GBM Resources increases White Dam gold output as sale process continues
GBM Resources (ASX: GBZ) continues to ramp up production at the White Dam gold project in South Australia as it waits for the completion of the mine’s sale.
Still under GBM’s control, production at White Dam has been boosted by the introduction of new heap leach material into the circuit.
The company has sold approximately 466 ounces of gold from White Dam in the current quarter, with revenue of approximately $1.9 million received.
Higher gold production
Chief executive officer Peter Rohner said access to new heap leach material under irrigation had boosted gold production and revenue, along with mineralised material recovered from around the gold room and elution circuits.
The rising Australian dollar gold price also played a part.
Mr Rohner also noted the potential for higher gold production again next quarter as a result of ongoing maintenance programs.
GBM is also preparing to sell fine carbon stocks containing gold in the coming months, with the jump in gold production and revenue strengthening the company’s working capital position for 2025.
White Dam sale
GBM announced the sale of its 100% interest in White Dam to Olary Gold Mines in July, in an effort to refine its portfolio—however, the deal is still to be completed.
GBM originally granted Olary a period of exclusivity until 31 July 2024 in return for a non-refundable deposit of $50,000.
The company reported recently that Olary and its funding parties were working to secure the minimum funding condition under the original sale term sheet.
Other parties
GBM is reportedly in discussions with a number of other parties on the sale of White Dam should the Olary deal fall through, with the high gold price supporting interest in the asset.
“GBM’s focus continues to be on the prospective Drummond Basin […] and the more recent partial sale and farm-in agreement with Wise Walkers on the Twin Hills project.”
“While the delays in selling White Dam are frustrating, the recent progress in realising significant gold production and lock-up is of significant value to GBM.”