 1(m).
14. BONDS AND SECURITY DEPOSITS
Environmental bonds and security deposits for:
Mt Coolon Project
Yandan Project
White Dam Project
Twin Hills Project
Other
Note
Consolidated
2022
$
2021
$
1,238,000
5,077,151
1,940,000
1,467,656
119,832
9,842,639
765,806
5,077,151
-
-
89,692
5,932,649
GBM Resources Annual Report 2022
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
15. TRADE AND OTHER PAYABLES
Note
Consolidated
2022
$
Current
Unspent funds received from farm-in partner
Acquisition costs payable1
Trade creditors2
Sundry creditors and accruals
Employee liabilities
Share subscription liability
Royalty payable
334,651
12,500
1,934,172
400,234
148,645
24,525
59,563
2,914,290
2021
$
-
12,500
1,798,741
533,208
49,774
-
-
2,394,223
1 Acquisition costs payable to Drummond Gold Limited pursuant to the acquisition of Mt Coolon Gold
Mines Pty Ltd.
2 Trade payables are non-interest bearing and are normally settled on 30 day terms.
16. LEASE LIABILITIES
Current
Non-current
Opening balance
Increase in liability on new lease
Principal repayments
Lease liabilities at the end of the period
Note
Consolidated
2022
$
2021
$
84,033
97,460
181,493
-
253,784
(72,291)
181,493
-
-
-
-
-
-
-
During the current financial year, $7,019 interest expense on leases was recognised in the Statement of Profit
or Loss and Other Comprehensive Income.
17. BORROWINGS
Current
Non-current
Balance at the start of the financial year
Proceeds from drawdown
Principal and Interest repayments
Balance at the end of the financial year
Note
Consolidated
2022
$
32,344
35,250
67,594
63,719
30,184
(26,309)
67,594
2021
$
20,304
43,415
63,719
705,833
66,895
(709,009)
63,719
1 The Company has entered into loan agreements to finance vehicles/mobile equipment at the White Dam
project. The loans have a term of 3 years and are secured over the assets financed. The net book value of
these assets is $64,357 (2021: $74,669).
GBM Resources Annual Report 2022
P a g e | 89
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
18. PROVISIONS
Non-current
Rehabilitation provision1
Royalty provision2
Note
Consolidated
2022
$
2021
$
11,509,687
2,355,618
13,865,305
6,296,101
-
6,296,101
1 During the current financial year, $1,467,656 and $1,940,000 was recognised as provision for rehabilitation on
the acquisition of Twin Hills and White Dam projects respectively. The provision is based on the value of
environmental bonds lodged with the relevant government departments. In addition, the rehabilitation
provision for the Yandan Project was increased by approximately $1.8m to a total of $6,883,079 (refer Note
33).
2 Provision for royalty payments on the acquisition of the White Dam Gold Copper Project. Refer to Note 22(a).
Issue
price
2022
No.
2021
No.
2022
$
2021
$
19.
ISSUED CAPITAL
Issued capital at the balance
date
Movements in issued capital:
Balance at the start of the
year
Shares issued to acquire
subsidiary1
Share placement
Entitlement issue
Share placement
Shares issued in lieu of
payment for services2
Share placement
Shares issued to acquire
tenements3
Shares on exercise of options
Shares on exercise of rights
Shares issued on convertible
note exercise4
Share issue costs
Balance at the end of the
reporting year
522,928,466
433,246,182
62,217,473
53,575,033
433,246,182
225,038,134
53,575,033
36,986,753
$0.055
$0.055
$0.135
-
-
-
-
22,222,222
46,407,371
55,884,212
55,407,407
-
-
-
-
3,000,000
2,552,405
3,073,632
7,480,000
-
74,000,000
3,562,500
11,989,349
130,435
2,022,249
-
-
7,400,000
-
553,254
2,378,000
460,000
1,199,188
15,000
205,247
-
-
60,858
252,038
-
-
23,333,333
-
-
(431,748)
700,000
(735,900)
522,928,466
433,246,182
62,217,473
53,575,033
12021: shares issued at 13.5 cents per share in consideration for the acquisition of a 100% interest in the
issued capital of Straits Gold Pty Ltd.
2 Shares issued to consultant in lieu of cash payment for services – 509,904 shares at 5.5 cents per share;
492,613 shares at 6.7 cents per share; 387,152 shares at 11.3 cents per share; 404,458 shares at 15.9 cents
per share and 228,122 shares at 15.7 cents per share.
3 Shares issued for the acquisition of exploration permit applications from Yacimiento Pty Ltd and an
exploration tenement from Native Mineral Resources Limited.
4 Shares issued on the conversion of a convertible note at 3 cents per share.
GBM Resources Annual Report 2022
P a g e | 90
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
19. ISSUED CAPITAL (CONTINUED)
The Company’s shares are limited whereby the liability of its members is limited to the amount (if any)
unpaid on the shares respectively held by them. Ordinary shares entitle the holder to participate in
dividends and the proceeds on winding up of the Company in proportion to the number of and amounts
paid on the shares held. On a show of hands every holder of ordinary shares present at a meeting in person
or by proxy, is entitled to one vote, and upon a poll each share is entitled to one vote.
