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Thundelarra focused on recommencing high-grade gold mining at Garden Gully

Drilling underway is targeting maiden resources at the Lydia and Crown Prince prospects.
reverse circulation drill rig
At the end of the March quarter 2018 the company had an estimated $3.1 million in cash

Thundelarra Ltd (ASX:THX) is focused on exploration at its 100% owned Garden Gully Gold Project located in the Meekatharra area of Western Australia.

The Meekatharra area has produced over 7 million ounces of gold including high-grade historical mining within the Garden Gully project.

By April 2018, 18 months of aggressive exploration had resulted in Thundelarra drilling 40,000 metres in 415 holes at the project.

WATCH: Thundelarra's gold exploration "on the cusp of something great"

The Garden Gully Gold Project comprises 15 granted prospecting licences and 2 granted exploration licences covering about 78 square kilometres in the Eastern Goldfields.

Exploration commenced in May 2016 and to date has revealed 14 prospects.

While multiple prospects have revealed gold mineralisation, the company’s focus is on the Crown Prince and Lydia prospects.

Visible gold has been observed in drilling at both of these prospects and drilling has intersected 7 metres at 24.5 g/t gold at Lydia and 8 metres at 22.3 g/t gold at Crown Prince.

High-grade gold at Crown Prince drilled below historical workings

Importantly, Crown Prince has a proven production history as it produced 20,718 ounces grading 21.7 g/t gold historically.

Drilling at Crown Prince intersected grades of up to 66.5 g/t gold across multiple holes and showed that gold mineralisation went down to at least 245 vertical metres.

Notably, Thundelarra’s first drill program extended the Main Lode to at least 130 metres below the base of the old workings, with the high grades continuing at depth.

READ: Thundelarra commences follow-up drill program testing for gold extensions

In mid-April 2018, Thundelarra commenced follow-up reverse circulation (RC) and diamond drilling at Crown Prince and Lydia.

The new program comprised 10 RC holes for 2,500 metres and 7 diamond holes for 2,000 metres.

The objective was to test along strike and down dip for extensions and repetitions of the North and Main Lodes at Crown Prince.

Some holes will also be aimed at verifying data from previous explorers, which can then potentially be used to upgrade the resource to JORC 2012 standards.

Lydia shows gold mineralisation along 500 metres of strike

The Lydia prospect hosts gold mineralisation to at least 240 metres vertical depth and over about 500 metres of strike length.

The mineralisation remains open at depth and along strike.

Highlights from drilling at Lydia includes 7 metres at 24.5 g/t gold from 11 metres, 80 metres at 1.9 g/t gold from 79 metres, 38 metres at 2.9 g/t gold from 97 metres and 45 metres at 1.3 g/t gold from 215 metres.

The recently commenced drilling program targeting Crown Prince will also target Lydia and aim to deliver maiden resources at both prospects.

Good infrastructure and near to gold plants in need of feed

Importantly, local infrastructure to Garden Gully includes two operational gold treatment plants nearby.

These are the 3.1 million tonnes per annum Bluebird plant operated by Westgold Resources Ltd (ASX:WGX) and the 300,000 tonnes per annum Andy Well plant operated by Doray Minerals Ltd (ASX:DRM).

Westgold and Doray both have active exploration programs in the region in the search for more mineralisation to generate feed for their plants which have spare capacity.

Both companies hold tenements that abut the Garden Gully project.

Joint venture partner funding Red Bore exploration

Although Thundelarra’s focus is on Garden Gully, in July 2017, one of its joint venture partners made a move at the Red Bore Copper-Gold Project.

Red Bore is a granted mining licence two square kilometres in area located in the Doolgunna region of Western Australia.

Its western boundary is less than 600 metres from Sandfire Resources NL’s (ASX:SFR) operating DeGrussa copper-gold mine’s processing plant.

READ: Thundelarra Ltd outlines pre-emptive right exercised for Red Bore

Joint venture partner, W Richmond, owns 10% of Red Bore with the remaining 90% held be Thundelarra.

Richmond can sole fund at least $1.5 million on exploration at Red Bore by late January 2019 to earn up top 85%.

To increase his equity interest in the licence W Richmond must also define at least 30,000 tonnes of copper or copper equivalent.

The deal keeps the Red Bore project in play for Thundelarra shareholders while not being a drag on cash, which can be utilised on Garden Gully exploration.

At the end of the March quarter 2018, Thundelarra had an estimated $3.3 million cash in the bank to continue funding Garden Gully exploration and working capital expenses.

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