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Theta Gold Mines Ltd

Theta Gold Mines high-grade hits likely to boost 5.8 million-ounce TGME gold resource

The company is on track to release upgraded resource and reserve statements early this year.

Drilling at Theta Hill deposit
Drilling at the Theta Hill open-cast target of the TGME project

Theta Gold Mines Ltd (ASX:TGM) has received further high-grade gold results from resource infill drilling aimed at boosting the 5.8 million-ounce resource at the TGME project in South Africa.

Drilling at the Theta Hill, Columbia Hill and Scammells deposits has returned high-grade assays.

The company is on track to release an upgraded resource and reserve statement early this year together with a feasibility study.

Encouraging assays

First-phase drilling at Theta Hill is nearing completion with encouraging assays returned from the December quarter program.

Chairman Bill Guy said: “The last of 2018 drill assays for Theta Hill are showing continued good grades which is causing much excitement in the team.”

Best results are 11 metres at 2.1 g/t from 8 metres, including 1-metre at 9.5 g/t; and 1-metre at 27.5 g/t from 8 metres; and 2 metres at 5.9 g/t from 24 metres.

Other results are 1-metre at 5.2 g/t from 57 metres; 8 metres at 1.8 g/t from 22 metres; and 3 metres at 3.4 g/t from 84 metres, including 1-metre at 8.3 g/t.

These are expected to contribute to an increase in indicated and measured resources at Mining Right MR83, which includes Theta Hill, Columbia Hill/Iota and Scammells targets.

Locality of open-cast targets on 83 MR.

READ: Theta Gold Mines appoints Finn Behnken as director

The company drilled more than 7,400 metres during the December quarter of 2018 with the reverse circulation (RC) infill program at Theta Hill completed.

Theta Hill’s geological model is being updated and incremental resources estimated.

The in-country team is using two RC drill rigs that worked up to Christmas, with one being recommissioned on Columbia Hill.

Investigating satellite targets

This rig has been progressing investigations on satellite open-cast targets on 83MR with the phase II program at Columbia Hill underway after 1,216 metres was completed last month over 17 holes.

Guy said: “Just 3km to the west of the TGME plant, Columbia Hill continues to show good potential, so much so that additional drilling is now underway to build up the geological model for that deposit.”

Satellite deposits within a few kilometres of the TGME CIL plant.

The Iota (Rho Reef) underground workings are on the eastern extension at this target and the RC drilling is targeting ground peripheral to these zones.

High grades at Columbia Hill

Results to date have confirmed more high-grade shallow gold intersections on the Bevetts and Rho reefs.

They include 1-metre at 10.1 g/t from 18 metres, 1-metre at 5.6 g/t from 68 metres, 1-metre at 7.5 g/t from 31 metres and 10 metres at 1.9 g/t from 36 metres.

Columbia Hill continues to demonstrate good potential as a satellite open-cast resource, particularly with the mineralisation style and intersections all above 80 metres below surface.

Initial resource estimations are expected to be completed next month.

Scammells drilling

Phase I drilling has also been completed at the Scammells target with best results of 1-metre at 5.6 g/t from 18 metres and 1-metre at 13.8 g/t from 20 metres.

A number of boreholes still require deepening to reach the target.

READ: On track for open-cut production from Theta Hill gold project in South Africa

TGM is focusing on the planned refurbishment of the existing CIL plant at TGME and nearby mines/prospects with the intention of resuming production.

It is considering open pit mining where it has identified mineral resources amenable to open pit production.

Location of Theta Gold Mines’ projects northeast of Johannesburg.

The company is concluding a detailed feasibility study and is also seeking approvals for open pit mining on the existing mining licences held.

“As part of the feasibility study, the TGM board will develop more clearly delineated timelines and work schedules to bring the existing TGME plant back into production,” Guy said.

“The on-site team is back at work and the 2019 work program has begun with environmental studies to support the permitting process for open cut developments.”

Quick facts: Theta Gold Mines Ltd

Price: $0.16

Market: ASX
Market Cap: $62.13 m
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