Ordinary shares have no par value. There is no limit to the authorised share capital of the Company.
2022
No.
2021
No.
20. OPTIONS
Details of the Company’s Incentive Option Scheme are provided at Note 23.
(a)
Options over unissued shares
Options on issue at the balance date
120,696,052
80,746,765
Movements in options:
Options on issue at the start of the year
Cancelled during the year
Issued to directors
Options issued 1
Options issued pursuant to the employee incentive plan (Note 23)
Options exercised
Options on issue at the end of the reporting year
80,746,765
-
-
51,083,636
855,000
(11,989,349)
120,696,052
25,954,152
-
300,000
51,145,867
3,900,000
(553,254)
80,746,765
1 Unlisted options exercisable at 7.5 cents each and expiring 30 November 2022 issued pursuant to a non-
renounceable pro-rata entitlement offer.
(b)
Option capital
Opening balance
Issue of options
Exercise of options
Closing balance
Note
Consolidated
2022
$
2021
$
-
1,277,091
(299,101)
977,990
-
-
-
-
GBM Resources Annual Report 2022
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Note
Consolidated
2022
$
2021
$
21. RESERVES AND ACCUMULATED LOSSES
Accumulated losses
Opening balance
Transfer from option reserve on expiry of options
Net profit/(loss) attributable to the members of the
Company
Closing balance
Share based payments reserve1
Opening balance
Vesting expense of options/rights
Options/rights exercised during the year
Closing balance
(24,881,473)
-
(25,149,324)
-
(642,341)
(25,523,814)
267,851
(24,881,473)
646,861
141,195
(15,000)
773,056
362,913
535,986
(252,038)
646,861
1 Share based payments reserve
The share based payments reserve represents the fair value of vested equity instruments issued as
remuneration or consideration.
22. ACQUISITIONS AND DISPOSALS
a) Acquisition of the White Dam Project
At 30 June 2021, the Group held a 50% interest in the White Dam joint venture. Under the terms of the joint
venture agreement, the Company had the option to acquire 100% of the White Dam Project (plant, equipment,
tenements and environmental liabilities) for an exercise price of $500,000, a 2% royalty on any copper and gold
production revenue and replacement of environmental bonds of $1,940,000.
The Group exercised this option and on 29 July 2021, Millstream Resources Pty Ltd, a subsidiary of the Company,
acquired 100% of the ordinary shares of Exco Operations (SA) Pty Limited (“Exco”), Exco Resources Pty Ltd,
Polymetals (White Dam) Pty Ltd (“PWD”) and Polymetals Operations Pty Ltd (“PO”) for a total consideration of
$4,856,569 as shown in the table below. Exco and PWD hold the legal interest in the White Dam tenements,
whilst PO is the manager and operator of the heap leach project.
Prior to the acquisition of the 100% interest, the Group recognised the following amounts in profit or loss in
respect of its 50% interest in the production from the White Dam gold-copper joint venture up to 29 July 2021:
Revenue from sale of gold
Company share of JV operational costs
Net income from joint venture activities
29 Jul 2021
$
504,334
(444,626)
59,708
2021
$
1,460,014
(1,020,842)
439,172
For the period from 30 July 2021 to 30 June 2022, the acquired business contributed revenues of $3,332,817
and an operating profit after tax of $638,796 to the Group (excluding bargain purchase and impairment losses).
If the acquisition occurred on 1 July 2021, the full half-year contributions would have been revenues of
$4,341,485 and profit after tax of $698,504.
GBM Resources Annual Report 2022
P a g e | 92
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
22. ACQUISITIONS AND DISPOSALS (CONTINUED)
a) Acquisition of the White Dam Project (Continued)
Consideration
Cash (option fee and working capital adjustment)
Replacement of environmental bonds
Provision for royalty payable
Total consideration
Identifiable assets acquired and liabilities assumed
Assets
Cash and cash equivalents
Trade and other receivables
Prepayments
Inventories-reagents & consumables
Environmental bonds
Plant and equipment
Exploration tenements and JORC resources
Total assets acquired
Liabilities
Trade and other payables
Accrued expenses
Employee benefits
Rehabilitation provisions
Total liabilities assumed
Total identifiable net assets at fair value
Consideration received
Excess of consideration over net assets – bargain purchase
Fair value
$
560,950
1,940,000
2,355,619
4,856,569
Fair value
$
48,387
350,581
38,451
73,552
1,940,000
2,691,600
3,043,000
8,185,571
-
(13,800)
(158,376)
(1,940,000)
(2,112,176)
6,073,395
4,856,569
1,216,826
Measurement of Fair Values
The valuation techniques used for measuring the fair value of material assets acquired were as follows:
Property, plant and equipment:
An independent valuation was undertaken. Due to the specialised and site-specific nature of the assets, the
valuation methodology predominantly used was the depreciated replacement cost. Mobile plant and vehicles
were valued based on market prices for similar items.
