Thomson Resources (ASX: TMZ) has reported an updated polymetallic Mineral Resource Estimate for the Strauss and Kylo deposits within its Mt Carrington Project in northern New South Wales.
The updated JORC 2012 Resource, which now includes zinc and copper as well as gold and silver, is an initial step in restating polymetallic MREs for each of the project’s deposits, on the basis of its inclusion in the company’s innovative New England Fold Belt Hub and Spoke strategy.
Addressing the update, Thomson Resources Executive Chairman David Williams said: “It is great to be able to finally talk about the polymetallic potential of the Mt Carrington Project and in the context of our Hub and Spoke Strategy. Whilst we will continue our robust and thorough approach to reporting MRE’s, given the work we had already done on the Strauss and Kylo deposits under the earn-in, we were able to quickly get these done to illustrate the potential to uplift the resources by bringing in the zinc and copper mineralisation. In doing that though it must be remembered that these are conservative estimates as they are limited to the previously determined gold only pit shells under the White Rock PFS. We will come back later to pick up the mineralisation that may exist outside of those shells.
As you can see, just adding these constrained estimates for Strauss and Kylo takes us a long way towards our 100 Moz AgEq target that would be available to a centralised processing facility. It must also be remembered that these two deposits are gold dominate deposits with minimal silver and we are still to bring in the silver ounces from the likes of the silver dominant deposits of Lady Hampden, Silver King and White Rock.
“just adding these constrained estimates for Strauss and Kylo takes us a long way towards our 100 Moz AgEq target”
Once we can add in these other deposits with our polymetallic MRE’s, given the estimates already published by White Rock for just the silver, I am very confident that our 100 Moz AgEq target will be well exceeded.
The Mt Carrington picture will continue to evolve and will enhance the NEFBHS as we complete the update MRE’s, fold them into the Central Processing Pathway Study, progress the metallurgical understanding and embark on drill testing the areas between various depths.”
This new Mineral Resource Estimate represents a ‘significant’ increase over previously-reported Resources for the deposits from White Rock Minerals (ASX: WRM), including a 21% increase in tonnes, 2% increase in gold ounces, 17% increase in silver ounces and a 100% increase in zinc and copper tonnes.
Importantly, Thomson notes that the new Resource has been formulated on a conservative basis, as it sits within the confines of pit shells that were previously optimised by White Rock for gold-only mineralisation.
Thomson now controls a total of 22.8 Mt @ 119g/t AgEq for a total resource base of 87.1 Moz AgEq across its Webbs, Conrad, Silver Spur, Twin Hills and Mt Gunyan projects, including these restated resources at Strauss and Kylo.
Moving forward, the company reports that it is planning metallurgical testwork to optimise recoveries for zinc-precious metal concentrate, along with a two-stage cyanide leach process to improve silver and gold recoveries.
In addition, restated Mineral Resource Estimates are in the pipeline for the Guy Bell-Carrington-Lady Hampden-Silver King-White Rock deposits, leading in to a project-wide polymetallic resource statement for Mt Carrington.
Images: Thomson Resources Limited