Stonewall reports drilling results at Theta Hill gold project

Published at May 10, 2018, in Small Caps

Stonewall Resources Limited (ASX:SWJ) has updated shareholders on its drilling progress at its Theta Hill project, which is part of the TGME gold project in South Africa.

Following encouraging exploration results at Theta Hill, and A$5 million in additional shareholder funding, the company is expecting a third drilling rig (RC) to arrive at Theta Hill to complement recent work to delineate a maiden open-cut resource.

Here are some of the highlights:

  • Two diamond rigs continue to delineate resources at Theta Hill, with encouraging results and new high grade assays including 1m @ 126g/t Au in the Bevetts Reef (from 33m, DDBH21) and 1.0m @ 17.9g/t Au in lower Theta (from 10m, RCBH66).
  • Additional positive trench results have been reported at DG4, with 38m @ 1.28g/t Au (including 18m @ 1.69g/t Au) in Trench E.
  • The reverse circulation (RC) rig will arrive back on site this week to accelerate the drilling program to the Indicated Resources (JORC 2012). Ultimately this will underpin funding for recommencement of gold production.
  • A recent A$5 million funding package will speed up progress towards maiden reserves and feasibility work.
  • A resource upgrade was announced at the beginning of the month, and a further upgrade is due following the completion of the current program at Theta Hill.

Diamond drilling at Theta Hill has been encouraging, with impressive results including:

1.0m @ 126g/t Au (from 33.1m) and 0.43m @ 9.15g/t Au (from 34.9m) or 2m @ 70g/t Au, intersected on the Bevetts Reef in DDBH21. DDBH21 also yielded 2m @ 5.3g/t Au on the Lower Theta Reef horizon (from 49.1m) and as assay from the previous RC program yielded 1.0m @ 17.9gt/h Au from 10m also in the Lower Theta Reef (RCBH66).

The recent drilling and trenching at DG4 is encouraging, with broad shallow widths of low-grade gold mineralisation on the Bevetts Reef horizon encountered. This indicates a surficial orebody of reasonable scale which can potentially provide early feed to the refurbished CIL plant once reserves are established and the plant is upgraded.

Managing Director Rob Thomson commented on the update: “The resource evaluation work at Theta Hill, whilst being challenging due to difficult ground conditions, continues to deliver very positive grades and confirms the thesis of shallow, widespread gold mineralisation at this location. The recent focus on the DG’s, particularly DG4, should add to the ultimate ounces which form part of the mineral inventory we are currently targeting to underpin a resumption of gold production at the project as soon as possible.”

There is still a long way to go with regard to this exploration program, so investors should seek professional financial advice if considering this stock for their portfolio.

Additional assays have been received from both diamond and RC drilling at Theta North and trenching work is being done at DG4.

Trench E shows broad zones of gold mineralisation with a result of 38m @ 1.28g/t Au (including 18m @ 1.69g/t Au).

This follows previous positive results including:

  • 122m @ 1.3g/t Au in Trench C (including 2m @ 14.8g/t Au and 2m @ 11.2g/t Au)
  • 92m @ 0.96g/t Au in Trench D (including 2m @ 7.86g/t Au)
  • Trench B with 52m @ 0.9g/t Au
  • Trench A with 26m @ 1.05g/t Au

A maiden resource on DG4 is pending evaluation of the data, plus drilling planned during May 2018. Further work to bring DG4 into the mine plans is likely.

Although it is speculative at this stage pending data, so caution should still be applied to your investment decision in this stock.

Here is the location of Theta North and DG4 drilling and trenching activities relative to the TGME Metallurgical facility:

The DG4 area at Theta Hill is located within 700m of the TGME processing plant and tailings dam. Following some initial proof of concept RC drilling, the decision was made to undertake:

  • Trenching in the area to target previously unrecognised Bevett’s mineralisation located in the Pretoria Shales/Malmani dolomite unconformity, and
  • A further infill RC drilling program, which is planned to delineate an Indicated Resource on the Lower Theta Reef target (subsequent to the trial of DDH evaluation of the Lower Theta Reef mineralisation).

At Theta Hill DG4 the Bevett’s mineralisation is variably exposed at surface over a large area. The trenching was completed with Tractor-Loader-Backhoe (TLB) over a width of several hundred metres in an east to west direction, and to a depth of 0.5 – 2.1m. Vertical channel samples approximately 15cm wide were taken every 2m on the southern face of the trench from the top to the bottom of the exposed face.

This picture shows DG4 trenches and the TGME Metallurgical facility in the background:

This picture looks west of the Theta DG4 Lower Bevett’s/Lense, Lower Theta and Beta Reef opencast targets.

Here is a look at the Theta Hill DG4 trenches with Trench E gold grade distribution:

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