GBM Resources Annual Report 2022
P a g e | 93
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
22. ACQUISITIONS AND DISPOSALS (CONTINUED)
a) Acquisition of the White Dam Project (Continued)
Exploration Assets:
An independent valuation was undertaken of the heap leach, mining leases and exploration licences. The
valuation model utilised a combination of the Comparable Transactions, Comparable Enterprise Values,
Discounted Cash Flows, Kilburn Geoscience Rating and Yardstick valuation methods to ascribe a technical value
to the projects. The Group has recognised the exploration assets at the lower end of the valuation range.
Other Assets:
The fair value and gross contractual amounts receivable from trade and other receivables is $350,581. It is
expected that the full contractual amounts can be collected.
The Group’s operations are subject to specific environmental regulations. The Group has recognised a
Rehabilitation provision of $1,940,000. The value of the provision has been based primarily on the value of
environmental bonds lodged with the Department of Energy and Mining in South Australia.
Acquisition Related Costs
Any costs incurred in relation to the acquisition of White Dam have been included in the Statement of Profit or
Loss and Other Comprehensive Income and total an amount of $5,000.
Other Matters
In scenarios where the net of the acquisition date amounts of the net assets acquired exceeds the fair value of
the consideration transferred, AASB 3 Business Combinations requires the entity to reassess whether it has
identified all of the assets acquired and liabilities assumed and then review the procedures used to measure the
amounts recognized at acquisition date. Management confirms this process was performed including the value
of the previously held equity interest held under paragraph 42A of AASB 3.
b) Acquisition of Exploration Permits
During the prior financial year, the Company entered into an agreement with Yacimiento Pty Ltd (YPL) to acquire
exploration permit application EPM27554 and the abandonment of EPM27643 in the Drummond Basin for a
non-refundable cash option payment of $45,000 and the issue of 2,000,000 ordinary shares in the Company.
The option payment was made during the prior financial year and was capitalised in the financial statements.
The transaction was completed in July 2021 with the Company issuing 2,000,000 ordinary shares to YPL at an
issue price of 13 cents per share.
During the current financial year, the Company acquired Mount Morgan tenement EPM17850 from Native
Mineral Resources Holdings Limited for a cash consideration of $35,000 plus the issue of shares in the Company
to a total value of $200,000. EPM17850 will subsequently be sold to Australis Metals Pty Ltd, a wholly owned
subsidiary Smartset Services Inc, as part of the sale of the Mount Morgan Project. Refer to Note 22 (c).
c) Sale of Mt Morgan Gold Project
During the prior reporting period the Group executed a binding Letter of Intent with Canadian (TSXV) listed
company, Smartset Services Inc. (Smartset), for the sale of the Mt Morgan Gold-Copper Project for a script
consideration of shares in Smartset. The transaction was subject to shareholder approval which was received on
30 November 2021.
At balance date, capitalised exploration and evaluation expenditure of $760,280, representing the capitalised
carrying value of the Mt Morgan Gold Project, has been categorised on the Statement of Financial Position as
assets- held-for-sale.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
22. ACQUISITIONS AND DISPOSALS (CONTINUED)
Subsequent to the end of the financial year, the Company executed a definitive agreement setting out the terms
and conditions of the sale. The Agreement sees the Company vending the Mt Morgan tenements (975 km2) into
Australis Metals Pty. Ltd., in exchange for 20,459,545 shares in Smartset (on a post planned 0.75:1 share
consolidation basis). Smartset will also make a cash payment with respect to any amount expended by the Group
on obtaining native title, landholder access and compensation agreements and on exploration expenditures, for
Mt Morgan between the date of the signing of the Letter of Intent until transaction completion (to a maximum
of C$282,500). In addition, Smartset (as a condition precedent) is to raise approximately C$8 million in new
equity (at C$0.50 per share) to advance the exploration of Mt Morgan and other Australian Projects.
d) Sale of Mayfield Project
During the reporting period the Group executed an exclusive Option Agreement with C29 Metals Limited (“C29”)
for the sale of its Mayfield Project tenement EPM 19483. Under the terms of the Option Agreement, C29 had an
exclusive option to conduct due diligence by payment an option fee of $20,000 and a second $20,000 when the
Exploration Licence is renewed. Both these option payments were paid in the reporting period.
At balance date, capitalised exploration and evaluation expenditure of $185,611 representing the capitalised
carrying value of the Mayfield Project tenement, has been categorised on the Statement of Financial Position as
assets- held-for-sale.
Subsequent to the end of the financial year, and on exercise of the option, C29 paid the consideration consisting
of a cash payment of $210,000 and 1,558,963 fully paid ordinary share in C29 which will remain in voluntary
escrow for a period of 6 months.
e) Sale of Milo Project
In November 2021, the Group signed a definitive sale and purchase agreement with Consolidated Uranium Inc.
