ANNUAL REPORT 2023
ABN 91 124 752 745
309 Conceptual Open Pit Designs
Lone Sister Conceptual Open Pit
Designs
CORPORATE DIRECTORY
GBM Resources Limited (GBM or the Company)
ASX Code
GBZ
Directors
Peter Rohner - Managing Director and CEO
Sunny Loh - Non Executive Chairman
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
1 Halford St
Castlemaine VIC 3450
Australia
Telephone: +61 3 5470 5033
Postal Address
PO Box 658,
Castlemaine VIC 3450
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
Website
www.gbmr.com.au
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
Securities Exchange
ASX Limited
Level 40, Central Park
152-158 St Georges Terrace
Perth WA 6000
Australia
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
Edition of
the ASX Corporate Governance
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
Chairman’s Report
Our Strategy and Values
Highlights in 2023
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
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15. Notes to the Financial Statements
16. Directors’ Declaration
17.
18.
Independent Auditor’s Report
ASX Additional Information
Page
4 - 5
6 - 7
8 - 15
16
17 - 51
52
53 - 58
59 - 63
64 - 74
75
76
77
78
79
80 - 113
114
115 - 118
119 - 120
CHAIRMAN’S REPORT
Dear Fellow Shareholders,
It is my pleasure to present the GBM Resources Annual Report for 2023.
The past year has been an extremely busy one for GBM. We have con�nued to drive the Drummond
Basin “Processing Hub “strategy and now have a significant mineral resource totalling 45.6 million
tonnes at 1.3 g/t Au for 1.84 million ounces.
Both the Twin Hills and Yandan Gold Project’s mineral resource es�mates have been substan�ally
upgraded during the last twelve months. Twin Hills resource increased by over 30% to approximately
1 million ounces with 60% of the resource now in Measured and Indicated categories.
The Yandan mineral resource grade has been boosted up by 25% and 50% of the resources are now
in the Indicated category. The increase of tonnage for both projects in the Indicated category has
greatly advanced the level of confidence for both mineral deposits. The Yandan resource incorporates
a high-grade core of 1.1 Mt grading 5.7g/t Au for over 200,000 ounces which li�s the poten�al
economics of the deposit. Geological interpreta�on shows poten�al at depth for addi�onal high
grade resources which would improve the economics of the current resource.
Drilling data from the 2022 drilling campaigns together with new geological models have driven these
upgrades and have also generated a series of priority explora�on targets which have the poten�al to
increase the Drummond Basin resource base. In the Drummond Basin, the Company now has a
substan�al holding of mining leases and explora�on permits in Australia’s pre-eminent epithermal
gold region.
On 21 October 2022, the Company entered into a $25 million farm-in agreement on the Mt Coolon
Gold Project with Newcrest Mining Limited. The farm-in agreement is providing substan�al funding
while allowing GBM to focus its resources on Twin Hills and Yandan. Newcrest, since establishment
of site facili�es, has been very ac�ve on the ground and will commence a 10,000 metre drill
programme in the coming months. The farm-in agreement with Newcrest validates GBM’s
consolida�on strategy of the three historic gold producers being Mount Coolon, Yandan and Twin
Hills in the Drummond Basin.
GBM executed (August 2023), a strategic binding agreement with Benagerie Gold & Copper Pty Ltd
(BGC) to advance together the White Dam and Portia Gold Projects. The agreement provides a
framework for both parties to merge the two projects and take advantage of the resulting synergies
with regard to the value of their existing resources and plant infrastructure assets. The alliance
provides a potential development op�on for addi�onal feed for the White Dam heap leach
opera�ons.
In addition to the BGC alliance, GBM continues to evaluate the copper and copper-gold exploration
potential of its tenement package at White Dam and a range of other potential divestment options.
The Company’s strategy of divestment of non-core assets successfully continued during the 2023
year with the sale of the remaining 50% of the Malmsbury Gold Project (Victoria) to Novo Resources
Corp. Value generated from the divestment strategy to date totals approximately $9.4 million. The
funds generated gives support to the Company’s working capital requirements and partial
redemption of the convertible note facility.
GBM Resources Annual Report 2023
P a g e | 4
CHAIRMAN’S REPORT
On behalf of our board, I would like to take the opportunity to say thank you to our loyal shareholder
base and your continued support for our growth strategy.
Our efforts remain in consolidating and further discoveries, with a strategy of building a > 3 million
ounce gold resource in the Drummond Basin which has the potential to transform GBM into a
genuine mid-tier Australian gold company.
I would also like to thank our personnel and contractors for their hard work and commitment over
the past year and importantly achieving our core values in a safe and responsible manner. Your
efforts in contributing to the growth strategy are a key input to the Company’s success.
Yours Faithfully
Sunny Loh
Non-Executive Chairman
GBM Resources Annual Report 2023
P a g e | 5
OUR STRATEGY AND VALUES
OUR STRATEGY
Aggressively assembling, exploring and developing a portfolio of worldclass high
grade gold assets.
Via strategic acquisitions, farm-in and significant exploration work, GBM has laid
the foundation to become a true mid-tier Australian gold producer.
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.
Site Preparation Drilling Complete Rehabilitated
Figure 1: Drill hole rehabilitation at the Mt Coolon Gold Project
GBM Resources Annual Report 2023
P a g e | 6
DELIVERING ON STRATEGY
• Sixfold increase in gold resources in Drummond Basin, Australia’s premier low sulphidation
epithermal gold province.
• Strategic acquisition of Twin Hills and Yandan Gold Projects along with drilling rapidly
expanding ounces.
• Funded exploration at Mt Coolon Project by JV partner (Newcrest).
• Targeting 3 Moz gold and company making discoveries.
• Strategic divestment of non-core assets to fund and enable full focus on Drummond Basin
strategy.
• More than 13 epithermal gold systems in portfolio and numerous prospects.
2020 targeted +1 Moz resource base
2023 delivered 1.84 Moz with 300% increase MEA+ IND
2023-24 targeting to build to +3.0 Moz resource base
1.85 Moz
1.1 g/t
MEA
1.84 Moz
1.3 g/t
MEA
IND
IND
1.61 Moz
1.2 g/t
MEA
IND
INF
INF
INF
0.85 Moz
0.9 g/t
IND
INF
0.33 Moz
1.5 g/t
IND
INF
1
2
3
4
5
Target
3 Moz
Target 3
Moz
Additi
onal 1-
1.5
Moz
1.84
Moz
MEA,
IND &
INF
Figure 2: Mineral Resource updates
GBM Resources Annual Report 2023
P a g e | 7
SIGNIFICANT HIGHLIGHTS IN FINANCIAL YEAR 2023
DRUMMOND BASIN GROWTH STRATEGY, Queensland
Drummond Basin “Processing Hub” now totals – 45.6 million tonnes at 1.26 g/t Au for 1,844,200
ounces with over a million ounces now classified as Measured and Indicated Mineral Resource.
Figure 3: Drummond Basin Location Plan
GBM holds 4,667 km2 of mining and exploration tenure across 23 granted EPMs and 7 Mining Leases
within the Drummond Basin, Australia’s pre-eminent epithermal gold terrain. This includes granted
mining leases at Twin Hills, Yandan, and Mt Coolon. Along with a key JV with Newcrest on the Mt
Coolon tenements.
GBM Resources Annual Report 2023
P a g e | 8
SIGNIFICANT HIGHLIGHTS IN FINANCIAL YEAR 2023
DRUMMOND BASIN, Queensland (Cont.)
TWIN HILLS
RESOURCE UPGRADE TO ~ 1 Moz Au Mineral Resource
Total mineral resource estimate (MRE) for Twin Hills has been upgraded to 999,200 ounces
Au from 760,700 ounces, a 31% increase (Refer to ASX:GBZ release 5 December 2022).
The new MRE includes a silver credit of 4.8 million ounces.
Lone Sister mineral resource estimate is now 475,900 oz Au (@ ~1.2 g/t Au) and the 309
deposit is 523,300 oz Au (@ ~1.5 g/t Au).
~60% of Twin Hills resources are now in Measured and Indicated categories.
The upgraded resource is a result of new drilling data in 2022, a new geological model, and
viewing Twin Hills as a potential stand-alone deposit resulting in a combination of bulk
minable open pit and underground mineral resources.
High grade gold mineralisation at Lone Sister deposit remains open down plunge to the
north, while bonanza grade mineralisation at 309 remains open down plunge to the west,
east and south.
DRILLING – Lone Sister Deposit Assay Results
Excellent assays were returned on two drill holes, one drilled by GBM (hole LSDD22001), and an
interval previously not assayed in an old hole (LRCD151) recorded significant results of:
Drill Hole LSDD22001 (Refer to ASX:GBZ release 5 December 2022):
137 m @ 1.2 g/t Au and 3.56 g/t Ag from 251 m including:
o 4 m @ 2.12 g/t Au and 8.05 g/t Ag from 267 m
o 10 m @ 2.89 g/t Au and 7.98 g/t Ag from 284 m
o 7 m @ 2.18 g/t Au and 2.69 g/t Ag from 305 m
o 13 m @ 2.31 g/t Au and 1.84 g/t Ag from 325 m
o 2.2 m @ 7.75 g/t Au and 9.57 g/t Ag from 341.8 m
o 1 m @ 3.2 g/t Au and 86.63 g/t Ag
17.1 m @ 2.37 g/t Au and 1.71 g/t Ag from 401 m including:
o 1 m @ 34.55 g/t Au and 9.27 g/t Ag from 415 m
GBM Resources Annual Report 2023
P a g e | 9
SIGNIFICANT HIGHLIGHTS IN FINANCIAL YEAR 2023
DRUMMOND BASIN, Queensland (Cont.)
TWIN HILLS
Drill Hole LRCD151 (Refer to ASX:GBZ release 5 December 2022):
23 m @ 1.81 g/t Au and 1.35 g/t Ag from 237 m including:
o 4 m @ 6.03 g/t Au and 3.03 g/t Ag from 241 m
o 2 m @ 4.71 g/t Au and 1.95 g/t Ag from 254 m
When combined with historical results, Hole LRCD151 overall intersection grade was 101 m @ 2.3 g/t
Au from 237 m. Gold mineralisation intersected by LSDD22001 is consistent with adjacent drill holes
with continuous mineralisation greater than 0.4 g/t Au over 137 m demonstrating the quality of the
ore body.
Since completing the acquisition of Twin Hills in early 2022, key exploration targets have been
identified and the structural interpretation defined from an integrated review of the extensive
historical data set and GBM’s drilling in 2022. Further field work is planned (including geophysics)
which will be followed up with drilling as the plans are finalised.
YANDAN
Resource Upgrade
Total mineral resource estimate (MRE) for The Yandan Project is 15.9 Mt @ 1.0 g/t Au for
514,500 oz Au (Refer to ASX:GBZ release 14 March 2023).
47% of the Yandan Project is now classified as Indicated, prior to the drilling and review the
MRE was all classified as Inferred, significantly improving both confidence and quality of the
resource.
The new Yandan Project MRE has less tonnes (reduced by 5.6 Mt) and an increase in grade
from 0.8 g/t Au to 1.0 g/t Au, due mainly to increasing the cut-off grade.
The MRE was reviewed following results of FY22 drilling data combined with the updated
geological model on the main deposit at East Hill.
The East Hill MRE returned 12.8 Mt @ 1.1 g/t Au for 443,000 oz Au and includes a high-grade
core of 1.1 Mt @ 5.7 g/t Au for 201,000 oz Au.
A maiden MRE for Illamahta has delivered 2.19 Mt @ 0.8 g/t Au for 55,500 oz Au, including
1.15 Mt @ 0.73 g/t Au for 26,900 oz Au of oxide ore.
GBM Resources Annual Report 2023
P a g e | 10
SIGNIFICANT HIGHLIGHTS IN FINANCIAL YEAR 2023
DRUMMOND BASIN, Queensland (Cont.)
YANDAN
New Geology Model Defines Compelling Targets
Gold mineralisation between Yandan Main to East Hill defines a km trend that contains
900,000 oz Au from both historic and the current Mineral Resource Estimate (MRE).
The new geological model is specific to the East Hill deposit which has a MRE of 443,000 oz
Au with the key geological focus being the high-grade core of 1.1 Mt @ 5.7 g/t Au for 201,000
oz Au.
The model for East Hill demonstrates that the known mineralisation is the top of a hot spring
epithermal and vein texture system.
Vein textures and mineralogy suggest drilling to date has only tested the upper parts of the
system with potential for stronger grades and more ounces at depth.
The Generator Fault potentially off-sets the mineralisation to the south and implies that the
high grade veins exist below this fault line.
Significant opportunity for a high-grade vein gold discovery under the existing resource.
Major review of prospects outside of the immediate Yandan and Illamahta areas has commenced.
MT COOLON
$25 million farm-in agreement with Newcrest
The Company advised on 21 October 2022 that it had enter into a farm-in agreement with Newcrest
Operations Limited, a subsidiary of Newcrest Mining Limited (Newcrest), Mt Coolon Gold Mines Pty
Ltd (MCGM) and Straits Gold Pty Ltd (Straits Gold) (Agreement) relating to the Mt Coolon Project
tenements, held by MCGM (Mt Coolon Project).
Newcrest has the right to acquire up to a 75% interest in the Mount Coolon Project tenements (See
Figures below (Tenements) by spending up to A$25m and completing a series of exploration
milestones in a 3 stage farm-in over six years.
Farm-in agreement expenditure and interest acquired overview:
I. Minimum Commitment Period: A$2 million spend within 24 months and reasonable
endeavours of completing at least 3,000 metres of drilling.
II.
Stage 1 Phase: Subject to satisfying the Minimum Commitment Period Newcrest may acquire
a 51% farm-in interest in the Tenements by spending an additional A$5 million and
completing a further 7,000 metres of drilling within a period of 36 months of the
commencement of the agreement.
GBM Resources Annual Report 2023
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SIGNIFICANT HIGHLIGHTS IN FINANCIAL YEAR 2023
DRUMMOND BASIN, Queensland (Cont.)
MT COOLON
III.
Stage 2 Phase: Subject to satisfying Stage 1 Phase Newcrest may earn a further 24% farm-in
interest in the Tenements by spending an additional A$18 million and completing at least
another 10,000 metres of drilling within a period of a further 36 months.
(For the Key terms of the farm in agreement - Refer to ASX:GBZ release 21 October 2022)
The farm-in agreement will provide substantial funding to advance exploration on the known
mineral resources together with the impressive other targets in the Mount Coolon Project
Figure 4: Map of Tenements included in the Newcrest Farm-in Agreement in the eastern part
of the Drummond Basin.
area while allowing GBM to focus its efforts on its highly prospective Twin Hills and Yandan
Gold Projects. During the farm-in period (subject to the terms of the Agreement), Newcrest
will have a first right of refusal over the Twin Hills and Yandan Projects should GBM look to
sell or joint venture these assets.
GBM Resources Annual Report 2023
P a g e | 12
SIGNIFICANT HIGHLIGHTS IN FINANCIAL YEAR 2023
WHITE DAM GOLD LEACHING OPERATIONS, South Australia
Alliance with Portia Gold Mine
GBM executed, in August 2023, a strategic binding agreement with Benagerie Gold & Copper
Pty Ltd (BGC), the owner of the Portia Gold Mine in northeast South Australia, to advance
each’s respective Projects (White Dam and Portia Gold Projects).
The agreement provides a framework for both parties in partnership, to optimise the value
of their existing resources and plant infrastructure assets by potentially reducing costs,
increasing revenue and profitability for both parties.
Initial work has been completed on mining studies, analysis of ore feeds etc. that have led to
support the strategic alliance with BGC. GBM is advancing plans to commence trials
processing high grade Portia ore feed at White Dam and under the agreement cash surplus
(after agreed costs) are allocated equally.
In addition, BGC (through its parent) will provide mining equipment to allow GBM to
complete approved activities at its site (treatment of remaining ROM pad material and
rehandling/stacking of irrigated heap leach material) to increase gold recovery from existing
gold resources.
In parallel with the divestment option, the Alliance’s longer term strategy is to investigate the
opportunity to combine the projects which may include a tolling agreement, joint venture, mining
and funding options or outright sale.
CLONCURRY IOCG, Queensland
(subject to farm-in / joint venture with Nippon Mining of Australia – GBM 44% and Nippon 56%)
Potential New Mineralised Zone Intercepted – Mt Margaret IOCG Project (Refer to ASX:GBZ release
27 July 2023)
A single diamond hole drill to 558 m has intersected a major new shear zone and broad base
metal mineralisation at the FC4 Prospect, Mt Margaret Project, Cloncurry.
Results include 40 m @ 0.32% Zn from 228 m (incl. 9 m @ 0.82% Zn from 228 m, 4 m @ 0.11%
Pb and 16 m @ 590 ppm Cu from 229 m)
The shear zone geology and geophysics has strong similarity to the nearby E1 IOCG deposit
(47 Mt @ 0.72% Cu & 0.21 g/t Au), that has partially been mined.
The magnetite shear zone has a strike length of approximately 12 km and follow up drill
testing of the shear zone hosted E1-type priority targets is planned for the December 2023
quarter.
GBM Resources Annual Report 2023
P a g e | 13
SIGNIFICANT HIGHLIGHTS IN FINANCIAL YEAR 2023
CORPORATE
Asset Divestment Strategy and Progress
Since the restructure of GBM in FY20, a systematic divestment of non-core assets has been successful
and continues to generate value and support the working capital requirements by a combination of
outright sale, partner funded JV and project vend-in. Value generated to date totals approximately
$9.4 million.
