GBM Resources Limited announced a new geological model for East Hill and the broader Yandan mineral system of a tilted low sulphidation epithermal hot spring system with the top of the system truncated and off-set from possible high- grade veins by a fault. The new model provides a significant high-grade vein target at Yandan. 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 suggests hydrothermal eruption breccia was present and forms a distinct marker horizon.

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). 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. These high-grade veins are key exploration target at Yandan.

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 moreounces 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. GBM's FY22 drill program at Yandan tested the high-grade core of the East Hill resource and the potential for strike and dip extensions to mineralisation. Drill holes 21YEDD006A and 21YEDD007 returned the best results of 214.1 m @ 1.56 g/t Au from 236 m including 26 m @ 5.37 g/t Au from 321 m, and 189 m @ 2.01 g/t Au from 255 m including 16 m @ 4.64 g/t Au from 321 m respectively.

East Hill gold mineralisation is hosted in the Yandan andesite, and to lesser extent siltstone and limestone, at the base of the Saint Anns Formation. A sinter /silica replacement horizon is present at the top of the system and clasts of sinter and epithermal veins were noted in a thin layer of conglomerate overlying the sinter. Map patterns show km-scale open folds of stratigraphy that have been cut by a series of E to NE and N to NW trending faults.

Mineralisation at East Hill is developed over a 380 m vertical interval and is associated with an As, Sb and Zn plume that encloses the gold deposit. Near surface the system comprises extensive hydrothermal breccia and associated stockwork veins with massive silica-pyrite infill and grades of 0.2 - 2.0 g/t Au. The breccia typically occurs in coarse- grained andesite tuff and agglomerate while veins are generally hosted by finer grained tuffs and lava.

At depth, mineralisation manifests as sheeted colloform/crustiform and bladed textured quartz- chalcedony-carbonate-adularia-pyrite veins generally < 10 cm wide but up to 2.1 m thick (2.1 m @ 20.5 g/t Au from 382.7 m in 21YEDD007). Individual assays of 5 - 25 g/t Au are common with a maximum recorded assay of 347 g/t Au over 1 m from 335.5 in YAN010.