(a Canadian company listed on TSXV: CUR) for the sale of Brightlands Milo tenement EPM14416. The first
payment of CAD$500,000 was received on signing of the agreement. The completion payment, represented by
the issue of 750,000 CUR shares was received in April 2022. The fair value of the shares at issue was $2,287,075.
23. SHARE BASED PAYMENTS
Details of the Company’s incentive Performance Rights and Option Plan (“Plan”), under which performance
rights and options are issuable to employees, directors and consultants are summarised below. Details of
share rights and options issued to Directors and executives are set out in the Remuneration Report that
forms part of the Directors’ Report. The Plan was adopted and approved by shareholders at a General
Meeting on 16 June 2020.
Incentive Options
Options are granted free of charge and are exercisable at a fixed price in accordance with the terms of the
grant. Options over unissued shares are issued under the terms of the Plan at the discretion of the Board.
Options granted during the year
During the reporting period the Company issued 855,000 unlisted options under the Plan, exercisable at 18
cents each and expiring 31 October 2025. One third of the options vest on 15 November 2022, 15 November
2023 and 15 November 2024.
The options were valued using the Black-Scholes option model using the following inputs:
Date of
grant
Number of
options
Exercise
price
Expiry
period
Share
price at
grant
Risk free
rate
Volatility
Valuation
of options
9 Dec 2021
855,000
$0.18
4 Years
$0.125
0.93%
72%
$47,857
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
23. SHARE BASED PAYMENTS (CONTINUED)
The fair value of options is apportioned over the vesting period of the options. A total expense of $18,197
has been recognised in the condensed consolidated statement of profit or loss and other comprehensive
income for the financial year in respect of options vesting during the period.
In addition to the incentive options issued, a total of 51,083,636 unquoted loyalty options were issued as
part of a non-renounceable pro rata entitlement offer.
Options exercised during the year
A total of 11,989,349 quoted entitlement options and loyalty options were exercised during the year to 30
June 2022.
Options cancelled during the year
During the year no unlisted options were cancelled upon termination of employment, or on the expiry of
the exercise period.
Options on issue under the plan at balance date
The number of options issued under the Plan and outstanding over unissued ordinary shares at 30 June
2022 is 14,935,000 as follows.
Grant date
Exercise price
Expiry date
Balance at 30 June
5 Feb 19
25 Nov 19
15 Sep 20
12 Feb 21
29 Apr 21
9 Dec 21
$0.085
$0.05
$0.21
$0.18
$0.18
$0.18
31 Jan 23
16 Dec 22
14 Sep 24
11 Feb 25
11 Feb 25
15 Oct 25
1,880,0001
8,000,000
300,000
2,000,000
1,900,000
855,000
Vested and
Exercisable at 30 June
1,880,000
8,000,000
300,000
2,000,000
1,900,000
-
1 Prior to the consolidation of capital on a 10 for 1 basis, there were 18,800,000 options on issue at 9 cents.
Following completion of the Entitlement Offer, and in accordance with ASX Listing Rule 6.22.2, the exercise
price for each option was reduced from 9 cents to 8.5 cents.
Subsequent to balance date
Subsequent to the end of the financial year, 8,000,000 Plan options (and 329,200 loyalty options) were
exercised. No Plan options were issued or cancelled subsequent to 30 June 2022.
Reconciliation of movement of options
Set out below is a summary of options granted under the plan:
Options outstanding at the start of
the year
Options granted during the year
Options outstanding at the end of
the year
2022
No.
14,080,000
855,000
14,935,000
WAEP
(cents)
9.1
18.0
9.6
2021
No.
9,880,000
4,200,000
14,080,000
WAEP
(cents)
5.8
17.1
9.1
Weighted average contractual life
The weighted average contractual life for un-exercised options is 14.8 months (2021: 25.3 months).
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
23. SHARE BASED PAYMENTS (CONTINUED)
Performance Rights
Performance rights granted during the year
During the reporting period the Company issued 1,780,654 performance rights as shown in the table below.
The performance rights have been recognised at the underlying share price at the date of grant.
Date of
grant
Number of
rights
Vesting Date
Expiry Date
Share price
at grant
Valuation
of options
23 Aug 2021
595,654
1 Mar 2022
26 Aug 2025
$0.115
$68,500
9 Dec 2021
395,000
15 Nov 2022
31 Oct 2025
$0.125
$49,375
9 Dec 2021
395,000
15 Nov 2023
31 Oct 2025
$0.125
$49,375
9 Dec 2021
395,000
15 Nov 2024
31 Oct 2025
$0.125
$49,375
The fair value of performance rights is apportioned over the vesting period of the rights. A total expense of
$122,998 has been recognised in the condensed consolidated statement of profit or loss and other
comprehensive income in respect of performance rights vesting during the year.
