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

An open‐cut strategy remains the current focus with a scoping study underway at Theta Hill.

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Pac Partners attributed a Speculative Buy rating to the company in July 2018

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

At August 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.

READ: Stonewall Resources receives Spec Buy from Pac Partners

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.

Theta Hill discovery has Stonewall’s attention

During the June quarter, the TGME gold project continued to progress towards development, with ongoing drilling at Theta Hill.

Drilling and trenching work was completed, confirming the open cut potential of the project.

At August 2018, a scoping study was underway into the Theta Hill open‐cut mine with further drilling and engineering studies ongoing.

Drilling is working towards a maiden JORC resource at Theta Hill.

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 discovered late 2017

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

Notably, diamond drilling from 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.

Scoping study completed on Rietfontein underground mine

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

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

Quick facts: Theta Gold Mines Ltd

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ASX:TGM
Market: ASX
Market Cap: $69.87 m
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