GBM Resources to focus on Milo rare earth project; sells non core phosphate project
GBM Resources (ASX: GBZ) is set to focus on the potential company making Milo Iron Oxide Copper Gold (IOCG), Rare Earth Elements and Yttrium (REEY) Project in north-west Queensland - after disposing of a non core asset/
The company will realise $3.3million from the sale of its 30% stake in the Queensland Phosphate project. GBM Resources will now distribute the shares via in-specie distribution to shareholders.
Peter Thompson, managing director, said the conditional sale of the project would be a "win/win" result for GBM and its shareholders.
"GBM's shareholders will have the opportunity to participate in a new, well managed, well funded company at no cost.
"For GBM the sale of a non-core asset will allow us to further our focus on our ‘company-making' Milo IOCG/Rare Earths Project."
Milo TREEYO potential
Towards the end of 2011 GBM Resources uncovered a broad zone of rare earth element mineralisation at Milo, which is dominated by lanthanum, neodymium, cerium and yttrium - and extends through the project area.
Highlights from the analysis of almost 3700 samples included:
- 45 metres at 1014 parts per million total rare earth element and yttrium oxide (TREEYO), including 11 metres at 1479 parts per million;
- 13 metres at 2839 parts per million TREEYO;
- 26 metres at 2212 parts per million TREEYO; and
- 49 metres at 2044 parts per million TREEYO, including 25 metres at 3471 parts per million.
A review of the data also confirms that the mineralisation is dominated in abundance by cerium, lanthanum, neodynium and yttrium, which comprise 86% by weight of the total rare earth elements found.
The Milo rare earth elements and yttrium make-up contains 14% heavy rare earth elements and yttrium including dyprosium and europium.
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