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Stonewall Resources Ltd: THE INVESTMENT CASE

Stonewall Resources closing in on mining its 5+ million ounce gold resources

Work is progressing refurbishing the Rietfontein underground gold mine within the TGME project.
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INVESTMENT OVERVIEW: SWJ The Big Picture
The more recent Theta Hill discovery has open-pit gold mining potential

Stonewall Resources Ltd (ASX:SWJ) is focused on developing both underground and open pit mines within its flagship TGME project in South Africa.

In May 2018, the project’s global resource totalled 34.7 million tonnes grading 4.62 g/t gold for 5.15 million ounces of which 24% is in the measured and indicated categories.

Stonewall’s focus is on upgrading resources to the indicated category ahead of converting the resources to reserve status for mining.

Restarting gold production within TGME project

Stonewall is developing the fully permitted TGME Gold Project near the towns of Pilgrims Rest and Sabie in Mpumalanga Province, 370 kilometres northeast of Johannesburg.

The initial focus is on the Rietfontein mine in the southern part of TGME, which contains a JORC resource of 2.55 million tonnes grading 11 g/t for 905,000 ounces of gold.

The scoping study indicates a potentially low cost, 60,000 ounces per year underground development with a C1 cash cost of US$417 per ounce.

Work at Rietfontein underground mine ongoing

During the March 2018 quarter, work on underground refurbishment and access at Rietfontein progressed.

This work included dewatering to enable underground resource drilling and metallurgical sampling in due course.

Refurbishing the existing processing plant

Following small-scale production from 2012 to 2015, Stonewall aims to refurbish the existing CIL plant and nearby mines with the intention of resuming gold production.

The company aims to build a solid production platform to over 100,000 ounces per annum based primarily around shallow, adit-entry hard rock mining sources.

Stonewall has access to over 43 historical mines and prospect areas that can be accessed and explored, with historical production of about 6.7 million ounces recorded in the tenement areas.

Theta Hill discovery has Stonewall’s attention

Exploration has been ongoing since late 2017 at and nearby to the Theta Hill discovery of high-grade, shallow gold within the TGME project.

Importantly, targets within Theta Hill such as DG4 are located as close as 700 metres to the existing and fully permitted TGME processing plant and tailings dam.

Trenching and drilling results continue to build the case for an open cut gold mine.

Stonewall’s strategy is to generate initial resources with the plan to declare open‐cut reserves later in 2018.

READ: Stonewall Resources’ drilling delivers 126 g/t gold at Theta Hill in South Africa

Impressively, follow-up diamond drilling in May 2018 at the Theta Hill project delivered results of up to 1 metre at 126 g/t gold within 33.1 metres and 1 metre at 17.9 g/t gold from 10 metres.

This builds on trenching results from April 2018 that featured 122 metres at 1.3 g/t gold.

This exploration data will be used in estimating a maiden resource at Theta Hill.

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