The Company continues to hold copper gold tenements in the Mt Morgan district, has a 44% JV
interest with Nippon Mining in copper tenements in the Mt Isa Inlier in Queensland and holds a 100%
interest in the White Dam gold – copper project in South Australia. Divestment of these non-core
assets is in progress and proceeds will be used to support the Company’s working capital
requirements together with further partial redemption of the convertible note facility.
Summary of Transactions Completed to date:
FY21
o Sale of 50% of Malmsbury Project to Novo Resources Corp. (Canadian Company
listed on TSXV: NVO) Initial 50% project interest sold for ~A$3.7 million in May 2021.
(Refer to ASX:GBZ release 14 May 2021)
FY22
o Sale of 100% of Milo Project to Consolidated Uranium Inc. (Canadian Company listed
on TSXV: CUR) for ~A$2.6 million in April 2022. The first payment of CAD $500,000
was paid in November 2021 on signing the definitive agreement. The completion
payment, represented by the issue of 750,000 CUR shares (with a value at the time
of ~A$2.1 million. (Refer to ASX:GBZ releases 11 November 2021 and 22 April 2022)
o Sale of 100% of Mayfield Project to C29 Metals (ASX:C29).100% of project sold for
~A$500,000 (cash and shares) in June 2022. Cash payment of $250,000 along with
the issue of 1,558,963 C29 Metals shares. (Refer to ASX:GBZ releases 15 June 2022
and 31 August 2022)
FY23
Sale of remaining 50% of Malmsbury Project to Novo Resources Corp. Remaining 50% of
project sold for ~A$2.6 million (excluding any potential royalties). This is made up of A$1.0m
in cash and ~A$1.6m in Novo Resources shares/options. The Novo shares and options are
escrowed for a period of 12 months from settlement. (Refer to ASX:GBZ release 10 March
2023)
Total consideration of ~$4.2m has been applied against the convertible note facility. See
following convertible note summary.
GBM Resources Annual Report 2023
P a g e | 14
SIGNIFICANT HIGHLIGHTS IN FINANCIAL YEAR 2023
CORPORATE (Cont.)
$10M CONVERTIBLE NOTE
During the year the Company issued secured convertible notes up to $10 million to Collins Street
Convertible Note Fund, managed by Collins Street Asset Management. As at the 30 June 2023 the
Net Value outstanding is $ 4.2 million (after applying the Malmsbury sale proceeds) is represented
by:
30-Jun-23
$
Convertible Note Value
10,000,000 * reference note 17
Partial Repayment
(2,531,650) * reference note 17
Prepaid Interest
(1,568,354) * reference note 17
Investment - Novo Resources Corp
(1,665,493)
* reference note 13
Equity Consideration on Sale of Malmsbury Project
Net Value Outstanding
4,234,503 * Notes to the Consolidated Financial Statements
GBM Resources Annual Report 2023
P a g e | 15
PROJECT LOCATION AND COMMODITY SUMMARY
The Company holds a portfolio of tenements – located in world-class gold and copper
regions in Australia
Figure 5: GBM Project Location Plan
Drummond Basin
North-West QLD
Mt Coolon Gold Project
100% wholly owned
arrangement with Newcrest Mining Limited)
Epithermal breccia / quartz- Gold
Resources totalling 330,500 ounces of gold
(subject
to
farm-in
Yandan Gold Project
100% wholly owned
Epithermal disseminated bulk tonnage
Resources totalling 515,000 ounces of gold
Twin Hills Gold Project
100% wholly owned
Epithermal electrum / quartz-Gold
Resources totalling ~1 million ounces of gold
Cloncurry Copper Joint Venture
North-West QLD
46% owned by GBM.
Iron Oxide Copper Gold
Mount Morgan Project
Central QLD
100% wholly owned
Gold and Copper- Porphyry, VMS
White Dam Gold Copper Project
North-East SA
100% wholly owned
Gold-Copper Heap leach operation
Resource totalling 101,900 ounces of gold
GBM Resources Annual Report 2023
P a g e | 16
REVIEW OF OPERATIONS
DRUMMOND BASIN, Queensland
TWIN HILLS PROJECT (100% GBM)
The new combined resource at Twin Hills of 23.11 Mt @ 1.3 g/t Au and 6.5 g/t Ag for 999,200 oz Au and
4,824,600 oz Ag with 60% of the resource now in Measured and Indicated categories. The new MRE
adds 238,500 oz Au or 31% to the previous MRE of 760,700 oz Au (Refer to ASX:GBZ release 2 February
2022).
LONE SISTER – Mineral Resource Estimate (MRE)
The updated MRE for Lone Sister deposit comprises 12.48 Mt @ 1.2 g/t Au for 475,900 oz Au with 55% of
the resource now in Measured and Indicated categories (Table 1). This resource adds 215,800 oz Au or
83% to the previous MRE of 260,100 oz Au. The updated resource comprises open pit resources to
approximately 250 m below surface, of 11.8 Mt @ 1.1 g/t Au for 415,800 oz Au calculated at a cut-off
grade of 0.4 g/t Au and underground resources below 250 m of 0.68 Mt @ 2.7 g/t Au for 60,100 oz Au at
a cut-off grade of 2.0 g/t Au .
Previous resource estimates only focused on the higher-grade core of the deposit for trucking
considerable distance to existing process plant operations. These models necessarily excluded numerous
intercepts of well-defined but moderate to lower grade gold mineralisation. GBM considers Twin Hills as
a potential stand-alone operation and the new estimate includes open pit style resources that have
captured most of the previously unreported gold mineralisation.
The Lone Sister ore body is currently defined for 350 m along strike, over 400 m in height, and is
approximately 150 m wide. The broadly tabular shape directly reflects mineralisation that is preferentially
hosted within a rhyolite dyke with some evidence for limited mineralisation having formed within specific
lithological units adjacent to the dyke. Higher grade gold mineralisation displays a distinct plunge to the
north and remains open at depth.
Gold mineralisation manifests as quartz-pyrite veinlets and disseminated pyrite with higher grades
associated with increased vein density and higher pyrite percentage. Silicification is also significantly
increased around mineralisation.
309 – Mineral Resource Estimate (MRE)
The updated MRE for 309 deposit comprises 10.63 Mt @ 1.5 g/t Au for 523,300 oz Au with 64% of the
resource now in Measured and Indicated categories (Table 1). This resource adds 22,700 oz Au or 5% to
the previous MRE of 500,600 oz Au. The updated resource comprises open pit resources to approximately
250 m below surface, of 9.96 Mt @ 1.4 g/t Au for 438,900 oz Au calculated at a cut-off grade of 0.4 g/t
Au and underground resources below 250 m of 0.67 Mt @ 3.9 g/t Au for 84,400 oz Au at a cut-off grade
of 2.0 g/t Au.
GBM Resources Annual Report 2023
P a g e | 17
REVIEW OF OPERATIONS
DRUMMOND BASIN, Queensland – Twin Hills
Currently defined gold mineralisation extends from surface downward for 380 m, along strike in a WNW
direction for 380 m and NNE for 330 m. Overall, the system dips steeply to the south and plunges to the
west with high grade gold mineralisation remaining open at depth.
A variety of hydrothermal mineralisation styles are present at 309. On surface, sinter crops out along an
arcuate trend that rings near surface gold mineralisation. The complex shape of the 309 ore body is the
result of both structural controls on fluid flow and hydrothermal processes.
At depth gold mineralisation is predominantly focused along WNW and, to a lesser extent, NNE structural
zones as stockwork veins and breccia fill. The best grades form in two 50 -70 m high layers broadly sub-
parallel to bedding and presumably the palaeo surface. The uppermost of the two zones contains
abundant bladed fluorite-chalcedony-quartz veins and breccia fill. GBM interprets this zone to represent
a boiling and / or fluid mixing zone with associated abundant silicification potentially having formed a cap
that allowed later gold rich fluids to be concentrated.
GBM Resources Annual Report 2023
P a g e | 18
REVIEW OF OPERATIONS
DRUMMOND BASIN, Queensland – Twin Hills
Deposit MRE Category
Cutoff
(Au g/t)
Tonnes
Au
(g/t)
Ag
(g/t)
Au oz
Ag oz
309 Open Pit (above 0RL)
Measured
Indicated
Inferred
Total open pit
0.4
0.4
0.4
0.4
t
i
s
o
p
e
D
9
0
3
309 Underground (below 0RL)
Measured
Indicated
Inferred
Total underground
2.0
2.0
2.0
2.0
830,000
5,480,000
3,650,000
9,960,000
-
190,000
480,000
670,000
309 Total
Measured
Indicated
Inferred
309 Total
0.4 / 2.0
0.4 / 2.0
0.4 / 2.0
0.4 / 2.0
830,000
5,670,000
4,130,000
10,630,000
Lone Sister Open Pit (above 0RL)
Measured
Indicated
Inferred
Total open pit
0.4
0.4
0.4
0.4
-
5,250,000
6,550,000
11,800,000
Lone Sister Underground (below 0RL)
Measured
Indicated
Inferred
Total underground
Lone Sister Total
Measured
Indicated
Inferred
Lone Sister Total
2.0
2.0
2.0
2.0
-
370,000
310,000
680,000
0.4 / 2.0
0.4 / 2.0
0.4 / 2.0
0.4 / 2.0
-
5,620,000
6,860,000
12,480,000
Twin Hills Open Pit (above 0RL)
Measured
Indicated
Inferred
Total open pit
0.4
0.4
0.4
0.4
Twin Hills Underground (below 0RL)
830,000
10,730,000
10,200,000
21,760,000
-
560,000
790,000
1,350,000
2.0
2.0
2.0
2.0
0.4 / 2.0
0.4 / 2.0
0.4 / 2.0
0.4 / 2.0
830,000
11,290,000
10,990,000
23,110,000
Measured
Indicated
Inferred
Total underground
Twin Hills Total
Measured
Indicated
Inferred
Twin Hills Total
t
i
s
o
p
e
D
r
e
t
s
i
S
e
n
o
L
l
a
t
o
T
s
l
l
i
H
n
w
T
i
2.8
1.3
1.1
1.4
-
4.0
3.9
3.9
2.8
1.4
1.4
1.5
-
1.3
0.9
1.1
-
2.9
2.6
2.7
-
1.4
1.0
1.2
2.8
1.3
1.0
1.2
-
3.3
3.4
3.3
2.8
1.4
1.1
1.3
5.3
2.4
1.7
2.4
-
2.2
1.8
1.9
5.3
2.4
1.7
2.3
-
15.2
6.5
10.4
-
4.3
4.0
4.2
-
14.5
6.4
10.0
5.3
8.6
4.8
6.7
-
3.6
2.7
3.1
5.3
8.4
4.6
6.5
73,900
235,200
129,800
438,900
-
24,500
59,900
84,400
73,900
259,700
189,700
523,300
141,900
421,100
198,000
761,000
-
13,400
28,600
42,000
141,900
434,500
226,600
803,000
-
227,300
188,500
415,800
-
2,559,200
1,370,700
3,929,900
-
34,300
25,800
60,100
-
51,800
39,900
91,700
-
261,600
214,300
475,900
-
2,611,000
1,410,600
4,021,600
73,900
462,500
318,300
854,700
141,900
2,980,300
1,568,700
4,690,900
-
58,800
85,700
144,500
-
65,200
68,500
133,700
73,900
521,300
404,000
999,200
141,900
3,045,500
1,637,200
4,824,600
Table 1: Summary of the Twin Hills Gold Project MRE showing Au and Ag resources.
GBM Resources Annual Report 2023
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REVIEW OF OPERATIONS
DRUMMOND BASIN, Queensland – Twin Hills
RESOURCE EXTENSION TARGETS
Both 309 and Lone Sister deposits have potential for open pit and bulk mine underground extraction.
The 309 deposit remains open along the NNE and WNW structural orientations that define the orebody
(Figure 6). Broad intervals of + 4 g/t Au define priority high grade resource step out drill targets and
include intersections of 49 m @ 5.18 g/t Au from 310 m in 309DD22005 and 54 m @ 4.63 g/t Au from 362
m in THRCD827. High grade drill intercepts, including the intercept of 49 m @ 5.18 g/t Au in 309DD22005,
can be associated with late-stage visible gold as electrum (Refer to ASX:GBZ release 10 May 2022).
Figure 6. A Plan (A) and cross-section (B) showing the recently released 309 MRE block model. Note
that high grades remain open along key NNE and WNW structural orientations. This is a key target for
GBM. Late-stage visible gold (C) is associated with high grade mineralisation in 309DD22005 that
remains open. Drill hole data is also shown.
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REVIEW OF OPERATIONS
DRUMMOND BASIN, Queensland – Twin Hills
Mineralisation at Lone Sister is defined from surface for over 420 m of elevation and contains a high-
grade core with a width of 20 to 37 m @ 4 to 37 g/t Au. Broad high-grade intersections within the resource
include 29 m @ 7.98 g/t Au from 139 m in LRCD143 and 37 m @ 36.53 g/t Au from 211 m in LRCD015.
Mineralisation plunges moderately to the north and high grade remain open at depth e.g., 20 m @ 4.32
g/t Au from 401 m in LRCD066 (Figure 7). Down plunge extension of Lone Sister mineralisation is a priority
resource step out drill target (Refer to ASX:GBZ releases 18 January 2019 and 19 July 2021).
Figure 7. A Plan (A) and cross-section (B) showing the recently released Lone Sister MRE block model.
Note that high grades plunge to the north and remain open down plunge. This is a key target for
GBM. Historic soil data and drill hole data are also shown.
GBM Resources Annual Report 2023
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REVIEW OF OPERATIONS
DRUMMOND BASIN, Queensland – Twin Hills
COMPELLING COMBINATION Of GEOCHEMICAL, IP AND STRUCTURAL TARGETS
Comparison of soil geochemical and magnetic data has highlighted three soil anomalies greater than 8
km in length and a lower order anomaly all coincident with NW to NNW trending km-scale faults that
parallel the overall basin forming architecture (Figure 8). The two large anomalies at Bullock Creek - Hill
253 and Lanark - Tourmaline Hill along with the Bendee prospect have had little systematic exploration
and represent excellent exploration targets (Refer to ASX:GBZ release 28 April 2023).
Figure 8. A map of the Twin Hills area showing key prospects.
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REVIEW OF OPERATIONS
DRUMMOND BASIN, Queensland - Twin Hills
The highly prospective > 10 km long Twin Hills Corridor (Figure 8) encompasses the 309 and Lone Sister
deposits (of 23.1 Mt @ 1.3 g/t Au and 6.5 g/t Ag for ~ 1 Moz Au and 4.8 Moz Ag) and is defined by strongly
anomalous soil geochemistry, favourably oriented structures, and IP anomalies. Multiple soil anomalies
are present across areas of key target stratigraphy and are generally coincident with NW or NE striking
structures observed in magnetics. The key anomalies are at the 309 Trend Targets, Lone Sister, and
Southern Sister, with second order anomalies at LS7 and Lone Sister South and mapped sinter at
Centipede.
The > 10 km2 soil anomaly surrounding Lone Sister and Southern Sister is very poorly tested outside the
immediate Lone Sister deposit area. Limited drilling at Southern Sister intersected prospective andesite
host stratigraphy with moderate silicification and anomalous gold/arsenic. This highly prospective area
will be a key focus of exploration.
The main outcrop at the Southern Sister prospect (Figure 9) comprises a knoll of autobrecciated andesite
to dacite and that may represent a flow dome or similar. The rocks are silicified and contain disseminated
pyrite but show little veining. The ~ 1 km2 > 10 ppb Au soil anomaly at Southern Sister is centred over a
650 m long magnetic high bound by interpreted north trending faults.
A historic CSAMT (Controlled-source Audio-Frequency Magnetotelluries) survey extends across the
eastern edge of the Southern Sister prospect and shows a linear resistivity high co-incident with the
interpreted structure. Limited, generally shallow drilling has been focused along the eastern edge of the
prospect and returned encouraging results of 3 m @ 0.89 ppm Au from 125 m in SSRC005 and 14 m @
0.28 ppm Au from 26 m in SSRC005 adjacent to the Southern Sister knoll (Refer to ASX:GBZ releases 18
January 2019 and 19 July 2021) (Figure 10). GBM continues to view Southern Sister as a key target for
further exploration.
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REVIEW OF OPERATIONS
DRUMMOND BASIN, Queensland – Twin Hills
Figure 9. Photos of (A) the knoll at Southern Sister, (B) Autobrecciated andesite/dacite lava possibly
representing a flow dome or similar, (C) GBM Senior Geologist Damien Foster inspecting the Southern
Sister outcrop, and (D) Looking to the north from Southern Sister toward GBM’s Lone Sister and 309
Deposits that contain ~ 1 Moz Au. Lone Sister is approximately 2 km NNE of Southern Sister.
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REVIEW OF OPERATIONS
DRUMMOND BASIN, Queensland – Twin Hills
Figure 10. Maps showing gold in soil across the Southern Sister and Lone Sister prospects overlain on
interpreted structure, aeromagnetics (A), and CSAMT (B). The ~ 1 km2 > 10 ppb Au soil anomaly at
Southern Sister is centred over a magnetic high bound by interpreted north trending faults. A historic
CSAMT survey (2D inversion, 200m depth slice) extends across the western edge of the Southern Sister
prospect and shows a linear resistivity high co-incident with the interpreted structure. Limited,
generally shallow drilling has been focused along the western edge of the prospect and returned
encouraging results adjacent to the Southern Sister (Refer to ASX:GBZ release 9 June 2023)
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REVIEW OF OPERATIONS
DRUMMOND BASIN, Queensland – Twin Hills
The 8 km long soil anomaly at Bullock Creek Prospect is coincident with abundant quartz float across
much of the core of the anomaly. The quartz was likely concentrated through regolith development but
similar quartz was observed as veins in outcrop only 1-2 m below surface and hosted in Anakie
Metamorphic Group phyllite (Figure 11).
