The owner of the Kangaroo flat mine says its ready to explore mining areas underneath parts of central Bendigo.
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As part of its latest quarterly report to shareholders, ASX-listed GBM Gold Limited said it had received permission to look for mineral deposits.
To do this the company will reopen the Swan Decline at the Kangaroo Flat mine, but GBM Gold could not provide an indication of when this will happen when contacted by the Bendigo Advertiser this week.
GBM Gold is looking at unmined areas close to the decline constructed by Bendigo Mining and Unity Mining.
The 18 kilometres of decline runs to a depth of more than 1000 metres below the streets of Bendigo.
Between 2008 and 2011, Unity Mining produced 126,000 ounces of gold, then sold the mine to GBM Gold in 2016.
Read more: GBM Gold sells processing plant
GBM recently gained approval from the Loddon Shire and the state government’s mining regulator to resume open-pit mining in Dunnolly.
The ASX queried the financial position of GBM Gold Ltd in May.
A letter addressed to the company by an ASX compliance officer asked GBM Gold to detail what plans it has to arrest “negative operating cash flows” which were detailed in the company’s quarterly report.
In its latest financials, GBM Gold revealed negative net operating cash flows for the March 2018 quarter of $268,000, cash at the end of the quarter of $98,000 and estimated cash outflows for the next quarter of $350,000.
The ASX requires companies that are subject to quarterly reporting to explain to the market how they expect to continue their operations and meet their business objectives if they appear to have ongoing negative cash flows.
