AMN - SOUTH AFRICA: Likely boost to TGME gold resource

Theta Gold Mines has outlined an emerging new gold story in South Africa to investors at this week’s weeks Investing in African Mining Indaba in Cape Town centred on the former gold mining area around Pilgrims Rest. With a resource upgrade expected shortly, the company is confident of growing the existing TGME project resource of 5.8 million ounces.

The company, formerly named Stonewall Resources, has recently received further high-grade gold results from resource infill drilling, providing more confidence of a resource increase.

Drilling at the Theta Hill, Columbia Hill and Scammells deposits has returned high-grade assays.

As well as being on track to release an upgraded resource and reserve statement, the company will also release a feasibility study.

First-phase drilling is nearing completion with encouraging assays returned from the December quarter program.

Best results are 11 metres at 2.1 g/t from 8 metres, including 1-metre at 9.5 g/t; and 1-metre at 27.5 g/t from 8 metres; and 2 metres at 5.9 g/t from 24 metres.

Other results are 1-metre at 5.2 g/t from 57 metres; 8 metres at 1.8 g/t from 22 metres; and 3 metres at 3.4 g/t from 84 metres, including 1-metre at 8.3 g/t.

These are expected to contribute to an increase in indicated and measured resources at Mining Right MR83, which includes Theta Hill, Columbia Hill/Iota and Scammells targets.

The company drilled more than 7,400 metres during the December quarter with the reverse circulation (RC) infill program at Theta Hill completed.

Theta Hill’s geological model is now being updated and incremental resources estimated.

The in-country team is using two RC drill rigs that worked up until Christmas, with one being recommissioned on Columbia Hill.

This rig has been progressing investigations on satellite open-cast targets on 83MR with the phase II program at Columbia Hill underway after 1,216 metres was completed last month over 17 holes.

The Iota (Rho Reef) underground workings are on the eastern extension at this target and the RC drilling is targeting ground peripheral to these zones.

High grades at Columbia Hill

Results to date have confirmed more high-grade shallow gold intersections on the Bevetts and Rho reefs.

They include 1-metre at 10.1 g/t from 18 metres, 1-metre at 5.6 g/t from 68 metres, 1-metre at 7.5 g/t from 31 metres and 10 metres at 1.9 g/t from 36 metres.

Columbia Hill continues to demonstrate good potential as a satellite open-cast resource, particularly with the mineralisation style and intersections all above 80 metres below surface.

Initial resource estimations are expected to be completed next month.

Phase I drilling has also been completed at the Scammells target with best results of 1-metre at 5.6 g/t from 18 metres and 1-metre at 13.8 g/t from 20 metres.

A number of boreholes still require deepening to reach the target.

Chairman Bill Guy said: “The last of 2018 drill assays for Theta Hill are showing continued good grades which is causing much excitement in the team.

“Just 3km to the west of the TGME plant, Columbia Hill continues to show good potential, so much so that additional drilling is now underway to build up the geological model for that deposit.”

TGM is also focusing on the planned refurbishment of the existing CIL plant at TGME and nearby mines/prospects with the intention of resuming production.

It is considering open pit mining where it has identified mineral resources amenable to open pit production.

The company is concluding a detailed feasibility study and is also seeking approvals for open pit mining on the existing mining licences held.

http://stonewallresources.com/