Figure 11. A photo of quartz veining in bedrock at Bullock Creek Prospect overlain by abundant quartz
clasts in the regolith. Quartz float is coincident with the core of the Bullock Creek soil anomaly.
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REVIEW OF OPERATIONS
DRUMMOND BASIN Queensland – Twin Hills
The Coreshed and 309 South prospects are mostly covered by regolith with several small occurrences of
silicified breccia similar to the breccia that hosts 309 Deposit cropping out between the two prospects
(Figure 12). The breccia outcrops are co-incident with the highest Au in soil geochemistry and combined
with IP presented remains a compelling exploration targets (Refer to ASX:GBZ release 24 August 2023).
Figure 12. A photo of silicified breccia that crops out between the Coreshed and 309 South prospects.
This breccia is similar to the breccia that hosts the 309 Deposit and is co-incident with the best Au in
soil geochemistry.
Priority combined geophysical, geochemical and geological targets have been identified immediately to
the south of the 309 deposit. A clear IP resistivity anomaly is defined at the 309 deposit and likely reflects
intense silicification associated with the mineralisation system. Two additional IP resistivity anomalies,
Coreshed and 309 South (Figure 13 A and B), define a SSE plunging trend sub-parallel to the km-scale
structural fabric that links 309 and Lone Sister deposits.
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REVIEW OF OPERATIONS
DRUMMOND BASIN, Queensland – Twin Hills
Figure 13(A) Plan: The Coreshed and 309 South resistivity anomalies are coincident with + 10 ppb Au
soil anomalies and outcropping silicified milled matrix breccia that also hosts the 309 deposit. Shallow
drilling with anomalous results of 0.5 – 1.9 g/t Au has tested part of the Coreshed anomaly but did not
test the 309 South anomaly (Refer to ASX:GBZ releases 18 January 2019 and 19 July 2021).
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REVIEW OF OPERATIONS
DRUMMOND BASIN, Queensland – Twin Hills
Figure 13 (B) cross-section showing the IP resistivity in the 309 area overlain by 309 deposit geometry,
drilling and Au in soil geochemistry. Note that the SSE plunging trend sub-parallel to the km-scale
structural fabric that links 309 and Lone Sister deposits (Refer to ASX:GBZ release 28 April 2023).
Forward Plans - Twin Hills
GBM will focus on finalising the review of regional prospects across Twin Hills. Additional targeted surface
geochemical samples will be collected, and electrical geophysics (IP or similar) may be undertaken on
selected areas. GBM plans to further refine the 309 and Lone Sister deposit models with focus on
alteration and metal zoning patterns for use in vectoring across the tenement package and finalise drilling
plans and priorities.
GBM Resources Annual Report 2023
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REVIEW OF OPERATIONS
DRUMMOND BASIN, Queensland – Yandan
YANDAN PROJECT (100% GBM)
MINERAL RESOURCE ESTIMATE (MRE)
The Yandan Project comprises 2 mining leases and 4 exploration permits and is located 150 km SSE of
Charters Towers in northeast Queensland.
The project contains known deposits (Yandan Main, Yandan South, East Hill, and Illamahta) and numerous
prospects and is hosted in the Saint Anns Formation sedimentary rocks and Yandan Andesite, within a 22
km long by 3 km wide, north-south elongate fault bounded subbasin, known as the Yandan Tough.
Total MRE for Yandan is 15.9 Mt @ 1.0 g/t Au for 514,500 oz Au. The main deposits in the MRE are - East
Hill of 12.8 Mt @ 1.1 g/t Au for 443,000 oz Au and the maiden MRE for Illamahta of 2.2 Mt @ 0.8 g/t Au
for 55,500 oz Au.
Deposit MRE Category
Cutoff
(Au g/t)
Tonnes
Au
(g/t)
Ag
(g/t)
Au oz
Ag oz
East Hill Open Pit (above -150m RL)
Measured
Indicated
Inferred
Total
-
0.4
0.4
0.4
4,860,000
7,900,000
12,800,000
-
1.5
0.8
1.1
-
2.2
1.4
1.7
-
240,000
203,000
443,000
East Hill High Grade Core (included in East Hill above -150m RL)
l
l
i
H
t
s
a
E
Measured
Indicated
Inferred
Total High Grade Core
-
750,000
350,000
1,100,000
2.0
2.0
2.0
Yandan South (previously released)
-
6.4
4.1
5.7
-
-
0.6
0.6
-
-
0.8
0.8
-
6.3
5.2
5.9
-
154,000
47,000
201,000
-
-
-
-
-
-
-
-
-
-
16,000
16,000
-
-
55,500
55,500
0.3
0.3
-
-
900,000
900,000
-
-
0.4
0.4
2,192,000
2,192,000
n
a
d
n
a
Y
h
t
u
o
S
Measured
Indicated
Inferred
Total
Illamahta Open Pit
a
t
h
a
m
a
Measured
Indicated
Inferred
Total
l
l
I
n
a
d
n
a
Y
t
c
e
j
o
r
P
East Hill, Yandan South and Illamahta Total
-
Measured
Indicated
Inferred
Yandan Project Total
* not shown as no silver data reported for Yandan South and Illamahta
4,860,000
10,992,000
15,852,000
0.4
0.3/0.4
0.3/0.4
240,000
274,500
514,500
-
1.5
0.8
1.0
-
*
*
*
-
-
347,000
362,000
709,000
-
153,000
71,000
224,000
-
-
-
-
-
-
-
-
-
*
*
*
Table 2: Summary of Yandan Project resources.
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REVIEW OF OPERATIONS
DRUMMOND BASIN, Queensland – Yandan
EAST HILL – Mineral Resource Estimate (MRE)
A new MRE for East Hill deposit (Figures 14, 15 and 16) has been completed and comprises 12.8 Mt @ 1.1
g/t Au for 443,000 oz Au with 54% of East Hill resources now classified as Indicated, where the previous
resource was all classified as Inferred (Table 2).
The new MRE was completed following the FY22 drilling program, collection of SG data, and re-
assessment of the geology model. Mineralisation is consistent with the previous MRE and historic drill
intercepts. The East Hill ore body comprises two main pods of mineralisation that together extend from
surface downward for 380 m. Overall, the system dips moderately to the south and plunges to the west
with no clear links to the adjacent Yandan Main or Yandan South ore bodies.
The cut-off grade at East Hill was increased to 0.4 g/t Au (to bring in line with the recent Twin Hills MRE
update) and together with the new drilling/SG data and geological model greatly improved the deposit
by reducing tonnes by 7.26 Mt and increasing the head grade by 38% to 1.1 g/t Au., (Refer to ASX:GBZ
release 23 December 2020). The Yandan South MRE was not reviewed at this stage as no new drilling or
geological information has been gathered.
Of significance is the East Hill MRE high-grade core of 1.1 Mt @ 5.7 g/t Au for 201,000 oz Au. which has
the potential with further drilling to add additional high grade ounces to the resource.
Figure 14: A plan showing outlines of the East Hill and Yandan South block models projected to
surface. Note the location of section lines A-A’, B-B’, and C-C’ shown in Figures 15 and 16.
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REVIEW OF OPERATIONS
DRUMMOND BASIN, Queensland – Yandan
Figure 15. Cross Sections showing East Hill block model overlain on drilling and are looking west. Note
that high grades are concentrated in a series of sheeted veins that terminate against the underlying
fault. The location of the section lines are shown in Figure 14.
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REVIEW OF OPERATIONS
DRUMMOND BASIN, Queensland – Yandan
Figure 16. A long Section showing East Hill block model overlain on drilling and is looking north. Note
the sharp termination against the underlying fault. The location of the section line is shown in Figure
14.
NEW EAST HILL GEOLOGY MODEL AND EXPLORATION TARGET
The East Hill deposit is a clear example of a hot spring low sulphidation epithermal system. Volcanic facies
contacts at a high angle to the overall stratigraphy suggests that the deposit likely formed in a graben or
half graben within the broader Yandan Trough. The style of mineralisation is partly controlled by host rock
with breccias generally formed in coarse tuffs and fine-grained tuff and lava hosting veins. The Epiphany
Conglomerate with clasts of silica-illite altered andesite, sinter and epithermal veins suggest
hydrothermal eruption breccia was present and forms a distinct marker horizon (Figure 17A) (Refer to
ASX:GBZ release 22 March 2023).
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REVIEW OF OPERATIONS
DRUMMOND BASIN, Queensland – Yandan
Sedimentary units with hydrothermal components (sinter and Epiphany Conglomerate) interbedded with
St Anns Formation limestone and siltstone imply that the East Hill mineral system has been rotated, likely
by regional folding, from an original position of horizontal bedding and steeply plunging mineralisation to
north dipping bedding and south plunging mineralisation. The Generator Fault that truncates high grade
mineralisation at East Hill is now interpreted to be post-mineral and reverse movement is implied by
andesite (older) juxtaposed over St Anns Formation siltstone, limestone and Epiphany Conglomerate
(younger) (Figures 17B and 17C)
Figure 17. Schematic cross-sections illustrating the interpreted development of the East Hill gold
deposit showing (A) Formation of the East Hill gold deposit as a hot spring style low sulphidation
epithermal system, possibly in a graben, overlain by sinter and conglomerate containing clasts of
sinter and epithermal veins, (B) Regional folding resulting in tilting of the deposit, (C) The Generator
Fault cuts mineralisation and juxtaposes andesite (older) over St Anns Formation (younger). Erosion to
the present day showing currently defined East Hill mineralisation and the target zone at depth. Note
that sections are not to scale. The general position of the schematic section in Figure 17C is shown in
Figure 18.
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REVIEW OF OPERATIONS
DRUMMOND BASIN, Queensland – Yandan
Vein composition and textures at East Hill clearly demonstrate that the known mineralisation represents
the top half of the hot spring and vein texture model (Berger and Eimon, 1982., Morrison et al., 1990).
The presence of hydrothermal alteration and epithermal veins below the Generator Fault together with
gold grades that increase down plunge suggest that the Yandan system remains open at depth with
potential for better grades and significantly more ounces. With strong similarities to well know epithermal
deposits Favona in New Zealand and Golden Promise in USA, it appears likely that high-grade veins exist
below the Generator Fault (Figure 17C). These high-grade veins are our key exploration target at Yandan.
TARGET LOCATION
Yandan mineralisation (Yandan Main to East Hill) defines a 1 km trend that contains 900,000 oz Au
(historic and current resources). Hot spring epithermal systems often have better grades and more
ounces at depth with high-grade veins present underneath similar epithermal systems at Favona and
Golden Promise. The geological model developed for East Hill implies that the Generator Fault off-sets
mineralisation to the south. Initial drilling will likely target locations immediately to the north of known
mineralisation.
Figure 18. A plan showing key targets zones for the new Yandan exploration model overlain on
gradient array chargeability and down hole gold with air photo background. The Yandan
mineralisation (Yandan Main to East Hill) defines a 1 km trend that contains 900,000 oz Au (historic
and current resources). Hot spring epithermal systems often have better grades and more ounces
depth with high-grade veins present underneath similar epithermal systems. Note the approximate
position of the schematic sections shown in Figure 17.
GBM Resources Annual Report 2023
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REVIEW OF OPERATIONS
DRUMMOND BASIN, Queensland – Yandan
ILLAMAHTA – Mineral Resource Estimate (MRE)
The maiden MRE for Illamahta deposit comprises 2.19 Mt @ 0.8 g/t Au for 55,500 oz Au, including 1.15
Mt @ 0.73 g/t Au for 26,900 oz Au of oxide ore calculated at a cut-off grade of 0.4 g/t Au (Table 2 and
Figures 19, 20 and 21).
Illamahta deposit sits approximately 15 km south southwest of Yandan Main and East Hill deposits. See
Figure 3 for its location relative to other projects. Gold mineralisation occurs in several bedding parallel
layers that dip shallowly to the northwest. The Illamahta resource has been defined for more than 330 m
along a NW strike, is typically 160 m wide and extends from surface downward for 80 m.
Gold mineralisation at Illamahta occurs as a stratabound body of disseminated and fracture veinlet gold
hosted within altered and silicified siltstone of the upper Saint Anns Formation. Gold is associated with
fine grained disseminated pyrite, massive to banded chalcedony veinlets < 5 mm thick and minor
brecciation. A steeply dipping, broadly east trending fault extends along the length of the deposit and
may represent a key fluid conduit.
Illamahta mineralisation is similar to Yandan Main and is interpreted to represent the upper and perhaps
distal part of an epithermal system. A very large silicification halo surrounds Illamahta (Figure 22) and
GBM views Illamahta as being a small part of a much larger system, with the potential for higher grades
and more ounces in permissive structural settings and key lithological units at depth.
Figure 19 A plan showing Illamahta mineralisation and outline of block model projected to surface.
Note the location of section lines A-A’, B-B’, and C-C’ shown in Figures 20 and 21 (Refer to ASX:GBZ
release 14 March 2023).
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REVIEW OF OPERATIONS
DRUMMOND BASIN, Queensland – Yandan
Figure 20. Cross Sections showing Illamahta block model overlain on drilling and are looking west.
Note that mineralisation dips shallowly to the northwest, this is sub-parallel to bedding. The location
of the section lines are shown on Figure 19.
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REVIEW OF OPERATIONS
Figure 21. A long section showing the Illamahta block model overlain on drilling and is looking north.
The location of the section line is shown on Figure 19.
Figure 22. A plan showing the location of the Illamahta Gold Deposit. Note that Illamahta forms at
one end of a large zone of pervasive silicification.
GBM Resources Annual Report 2023
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REVIEW OF OPERATIONS
DRUMMOND BASIN, Queensland – Yandan
REGIONAL GEOLOGY
Review of prospects outside of the immediate Yandan and Illamahta areas has commenced. Historical soil
sampling defines ten soil anomalies more than 1 km long with a tenor > 5 ppb Au across the project (Figure
23). Whilst Northeast Ridge has been the focus of several drilling programs other prospects have had little
significant work since initial discovery ~ 30 years ago. Historic soil sample results are predominantly for
gold only and cover < 10% of the project area. Comparison of historic soil and magnetic data shows that
multiple styles of mineralisation are likely to be present. At Horse Creek and Murdering Lagoon gold in
soil anomalies clearly correspond with circular magnetic features that likely represent buried intrusions.
Further work will be required, but these prospects could represent intrusion related gold systems that
are exemplified to north by deposits such as Mt Leyshon, Kidston, and Mt Wright.
Figure 23. Maps showing (A) soil anomalies > 5 ppb Au across the Yandan Project overlain on
magnetics(RTP). Coverage of soil samples is also shown with just 8% of the project covered by soil
sampling. (B) Gold in soil (ppb) overlain on magnetics (RTP) at Horse Creek and Murdering Lagoon.
Note how well elevated gold matches the circular magnetic features. We interpret the circular
magnetic features to reflect buried intrusions that could represent intrusion related gold systems
exemplified to north by deposits such as Mt Leyshon, Kidston, and Mt Wright.
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REVIEW OF OPERATIONS
DRUMMOND BASIN, Queensland – Yandan
Forward Plan - Yandan
Work will continue to focus on finalising the review of regional prospects across Yandan .
Further targeted surface geochemical samples will be collected, and electrical geophysics (IP
or similar) may be undertaken on selected areas. The Yandan deposit model will be further
reviewed with focus on alteration and metal zoning patterns across the tenement package to
finalise drilling plans and target priorities.
MT COOLON PROJECT (100% GBM)
($25 million farm-in agreement with Newcrest Operations Limited, a subsidiary of Newcrest Mining Ltd
(Newcrest)).
Newcrest considers the Drummond Basin to be highly prospective for discovery of new higher grade gold
resources related to known epithermal gold deposits within the Mount Coolon Project area. The project
has undergone establishment activities and initial targeting has identified a number of high priority targets
below and along strike to previously identified gold-bearing low-sulphidation epithermal veining.
Newcrest is completing a multifaceted geophysical, geochemical, and geological exploration program
across GBM’s Mt Coolon Gold Project.
Overview of activities completed or in progress:
IP program in progress extending along strike to the NW from existing lines at Glen Eva across
Canadian and onward to Eugenia.
Aeromagnetic survey flown and covered most of the Mt Coolon Gold Project tenement package.
Multielement soil sampling program underway and focused along IP lines.
Completed detailed mineralogical and geochemical analysis of historic core and RC chips with
TruScan.
All available data will be used to rank and prioritise targets with the aim to commence drilling in
the second half of CY2023 or early CY2024.
Total expenditure pursuant to the farm-in for the project to 30 June 2023 was ~A$3.8 million.
DETAILS OF ACTIVITIES:
TruScan TM XRF Geochemical Scanning
TruScan™ can provide high accuracy elemental concentrations of drill core and high-definition core
photos. To maximise the value associated with previous drilling conducted over 30+ years a campaign to
scan a selection of drill core from across the project area, focusing on the Koala, Glen Eva, Eugenia, and
Verbena prospects.
