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Theta Gold Mines defines new mineral system model at Eastern Transvaal Gold Fields in South Africa

The company has further advanced its assets during the December 2019 quarter, including the Theta Project, as it continues to work towards becoming a gold producer.

Theta Gold Mines Ltd - Theta Gold Mines defines new Mineral System model at Eastern Transvaal Gold Fields in South Africa
Theta also continues to progress the social licence aspects of the Theta Project

Theta Gold Mines Ltd (ASX:TGM) has received a new mineral system model to support its exploration on the Eastern Transvaal Gold Fields in South Africa.

This is a result of a preliminary ore genesis model and structural geology interpretation carried out by CSA Global on the 620 square kilometre tenement package.

CSA has interpreted that east-west structures provided fluid pathways for mineralising fluids from the prolific Bushveld Complex to the Eastern Transvaal Gold Fields.

As a result, Theta is now assessing the regional exploration potential of the wider Eastern Transvaal Basin.

Regional geology and Theta Gold Mines mining rights  

Chairman Bill Guy said: “The company has made strong progress in its understanding of geodynamic controls of the gold mineralisation processes at play in the Eastern Transvaal Gold Fields.

“The new understanding will promote the next exciting generation of local and regional gold exploration and target generation."

Three-stage strategy

He said: “ASTER satellite data and regional magnetics will be reprocessed to form base maps for future exploration.

“Exploration is always exciting to define new resource targets locally and regionally.

“The exploration strategy will be carried out on three fronts - exploration to be regionally dominant player, resource development work to increase mine life, and development of the starter-pits Theta open-cut project to become a highly profitable & sustainable gold producer.”

Following the recommendations from CSA Global:

  • Core samples from site have been sent for petrophysical analysis by Southern Geoscience Consultants in Perth;
  • Regional magnetic and ASTER satellite data will be reprocessed. Magnetic geophysical data has the potential to identify structural fluid pathways and structural traps for exploration targeting. ASTER imagery can identify minerals related to alteration and this will assist in targeting structural pathways for fluid transport; and
  • Based on the work to date, a regional evaluation for potential exploration targets will be completed.

Strong December quarter

TGM had another strong quarter in December 2019 as it continued to advance its Theta Project closer towards production as well as strengthening its social licence in the area.

Various permitting activities continue to progress as the company works towards becoming a gold producer of more than 100,000 ounces per annum.

The Environmental Impact Study (EIS) for Mining Right 83 - (The amendment for MR83 from underground to open-pit) 'Starter Theta Open-pit Project - will be submitted this quarter for approval by the Department of Mines Resources and Energy (DMRE) with a decision expected by the middle of the June quarter of 2020.

Mining contract discussions

During the quarter, Theta progressed discussions to develop the basis of a mining contract based on a schedule of rates basis as well as lump sum quotes for mining development activities.

Work continues this quarter to complete this process and Theta is confident that a workable mining contract can be concluded with mining costs in line with the feasibility study.

Contractor for power system design

A contracting company has been engaged to finalise the design of the incoming power system into the existing Pilgrims Rest sub‐station, around 2 kilometres from the Theta Gold Mine site, to allow for the increased power draw requirements for the new Theta Project Plant.

There is an existing power line and TGM has maintained connectivity to the grid for the existing plant.

The electrical connectivity design allows for the potential connection of backup generators.

At the end of December, the company had US$1.8 million in cash.

Quick facts: Theta Gold Mines Ltd

Price: 0.195 AUD

ASX:TGM
Market: ASX
Market Cap: $85.22 m
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Theta Gold Mines successfully enters subscription agreements for $8 million

Theta Gold Mines Ltd (ASX:TGM) chairman Bill Guy updates Proactive Investors on the release of a positive feasibility study for the Theta project to support further exploration on the large historical goldfield in South Africa The company also has completed a capital raising with subscription...

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