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Stonewall Resources discovers third open‐cut gold target in South Africa

Published: 11:24 09 Mar 2018 AEDT

Terrain of the Vaalhoek mine area
Terrain of the Vaalhoek Mine area

Stonewall Resources Ltd (ASX:SWJ) has identified an open‐cut gold target at the historical Vaalhoek Mine in South Africa.

This is the company’s third open‐cut target after Theta Hill and Columbia Hill.

The maiden open‐cut resource of 0.62 million tonnes at 16.9 g/t gold for 335,000 ounces has been included into the overall Vaalhoek resource upgrade of 2.68 million tonnes at 5.3 g/t gold for 457,000 ounces.

WATCH: Stonewall Resources excited by open-cut potential at TGME gold project

Rob Thomson, managing director, said: “This maiden high‐grade open‐cut resource demonstrates the potential for multiple open cut mines in the area.

“With an additional open cut resource expected within the coming weeks from the Theta Hill drilling currently underway, the company is starting to build towards multiple high-grade, low capital intensity open‐cut deposits and we plan to be in a position to begin plant refurbishment and submit mine plans in 2018.”

READ: Stonewall Resources progressing towards a high-grade gold resource at Theta Hill

Prior underground mining was carried out between 1910 and 1956 at Vaalhoek, with 1.3 million tonnes extracted at an estimated head grade of 11.7 g/t gold and production of 473,000 ounces.

The new maiden open‐cut resource at Vaalhoek forms part of Stonewall’s Project Bentley to identify high-grade open‐cut opportunities with near-term production potential.

Regional aerial photo showing the location of Vaalhoek Mine

This resource upgrade is part of an overall annual JORC review of all project areas and completion of this work is anticipated by the end of April 2018.

Further positive news anticipated

Stonewall is now planning infill drilling at Vaalhoek to allow for preliminary mine scheduling as part of its ongoing project development work.

Rob Thomson added: “We expect further positive news flow, including further increases to our resource base and the development of reserves to underpin re‐development of the TGME project.

“These plans are complementary to our ongoing plans to re‐open the Rietfontein Mine”

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