GBM Resources Annual Report 2023
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REVIEW OF OPERATIONS
DRUMMOND BASIN, Queensland – Mt Coolon
The main objectives of the work program (Refer to ASX:GBZ release 24 August 2023) were to:
•
Infill existing drill hole assay gaps where holes were selectively assayed and/or assayed for
a limited element suite.
• Assist in defining and modelling lithological units and alteration and,
• Determine if TruScan™ data can be used to vector towards high-grade mineralisation and assist
with making real-time decisions during future drill programs.
In addition to drill core, the system was also trialled on RC chip trays.
Over the course of a 12-week campaign, core and/or chips from 243 drill holes, totalling almost 17,000m
of core and approximately 20,000m of RC chips were scanned and photographed (Figure 9). Selected holes
and/or intervals were also geologically logged with details loaded/updated into the Newcrest database.
Scanning was completed in late Jun 2023.
Data calibration is currently in progress with results expected to be received during the December 2023
quarter with data interpretation to follow.
Induced Polarisation (IP) Geophysical Surveying
Approximately 80 line km of 2D pole-dipole IP was completed from the western side of the Glen Eva, through
to Canadian and Last Stand, Eugenia and also the Verbena Sinter areas. The program aims to locate and
define fertile structures, hydrothermal alteration, and broad lithological changes within the broad Glen
Eva and Koala-Verbena structural corridors (Figure 20). IP lines were nomically designed at 400m spacing,
with line spacing increased over lower priority areas (with the ability to infill if warranted).
The program commenced in late April 2023 and approx. a 33 line km were competed (Lines 1-8).
Jangga Cultural Heritage Monitors have been used throughout the program.
Data from the 2020-2021 GBM surveys between Glen Eva and Eastern Siliceous were also remodelled
with 2D inversion images produced using the same parameters / colour stretch as the Newcrest survey.
Initial assessment of the inversion models has highlighted the presence of multiple structures of interest,
particularly in the Canadian area. Field reconnaissance commenced in late Jun 2023 and is ongoing.
The IP program is expected to be completed during the December 2023 quarter.
Soil Sampling
A soil sampling program was planned along the same lines as the Newcrest IP survey (nomically 400 x
50m sample spacing) to provide a geochemical layer to assist with ranking and prioritising
structures/targets identified from the geophysics. The program was expanded to include the GBM IP lines
(also at 400 x 50m spacing), with 3,390 samples planned in the initial program.
GBM Resources Annual Report 2023
P a g e | 41
REVIEW OF OPERATIONS
DRUMMOND BASIN, Queensland – Mt Coolon
Samples were sent to Intertek in Townsville low-level Au and 48 element, 4-acid ICPAES/MS analysis,
plus Hg. Results are pending.
Aeromagnetic & Radiometric Survey
An aeromagnetic and radiometric survey covering approximately 2,150km2 (48,000-line km) was
completed. The 50 m line spaced survey covered all of the Mt Coolon Gold Project tenements except for
the areas that already have detailed magnetic data. Detailed magnetic and radiometric data were
integral in defining the structural architecture of the Twin Hills Gold Project area and GBM believes the
data to be an essential tool to help define future exploration.
Figure 24. Drill holes scanned by TruScan over regional magnetics
GBM Resources Annual Report 2023
P a g e | 42
REVIEW OF OPERATIONS
DRUMMOND BASIN, Queensland – Mt Coolon
Figure 25. Mt Coolon – IP and soils locations
GBM Resources Annual Report 2023
P a g e | 43
REVIEW OF OPERATIONS
SOUTH AUSTRALIA
WHITE DAM OPERATIONS (100% GBM)
Alliance with Portia Gold Mine:
GBM executed a strategic binding agreement with Benagerie Gold & Copper Pty Ltd (BGC) to
advance together the synergies of White Dam and Portia Gold Projects.
An agreement provides a framework for both parties to merge the two projects and take
advantage of the resulting synergies with regard to the value of their existing resources and plant
infrastructure assets, which is expected to increase revenue, reduce costs and potentially lead to
improved cash flows.
BGC has mobilised mining equipment at site to carry out activities enabling the treatment of
remaining ROM pad material and rehandling/stacking of irrigated heap leach material to increase
gold production. Leaching of gold bearing material to the heap leach pad is underway, targeting
an increased gold production by the end of the December 2023 quarter.
In parallel with the divestment option, the Alliance’s longer- term strategy is to investigate the
opportunity to formally merge the projects which may include a tolling agreement, joint venture,
mining and funding options or outright sale.
Portia Project Opportunities
Tailings
GBM has conducted laboratory leaching trials on high grade coarse Portia tailings with positive results in
a heap leach configuration. Drip irrigation and flooded VAT leach configurations were tested with high
gold extractions.
GBM and BGC are advancing plans for a leaching trial of a larger parcel of Portia tailings at White Dam,
following receipt of required government approvals.
BGC and GBM currently are investigating the economics of the treatment of increase tonnage of Portia
tailings at White Dam.
GBM Resources Annual Report 2023
P a g e | 44
REVIEW OF OPERATIONS
SOUTH AUSTRALIA – WHITE DAM
Mining Services Provision
Pursuant to the agreement with BGC, BGC will provide mining equipment to allow GBM to complete
approved activities at its site (treatment of remaining ROM pad material and rehandling/stacking of
poorly irrigated heap leach material) to increase gold recovery from existing gold resources.
Figure 26: BGC equipment arriving at White Dam and commencing work on the ROM pad.
The Alliance with BGC and White Dam will investigate the opportunity to merge the projects which may
include a tolling agreement, joint venture, mining and funding options or outright sale.
In addition, parallel discussions on the divestment of White Dam are continuing with interested parties.
Further announcements will be made when other binding agreements are completed.
GBM Resources Annual Report 2023
P a g e | 45
REVIEW OF OPERATIONS
SOUTH AUSTRALIA – WHITE DAM
Overview
White Dam is located in South Australia, approximately 50 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 open cuts are the Vertigo, located within a granted mining lease (ML 6395) and the second is the
nearby White Dam North which is enclosed within an advanced lease adjacent to ML 6395 (MPL 105).
Figure 27: Location map of the White Dam Gold-Copper Heap Leach Operation
HEAP LEACHING OPERATIONS (100% basis)
The main focus for the year revolved around investigating the development options to provide additional
near to median term feed for the heap leach operation. The leaching operations gold/copper revenue
for the year totalled $1.6m and gold on hand was $220k which contributed to the ongoing development
expenditure. Current treatment of the remaining ROM pad material and restacking of poorly irrigated
leach material is expected to increase gold recovery for this year.
In addition to the BGC alliance, GBM is continuing to evaluate the copper and copper-gold exploration
potential of its tenement package at White Dam, with particular focus on the areas down plunge at
Vertigo following previous drilling and around the old Mary Mine.
GBM Resources Annual Report 2023
P a g e | 46
REVIEW OF OPERATIONS
SOUTH AUSTRALIA – WHITE DAM
Figure 28: Aerial photo of White Dam with JORC resources highlighted in image and table.
GBM Resources Annual Report 2023
P a g e | 47
REVIEW OF OPERATIONS
SOUTH AUSTRALIA – WHITE DAM
Figure 29. White Dam gold plant and associated infrastructure
GBM Resources Annual Report 2023
P a g e | 48
REVIEW OF OPERATIONS
NORTH-WEST QUEENSLAND
CLONCURRY FARM-IN JOINT VENTURE (44% Interest)
(Joint - Venture with Nippon Mining of Australia- GBM 44% and Nippon 56%)
A single drill hole was designed to test a strong Moving Loop EM conductor which was generated from an
MLEM survey completed last year over the same belt of magnetic rocks that hosts the Ernest Henry
deposit 7 km to the southwest (Refer to ASX:GBZ release 27 July 2023). The target model for the drill hole
was shear and breccia hosted Eloise-type Iron Sulphide Copper Gold mineralisation (ISCG) hosted within
Fort Constantine Volcanics.
Drill hole MMA016 was terminated near planned depth at 558.2 m, intersecting a pyrrhotitic black shale
within the EM target depth range. Above the shale, however, a broad interval of intensely sheared and
magnetite-biotite+-chalcopyrite altered rocks was intercepted, and between the magnetite shear and the
shale a wide zone of highly anomalous base metal mineralisation was returned (40 m @ 0.32% Zn from
228 m with anomalous Cu and Pb).
The suite of lithologies, association of chalcopyrite with magnetite metasomatism and the complex
shear/fold fabric in MMA016 shows strong similarity to the E1 deposit located 7 km to the southeast.
(Exco Resources 2010 and Xstrata 2012 quoted the E1 Mineral Resource of 47 Mt @ 0.72 % Cu & 0.21 g/t
Au). E1 also displays some Zn-Pb-Ag anomalism from sphalerite and galena as accessories in the sulphide
assemblage, however the discrete lithological host to the base metal mineralisation at the contact with
the shear zone in MMA016 points to an additional separate target unit and deposit style within the FC4
area.
Approximately 12 km strike length of the magnetite shear zone is interpreted to occur under thin
sedimentary cover within the GBM/JXM tenement holding. A set of priority targets has been defined
along the magnetite shear trend, targeting E1-style magnetic and structural patterns and Eloise type
occurrences in the base-metal host unit. Exploration budgets have been approved from GBM’s JV partner
for the 2023 field season. Planning is now underway for a follow-up drill program in the FC4 area,
scheduled for the December quarter of 2023.
GBM Resources Annual Report 2023
P a g e | 49
REVIEW OF OPERATIONS
NORTH- WEST QUEENSLAND – CLONURRY JOINT VENTURE
Figure 30. Mt Margaret Project FC4 prospect. Location of drill hole MMA016 relative to the Ernest
Henry and E1 mines. Base image is TMI RTP magnetics and satellite imagery.
The magnetite shear zone in MMA016 is interpreted to represent the northern continuation of the Rhea
Shear Zone (RSZ), identified by Xstrata as a bounding structure on the west side of the magnetic belt that
hosts the Ernest Henry copper-gold deposit.
The RSZ is clearly a major structure, over 150 m true width in MMA016 and more than 20 km in length
from EHM through the GBM/JXM tenement holding.
At the lower contact of the Rhea Shear Zone, MMA016 intersected a 40 m wide intensely altered and
sheared, relatively non-magnetic zone of probable metasedimentary/calcareous and volcanic rocks. The
unusual green alteration hosts fine-grained sulphide stringer veins parallel with the shear fabric. The
stringer veins are dominantly pyrite but probably contain sphalerite, galena and chalcopyrite also as assay
results through this interval returned:
• 40 m @ 0.32% Zn from 228 m,
•
•
•
Incl. 9 m @ 0.82% Zn from 228 m,
Incl. 16 m @ 590 ppm Cu from 229 m,
Incl. 4 m @ 0.11% Pb from 235 m
GBM Resources Annual Report 2023
P a g e | 50
REVIEW OF OPERATIONS
NORTH-WEST QUEENSLAND – CLONCURRY JOINT VENTURE
Towards the bottom of the hole, MMA016 intersected calc-silicate rocks and marbles of the Corella
Formation, including an interval of barren marble breccia of similar characteristics to the Marble Matrix
Breccia which hosts mineralisation at Ernest Henry.
Figure 31. Location of GBM’s Farm in Tenements in the Cloncurry Region. The Cloncurry Project is
subject to a Farm-In/Joint Venture agreement with Nippon Mining of Australia (NMA, a wholly
owned subsidiary of JXMetals Corporation (JXM), previously Nippon Mining & Metals Corporation).
The Cloncurry Project exploration is fully funded by NMA who currently hold a 56% interest in the
Joint Venture.
GBM Resources Annual Report 2023
P a g e | 51
TENEMENT SCHEDULE
Project / Name
Tenement
No.
Owner
Manager
Interest
Interest
Status
Granted
Expiry
Approx
Area
sub-
blocks
Victoria
Malmsbury
Drummond
South Australia
Project Area
White Dam
Queensland
Mount Morgan (Project Status)
Mt Morgan West
Mt Morgan East
Mt Morgan Central
Mount Usher
Mount Usher
Mt Morgan
Project Area
Mount Isa Region (QLD)
Mount Margaret (Project Status)
Mt Malakoff Ext
Cotswold
Dry Creek
Dry Creek Ext
Mt Marge
Tommy Creek
Corella
Middle Creek
Sigma
Bungalien
Bungalien 2
The Brothers
Project Area
Mt COOLON
Mt Coolon
Mt Coolon North
Mt Coolon East
Conway
Bulgonunna
Black Creek
Sullivan Creek
Belleview
Pasha
Suttor
Whynot
Glen Eva
Koala 1
Koala Camp
Koala Plant
YANDAN
Yandan West
Yandan East
Clewitts
Yandan
Yandan West
Yandan East
TWIN HILLS
Dingo Range
Twin Hills
Anakie
Twin Hills South
Twin Hills North
Gunjulla
Frank Field
Yacimiento
RL006587*1
GBMR/Belltopper Hill/Novo GBMR
50%
0%
Granted
23-Jun-20
22-Jun-30
6.7
31-Mar-23 30-Jun-23
(km2 or Hectare-ha)
GBMR (Millstream)
EL6299
GBMR (Millstream)
EL6435
GBMR (Millstream)
EL6565
GBMR (Millstream)
ML6395
GBMR (Millstream)
ML6275
GBMR (Millstream)
MPL107
GBMR (Millstream)
MPL106
GBMR (Millstream)
MPL105
GBMR (Millstream)
MPL95
MPL139
GBMR (Millstream)
ELA2023/00009 GBMR (Millstream)
EPM27096
EPM27097
EPM27098
EPM27865
MDL2020
EPM17850
EPM16398
EPM16622
EPM18172
EPM18174
EPM19834
EPM25544
EPM25545
EPM27128
EPM27166
EPM18207
EPM25213
EPM15902
EPM25365
EPM25850
EPM7259
EPM26842
EPM26914
EPM27555
EPM27556
EPM27557
EPM27558
EPM27598
ML 10227
ML 1029
ML 1085
ML 1086
EPM27644
EPM27591
EPM27592
EPM8257
GBMR
GBMR
GBMR*2
GBMR
GBMR
GBMR
GBMR*2, 4 /Isa Tenements
GBMR*2, 4 /Isa Tenements
GBMR*2, 4/Isa Tenements
GBMR*2, 4/Isa Tenements
GBMR*4/Isa Tenements
GBMR*4/Isa Tenements
GBMR*4/Isa Tenements
GBMR*4/Isa Tenements
GBMR*4/Isa Tenements
GBMR*2,4/Isa Tenements
GBMR*2/Isa Tenements
GBMR/MCGM*5
GBMR/MCGM*5
GBMR/MCGM*5
GBMR/MCGM*5
GBMR/MCGM*5
GBMR/MCGM*5
GBMR/MCGM*5
GBMR/MCGM*5
GBMR/MCGM*5
GBMR/MCGM*5
GBMR/MCGM*5
GBMR/MCGM*5
GBMR/MCGM*5
GBMR/MCGM*5
GBMR/MCGM*5
GBMR/MCGM
GBMR/MCGM
GBMR/MCGM
GBMR/Straits Gold
ML1095
ML1096
GBMR/Straits Gold
GBMR/Straits Gold
EPM19504
EPM19856
EPM25182
EPM27594
EPM27597
EPM27974
EPM28140
EPM27554
GBMR/MCGM
GBMR/MCGM
GBMR/MCGM
GBMR/MCGM
GBMR/MCGM
GBMR/MCGM
GBMR/MCGM
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
RA
RA
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Application
Granted
Granted
Granted
Application
Application
RA
09-Nov-13
14-Oct-14
28-Jul-20
8-Dec-11
11-Sep-07
24-Jan-08
24-Jan-08
24-Jan-08
11-Sep-07
8-Dec-11
09-Nov-24
13-Oct-24
27-Jul-25
7-Dec-26
23-Jan-29
23-Jan-29
23-Jan-29
23-Jan-29
23-Jan-29
7-Dec-26
28-Aug-19
11-Jan-21
16-Dec-20
27-Aug-24
10-Jan-26
15-Dec-25
16-Apr-10
15-Apr-23
49
96
343
249.9 ha
249.8 ha
132.3 ha
162.6 ha
250 ha
24.1 ha
249.77 ha
438
325
299
325
22.75
573.4ha
42
78
16
163
23
3
33
46
35
287
120
7
299
85
176
39
325
325
325
325
325
325
65
1.30
0.71
0.05
0.98
325
231
322
74.75
44.99%
44.99%
44.99%
44.99%
44.99%
44.99%
44.99%
44.36%
44.36%
44.36%
44.36%
44.36%
44.36%
44.36%
Granted
Granted
Granted
Granted
Granted
Granted
RA
19-Oct-10
30-Nov-12
13-Jul-12
25-Oct-11
04-Mar-13
11-Nov-14
20-Mar-15
18-Oct-23
29-Nov-24
12-Jul-23
24-Oct-24
03-Mar-25
10-Nov-24
19-Mar-23
44.99%
44.99%
44.36%
44.36%
Granted
Granted
28-Jan-20
28-Jan-20
27-Jan-25
27-Jan-25
44.99%
44.99%
44.36%
44.36%
Granted
Granted
24-May-12
16-Oct-14
23-May-23
15-Oct-23
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
13-Jun-08
18-Sep-14
07-Sep-15
18-May-90
15-Aug-19
15-Aug-19
15-Sep-20
05-Jul-21
15-Sep-20
05-Jul-21
26-Jul-21
12-Jun-23
17-Sep-23
06-Sep-23
17-May-25
14-Aug-24
14-Aug-24
14-Sep-25
04-Jul-26
14-Sep-25
04-Jul-26
25-Jul-26
05-Dec-96
30-May-74
27-Jan-94
27-Jan-94
31-Jan-24
31-Jan-24
31-Jan-24
31-Jan-24
04-Jul-22
06-Jul-21
08-Jul-21
02-Sep-91
03-Jul-27
05-Jul-26
07-Jul-26
01-Sep-23
27-Jun-91
27-Jun-91
30-Jun-36
30-Jun-36
1369ha
602.4ha
12-Mar-13
10-Mar-14
14-Jan-14
25-Oct-22
08-Jul-21
12-May-22
09-Dec-22
29-Mar-21
11-Mar-28
09-Mar-24
13-Jan-24
24-Oct-27
07-Jul-26
11-May-27
08-Dec-27
28-Mar-26
16.25
74.75
35.75
325
273
35.75
97.5
243.75
100
92
100
7
13
24
5
50
7
1
10
14
89
11
37
2
92
26
54
12
100
100
100
100
100
100
20
100
71
99
23
5
23
11
100
84
11
30
75
Twin Hills
ML70316
GBMR/MCGM
GBMR
100%
100%
Granted
16-Dec-04
31-Dec-34
238ha
Project Area
TOTALS
Note
*1 The sale of RL6587 Novo Resources Corp. (NVO) was completed on 26th of April 2023. GBM still holds a net smelter royalty of up to 2.5% on this project.
