Stonewall Resources Ltd (ASX:SWJ) is accelerating the mine planning work at the TGME gold project in South Africa, ahead of the company’s aim to declare a maiden open?cut reserve in 2018.
The diamond drilling at the Theta Hill open cut project within TGME is expected to be completed in late April 2018, with a second diamond rig expected to arrive on site in early April 2018.
An open-cut resource estimate at Theta Hill would be the company’s second at TGME after revealing a maiden open-cut resource at the Vaalhoek deposit earlier this month.
The maiden open?cut resource of 0.62 million tonnes at 16.9 g/t gold for 335,000 ounces has been included into the overall Vaalhoek resource upgrade of 2.68 million tonnes at 5.3 g/t gold for 457,000 ounces.
Stonewall’s delineation of open-cut resources at TGME is part of its Project Bentley initiative with Columbia Hill likely to be the third resource.
Rietfontein mine planning activities
Meanwhile, pre?feasibility study (PFS) activities are continuing at the Rietfontein mine to include extending access to the mine Level 4 adit for sampling and bulk metallurgical samples.
Stonewall’s aim is to develop this resource towards production in a complementary process to the potential open cut activities.
Project areas covered by mining rights
Onsite legal and environmental planning work has been ongoing for the last 18 months, as part of converting the remaining prospecting rights (PR) to mining rights (MR).
All of the company’s core projects such as the Project Bentley open cut areas at Theta Hill and Columbia Hill and the Rietfontein and Beta underground projects are already covered by MR except for Vaalhoek.
The Vaalhoek PR to MR conversion process is proceeding well.
TGME plant refurbishment
Stonewall has had several engineering contractors visit the fully permitted TGME CIL (carbon in leach) plant to complete a review of expected cost and timeline to bring the plant back into operation.
The objective is to have a low capital cost and short timeline refurbishment approach to accommodate oxide ores from the Project Bentley open cut mines.
Stonewall expects to have this review completed in the second quarter of 2018
Stonewall managing director Rob Thomson said: “We have been increasing the level of activities at the TGME project in recent months, with an acceleration of mine planning work ahead of our aim to declare maiden open?cut reserves in 2018.
“With all mine approvals expected to be granted, and detailed costs estimates prepared, we are removing impediments to a quick resumption of gold production for the group.”
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