The performance rights have no performance based vesting conditions. The performance rights will lapse
on cessation of employment prior to the vesting or exercise dates.
During the reporting period, 130,435 shares were issued on the exercise of performance rights and no
performance rights were cancelled.
Subsequent to balance date
Subsequent to balance date, 86,957 shares were issued on the exercise of performance rights.
24. FINANCIAL INSTRUMENTS
Credit risk
The Directors do not consider that the Group’s financial assets are subject to anything more than a negligible
level of credit risk, and as such no disclosures are made (note 2(a)).
Impairment losses
The Directors do not consider that any of the Group’s financial assets are subject to impairment at the
reporting date. No impairment expense or reversal of impairment charge has occurred during the reporting
period.
Currency risk
The Group does not have any direct exposure to foreign currency risk, other than in respect of its impact on
the economy and commodity prices generally (note 2 (c)).
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More
than 5
years
$
-
-
-
-
-
-
-
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
24. FINANCIAL INSTRUMENTS (CONTINUED)
Liquidity risk
The following are the contractual maturities of financial liabilities, including estimated interest payments
and excluding the impact of netting agreements (note 2(b)):
Consolidated
30 June 2022
Borrowings
Lease liabilities
Trade and other payables
Carrying
amount
$
Contractual
cash flows
$
6 months
or less
$
6-12
months 1-2 years 2-5 years
$
$
$
67,594
181,493
2,914,290
74,404
188,115
2,914,290
18,727
44,342
2,914,290
18,727
44,558
-
33,125
91,566
-
3,825
7,649
-
3,163,377
3,176,809
2,977,359
63,285
124,691
11,474
30 June 2021
Borrowings
Trade and other payables
63,719
2,394,223
73,611
2,394,223
12,990
2,394,223
12,990
-
25,980
-
21,651
-
2,457,942
2,467,834
2,407,213
12,990
25,980
21,651
Interest rate risk
At the reporting date the interest profile of the Group’s interest-bearing financial instruments were:
Fixed rate instruments:
Financial liabilities
Variable rate instruments:
Financial assets
Consolidated
2022
$
2021
$
(249,087)
(63,719)
(249,087)
(63,719)
836,149
5,676,340
836,149
5,676,340
The Group is not materially exposed to interest rate risk on its variable rate investments.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
24. FINANCIAL INSTRUMENTS (CONTINUED)
Fair values
Fair values versus carrying amounts
The carrying amounts of financial assets and liabilities not measured at fair value on a recurring basis, as
described in the consolidated statement of financial position represent their estimated net fair value.
25. COMMITMENTS
Exploration
(a)
The Group has certain obligations to perform minimum exploration work on mineral leases held. These
obligations may vary over time, depending on the Group’s exploration programmes and priorities. As at balance
date, total exploration expenditure commitments on tenements held by the Group have not been provided for
in the financial statements. These obligations are also subject to variations by farm-out arrangements or sale of
the relevant tenements.
Minimum expenditure requirements for the following 12 months on the Group’s exploration licences as at 30
June 2022, including licences subject to farm-in arrangements are approximately $4,179,000 (2021: $2,573,000).
(b)
Lease Commitments
During the financial year, premises in Queensland and Victoria were leased on a month by month basis or under
short term leases of 12 months or less. The Group has availed itself of the exemption in AASB 16 Leases to not
capitalise these leases. An amount of $25,025 (2021: $32,500) has been expensed in relation to short term
leases.
(c)
Contractual Commitment
During the financial year the Group entered into a number of transactions that were not settled until after 30
June 2022. Refer to notes 22 and 32 for any commitments outstanding at 30 June 2022.