* 2 subject to a 2% net smelter royalty is payable to Newcrest Mining Ltd. On all or part of the tenement area.
* 3 Approximately 16 km 2 which was the area of previous EPM19849 Moonmera, is subject to 1% smelter royaly and other conditions
to Rio Tinto
* 4 subject to Farm In by Cloncurry Exploraiton and Develoment, a subisdiary of Nippon Mining Australia
* 5 subject to Farm In by Newcrest Operations Ltd
7426
1998
Table 3: Tenement Schedule as at 30 June 2023
GBM Resources Annual Report 2023
P a g e | 52
2023 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 2023. This section of the
Annual Report includes information relevant to that Statement. Events that have occurred in the three
months ending 30 September 2023 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 2023 are estimated to contain 2.0
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 1M ounces
or 100% in this two year period. Of GBM’s total gold resource base, 1.8 Moz or 91% is contained in
deposits located in the Drummond Basin in Queensland. In the Drummond Basin deposits, 55% of the
estimated contained gold is now in the ‘measured’ and ‘indicated’ categories. The Company remains
optimistic that that the resource base will increase further during the 2024 financial year as the impact
of ongoing exploration in identifying further promising exploration targets and extensions to known
deposits, in particular at the Twin Hills and Yandan Projects, are drill tested and the results incorporated
into revised resource models.
For the purpose of preparing this Annual Statement of Mineral Resources (ASMR) as at 30 June 2023,
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 rose significantly towards the
end of 2022FY as a result of the sanctions imposed on Russia in response to that country’s military
action in Ukraine, remained relatively constant during 2023. The trend to increasing use of energy
from renewable sources in mining operations is continuing to accelerate and is likely to further reduce
the reliance of new mining operations on fossil fuels.
The gold price during the year traded between USD1,627 and USD2,052 per ounce, closing out the
year on USD1,909 per ounce. Over the course of the year the gold price appears to be continuing a
long upwards trend in AUD value which commenced around 2006.
The Australian dollar traded in a range from 0.71 USD to 0.62 USD throughout the year, finishing the
year at 0.67 USD. At the time of writing the Australian dollar is trading around 0.65 USD.
Notwithstanding fluctuations in the 2022/23 year, the Australian dollar has been relatively steady
against the US dollar over the course of the year. This lower exchange rate of the Australian dollar
against the US dollar, in conjunction with ongoing strong metal prices, has resulted in a continued
positive outlook for Australian gold deposits.
GBM Resources Annual Report 2023
P a g e | 53
2023 ANNUAL MINERAL RESOURCES STATEMENT
The Company believes that, considering the outlook for commodity prices and other factors, there is a
reasonable expectation that resources at the Drummond Basin and White Dam Projects will eventually
support mining operations.
Key Developments Since 30 June 2022 Resource and Ore Reserve Statement
Resource updates from 30 June 2022 up to 30 June 2023 included:
• Yandan – re-estimation based on 2021 drilling, (for details Refer to ASX:GBZ release 14 March
•
2023).
Illamahta – maiden resource based on 2021 and prior drilling, (for details Refer to ASX:GBZ release
14 March 2023)
• Twin Hills – significant upgrades to 309 and Lone Sister resources based on 2022 309 drilling, and
collation of historical resource information, (for details Refer to ASX:GBZ release 5 December
2022) and
• Malmsbury Project – gold resources associated with this project have been removed from the
Annual Statement of Mineral Resources as a result of the sale of the Company’s interest in the
Malmsbury Project to Novo Resource Corporation 100% owned subsidiary Rocklea Gold Pty. Ltd
which was completed in April 2023 (for details Refer to ASX:GBZ release 26 April 2023). GBM
retains a royalty of up to 2.5% net smelter return on the project.
Drummond Basin Gold Project Resources
The following projects are located in the Company’s Drummond Basin ‘Processing Hub’ in Queensland.
Twin Hills Gold Project.
The Twin Hills Gold Project comprises the 309 and Lone Sister Gold Deposits. The project was acquired
during the 2022 financial year. Twin Hills Project tenements are owned by the Company’s 100% owned
subsidiary Mount Coolon Gold Mines Pty Ltd. A second resource upgrade was announced by the Company
in December 2022 increasing the combined Twin Hills Resource base from 760,700 to an estimated
999,200 ounces of contained gold. Under the terms of the Strategic Farm In agreement, Newcrest has a
first right of refusal in respect of any proposed sale or transfer of the Twin Hills Project tenements (Refer
to ASX:GBZ release 21 October 2022).
The December 2022 resource upgrade is the result of a substantial drilling program resulting in
improved geological understanding, additional QA-QC data and additional geological data in previously
untested portions of the deposit resulted in significant extensions to the known mineralisation being
defined and the overall resources at both the 309 and Lone Sister deposits being significantly increased.
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 to ASX:GBZ release 5 December 2022.
Mt Coolon Gold Project.
The Mount Coolon Gold Project includes the Koala, Glen Eva and Eugenia deposits. Tenements and
resources are owned by the Company’s 100% owned subsidiary, Mt Coolon Gold Mines Pty. Ltd. In
October 2022 GBM entered into a Farm In agreement with Newcrest whereby Newcrest has the right to
earn up to a 75% interest in the Mount Coolon tenements, including the Mining Licences hosting the Koala
and Glen Eva mineral resources, by spending up to A$25m and completing a series of exploration
milestones in a 3-stage farm-in over six years (Refer to ASX:GBZ release 1 October 2022). There have been
no changes in the Mt Coolon mineral resources since the last Annual Statement of Mineral Resources as
at 30 June 2022.
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2023 ANNUAL MINERAL RESOURCES STATEMENT
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 to ASX:GBZ release 4 December 2017.
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 to ASX:GBZ release 4 December 2017.
Yandan Gold Project.
The Yandan Gold Project includes the East Hill, Yandan South and Illamahta deposits. This project was
acquired via acquisition of the holding company Straits Gold Pty Ltd in January 2021. Yandan Project
tenements are owned by the Company’s 100% owned subsidiary Straits Gold Pty Ltd. In December 2020
GBM completed a re-estimation of the project resources compliant with JORC 2012. A substantial drilling
program was completed in 2021 and the results of this program used to upgrade the Yandan mineral
resource estimate in March 2023. Under the terms of the Strategic Farm In agreement, Newcrest has a
first right of refusal in respect of any proposed sale or transfer of the Yandan Project tenements (Refer to
ASX:GBZ release 21 October 2022).
The March 2023 Yandan Project resource base, while similar in contained ounces to the December 2020
resource, does incorporate some significant changes;
• Additional drilling, QA-QC data and Improved geological understanding of the East Hill deposit
has resulted in increased confidence resulting in the 52% of the Yandan resources (contained gold
excluding Illamahta) now classified as ‘indicated’ (previously 100% ‘Inferred’).
• The East Hill deposit is now modelled to incorporate open pit mining to a depth of approximately
330 metres with a higher 0.4 g/t Au cut-off grade used for consistency with the nearby Twin Hills
deposit (previous estimate used 0.3 g/t Au cut-off grade). In addition, a higher grade ‘core’ zone
mineralisation has also been modelled (cut-off grade 2.0 g/t Au).
• Silver grades have been estimated for the East Hill deposit as there is sufficient data however at
this early assessment stage, no assumption has been made that silver could contribute positively
as a bye-product to any future mining operation.
• The maiden resource estimate for the Illamahta deposit has been included.
The information in this report that relates to the Yandan and Illamahta Projects 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 to ASX:GBZ release 14 March 2023.
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 sold 494
ounces of gold during the 2023 financial year. GBM announced that it had acquired 100% interest in the
project on 30 July 2021 through Millstream Pty. Ltd., now a 100% owned subsidiary of GBM.
The White Dam Project includes three separate gold deposits, Vertigo, Hannaford and White Dam North
in addition there is significant exploration tenure. GBM announced a JORC (2012) compliant gold resource
for the White Dam project in August 2020 (CP K Allwood). Additional drilling was completed by GBM at
the White Dam deposits Vertigo and White Dam North during 2021 and re-estimation of resources and
pit optimisation is continuing.
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2023 ANNUAL MINERAL RESOURCES STATEMENT
There have been no changes in the White mineral resources since the last Annual Statement of Mineral
Resources as at 30 June 2022.
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 to ASX:GBZ release 10 August 2020.
Changes Since 30 June 2023 Resource and Ore Reserve Statement
GBM is not aware of any new information or data that materially affects the information contained in the
2023 Annual Mineral Resource and Ore Reserve Statement.
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2023 ANNUAL MINERAL RESOURCES STATEMENT
GBM Resources Limited – Mineral Resources at 30 June 2023
Deposit
Measured
Au g/t
000' t
Au oz
000' t
Indicated
Au g/t
Au oz
000' t
Inferred
Au g/t
Au oz
000' t
Au g/t
Au oz
Resource Category
Total
Cut-off
Open Pit
UG Extension
Tailings
Sub Total
Oxide - Open Pit
Sulphide - Open Pit
Sub Total
114
114
1.7
1.7
6,200
6,200
670
50
9
729
885
905
1,790
2.6
3.2
1.6
2.6
1.1
1.2
1.1
Koala -ML
55,100
5,300
400
440
260
1.9
4
26,700
1,120
34,400
320
124
60,800
700
2.7
61,100
1,563
Eugenia
32,400
33,500
65,900
597
1,042
1,639
1.0
1.2
1.1
19,300
38,900
58,200
1,482
1,947
3,430
2.3
3.9
1.6
2.5
1.1
1.2
1.1
81,800
39,700
6,600
128,100
51,700
72,400
124,100
0.4
2.0
1.0
0.4
0.4
Glen Eva - ML
Sub Total - Open Pit
1,070
1.6
55,200
580
1.2
23,100
1,660
1.5
78,300
0.4
East Hill - Open Pit
Yandan South - Open Pit
Sub Total
Oxide - Open Pit
Sulphide - Open Pit
Sub Total
309 - Open Pit
309 - UG
Lone Sister - Open Pit
Lone Sister - UG
Sub Total
Drummond Basin Total
Yandan - ML
4,860
1.5
240,000
7,900
4,860
1.5
240,000
Illamahta
900
8,800
1,147
1,045
2,192
830
2.8
73,900
5,480
190
5,250
370
830
944
2.8
2.6
73,900
11,290
80,100
19,739
Twin Hills - ML
1.3
4.0
1.3
2.9
1.4
1.5
235,200
3,650
24,500
480
277,300
6,550
34,300
310
521,300
10,990
943,200
24,901
White Dam - ML
Hannaford - Open Pit
Vertigo - Open Pit
White Dam North - Open Pit
700
300
200
0.7
1.0
0.5
Sub Total
cut-off grade is 0.20 g/t Au for all, Vertigo is restricted to above 150RL (~70 m below surface)
1,200
0.7
16,400
9,400
2,800
28,600
1,000
1,400
1,000
3,400
0.8
0.6
0.8
0.7
0.9
0.8
1.1
3.9
0.9
2.6
1.1
1.0
0.8
0.6
0.6
0.7
203,000
12,800
16,000
900
219,000
13,700
26,900
28,600
55,500
1,147
1,045
2,192
129,800
9,960
59,900
670
188,500
11,800
25,800
680
404,000
23,110
1.1
0.6
1.0
0.7
0.9
0.8
1.4
3.9
1.1
2.7
1.3
443,000
16,000
459,000
26,900
28,600
55,500
438,900
84,400
415,800
60,100
999,200
820,900
45,655
1.26
1,844,200
26,900
29,000
17,600
73,500
1,700
1,700
1,200
4,600
0.8
0.7
0.5
0.7
43,300
38,400
20,400
101,900
0.4
0.3
0.4
0.4
0.4
2.0
0.4
2.0
0.2
0.2
0.2
GBM Total
1,946,100
Table 4: GBM consolidated table of Mineral Resources at 30 June 2023. (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 JORC Table 1 Checklists of Assessment and Reporting Criteria relating
to each of the 2012 JORC compliant Resources are:
• Koala/Glen Eva and Eugenia – Refer to ASX:GBZ release 4 December 2017, Mt. Coolon Gold Project
Scoping Study.
• Yandan and Illamahta – Refer to ASX:GBZ release 14 March 2023, ‘Results of Yandan Mineral
Resource Update’
• Twin Hills (309 & Lone Sister) – Refer to ASX:GBZ release 5 December 2022, ‘Twin Hills Gold Project
Upgrades to ~1Moz Mineral Resource’
• White Dam – Refer to ASX:GBZ release 10 August 2020, White Dam Maiden JORC 2012 Resource
of 102 koz.
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2023 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 a consultant to 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
Framework
The board and management of GBM maintain a strong commitment to the principles of sustainable
development. GBM’s Environmental, Health and Safety and Diversity policies provide the framework for
effective and proactive management, which are supported by appropriate procedures at the operational
level.
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.
Safety and Health
GBM provides appropriate training, equipment and systems to ensure all of our employees and
contractors are well equipped to undertake required work tasks. As well as endeavouring to comply with
all statutory health and safety requirements through our managers, supervisors and employees, we
actively assess work environments and individual tasks to identify potential hazards and ensure that
appropriate controls are in place.
During the year, an external audit was commissioned of White Dam’s safety management system. The
findings and recommendations of the audit have been followed up, with key actions including a
refreshment of the site’s risk register, with a risk assessment undertaken with the involvement of
members of the White Dam workforce and formulation of Principal Hazard Management Plans. As well,
commitments to safety-related processes including pre-start meetings, job safety analysis (JSAs), safety
communications and pre-start checks were re-affirmed, and processes strengthened. Procedures for
emergency response and management were also reviewed, updated and implemented with the
involvement and support of the workforce.
Queensland exploration operations were scaled back, with changes in management and supervisory
personnel. Requirements for site project work associated with environmental management, however,
continued, and training was arranged in earthmoving equipment, vehicles and other equipment
associated with this. As well, safety related processes were updated to reflect the new organisational
structure.
No lost time injuries or high potential incidents were recorded for the year across GBM’s operations.
Environmental Management
GBM is committed to managing our activities to minimise impacts to the environment. We comply with
relevant environmental laws and regulations as a minimum standard, and regularly inform and consult
with relevant government departments. We strive to achieve superior outcomes for the environment,
and to continually improve our performance.
At our White Dam operation, we have continued with risk assessments, ground water monitoring and
maintenance of HDPE liners for the Pregnant Liquor Storage (PLS) and Intermediate Liquor Storage (ILS)
process ponds.
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SUSTAINABLE DEVELOPMENT
Figure 32: Undertaking repairs to White Dam process ponds.
At our Queensland operations, the Mt Coolon Progressive Rehabilitation and Closure Plan (PRCP) was
finalised and approved by the Queensland Department of Environment and Science (DES). The Mt Coolon
Estimated Rehabilitation Cost (ERC) was progressed, with responses formulated to an information
request received during the year from DES.
Work was also progressed on both the PRCP and ERC for our Yandan project. Communications with DES
centred on the current status of rehabilitation of the two tailings dams, and the legacy effects of the
former mining operations on surface water and groundwater quality across the site. In the interests of
providing useful information to help with this determination, monitoring equipment to measure rainfall,
ambient temperature and water level and water quality in dams and open pits was installed.
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SUSTAINABLE DEVELOPMENT
As well, additional boreholes are proposed to strengthen the groundwater monitoring network and
provide accurate information as to the influence of the tailings dam, heap leach and open pits on site
groundwater quality.
For the Twin Hills project, both the PRCPs and ERCs were finalised during the year, following
communications and exchanges of information with DES.
Figure 33: Installing ‘Level Logger’ water depth measuring equipment at Yandan Main Pit.
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SUSTAINABLE DEVELOPMENT
Figure 34: New Weather Station to Assist in Environmental Monitoring Installed at Yandan.
Community Relations
GBM endeavours to maintain good relationships with our neighbours and support businesses in our local
communities.
