GBM Resources Limited advised at it has recommenced drilling at the Mount Coolon Gold Project, located in the Drummond Basin, Queensland. Current drilling activities are key inputs required to support evaluation of recommencement of mining operations at the Mount Coolon Gold Project. The three deeper diamond holes completed are designed to confirm mineralisation and provide metallurgical, geotechnical and environmental data for both the Koala and Glen Eva Open Cuts. Re-evaluation of the Glen Eva Resource is currently underway as the current resource estimate of 154,000 tonnes at an average grade of 7.5 g/t Au containing 37,200 ounces of gold was based on underground mining methods rather than open cut mining options. The Glen Eva deposit was mined during the 1990's yielding high grade ore from epithermal style gold mineralisation. Two diamond drillholes (GLD0001&2) were completed at Glen Eva to provide data and mineralised material to confirm descriptions and results from previous drilling at this deposit. Initial observations from these drillholes indicate that extensive areas of epithermal veining has been intersected broadly in line with existing geological and ore models. Assay results are expected later in February to confirm if gold mineralisation is present. Completion of logging of Koala diamond hole (KLRD0024) beneath the old Koala Open Pit has confirmed the presence of quartz vein and breccia style settings similar to those observed hosting remnant high-grade gold mineralisation throughout the Koala underground workings area tested by stage 1 drilling. Analytical results for KLRD0024 confirmed that the Koala Lode was intersected over a downhole interval of 8.0 metres averaging 3.1 g/t Au (including a 1.0 metre interval of 6.5 g/t Au). In addition, a breccia zone a further twenty metres down hole returned an average grade of 12.3 g/t Au over 2.6 metres (including 1.1 metres assaying 24.8 g/t Au.). Samples for metallurgical testwork will be selected and submitted as soon as practical. Drill holes KLRD0025 and 26 were abandoned due to difficult drilling conditions adjacent to the open cut, but will provide useful geotechnical and environmental data. GBM continues to actively evaluate options for the extraction of ore from the gold resources hosted within the company's 100% owned Mount Coolon Gold Project. Evaluation work will include the Koala, Glen Eva and Eugenia Gold deposits. The company has in train testwork in key areas including; geotechnical, geochemical and environment properties of the ores and waste rock at the Koala, Glen Eva and Eugenia deposits. In addition environmental studies have commenced covering both the existing eco system and that of areas modified by previous mining activity. The Company is targeting the end of March to give the go ahead to commence Feasibility Studies for some or all of these gold deposits.