Stonewall Resources Ltd (ASX:SWJ) is continuing to receive positive drilling results from the Theta Hill prospect, part of its TGME gold project in South Africa.
Importantly, assays continue to indicate that a high-grade, oxide gold resource will be established.
READ: Stonewall Resources excited by open-cut potential at TGME gold project
Rob Thomson, managing director, said: “Based on the confidence we are gaining on the likelihood of declaring open cut reserves later in 2018, we are accelerating development plans for the TGME project, with a number of activities underway including drilling, engineering assessment and progressing of approvals.
“We are aiming to be in a position, subject to financing, to be able to commence plant refurbishment and submit mine plans for approval in 2H 2018.”
Maiden open‐cut resource estimation work planned
Since the recommencement of drilling at Theta Hill in January 2018, a total of 20 out of a planned 27 holes have been drilled.
Encouraging assays received to date include:
• 1 metre at 11 g/t gold from 29 metres;
• 1 metre at 9.2 g/t gold from 23 metres; and
• 1 metre at 10.4 g/t gold from 51 metres.
The remaining holes are expected to be completed within the next two weeks.
A diamond drilling rig is currently mobilising to the Theta Hill site, ahead of Stonewall’s planned maiden open‐cut resource estimation work.
Scoping and feasibility work in 2018
Stonewall is engaging with a number of groups with the aim of facilitating the commencement of production.
READ: Stonewall Resources' testwork indicates feasibility of carbon in leach gold processing
This included site visits from process engineering firms to assess the condition of the CIL (carbon in leach) plant for refurbishment and upgrade.
The assessment of open‐cut feasibility is also being carried out, in preparation for scoping and feasibility work planned in 2018.
Preparing for underground sampling and drilling
At the Rietfontein Gold Mine within the TGME gold project, a decision has been taken to dewater the mine below Level 4 and access the mine via the footwall drive.
This should reduce the timeline to access the deeper parts of the mine for metallurgical sampling, and review of potential locations for underground resource drilling.
Stonewall’s new approach is expected to establish underground fan drilling locations instead of drilling from surface and improve on reserve drilling costs.
Renewed investor interest towards South Africa
South Africa was recently named by Goldman Sachs as the best emerging market story of 2018, with the election of president Cyril Ramaphosa seen as a major positive for the economy.
Rob Thomson added: “Given the encouraging developments and progress and the renewed investment interest in South African under new President Cyril Ramaphosa, we believe now is the time to ramp‐up our activities to the next level orientated towards re‐establishing gold production”.