26. NOTES TO THE STATEMENT OF CASH FLOWS
a) Cash and cash equivalents
Cash at bank and on hand
Bank at call cash account
Consolidated
2022
$
2021
$
810,078
26,071
5,650,272
26,068
Total cash and cash equivalents
836,149
5,676,340
b) Cash balances not available for use
Included in cash and cash equivalents are amounts pledged as guarantees for the following:
Corporate credit card facility
26,071
26,068
c) Cash available for specific use
Included in cash and cash equivalents at 30 June 2022 is $334,651 relating to cash calls received in advance
from farm in and joint venture partners. These funds are for specific use on tenements covered under the
Malmsbury and Cloncurry Joint Venture agreements.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
26. NOTES TO THE STATEMENT OF CASHFLOWS (CONTINUED)
d) Reconciliation of Profit/(loss)
from
Ordinary Activities after Income Tax to
Net Cash Used in Operating Activities
Profit/(loss) after income tax
Add (less) non-cash items:
Profit on sale of assets
Bargain purchase on acquisition of assets
Share based payments-employees
Share based payments-suppliers
Depreciation and impairment expenses
Fair value loss/(gain) on financial assets
Exploration expenditure written off,
expensed and impaired
Changes in assets and liabilities:
Increase/(decrease) in trade creditors
and accruals
(Increase)/decrease in prepayments
(Increase)/decrease in inventories
(Increase)/decrease in sundry receivables
Consolidated
2022
$
2021
$
(642,341)
267,851
(2,808,396)
(1,216,826)
141,195
-
759,359
2,477,931
(2,815,279)
-
351,668
57,103
130,562
363,615
445,900
953,108
386,020
22,913
(376,293)
296,926
507,354
(22,913)
(673,654)
(545,976)
Net cash flows used in operations
(513,612)
(1,426,561)
27. AUDITOR’S REMUNERATION
Amounts received or receivable by HLB Mann
Judd for:
-
Audit and review of financial reports
Consolidated
2022
$
2021
$
48,687
39,873
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
28. CONTROLLED ENTITIES
Particulars in Relation to Ownership of Controlled Entities
Belltopper Hill Pty Ltd
Syndicated Resources Pty Ltd
Willaura Minerals Pty Ltd
Isa Brightlands Pty Ltd
Isa Tenements Pty Ltd
Koala Quarries Pty Ltd
Mt Coolon Gold Mines Pty Ltd
Millstream Resources Pty Ltd
Straits Gold Pty Ltd
Polymetals Operations Pty Ltd
Polymetals (White Dam) Pty Ltd
Exco Operations (SA) Pty Limited
Exco Resources (SA) Pty Ltd
2022
%
2021
%
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
-
-
-
-
Balances and transactions between the Company and its subsidiaries, which are related parties of the Company,
have been eliminated on consolidation and not disclosed in the note. Details of transactions between the Group
and other related parties are disclosed in note 30.
29. KEY MANAGEMENT PERSONNEL DISCLOSURES
a) Details of Key Management Personnel
The following were key management personnel of the Group at any time during the year and unless
otherwise stated were key management personnel for the entire year.
Non-Executive Director
Guan Huat Sunny Loh – Non-Executive Director
Peter Thompson – Non-Executive Director
Brent Cook – Non-Executive Director
Executive Directors
Peter Rohner – Managing Director
Peter Mullens – Executive Chairman
Total remuneration paid to key management personnel during the year:
Short-term benefits
Post-employment benefits
Share based payments
Consolidated
2022
$
541,502
39,450
-
580,952
2021
$
588,322
225,961
35,355
849,638
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
29. KEY MANAGEMENT PERSONNEL DISCLOSURES (continued)
b) Other Transactions and Balances with Key Management Personnel
There are no other transactions with Directors, or Director related entities or associates, other than those
reported in note 29 and note 30.
Consolidated
2022
$
2021
$
30. RELATED PARTY TRANSACTIONS
a) Total amounts receivable and payable from entities
in the wholly-owned group (see Note 28 for details
of controlled entities) at balance date:
Non-Current Receivables
Loans to controlled entities
36,435,728
23,030,571
Non-Current Payables
Loans from controlled entities
2,498,110
1,280,622
b) Transactions with Directors
During the year, the Group incurred costs of $11,445 (2021: $20,060) with Core Metallurgy Pty Ltd an
entity associated with Mr Peter Rohner, for project consulting fees relating to White Dam. At 30 June
2022, there was no amount owing (2021: $528) to Core Metallurgy Pty Ltd.
Office rent of $4,000 (2021: $12,000) was incurred with Ironbark Pacific Pty Ltd, an entity associated with
Mr Peter Mullens. From 1 January 2022, Mr Mullens provided executive director services through
Ironbark Pacific Pty Ltd and costs in relation to this have been included as part of director’s remuneration
in Note 29. At 30 June 2022, there was no amount owing to Ironbark Pacific Pty Ltd (2021: $nil).
31. DIVIDENDS
There are no dividends paid or payable during the year ended 30 June 2022 or the 30 June 2021 comparative
year.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
32. EVENTS SUBSEQUENT TO BALANCE DATE
Other than as stated below, there has not arisen in the interval between the end of the financial year and the
date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the
Directors of the Company to affect substantially the operations of the Group, the results of those operations or
the state of affairs of the Group in subsequent financial years.
• On 12 July 2022, 23,269,262 ordinary shares in the Company were issued to institutional and sophisticated
investors to raise approximately $1.26 million (before costs).
•
•
•
•
•
•
In August 2022, the Company executed the Definitive Agreement setting out the terms and conditions or
the sale of the Mt Morgan Gold Copper Project Tenements to Australis Metals Pty Ltd a wholly owned
subsidiary of Smartset Services Inc, a listed Canadian company. Refer to Note 22(c).
In August 2022, the Group received the consideration for the sale of the Mayfield Project which consisted
of a cash payment of $210,000 and 1,558,963 fully paid ordinary shares in C29 Metals Limited. Refer to
Note 22(d).
In September 2022, the Company entered into an agreement to issue secured convertible notes up to $10
million to the Collins Street Convertible Note Fund, in two tranches of $5 million per tranche, subject to
shareholder approval. The convertible notes attract interest at 10.5% per annum payable monthly in
advance, are for a 3 year term and re convertible at 8.75 cents.
