Landmark deep gold drillhole underway by GBM in Central Victoria

Perth-based GBM Resources Limited (ASX: "GBZ") has today broken ground on a landmark deep diamond drill hole that the Company says  is a key step in realising the potential of the historic Malmsbury goldfields in central Victoria.

The one-kilometre deep diamond hole will be drilled over the next six weeks at Belltopper Hill, to test the potential for a large tonnage "intrusive" gold system at Malmsbury, where highly promising soil sampling was undertaken by GBM last year.

Such is the potential of the new drill hole that it attracted a A$132,000 grant from the Victorian Government's Rediscover Victoria Strategic Drilling Initiative towards its cost.

"This hole will be a significant phase in progressing the development of the project and its potential as a large gold system at Malmsbury," GBM Resources' Managing Director, Mr Peter Thompson, said today.

"If we can demonstrate the existence of deeper gold beneath Belltopper Hill, it will significantly improve our chances of discovering a more extensive intrusive system beneath the workings of the old gold mines to the south.

"Over the past two years, GBM - headquartered in Perth, with an exploration office in Castlemaine - has been actively exploring at the Malmsbury Project, where gold was mined more than 100 years ago.

"Our work to date has confirmed what all the historical data points to, which is the potential for a significant and wide-ranging gold system in excess of four kilometres in strike length," Mr Thompson said.

Early in 2009, GBM announced an Inferred Resource of 104,000 ounces of gold at an average grade of 4.0 g/t gold, at the Leven Star prospect - one of three historic mining prospects at Belltopper Hill.

Assay results from the latest diamond hole are expected to be available to GBM Resources late in April or early May.