In the Drummond Basin, we work closely with the Jaanga people, the traditional owners and Native Title
holders of the land on which our projects are sited. Jaanga representatives undertake cultural heritage
surveys on our project sites in advance of any field work with the potential to disturb the land. We source
our consumables and services for our Drummond Basin projects from nearby towns, including Mt Coolon,
Collinsville, Moranbah, Emerald and Mackay.
At White Dam, we provide assistance to the owners of the sheep station property that the White Dam
camp is sited upon, including undertaking maintenance work on station facilities, helping with other
station work and providing mine equipment for road maintenance and earthworks related tasks. We also
rent accommodation facilities on the station, and on occasions provide casual employment. In turn, we
are permitted to draw water from station dams for our heap leach operation, and also borrow road
maintenance, earthmoving and construction equipment. A high proportion of our everyday consumable
for the operation are sourced from Broken Hill, the nearest town to White Dam.
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SUSTAINABLE DEVELOPMENT
Figure 35: Ground level upgrade to the White Dam process plant, using Bindarrah Station owned
cement mixing truck.
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DIRECTORS’ REPORT
The Directors present their report together with the consolidated financial statements of the Company and its
controlled entities (‘Group’) for the financial year ended 30 June 2023.
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 (resigned 31 March 2023)
Non-Executive Chairman (appointed 1 April 2023, resigned 30 June 2023)
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 (TSX: PAAS) for CAD $630 million in
2009, Chief Geologist and director for Laramide Resources Ltd (ASX: LAM), and co-founder and director of Lydian
Resources Ltd (TSX-LYD) which discovered the 4 million-ounce Amulsar Gold Deposit located in Armenia.
Mr Mullens was appointed as non-executive Director and then non-executive Chairman of E2 Metals Limited, 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 is an independent non-executive director of Nova MSC Berhad, a Malaysian public company.
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 (Non-executive Chairman effective 30 June 2023)
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 held the role 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 since 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; resigned 30 November 2022)
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
10
10
10
10
4
Number Attended
9
10
10
10
4
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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 disposals of non-core assets to further the Group’s Drummond Basin growth strategy.
REVIEW OF OPERATIONS
Exploration
During the year the Group finalised the $25m farm-in agreement with Newcrest Operations Limited whereby
Newcrest has the right to acquire up to a 75% interest in the Mt Coolon Project tenements by spending up to $25m
and completing exploration milestones over a six year period. Key activities undertaken include XRF geochemical
scanning, induced polarisation Geophysical surveying, soil sampling and aeromagnetic and radiometric survey.
Other exploration activities undertaken during the year included:
•
•
Twin Hills Gold Project – upgrading the Total Mineral Resource Estimate (MRE) as a result of new drilling
data and a new geological model resulting in a 31% increase in gold ounces. Approximately 60% of the Twin
Hills resources are now in Measured and Indicated categories.
Yandan Gold Project– advancing the geological model and identifying targets for further exploration
drilling. The MRE for Yandan now has 47% of the MRE classified as indicated (previously inferred).
Significant environmental compliance work was undertaken during the year.
Production – White Dam
Gold production for the White Dam Gold Copper Project in South Australia was lower than planned due to wet
weather impacting the heap leach ore feed and reducing the time that the adsorption circuit could be operated. The
remaining copper concentrate was delivered to Glencore during the reporting period.
Corporate
During the year, the Group completed the sale of the Mayfield Project tenement to C29 Metals Limited (ASX: C29)
and the sale of the remaining 50% interest in the Malmsbury Gold Project to Novo Resources Corp for a total cash
consideration of approximately $1.2 million and ordinary shares in both companies, as well as Novo warrants. The
sale agreement with Smartset Services Inc. regarding the sale of the Mt Morgan Gold Copper Project Tenements,
was terminated in February 2023 as Smartset was not able to complete the capital raising condition precedent by
the agreed date or provide some certainty that a later date to complete the capital raising could be achieved.
The Company issued convertible notes with a face value of $10 million during the first half of the financial year and
made a partial repayment of approximately $2.5 million from the proceeds of the Malmsbury Gold Project sales
proceeds.
The Company received approximately $3.1m from share placements conducted during the year and issued a total
of 38,738,706 unlisted options for a subscription price of $0.005 per option (exercisable at $0.075 each) to replace
loyalty options that expired on 30 November 2022.
Operating Results
In the financial year to 30 June 2023, the Group made a net loss after income tax of $2,112,654 (2022: $642,341).
The loss included $1,626,372 revenue from gold and copper sales, $2,122,340 profit from the sale of assets, and
non-cash costs of $1,181,258 (depreciation and fair value losses).
Financial Position
At the end of the financial year, the Group had $1,901,042 (2022: $836,149) in cash on hand and on deposit.
Exploration expenditure incurred for the year on the Group’s wholly owned projects was $4,912,526, with carried
forward exploration and evaluation expenditure totalling $45,629,203 (2022: $37,442,813).
Risk Management
The Company takes a proactive approach to risk management. The Board is responsible for ensuring that risks,
including emerging risks, and also opportunities, are identified on a timely basis and the Company’s objectives and
activities are aligned with the risks and opportunities identified by the Board.
Given the size of the Company and its stage of development all Board members are involved and have responsibility
for management of risk.
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DIRECTORS’ REPORT
REVIEW OF OPERATIONS (CONTINUED)
Material business risks
There are inherent risks associated with the exploration for minerals. The Group faces the usual risks encountered
by companies engaged in the exploration, evaluation and development of minerals. The material business risks for
the Group include:
External Risks
Environmental risks
Government
regulations and claims
risks
Commodity Price and
foreign exchange risk
Operating Risks
Exploration and
development risk
Mineral Resources
The Company’s operations and projects are subject to the laws and regulations of the
jurisdictions in which it has interests and carries on business (currently Queensland
and South Australia), regarding environmental compliance and relevant hazards.
There is also a risk that the environmental laws and regulations may become more
onerous, making the Group’s operations more expensive which may adversely affect
the financial position and /or performance of the Group. The Directors are not aware
of any environmental law that is not being complied with.
Changes in law and regulations or government policy may adversely affect the Group’s
operations. There is no guarantee that current or future exploration permit
applications or existing permit renewals will be granted, that they will be granted
without undue delay, or that the Company can economically comply with any
conditions imposed on any granted exploration permits. Loss of permits may
adversely affect the financial position and /or performance of the Group.
Volatility in the gold and copper markets will impact the revenues of the Group in
relation to metal sales from the White Dam Project.
The Group holds investments in companies listed on the TSX. Any sales of these
securities will be impacted by market conditions and the Australian/Canadian dollar
exchange rate.
The exploration for and development of mineral deposits involve significant risks that
even a combination of careful evaluation, experience and knowledge may not
eliminate. While the discovery of an ore body may result in substantial rewards, not
all exploration activity will lead to the discovery of economic deposits. Major
expenditure may be required to locate and establish Ore Reserves, to establish rights
to mine the ground, to receive all necessary operating permits, to develop
metallurgical processes and to construct mining and processing facilities at a
particular site.
The Group’s estimates of Mineral Resources are based on different levels of
geological confidence and different degrees of technical and economic evaluation,
and no assurance can be given that anticipated tonnages and grades will be achieved
or could be mined or processed profitably.
In addition to the risks described above, the Group’s ability to successfully develop projects is contingent on the
Group’s ability to fund those projects through debt or equity raisings.
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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 2023
615,960,932
106,561,007
1,168,262
30 June 2022
522,928,466
120,696,052
1,650,219
Subsequent to the end of the financial year, the Company issued 3,703,704 placement shares and a further 656,928
shares in lieu of services. Total shares on issue at date of this report are 620,321,814.
Options over Ordinary Shares
At the date of this report, there are 55,993,706 unissued shares of the Group under option as follows:
Date Granted
Expiry Date
Exercise Price
(cents)
Number of options
at 30 June 2023
Number of options at
date of report
6 July 2020
6 July 2023
15 September 2020
14 September 2024
12 February 2021
11 February 2025
29 April 2021
11 February 2025
9 December 2021
31 October 2025
30 November 2022
1 December 2026
7 February 2023
7 February 2025
20 February 2023
19 February 2027
11.0
21.0
18.0
18.0
18.0
6.9
7.5
6.1
50,567,301
-
300,000
2,000,000
1,900,000
855,000
8,000,000
38,738,706
4,200,000
106,561,007
300,000
2,000,000
1,900,000
855,000
8,000,000
38,738,706
4,200,000
55,993,706
During the year, 50,938,706 options were issued (comprising of 38,738,706 options exercisable at $0.075, expiring
7 February 2025; 8,000,000 options exercisable at $0.069, expiring 1 December 2026; and 4,200,000 options
exercisable at $0.061, expiring 19 February 2027). A total of 56,692,858 options were cancelled during the financial
year and 8,320,893 options were exercised.
Subsequent to 30 June 2023 and up to the date of this report, no options have been issued, 250 unlisted options
were exercised and 50,567,301 quoted options were cancelled on their expiry date without being exercised.
Performance Rights over Ordinary Shares
During the year ended 30 June 2023, the Company issued 481,957 fully paid ordinary shares on the exercise of
performance rights. No performance rights were issued or cancelled during the reporting period.
Subsequent to 30 June 2023, no performance rights have been issued, exercised or cancelled.
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.
GBM Resources Annual Report 2023
P a g e | 68
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 8 August 2023, an agreement was entered into with Havilah Resources Limited for the sale of White Dam
tenement EL6299 in South Australia for a cash consideration of $100,000.
• On 29 August 2023, the Company announced that a strategic binding agreement had been executed with
Benagerie Gold & Copper Pty Ltd (BGC). Through a staged process the parties will work together to optimise
the value of existing resources at each party’s site over the next 12 months, with the Company to process high
grade ore from BGC’s Portia Gold Project.
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 2023.
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 2023.
GBM Resources Annual Report 2023
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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 incentives to Directors and senior
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.
2023
Short
term
Post
Employment
Share
Based
Payments
Salary
and fees
$
Super -
annuation
$
Options /
shares
$
Total
$
28,000
209,285
84,000
48,000
12,000
381,285
-
21,975
8,820
-
-
30,795
-
184,704
-
-
-
184,704
28,000
415,964
92,820
48,000
12,000
596,784
Directors
P Mullens 1
P Rohner 2
P Thompson
S Loh
B Cook 3
Total Directors
Performance
Based Payments
as % of
remuneration
%
-
-
-
-
-
-
1 Resigned 30 June 2023.
2 Salary and fees includes an amount of $19,026 which was paid on 12 September 2023 via the issue of 656,928
fully paid shares following shareholder approval.
3 Resigned 30 November 2022.
GBM Resources Annual Report 2023
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DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED)
2022
Short
term
Post
Employment
Share
Based
Payments
Salary
and fees
$
Super -
annuation
$
Options /
shares
$
Total
$
133,192
228,310
84,000
48,000
48,000
541,502
8,219
22,831
8,400
-
-
39,450
-
-
-
-
-
-
141,411
251,141
92,400
48,000
48,000
580,952
Directors
P Mullens
P Rohner
P Thompson
S Loh
B Cook
Total Directors
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 2023 a total of 8,000,000 options were issued 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
Received during
the year as
remuneration
-
4,516,302
300,000
8,000,000
-
Other changes
during the year1
Balance at the
end of the year
(4,000,000)
(4,000,000)
-
200,000
8,516,302
300,000
Vested and
exercisable at
30.06.2023
200,000
8,516,302
300,000
1 Exercise of options previously granted as remuneration.
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 (to 31 March 2023); Non-Executive Chairman (1 April – 30 June 2023)
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 was for a term of 12 months from 1 January 2022 to 31 December 2022. For the period 1 January 2023 to
30 June 2023 Mr Mullens did not receive any remuneration.
GBM Resources Annual Report 2023
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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 past five
financial years:
2023
2022
2021
2020
2019
(Loss)/profit for the year
attributable to
shareholders
Closing share price at 30
June
($2,112,654)
($642,341)
$267,851
($1,198,012)
($4,239,459)
$0.022
$0.061
$0.115
$0.080
$0.037
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
2022
7,011,467
6,688,738
9,773,334
11,993,254
-
Received during
the year as
remuneration
-
-
-
-
-
Movement
during the
financial year 1
-
-
5,000,000
4,866,125
-
Ordinary
Shares held at
30 June 2023
7,011,467
6,688,738
14,773,334
16,859,379
-
Ordinary shares
held at the date
of the Directors’
Report
7,011,467
7,799,849
14,773,334
20,108,900
-
1 Movement during the year relates to participation in placements and shares issued on exercise of options.
GBM Resources Annual Report 2023
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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 2022
-
-
4,200,000
4,516,301
300,000
Received during
the year as
remuneration
-
-
-
8,000,000
-
Movement
during the
financial year
-
-
(4,000,000) 1
(4,000,000) 1
(300,000) 2
Options held
at 30 June
2023
-
-
200,000
8,516,301
-
Options held at
the date of the
Directors’
Report
-
-
200,000
8,060,157
-
1 Options exercised during the year.
2 Number of options held when Mr Cook ceased to be a director.
LOANS TO DIRECTORS AND EXECUTIVES
There were no loans entered into with Directors or executives during the financial year ended 30 June 2023.
OTHER TRANSACTIONS WITH KEY MANAGEMENT PERSONNEL
During the year, no transactions occurred with director related entities other than those listed above.
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 2023
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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 28th day of September 2023
PETER ROHNER
Managing Director
GBM Resources Annual Report 2023
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AUDITOR’S INDEPENDENCE DECLARATION
GBM Resources Annual Report 2023
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CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2023
Share of joint venture income
Share of joint venture expenses
Net income from joint venture
Interest and finance income
Interest and finance expenses
Net Interest and finance income
Revenue from metal sales
Gain on sale of assets
Bargain purchase on acquisition
Other revenue
Processing expenses
Royalty expenses
Employee expenses
Consulting and professional services
Exploration expenditure expensed and written off
Depreciation and amortisation expenses
Impairment losses
Foreign exchange gain/(loss)
Fair value loss on investments
Administration and other expenses
Loss before income tax
Income tax benefit
Loss for the year
Other comprehensive income
Total comprehensive loss for the year
Basic loss per share
Diluted loss per share
Note
18
4
4
22(a)
4
5
5
5
5
13
6
7
7
Consolidated
2023
$
-
-
-
2,643,215
(958,839)
1,684,376
1,626,372
2,122,340
-
271,579
(3,267,569)
(117,618)
(1,220,209)
(425,494)
(386,173)
(899,241)
-
(1,547)
(282,017)
(1,217,453)
2022
$
504,334
(444,626)
59,708
15,555
(14,400)
1,155
3,332,817
2,808,396
1,216,826
292,416
(2,017,057)
(262,768)
(674,087)
(729,611)
(445,900)
(354,082)
(405,277)
-
(2,477,931)
(986,946)
(2,112,654)
(642,341)
-
-
(2,112,654)
(642,341)
-
-
(2,112,654)
(642,341)
Cents
(0.4)
(0.4)
Cents
(0.1)
(0.1)
The accompanying notes form part of these financial statements
GBM Resources Annual Report 2023
P a g e | 76
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT
30 JUNE 2023
Current assets
Cash and cash equivalents
Trade and other receivables
Prepayments
Asset held-for-sale
Inventories
Financial assets
Total Current Assets
Non-current assets
Prepayments
Exploration and evaluation expenditure
Right-of-use assets
Property, plant and equipment
Financial assets
Bonds and security deposits
Total Non-current Assets
TOTAL ASSETS
Current liabilities
Trade and other payables
Employee leave liabilities
Lease liabilities
Borrowings
Provisions
Total Current Liabilities
Non-current liabilities
Employee leave liabilities
Lease liabilities
Borrowings
Provisions
Total Non-current Liabilities
TOTAL LIABILITIES
NET ASSETS
Equity
Issued capital
Option capital
Accumulated losses
Reserves
TOTAL EQUITY
Note
26
8
17
22(d)
9
13
17
10
11
12
13
14
15
16
17
18
16
17
18
19
21
21
Consolidated
2023
$
1,901,042
387,495
523,343
132,775
299,267
132,512
3,376,434
1,045,011
45,629,203
91,644
2,749,512
1,246,392
9,839,106
60,600,868
2022
$
836,149
243,683
-
945,891
1,049,947
-
3,075,670
-
37,442,813
176,239
3,533,402
1,634,642
9,842,639
52,629,735
63,977,302
55,705,405
598,230
306,313
97,676
32,276
30,000
1,064,495
128,285
-
7,360,421
15,068,667
22,557,373
2,914,290
232,018
84,033
32,344
-
3,262,685
-
97,460
35,250
13,865,305
13,998,015
23,621,868
17,260,700
40,355,434
38,444,705
65,878,950
193,694
(26,589,533)
872,323
62,217,473
977,990
(25,523,814)
773,056
40,355,434
38,444,705
The accompanying notes form part of these financial statements
GBM Resources Annual Report 2023
P a g e | 77
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2023
Note
Issued capital
$
Option capital
$
Accumulated
losses
$
Share based
payment reserve
$
Convertible
note reserve
$
Balance at 1 July 2021
Loss attributable to
members of the Company
Other comprehensive income
Total comprehensive loss for the year
Shares issued (net of costs)
Issue of options
Exercise of options/rights
Vesting of options/rights
Balance at 30 June 2022
Balance at 1 July 2022
Loss attributable to
members of the Company
Other comprehensive income
Total comprehensive loss for the year
Shares issued (net of costs)
Shares issued in lieu of services
Issue of convertible notes
Issue of options
Exercise of options/rights
Cancellation of options
Vesting of options/rights
21
19
21
19
53,575,033
-
(24,881,473)
646,861
-
-
-
7,428,252
-
1,214,188
-
-
-
-
-
1,277,091
(299,101)
-
(642,341)
-
(642,341)
-
-
-
-
-
-
-
-
-
(15,000)
141,195
62,217,473
977,990
(25,523,814)
773,056
62,217,473
977,990
(25,523,814)
773,056
-
-
-
2,915,961
31,325
-
-
714,191
-
-
-
-
-
-
-
193,694
(9,522)
(968,468)
-
(2,112,654)
-
(2,112,654)
-
-
-
-
-
1,046,935
-
-
-
-
-
-
-
-
(276,102)
(78,467)
343,030
-
-
-
-
-
-
-
-
-
-
-
-
-
110,806
-
-
-
Total
$
29,340,421
(642,341)
-
(642,341)
7,428,252
1,277,091
900,087
141,195
38,444,705
38,444,705
(2,112,654)
-
(2,112,654)
2,915,961
31,325
110,806
193,694
428,567
-
343,030
Balance at 30 June 2023
65,878,950
193,694
(26,589,533)
761,517
110,806
40,355,434
The accompanying notes form part of these financial statements
GBM Resources Annual Report 2023
P a g e | 78
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED
30 JUNE 2023
Cash flows from operating activities
Cash receipts from metal sales
Payments to suppliers and employees
Recognition of share of joint venture operating
cash assets
Interest received
Other income
Government
incentives
JV management fee income
Interest and other costs of finance paid
assistance,
grants
and
tax
Note
Consolidated
2023
$
2022
$
1,304,176
(5,028,764)
3,837,151
(4,801,900)
-
132,171
-
146,926
107,071
(658,839)
48,386
15,555
10,376
184,000
207,220
(14,400)
Net cash flows used in operating activities
26(d)
(3,997,259)
(513,612)
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
-
15,000
(3,951,364)
38,874
1,222,372
3,177,980
(8,097,965)
-
-
1,210,000
1,832,409
(11,821,702)
(560,950)
(2,228,397)
578,488
1,573,196
(30,757)
(229,481)
Net cash flows used in investing activities
(3,848,941)
(13,423,356)
Cash flows from financing activities
Proceeds from the issue of shares
Share issue costs
Proceeds from the issue/exercise of options
Proceeds from loans and borrowings
Repayment of loans and borrowings
Proceeds from the issue of convertible notes
Redemption of convertible notes
Repayment of lease liabilities
3,070,340
(154,379)
597,763
228,051
(260,492)
7,515,174
(2,000,000)
(83,817)
7,400,000
(431,748)
2,201,704
30,184
(26,309)
-
-
(72,291)
Net cash flows provided by financing activities
8,912,640
9,101,540
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
1,066,440
(4,835,428)
836,149
5,676,340
(1,547)
(4,763)
26(a)
1,901,042
836,149
The accompanying notes form part of these financial statements
GBM Resources Annual Report 2023
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
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 2023 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 2023, the Group has cash assets of $1,901,042 (2022: $836,149), total current assets of
$3,376,434 (2022: $3,075,670) and total current liabilities of $1,064,495 (2022: $3,262,685). The loss for
the 2023 financial year was $2,112,654 (2022: $642,341) and operating and investing cash outflows were
$7,846,200 (2022: $13,936,968). Notwithstanding the fact that the Company incurred an operating loss,
the Directors are of the opinion that the Company is a going concern for the following reasons:
•
•
•
•
negotiations for the divestment of certain assets are continuing;
continued support from the Queensland regulatory bodies regarding future environmental bond
obligations;
additional cashflow is likely to be generated at White Dam, following the Alliance agreement with
the owner of the Portia project; and
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 2023. There are no material new or
amended Accounting Standards which will materially affect the Group.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
b) Statement of Compliance
The financial report was authorised for issue on 28 September 2023.