In September 2022, the Company received firm commitments to raise $305,000 pursuant to a share
placement at 5 cents per share.
In September 2022, the Department of Environment and Science (DES) reviewed the estimated
rehabilitation costs (ERC) for the Yandan Gold Mine and proposed an increase of the surety above the
amount calculated by the Group. The Group is challenging this decision and on 26 September 2022, the
Group lodged a request that the DES perform an internal review of its ERC calculation.
Since the end of the financial year, 28,369,262 shares have been issued in relation to the events listed
above, and 8,416,157 shares have been issued on the exercise of options and performance rights.
The impact of the coronavirus (COVID-19) pandemic is ongoing. The situation is dependent on measures
imposed by the Australian Government and other countries, such as maintaining social distancing requirements,
quarantine, travel restrictions and any economic stimulus that may be provided. It is not practicable to estimate
the potential impact, positive or negative, after the reporting date.
33. CONTINGENCIES
(i) Contingent liabilities
Subsequent to year end, management lodged an updated Estimated Rehabilitation Cost (ERC) with the
Department of Environment and Science (DES) for the Yandan Project of $6,883,079. On 23 September
2022, the DES proposed an increase in the ERC to $9,672,585. On 26 September 2022 the Group submitted
an application for the DES to conduct an internal review of their proposed increase. Management is of the
view that the value determined in the initial ERC of $6,883,079, which is based upon the assessment of
independent experts, correctly reflects the rehabilitation costs of the Group for the Yandan Project and this
amount has been recorded at balance date as a provision.
Other than the above, the Group has no contingent liabilities outstanding at the end of the year.
(ii) Native Title and Aboriginal Heritage
Native title claims have been made with respect to areas which include tenements in which the Group has
an interest. The Group is unable to determine the prospects for success or otherwise of the claims and, in
any event, whether or not and to what extent the claims may significantly affect the Group or its projects.
Agreement is being or has been reached with various native title claimants in relation to Aboriginal Heritage
issues regarding certain areas in which the Group has an interest.
(iii) Contingent assets
There were no material contingent assets as at 30 June 2022 or 30 June 2021.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
34. PARENT ENTITY INFORMATION
Financial position
Assets
Current assets
Non-current assets 1
Total Assets
Liabilities
Current liabilities
Non-current liabilities
Total Liabilities
NET ASSETS
Equity
Issued capital
Option capital
Accumulated losses
Share based payment reserve
2022
$
2021
$
1,651,468
39,700,653
6,605,767
24,783,548
41,352,121
31,389,315
(2,766,541)
(140,875)
(2,005,479)
(43,415)
(2,907,416)
(2,048,894)
38,444,705
29,340,421
62,217,473
977,990
(25,523,814)
773,056
53,575,033
-
(24,881,473)
646,861
TOTAL EQUITY
38,444,705
29,340,421
Financial performance
(Loss)/profit for the year
Other comprehensive income
Total comprehensive (loss)/income
(642,341)
-
(642,341)
267,851
-
267,851
1 The Company has recognised a provision against the investment in subsidiary holdings to the extent that
parent company net assets exceed those of the Group.
Contingent liabilities
For full details of contingent liabilities see Note 33.
Commitments
For full details of commitments see Note 25.
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DIRECTORS’ DECLARATION
FOR THE YEAR ENDED 30 JUNE 2022
1.
In the opinion of the Directors:
a)
the accompanying financial statements and notes are in accordance with the Corporations Act
2001 including:
i.
giving a true and fair view of the Group’s financial position as at 30 June 2022 and of
its performance for the year then ended; and
ii.
complying with Accounting Standards and Corporations Regulations 2001.
b)
c)
there are reasonable grounds to believe that the Company will be able to pay its debts as and
when they become due and payable.
the financial statements and notes are in accordance with International Financial Reporting
Standards issued by the International Accounting Standards Board.
2.
This declaration has been made after receiving the declarations required to be made to the directors in
accordance with Section 295A of the Corporations Act 2001 for the financial year ended 30 June 2022.
This declaration is made in accordance with a resolution of the Board of Directors.
