Stonewall Resources Ltd (ASX:SWJ) is starting a reverse circulation drilling program at the Columbia Hill target of its TGME Gold Project in South Africa.
The seven-hole program is due to start today with first results expected by the end of December.
Columbia Hill represents a potential high-grade, open‐cut resource, in close proximity to the TGME carbon-in-leach plant at Pilgrim’s Rest.
Potential for bulk mining operations
Field work has noted the existence in old workings of ‘lense’ style mineralisation that has potential to be bulk mined.
This deposit, along with nearby Theta Hill, are some of South Africa’s shallowest gold targets.
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At Theta Hill the company is adopting a phased approach to evaluation of the area’s open‐cut potential.
A phase I 11-hole reverse circulation program has been completed with first results expected next week.
The aim is to confirm the concept of a potential open‐cut resource.
Stonewall plans to follow up this program with infill diamond drilling to more accurately record the respective reef width and grades.
It also hopes to progress towards a maiden JORC resource, and ultimately, feasibility studies.
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As part of a prefeasibility study program, Stonewall has also started underground exploration at the old Rietfontein mine.
This includes resource definition and metallurgical investigation work ahead of planned diamond infill drilling.
The company has secured a second access to the ore body which is expected to enhance the gathering of samples.
These will be used for geological and metallurgical purposes.
Plan to resume underground mining
Stonewall’s work has revealed that conditions underground are generally good despite the mine having been closed since the early 1950s.
The team will work their way into deeper parts of the mine to evaluate the work required to re‐establish mining operations.
Drilling is planned at Rietfontein in early 2018, initially from surface, followed by later underground drilling, where appropriate.
The company has also completed 34 auger boreholes to assess the potential of producing gold in the near-term from the TGME Tailings Dam.
Results are pending and will be incorporated in a TGME prefeasibility study.
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Stonewall’s TGME assets include:
- Existing CIL plant and facilities;
- Rietfontein gold deposit (905,000 ounces grading 11 g/t gold);
- Beta gold deposit (1.0 million ounces grading 6.6 g/t gold);
- Other gold resources to be further developed (3.7 million ounces of gold);
- Theta Hill/Browns Hill exploration targets; and
- Columbia Hill exploration target.