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Stonewall Resources' testwork indicates feasibility of carbon in leach gold processing

Published: 00:18 24 Jan 2018 GMT

Picture of a drilling rig
The current focus is to delineate a high grade oxide resource close to the plant

Stonewall Resources Ltd’s (ASX:SWJ) preliminary metallurgical testwork from drilling at its Theta Hill prospect support management’s plans to recommence gold production.

Theta Hill and Columbia Hill are part of the company’s TGME Gold Project located in South Africa.

Average recovery from bottle‐roll cyanidation tests of 94.9% from eight samples indicates the mineralisation is suitable for processing in a carbon in leach (CIL) plant.

Management expects to be able to feed high-grade oxidised ore from its nearby Theta Hill and Columbia Hill prospects into the existing CIL plant.

Processing strategy provides quick transition to production

The current focus is to delineate a high grade oxide resource, in close proximity to the plant, in order for an early low‐capital start‐up option.

Stonewall has had early success on this front.

READ:Stonewall Resources hits shallow high grade gold in South Africa

Boosting the volume of ore throughput would justify using most of the capital being invested into plant refurbishment as opposed to underground development.  

Management looking to establish reserves in 2018

Rob Thomson, managing director, said: “These preliminary metallurgical tests from the recent drilling at Theta Hill show excellent recoveries for conventional milling with cyanide extraction.

“They fit with our plans to recommence gold production using the existing CIL plant fed with high grade, oxidised ore, and we are very encouraged by the high grade drill results and testwork.

“We look forward to continued drilling and establishing an ore reserves in 2018, along with expanding our resource base as new discoveries continue to be made.”

Further commitments for placement

From a funding perspective, the company has received further positive news with commitments for the placement under the share purchase plan shortfall offer.

Proceeds from the placement and attaching options will be used to advance the company’s gold project, as well as covering corporate costs and working capital.

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