Stonewall Resources Ltd (ASX:SWJ) has received assays from ongoing reverse circulation (RC) drilling at Theta Hill within the TGME Project in South Africa.
Drilling continues towards delineating additional Indicated resources, following the recent maiden resource estimate and a positive scoping study on Theta Hill.
Latest results include 3 metres at 19.4 g/t from 2 metres and 3 metres at 3.6 g/t from 10 metres.
Drilling is also being complete at nearby potential satellite deposits Columbia Hill Mine and Day Mine with results including 16 metres at 3.27 g/t gold from 43 metres.
READ: Stonewall Resources on track for open-cut production from Theta Hill gold project in South Africa
Stonewall’s chairman Bill Guy said: “The team is pushing hard before year’s end, as work concentrates on producing Indicated resources for conversion to reserves (expected late first quarter 2019).
“Columbia Hill drilling is just to the west of the TGME Plant and has produced good gold hits and intercept widths from this program and previous drilling, confirming it has potential to add ounces into the mine schedule.
Theta Hill and other potential satellite deposits nearby to the TGME plant
“At Theta Hill, drilling has also delineated thick high-grade zones of near-surface gold mineralisation.
“This shallow material has potential to be the first mill feed. It is clear that the shallow oxide gold potential of the Goldfield has been demonstrated through sustained drilling.
Drilling results to be fed into resource models
“The assay results and geological data are a continuous feed into the resource models.
“In each gold cycle in Western Australia, the historical underground mines are tested and mined for shallow open cut oxide gold.
“This cycle of exploration and development simply has not occurred in this part of South Africa yet.”
Fineway Creation Limited becomes major shareholder
As a result of the recent private placement, Fineway Creation Limited has become a substantial shareholder in the company with a 19.92% stake.
Notably, All 665.15 million of Fineway’s shares are subject to voluntary escrow until 23 November 2019.