PETER MULLENS
Executive Chairman
Dated this 30th day of September 2022
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INDEPENDENT AUDITOR’S REPORT
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INDEPENDENT AUDITOR’S REPORT
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INDEPENDENT AUDITOR’S REPORT
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INDEPENDENT AUDITOR’S REPORT
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ASX ADDITIONAL INFORMATION
Pursuant to the Listing Rules of the Australian Securities Exchange Limited, the shareholder information set out
below was applicable as at 3 October 2022.
a. Distribution of Equity Securities
Quoted Shares (GBZ)
Quoted Options (GBZOB)
Range
Number of
Holders
Securities
Held
% Held
Number of
Holders
Securities
Held
% Held
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
63
149
212
612
409
15,057
587,497
1,660,211
25,081,612
532,369,508
0.00
0.10
0.30
4.48
95.12
39
37
16
97
82
11,923
100,016
128,353
4,622,795
45,704,214
0.02
0.20
0.25
9.14
90.39
1,445
559,713,885
100.00
271
50,567,301
100.00
There are 489 shareholders holding less than a marketable parcel of shares.
b. Substantial Shareholders
An extract of the Company’s register of Substantial Shareholders (who hold 5% or more of the issued capital) is
set out below:
Shareholder
Straits Mineral Investment Pty Ltd
Kok Yong Lim
Shares Held % of Issued Capital
33,129,629
26,027,668
6.54%
5.10%
c. Twenty Largest Holders – Ordinary Shares (GBZ)
Shareholder
CITICORP NOMINEES PTY LIMITED
STRAITS MINERAL INVESTMENTS PTY LTD
BNP PARIBAS NOMINEES PTY LTD
SYNDICATE MINERALS PTY LTD
BNP PARIBAS NOMS PTY LTD
MR BINH THANH LE
MULLENS FAMILY SUPER FUND PTY LTD
BEATONS CREEK GOLD PTY LTD
MR MING YIU KO
BLAIKIE PTY LTD
MR PETER ROHNER + MS FIONA JANE MURDOCH
LONGRU ZHENG
DAY LIVIN PTY LTD
BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
CORPORATE ELEMENTS PTY LTD
DE GRACIE NOMINEES PTY LTD
NATIONAL FEDERAL CAPITAL LIMITED
SUPERFINE NOMINEES PTY LTD
MR BRADLEY WILLIAM GREEN
Total
Shares Held
% of Issued
Capital
85,011,346
33,129,629
28,247,376
22,327,500
16,017,040
14,099,461
13,773,334
11,363,637
11,000,000
10,150,000
9,003,140
8,871,860
7,829,238
6,955,021
5,835,297
5,527,500
5,261,800
5,000,000
5,000,000
4,835,000
309,238,179
15.19
5.92
5.05
3.99
2.86
2.52
2.46
2.03
1.97
1.81
1.61
1.59
1.40
1.24
1.04
0.99
0.94
0.89
0.89
0.86
55.25
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ASX ADDITIONAL INFORMATION
c. Twenty Largest Holders – Quoted Options (GBZOB)
Shareholder
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
BNP PARIBAS NOMINEES PTY LTD
CITICORP NOMINEES PTY LIMITED
JEKOR PTY LTD
SYNDICATE MINERALS PTY LTD
MR DAYMON MAGDY SAID
MR NICO OLIVER CIVELLI
MR NICHOLAS DERMOTT MCDONALD
BEATONS CREEK GOLD PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
ACCENT CAPITAL GMBH
TORRES INVESTMENTS PTY LTD
MRS BELINDA MARTIN
CRESCAT LONG/SHORT FUND L P
JOSE LEVISTE JNR
MR SEAN TOMO ROMARO
MR BRADLEY WILLIAM GREEN
NELSON ENTERPRISES PTY LTD
MR GARETH JOHN MARTIN + MRS BELINDA ANNE MARTIN
AL EL DEVELOPMENTS PTY LTD
Total
d. Unquoted Securities
Details of Security
Options (exercisable at $0.085 expiring 31 January 2023)
Options (exercisable at $0.105 expiring 6 April 2023) 1
Options (exercisable at $0.21 expiring 14 September 2024)
Options (exercisable at $0.18 expiring 11 February 2025)
Options (exercisable at $0.18 expiring 31 October 2025)
Options (exercisable at $0.075 expiring 30 November 2022)
Performance Rights expiring 26 August 2025
Performance Rights expiring 31 October 2025
Options
Held
% of Issued
Capital
8,196,768
2,955,284
2,944,381
2,075,000
2,050,000
2,000,000
1,818,182
1,550,518
1,136,364
1,081,046
1,000,000
1,000,000
938,076
900,000
600,000
550,000
500,000
500,000
467,443
454,545
32,717,607
16.21
5.84
5.82
4.10
4.05
3.96
3.60
3.07
2.25
2.14
1.98
1.98
1.86
1.78
1.19
1.09
0.99
0.99
0.92
0.90
64.70
Securities
on Issue
Number of
Holders
1,880,000
16,074,152
300,000
3,900,000
855,000
38,790,399
378,262
1,185,000
2
4
1
10
1
343
5
1
1 Citicorp Nominees Pty Limited holds 10,340,907 (64.33%) and Beatons Creek Gold Pty Ltd holds 4,545,454
(28.28%) options in this class of securities.
e. Voting Rights
In accordance with the Company’s Constitution, voting rights in respect of ordinary shares are on a show of
hands whereby each member present in person or by proxy shall have one vote and upon a poll, each share will
have one vote.
f. Restricted Securities
The Company has no securities subject to voluntary escrow on issue.
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