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.
Sales of gold and other metals
With the sale of gold bullion, copper concentrate and other metals control is determined to occur when
physical bullion/concentrate from a contracted sale is transferred from the Company’s account into the
account of the buyer. Revenue from gold, copper and other metal 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.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
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.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
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) Property, Plant and Equipment
Property, 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 2023
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 property, 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 property, 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, it's 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 2023
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 2023
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
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.
initial recognition,
interest-bearing
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 2023
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 2023
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
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
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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
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.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
y) Critical Accounting Estimates and Judgements (continued)
Provision for Royalty
Under the acquisition of the White Dam Project 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. At 30 June 2023, the provision for royalty is $2,282,223 (note 18).
White Dam Impairment
An assessment of recoverable amount has been performed in comparison to carrying amount with
reference to prior valuations performed on the assets constituting the CGU, in addition to current
discussions held with potential purchasers of White Dam and other strategic options available. On the basis
of the Directors’ assessment, the recoverable amount of the cash-generating unit is in excess of its carrying
amount and no impairment is required.
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.
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.
Cash deposits
The Group’s primary banker is National Bank of Australia. 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.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
2. FINANCIAL RISK MANAGEMENT (CONTINUED)
(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 2023
3. SEGMENT REPORTING (CONTINUED)
The following tables present revenue and profit information and certain asset and liability information
regarding operating segments.
30 June 2023
Interest income
Other income
Segment income
Segment expenses
Segment profit/(loss)
Current assets
Non-current assets
Current liabilities
Non-current liabilities
Net assets
Mineral
Exploration
$
2,367,774
2,393,919
4,761,693
(4,307,722)
453,971
2,737,834
56,458,516
(737,185)
(18,027,607)
40,431,558
Mineral
Production
$
275,441
1,626,372
1,901,813
(4,468,438)
(2,566,625)
638,600
4,142,352
(327,310)
(4,529,766)
76,124
Consolidated
$
2,643,215
4,020,291
6,663,506
(8,776,160)
(2,112,654)
3,376,434
60,600,868
(1,064,495)
(22,557,373)
40,355,434
Acquisitions of non-current assets
8,213,116
4,030
8,217,146
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
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
-
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
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
Acquisitions of non-current assets
18,202,894
2,753,887
20,956,781
4. INCOME
Included in loss before tax are the following amounts of income:
Gain on disposal of assets:
Gain on disposal of exploration asset - Brightlands Milo
Gain on disposal of exploration assets - Mayfield
Gain on disposal of exploration assets - Malmsbury
(Loss)/gain on disposal of investments
Consolidated
2023
$
2022
$
-
274,389
1,890,719
(42,768)
2,122,340
2,808,396
-
-
4,087
2,812,483
GBM Resources Annual Report 2023
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
4. INCOME (CONTINUED)
Interest and financing income/(expense):
Interest income
Discount on rehabilitation provision
Convertible note establishment fee
Interest expense – convertible notes
Interest expense – leases
Interest expense – other
Other Revenue
Joint venture management fee
Research and development rebate
Option fee income for Mayfield Project sale
Other income
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
Employee benefit expense
Depreciation expense:
Property and improvements
Office equipment and software
Site equipment
Motor vehicles
Buildings
Mine properties
Right-of-use asset
Other costs:
Exploration costs expensed
Impairment of SART plant on independent
valuation.
12
12
12
12
12
12
11
Consolidated
2023
$
2022
$
132,171
2,511,044
(300,000)
(640,232)
(4,865)
(13,742)
1,684,376
107,071
146,926
-
17,582
271,579
3,249,137
360,503
336,359
343,030
270,075
4,559,104
(1,238,067)
(2,100,828)
1,220,209
2,645
37,783
224,153
18,650
457,260
74,155
84,595
899,241
386,173
-
15,555
-
-
-
(7,019)
(7,381)
1,155
237,952
-
40,000
10,377
288,329
3,247,680
487,521
351,648
141,195
185,449
4,413,493
(1,056,004)
(2,683,402)
674,087
2,645
39,280
70,295
17,527
72,635
74,155
77,545
354,082
445,900
405,277
GBM Resources Annual Report 2023
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
6.
INCOME TAX
a) Tax expense
Current tax expense
Deferred tax expense
Consolidated
2023
$
2022
$
-
-
-
-
-
-
b) Numerical reconciliation between tax expense and
pre-tax loss
Loss before income tax from continuing operations
(2,112,654)
(642,341)
Income tax benefit at 25%
Increase in income tax due to tax effect of:
Share based payments expense
Non-deductible expenses
Plant and equipment
Unrealised movement in fair value of financial assets
Current year tax losses not recognised
Current year capital losses not recognised
Decrease in income tax due to:
Non-assessable income
Capital raising costs claimed
Unused tax losses and temporary differences not
brought to account
Income tax expense attributable to the Group
c) Deferred tax assets and liabilities
Recognised deferred tax assets and liabilities
Deferred tax assets:
Losses available for offset
against future taxable income
Investments
Capital raising costs
Accrued expenses and leave liabilities
Royalty provision
ROU assets
Rehabilitation provisions
Other DTAs
Set-off deferred tax liabilities:
Exploration expenditure
Inventory
Rehabilitation assets and liabilities
Property, plant and equipment
Net deferred tax asset
(528,163)
(160,585)
89,214
321
-
-
542,333
290,205
(36,732)
(83,466)
(273,712)
-
8,954,963
-
-
109,588
570,556
1,508
-
134,688
9,771,303
(8,855,656)
(21,585)
(631,640)
(262,422)
(9,771,303)
-
62,829
1,755
75,274
619,483
-
-
(304,207)
(76,081)
(218,468)
-
4,327,577
407,859
230,018
71,234
-
-
3,481,217
-
8,517,905
(8,186,163)
(83,801)
-
(247,941)
(8,517,905)
-
GBM Resources Annual Report 2023
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
Consolidated
2023
$
2022
$
6.
INCOME TAX (CONTINUED)
d) Unused tax losses and temporary differences for
which no deferred tax asset has been recognised
Deferred tax assets have not been recognised in
respect of the following using a corporate tax rate of
25%:
Deductible temporary differences
Tax revenue losses
Tax capital losses
Total unrecognised deferred tax assets
319,292
6,784,482
1,259,887
8,363,661
-
8,514,062
-
8,514,062
The corporate tax rates on both recognised and unrecognised deferred tax assets and deferred tax
liabilities have been calculated with respect to the tax rate that is expected to apply in the year the
deferred tax asset is realised or the liability is settled.
The potential future income tax benefit will only be obtained if:
I. 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;
II. the Group companies continue to comply with the conditions for deductibility imposed by the law;
and
III. no changes in tax legislation adversely affect the Group in realising the benefits.
7. EARNINGS/(LOSS) PER SHARE
Loss used in calculation of loss per share
Basic and diluted loss per share
Weighted average number of shares used in
calculation of basic and diluted loss per share
Consolidated
2023
$
2022
$
(2,112,654)
(642,341)
Cents
(0.4)
#
Cents
(0.1)
#
566,089,672
495,181,256
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 2023 that are considered to be
dilutive.
GBM Resources Annual Report 2023
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
8. TRADE AND OTHER RECEIVABLES
Current
Trade receivables
Refundable exploration costs1
GST recoverable
Consolidated
2023
$
2022
$
387,495
-
-
387,495
5,427
92,144
146,112
243,683
1 Amounts receivable from joint venture partners.
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.
9.
INVENTORIES
Copper on hand
Gold on hand
Reagents and consumables
Consolidated
2023
$
2022
$
-
220,311
78,956
299,267
366,908
525,547
157,492
1,049,947
Note
Consolidated
2023
$
2022
$
10. EXPLORATION AND EVALUATION EXPENDITURE
Exploration and evaluation phase:
Capitalised costs at the start of the financial
year
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
Less: costs relating to tenements sold or to be
sold (note 22)
Less: exploration costs not capitalised
Capitalised costs at the end of the financial year
5
37,442,813
-
-
-
4,912,526
3,817,801
(282,204)
(261,733)
45,629,203
19,574,428
460,000
2,228,397
3,043,000
10,030,704
3,273,586
(721,402)
(445,900)
37,442,813
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.
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.
GBM Resources Annual Report 2023
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
9. RIGHT-OF-USE ASSET
Opening balance
Right-of-use asset additions
Depreciation expense
Consolidated
2023
$
2022
$
176,239
-
(84,595)
91,644
253,784
(77,545)
176,239
The Group leases office space in Brisbane, Australia under an agreement for a term of 3 years.
10. 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
Consolidated
2023
$
2022
$
193,117
(140,771)
52,346
292,758
(284,748)
8,010
1,135,616
(456,111)
679,505
279,840
(169,788)
110,052
2,303,327
(529,895)
1,773,432
741,550
(210,106)
(405,277)
126,167
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
Total
2,749,512
3,533,402
GBM Resources Annual Report 2023
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
Note
Consolidated
2023
$
2022
$
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
Reclassification
Additions
Depreciation
Closing net book value
Motor vehicles:
Opening net book value
Additions
Depreciation
Closing net book value
Buildings
Opening net book value
Reclassification
Additions
Depreciation
Closing net book value
Mine properties-Capital Work in Progress:
Opening net book value
Depreciation
Impairment
Closing net book value
5
5
5
5
5
5
54,991
(2,645)
52,346
45,793
-
(37,783)
8,010
912,229
(39,327)
30,756
(224,153)
679,505
128,702
-
(18,650)
110,052
2,191,365
39,327
-
(457,260)
1,773,432
200,322
(74,155)
-
126,167
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
Total
2,749,512
3,533,402
GBM Resources Annual Report 2023
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
11. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS
Current
Non-current
Balance at the start of the financial year
Investments acquired – Novo 1
Investments acquired – Consolidated Uranium 2
Investments acquired – C29 3
Shares transferred 4
Disposal of investments
Loss on fair value of investment recognised
through profit or loss
Balance at the end of the financial year
Consolidated
2023
$
2022
$
132,512
1,246,392
1,378,904
1,634,642
1,665,493
-
250,000
-
(1,889,214)
(282,017)
1,378,904
-
1,634,642
1,634,642
3,516,640
-
2,287,075
-
(110,120)
(1,581,022)
(2,477,931)
1,634,642
1 Fair value of fully paid ordinary shares and warrants received from Novo Resources Corp (Novo), a TSX-V
listed company, as consideration for the remaining 50% of the Malmsbury Project. Refer Note 22(c).
2 Fair value of fully paid ordinary shares received from Consolidated Uranium Inc. (a Canadian company
listed on TSX-V: CUR) as part consideration for the Milo Project.
3 Fair value of fully paid ordinary shares received from C29 Metals Limited as part consideration for the sale
of the Mayfield Project tenement. The shares have been classified as a current asset.
4 Shares transferred to suppliers as consideration for services received.
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).
12. BONDS AND SECURITY DEPOSITS
Environmental bonds and security deposits for:
Mount Coolon Gold Project
Yandan Project
White Dam
Twin Hills
Other
Consolidated
2023
$
2022
$
1,238,000
5,077,151
1,940,000
1,467,656
116,299
9,839,106
1,238,000
5,077,151
1,940,000
1,467,656
119,832
9,842,639
GBM Resources Annual Report 2023
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
13. TRADE AND OTHER PAYABLES
Current
Unspent funds received from farm-in partner
Acquisition costs payable1
Trade creditors2
Sundry creditors and accruals
Employee liabilities
Share subscription liability
Royalty payable
Consolidated
2023
$
126,445
12,500
362,485
21,970
74,802
28
-
598,230
2022
$
334,651
12,500
1,934,172
400,234
148,645
24,525
59,563
2,914,290
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.
14. LEASE LIABILITIES
Current
Non-current
Opening balance
Increase in liability on new lease
Principal repayments
Lease liabilities at the end of the period
Consolidated
2023
$
97,676
-
97,676
181,493
-
(83,817)
97,676
2022
$
84,033
97,460
181,493
-
253,784
(72,291)
181,493
GBM Resources Annual Report 2023
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
15. BORROWINGS
Current
Secured loan 1
Non-Current
Secured loan 1
Convertible note liability 2
Total Borrowings
Movement in Borrowings:
Secured loan
Balance at the start of the financial year
Proceeds from drawdown
Principal and Interest repayments
Balance at the end of the financial year
Convertible note
Balance at the start of the financial year
Proceeds from drawdown
Amounts classified as equity
Partial redemption of note
Balance at the end of the financial year
Consolidated
2023
$
2022
$
32,276
32,344
2,877
7,357,544
7,360,421
7,392,697
67,594
-
(32,441)
35,153
-
10,000,000
(110,806)
(2,531,650)
7,357,544
35,250
-
35,250
67,594
63,719
30,184
(26,309)
67,594
-
-
-
-
-
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, which have a net book
value of $77,172 at 30 June 2023 (30 June 2022: $89,978).
2 The Company entered into a convertible note agreement during the reporting period for funding of up to
$10,000,000 via the issue of two convertible notes each with a face value of $5,000,000. The convertible notes
were issued on 21 October 2022 and 30 December 2022. Each note is due for repayment 3 years after its
issue date.
Interest on the convertible notes is calculated at 10.5% per annum and is paid monthly in advance for the
first 12 months from issue date. The remainder of the interest due has been prepaid and is classified as
Prepayments on the Statement of Financial Position (current: $523,343; non-current $1,045,011).
The outstanding face value of the notes is convertible at any time by the holder into fully paid ordinary shares
in the capital of the Company at a conversion price of $0.0875 (which is subject to a price adjustment
mechanism outlined in the convertible note agreement). The convertible notes are secured by way of a
mortgage over property of Mt Coolon Gold Mines Pty Ltd (which holds the Mt Coolon Gold Project) and Straits
Gold Pty Ltd (which holds the Yandan Project).
