The second program will comprise reverse circulation drilling of 20-30 holes for circa 1,500 metres.
It is following up a high-grade gold reef discovered at shallow depth in a phase I campaign at Theta Hill completed in December 2017.
“Push towards maiden resource”
Rob Thomson, managing director, said: “We look forward to delivering further positive news flow in coming weeks as the drilling campaign progresses at the TGME project.
“Shallow, oxide gold has been demonstrated at Theta Hill and Columbia Hill and the next step is to push ahead towards a maiden resource calculation as soon as possible, followed by submission of mine plans.”
Phase II program
Stonewall aims to complete the phase II drilling at Theta Hill by mid‐March 2018 with first assay results expected to begin arriving towards the end of February.
Further drilling at the Columbia Hill prospect is then expected to take place.
The company is also planning diamond drilling to confirm reef thickness and to enable completion of a maiden JORC resource estimate for the two prospects later in 2018.
Stonewall recently announced the results of drilling at Columbia Hill which revealed shallow high grade gold material.
Additional assays have been received from this program and are being interpreted.
Encouraging preliminary metallurgy for Theta Hill has showed an average of 95.7% recovery from Beta Reef and 95.7% recovery from Lower Theta Reef.
Both prospects form part of Stonewall’s open pit strategy at TGME, which is in a world‐renowned South African gold mining region.
TGME is near the historical gold mining town of Pilgrim’s Rest in Mpumalanga province, circa 370 kilometres east of Johannesburg by road.
CIL plant being refurbished
Ore from the open pits would be processed at the existing CIL plant at TGME which is being refurbished by Stonewall.
The TGME project contains 26.6 million tonnes grading 4.34 g/t gold for 3.7 million ounces of gold.
Stonewall aims to build a solid production platform to more than 100,000 ounces annually based primarily around shallow hard rock mining sources.