AMN - SOUTH AFRICA: Strong case for Theta Hill open pit

Stonewall Resources has received positive exploration results from drilling and trenching at the Theta Hill deposit within its TGME Gold Project in South Africa. Exploration has been ongoing since late 2017 and recent results from thes DG4 area continue to strengthen the case for an open cut gold mine at the deposit.

Highlights from trenching include 122 metres at 1.3 g/t gold and drill assays featured 4 metres at 4.3 g/t gold.

The DG4 area is only 700 metres from the fully permitted TGME CIL process plant.

Recent trenching results at the DG4 target area have added further positive results to the Theta Hill open cut area.

The gold mineralisation can potentially provide an early opportunity for open pit mining.

The target gold zone at the DG4 target has a low strip-ratio and represents the first possible mill-feed target ahead of pre-stripping activities being considered at Theta Hill.

Stonewall’s managing director Rob Thomson said: “Slower than expected drilling conditions at Theta Hill are part of the reason such large amounts of high-grade gold reef were left behind by past underground miners who simply could not safely extract these near surface, oxidised, broken up reefs in these areas.

“We are confident with modern open-cut mining techniques we will be able to recover much of this material left behind.

“We remain committed to rapid delineation of high-grade gold reserves to underpin a re-start of the TGME plant in the quickest time possible and thank shareholders for their ongoing patience and support of our strategy.”

Drilling continues at Theta North target, where a reverse circulation rig has completed phase 2 and a diamond rig has been commissioned to progress phase 3 to upgrade the resource.

Stonewall recently boosted total gold resources by 39% to 5.15 million ounces at the TGME project. The resource now stands at 34.7 million tonnes at 4.62 g/t gold with 24% in the measured and indicated category and the remainder in the inferred category.

Largest sources of the increase are a 146% increase in resources at Glynns-Lydenburg and inclusion of the 581,000-ounce resource at Vaalhoek. Glynns-Lydenburg resource increased by 975,000 ounces to 9.8 million tonnes at 5.2 g/t for 1.64 million ounces, all in the inferred category.

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