The value of the notes has been split between the financial liability and an equity component, representing
the residual attributable to the option to convert the financial liability into equity, based on a discount rate
of 11.2%.
The notes may be redeemed prior to the repayment date. In March 2023, the Company and the noteholder
agreed to the partial redemption of the second note with a cash payment of $2,000,000 (comprising a
redemption in face value of $2,531,650 less a reduction in prepaid interest of $531,650). From the partial
redemption date, the Group is required to maintain a minimum cash balance of $1,000,000. In addition,
the Company has granted the noteholder a first-ranking security interest over the 4,037,872 shares the
Company received in Novo Resources Corp (note 13) on the sale of the remaining 50% interest in the
Malmsbury Gold Project (note 22c).
GBM Resources Annual Report 2023
P a g e | 101
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
16. PROVISIONS
Current
Royalty provision1
Non-Current
Rehabilitation provision2
Royalty provision1
Note
Consolidated
2023
$
2022
$
30,000
-
12,816,444
2,252,223
15,068,667
11,509,687
2,355,618
13,865,305
Total Provisions
15,098,667
13,865,305
1 Provision for royalty payments on the acquisition of the White Dam Gold Copper Project.
2 During the financial year, the value of the rehabilitation provision for the Yandan project was increased by
approximately $2.8 million to $9.67 million which represents the Estimated Rehabilitation Cost (ERC) as
advised by the Department of Environment and Science (DES). Whilst the Group has recognised the entire
value as calculated by DES, the Group has submitted an application for an order under section 539B of the
Environmental Protection Act to stay the operation of the Original Decision as confirmed by the Review
Decision pending the resolution of the appeal or further order of the Land Court. This process is ongoing at
this time.
The present value of the provision for future rehabilitation costs was reassessed during the reporting period,
The effect of discounting the provision amounts to $2,511,044 and is recognised in the Statement of Profit or
Loss and Other Comprehensive Income as financing income.
Issue
price
2023
No.
2022
No.
2023
$
2022
$
17.
ISSUED CAPITAL
Issued capital at the balance
date
Movements in issued capital:
Balance at the start of the
year
Share placement
Share placement
Share placement
Share placement
Shares issued in lieu of
payment for services1
Shares issued to acquire
tenements
615,960,932
522,928,466
65,878,950
62,217,473
$0.054
$0.050
$0.027
$0.100
522,928,466
25,269,262
6,100,000
51,881,485
-
433,246,182
-
-
-
74,000,000
62,217,473
1,364,540
305,000
1,400,800
-
53,575,033
-
-
-
7,400,000
Shares on exercise of options
Shares on exercise of rights
Share issue costs
Balance at the end of the reporting year
918,869
-
31,325
-
-
8,380,893
481,957
-
615,960,932
3,562,500
11,989,349
130,435
-
522,928,466
-
654,816
59,375
(154,379)
65,878,950
460,000
1,199,188
15,000
(431,748)
62,217,473
1 Shares issued at 3.41 cents per share to a consultant and employee in lieu of cash payment for services.
GBM Resources Annual Report 2023
P a g e | 102
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
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.
2023
No.
2022
No.
18. 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
106,561,007
120,696,052
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
120,696,052
(56,692,858)
8,000,000
38,738,706
4,200,000
(8,380,893)
106,561,007
80,746,765
-
-
51,083,636
855,000
(11,989,349)
120,696,052
1 Unlisted options exercisable at 7.5 cents each and expiring 7 February 2025 issued pursuant to a Priority
Option Offer.
(b)
Option capital
Opening balance
Issue of options
Exercise of options
Cancellation of options
Closing balance
Consolidated
2023
$
977,990
193,694
(9,522)
(968,468)
193,694
2022
$
-
1,277,091
(299,101)
-
977,990
GBM Resources Annual Report 2023
P a g e | 103
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
19. RESERVES AND ACCUMULATED LOSSES
Accumulated losses
Opening balance
Transfer from option reserve on expiry of options
Net loss attributable to the members of the Company
Closing balance
Share based payments reserve
Opening balance
Vesting expense of options/rights
Options/rights exercised during the year
Options cancelled during the year
Closing balance
Share based payments reserve
Consolidated
2023
$
2022
$
(25,523,814)
1,046,935
(2,112,654)
(26,589,533)
(24,881,473)
-
(642,341)
(25,523,814)
773,056
343,030
(276,102)
(78,467)
761,517
646,861
141,195
(15,000)
-
773,056
The share based payments reserve represents the fair value of vested equity instruments issued as
remuneration or consideration.
Convertible note reserve
Opening balance
Issue of convertible notes
Closing balance
Convertible note reserve
-
110,806
110,806
-
-
-
The convertible note reserve represents the residual value of the fair value of a compound financial
instrument after deducting the fair value of the liability.
20. DISPOSALS OF NON-CORE ASSETS
a) Sale of Mt Morgan Gold Copper Project
During the prior reporting period the Group executed a binding Letter of Intent with Canadian (TSX-V) listed
company, Smartset Services Inc. (Smartset), for the sale of the Mt Morgan Gold-Copper Project. At 30 June 2022
the capitalised exploration expenditure for Mt Morgan was transferred to assets held-for-sale.
In the current financial year, the sale agreement with Smartset was terminated as Smartset was not able to
complete the capital raising condition precent by the agreed date. As a result, $760,280 categorised as asset-
held-for-sale at 30 June 2022 was reclassified as capitalised exploration costs.
The Group will now pursue other funding options in the Australian market to advance exploration of the Mt
Morgan Gold-Copper Project.
b) Sale of Mayfield Project
During the prior reporting period the Group executed an exclusive Option Agreement with C29 Metals Limited
(“C29”) for the sale of its Mayfield Project tenement EPM 19483. C29 exercised its option and the transfer of the
tenement was completed during the current financial year. The Group received $210,000 and 1,558,963 fully
paid ordinary shares in C29 as consideration for the sale of EPM 19483 and a profit on sale of $274,389 has been
recognised in the Statement of Profit or Loss and Other Comprehensive Income.
GBM Resources Annual Report 2023
P a g e | 104
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
22. DISPOSALS OF NON-CORE ASSETS (CONTINUED)
c) Sale of 50% Malmsbury Gold Project
During the reporting period the Group entered into a Sale and Purchase Agreement with Novo Resources Corp.
(TSX: NVO, Novo) for its remaining 50% interest in the Malmsbury Gold Project located in Victoria. The Group
received $1,000,000 in cash, 4,037,872 fully paid ordinary shares in Novo and 2,018,936 Novo options as
consideration for the sale. A profit on sale of $1,890,719 has been recognised in the Statement of Profit or Loss
and Other Comprehensive Income.
d) Sale of White Dam Tenement
Subsequent to 30 June 2023, the Group entered into a sale agreement with Havilah Resources Limited (ASX:
HAV) for the sale of non-core White Dam exploration lease EL6299 for a cash consideration of $100,000 along
with some development rights to two Havilah owned prospects Green and Gold and Wilkins. At 30 June 2023,
capitalised exploration expenditure of $132,775 has been transferred to assets held-for-sale.
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. Subsequent to 30 June 2023, new incentive plans titled Incentive Option Plan and
Incentive Performance Rights Plan were adopted and approved by Shareholders on 7 September 2023.
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 12,200,000 unlisted options under the Plan. 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
30 Nov 2022
8,000,000
$0.069
4 Years
$0.048
3.28%
73.1%
$184,704
20 Feb 2023
4,200,000
$0.061
4 Years
$0.039
3.61%
74.2%
$77,510
The fair value of options is apportioned over the vesting period of the options. A total expense of $281,807
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 38,738,706 unquoted priority offer options were issued
to replace the cancellation of 38,738,706 loyalty options that were previously issued as part of a non-
renounceable pro rata entitlement offer.
Options exercised during the year
A total of 8,000,000 employee options and a further 380,893 loyalty options were exercised during the year
to 30 June 2023.
Options cancelled during the year
During the year 1,880,000 unlisted employee options were cancelled upon termination of employment, or
on the expiry of the exercise period. A further 16,074,152 free attaching placement options and 38,738,706
loyalty options were cancelled without exercise on the expiry date.
GBM Resources Annual Report 2023
P a g e | 105
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
23. SHARE BASED PAYMENTS (CONTINUED)
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
2023 is 17,255,000 as follows.
Grant date
Exercise price
Expiry date
Balance at 30 June
15 Sep 20
12 Feb 21
29 Apr 21
9 Dec 21
30 Nov 22
20 Feb 23
$0.21
$0.18
$0.18
$0.18
$0.069
$0.061
14 Sep 24
11 Feb 25
11 Feb 25
15 Oct 25
1 Dec 26
19 Feb 27
300,000
2,000,000
1,900,000
855,000
8,000,000
4,200,000
Vested and
Exercisable at 30 June
300,000
2,000,000
1,900,000
285,000
8,000,000
4,200,000
In addition to the incentive options listed above, at 30 June 2023 there are a further 50,567,301 quoted
options (expiry 6 July 2023) and 38,738,706 unquoted priority offer options (expiry 7 February 2025) on
issue.
Subsequent to balance date
Subsequent to the end of the financial year, no Plan options were issued, exercised or cancelled.
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 exercised during the year
Options cancelled during the year
Options outstanding at the end of
the year
2023
No.
WAEP
(cents)
2022
No.
14,935,000
12,200,000
(8,000,000)
(1,880,000)
17,255,000
9.6
6.6
5.0
9.0
9.7
14,080,000
855,000
-
-
14,935,000
WAEP
(cents)
9.1
18.0
-
-
9.6
Weighted average contractual life
The weighted average contractual life for un-exercised options is 35.6 months (2022: 14.8 months).
Performance Rights
Movements during the year
During the reporting period 395,000 performance rights vested and 481,957 ordinary shares were issued
on exercise of performance rights. No performance rights were granted or cancelled during the year.
The fair value of performance rights is apportioned over the vesting period of the rights with a total expense
of $61,224 being recognised in the consolidated statement of profit or loss and other comprehensive
income during the year.
Subsequent to balance date
Subsequent to balance date, no performance rights were granted, vested, exercised or cancelled.
GBM Resources Annual Report 2023
P a g e | 106
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
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)).
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 2023
Borrowings
Lease liabilities
Trade and other payables
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
$
$
$
7,392,697
97,676
598,230
7,768,102
99,215
598,230
281,770
45,672
598,230
14,457
45,894
-
3,525 7,468,350
-
7,649
-
-
8,088,603
8,465,547
925,672
60,351
11,174 7,468,350
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
More
than 5
years
$
-
-
-
-
-
-
-
-
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
2023
$
2022
$
(7,490,373)
(249,087)
(7,490,373)
(249,087)
1,901,042
1,901,042
836,149
836,149
The Group is not materially exposed to interest rate risk on its variable rate investments.
GBM Resources Annual Report 2023
P a g e | 107
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
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 2023, including licences subject to farm-in arrangements are approximately $4,240,000 (2022: $4,179,000).
(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 $7,777 (2022: $25,025) has been expensed in relation to short term leases.
26. NOTES TO THE STATEMENT OF CASH FLOWS
a) Cash and cash equivalents
Cash at bank and on hand
Bank at call cash account
Total cash and cash equivalents
b) Cash balances not available for use
Consolidated
2023
$
2022
$
1,901,042
-
1,901,042
810,078
26,071
836,149
Included in cash and cash equivalents are amounts pledged as guarantees for the following:
Corporate credit card facility
-
26,071
c) Cash available for specific use
Included in cash and cash equivalents at 30 June 2023 is $209,428 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.
GBM Resources Annual Report 2023
P a g e | 108
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
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
Loss after income tax
Add (less) non-cash items:
Gain on sale of assets
Bargain purchase on acquisition of assets
Share based payments-employees
Depreciation and impairment expenses
Fair value loss/(gain) on financial assets
Exploration expenditure written off,
expensed and impaired
Non-cash interest and finance costs
Changes in assets and liabilities:
Increase/(decrease) in trade creditors
and other payables
(Increase)/decrease in prepayments
(Increase)/decrease in inventories
(Increase)/decrease in sundry receivables
Consolidated
2023
$
2022
$
(2,112,654)
(642,341)
(2,122,340)
-
343,030
899,241
282,017
386,173
(2,211,044)
(68,550)
-
750,680
(143,812)
(2,808,396)
(1,216,826)
141,195
759,359
2,477,931
445,900
-
386,020
22,913
(376,293)
296,926
Net cash flows used in operations
(3,997,259)
(513,612)
27. AUDITOR’S REMUNERATION
Amounts received or receivable by HLB Mann
Judd for:
-
Audit and review of financial reports
Consolidated
2023
$
2022
$
99,925
48,687
GBM Resources Annual Report 2023
P a g e | 109
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
2023
%
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
Mt Morgan Metals Pty Ltd (formerly 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
100
100
100
100
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 (resigned 30 November 2022)
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
2023
$
381,285
30,795
184,704
596,784
2022
$
541,502
39,450
-
580,952
GBM Resources Annual Report 2023
P a g e | 110
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
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.
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
Non-Current Payables
Consolidated
2023
$
2022
$
41,286,012
36,435,728
Loans from controlled entities
3,946,115
2,498,110
b) Transactions with Directors
During the year, other than the payment of directors’ fees, there were no transactions with director
related entities and at 30 June 2023, there was no amount owing to director related entities.
31. DIVIDENDS
There are no dividends paid or payable during the year ended 30 June 2023 or the 30 June 2022 comparative
year.
GBM Resources Annual Report 2023
P a g e | 111
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
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 8 August 2023, an agreement was entered into with Havilah Resources Limited for the sale of White
Dam tenement EL6299 in South Australia for a cash consideration of $100,000.
• On 29 August 2023, the Company announced that a strategic binding agreement had been executed with
Benagerie Gold & Copper Pty Ltd (BGC). Through a staged process the parties will work together to optimise
the value of existing resources at each party’s site over the next 12 months, with the Company to process
high grade ore from BGC’s Portia Gold Project.
33. CONTINGENCIES
(i) Contingent liabilities
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 2023 or 30 June 2022.
GBM Resources Annual Report 2023
P a g e | 112
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
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
TOTAL EQUITY
Financial performance
Loss for the year
Other comprehensive income
2023
$
2022
$
2,593,394
45,913,812
1,651,468
39,700,653
48,507,206
41,352,121
(618,884)
(7,532,888)
(2,766,541)
(140,875)
(8,151,772)
(2,907,416)
40,355,434
38,444,705
65,878,950
193,694
(26,589,533)
872,323
62,217,473
977,990
(25,523,814)
773,056
40,355,434
38,444,705
(3,611,157)
-
(642,341)
-
Total comprehensive loss
(3,611,157)
(642,341)
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.
GBM Resources Annual Report 2023
P a g e | 113
DIRECTORS’ DECLARATION
FOR THE YEAR ENDED 30 JUNE 2023
1.
In the opinion of the Directors:
•
b)
c)
the accompanying financial statements and notes are in accordance with the
a)
Corporations Act 2001 including:
i.
giving a true and fair view of the Group’s financial position as at 30 June 2023 and of
its performance for the year then ended; and
ii.
complying with Accounting Standards and Corporations Regulations 2001.
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 2023.
This declaration is made in accordance with a resolution of the Board of Directors.
PETER ROHNER
Managing Director
Dated this 28th day of September 2023
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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 10 October 2023.
a. Distribution of Equity Securities
Range
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Total
Quoted Shares (GBZ)
Number of Holders
Securities Held
% Held
66
137
179
572
446
15,816
545,029
1,392,031
23,871,345
594,497,593
0.00
0.09
0.22
3.85
95.84
1,400
620,321,814
100.00
There are 678 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
BELL POTTER NOMINEES LTD
SYNDICATE MINERALS PTY LTD
DAY LIVIN PTY LTD
MR BINH THANH LE
BNP PARIBAS NOMS PTY LTD
BEATONS CREEK GOLD PTY LTD
MULLENS FAMILY SUPER FUND PTY LTD
BLAIKIE PTY LTD
LONGRU ZHENG
MR PETER ROHNER + MS FIONA JANE MURDOCH
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM
CORPORATE ELEMENTS PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
MRS STACEY-LEE SEGAL
DE GRACIE NOMINEES PTY LTD
VERRIERDALE INVESTMENTS PTY LTD
Total
Shares Held
% of Issued
Capital
77,371,896
33,129,629
28,309,336
25,496,709
22,327,500
13,291,238
13,099,461
11,498,425
11,363,637
10,834,333
10,000,000
8,871,860
8,432,661
8,207,062
6,754,812
6,527,500
5,860,297
5,400,000
5,261,800
5,148,739
317,186,895
12.47
5.34
4.56
4.11
3.60
2.14
2.11
1.85
1.83
1.75
1.61
1.43
1.36
1.32
1.09
1.05
0.94
0.87
0.85
0.83
51.13
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ASX ADDITIONAL INFORMATION
d. Unquoted Securities
Details of Security
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 7 February 2025)
Options (exercisable at $0.069 expiring 1 December 2026)
Options (exercisable at $0.061 expiring 19 February 2027)
Performance Rights expiring 26 August 2025
Performance Rights expiring 31 October 2025
Securities
on Issue
Number of
Holders
300,000
3,900,000
855,000
38,738,706
8,000,000
4,200,000
378,262
790,000
1
10
1
150
1
7
5
1
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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