Thomson Resources (ASX: TMZ) reports that relogging and drillhole core cutting of the geotechnical holes drilled in 2021 has identified visual indications of base metal mineralisation on the margins of the Strauss-Kylo open pits.
Thomson reports that this provides additional evidence that the mineralisation extends beyond the boundaries of the previously reported optimised ‘gold only’ pit shells, reinforcing the potential to extend the gold equivalent resource (gold + base metal), which will lead to larger open pits and hence lower mining costs and potentially improved financial metrics. It will also add to the resources available to Thomson’s New England Fold Belt Hub and Spoke Strategy (NEFBHS).
Seven diamond drillholes (GT001-7) were drilled by Thomson in 2021 as part of the work for a DFS on the Mt Carrington Gold First Project which was part of the earn-in obligations under the Earn-in and Joint Venture Agreement with White Rock Minerals, signed in May 2021.
In that initial agreement Thomson had the option to earn 70% of the total Mt Carrington project by funding the advancement of the Strauss and Kylo gold and silver project, including the completion of a DFS and the submission of an Environmental Impact Statement (EIS).
Three of the short diamond holes were drilled on the margins of the optimised Kylo open pit, 2 were drilled on the margin of the Strauss open pit and two were drilled at Kylo West.
Samples of core from each hole were to be sent for geotechnical compression and shear tests to assist with pit stability studies, but these tests were not completed due to the parties deciding to renegotiate the earn-in terms of the earn-in and joint venture agreement, which restructured agreement was executed by the parties in May 2022.
Thomson’s focus then shifted to an assessment of the larger scale silver-gold polymetallic opportunity that was anticipated to result in larger open pits. Broad zones of alteration with quartz veining containing zinc sulphide (sphalerite), lead sulphide (galena) and copper sulphide (chalcopyrite) were logged in several of the holes including GT002 in the Kylo pit and GT005 in the Strauss pit.
Broad zones of alteration with quartz veining containing zinc sulphide (sphalerite), lead sulphide (galena) and copper sulphide (chalcopyrite) were logged in several of the holes
The company notes that the mineralised intervals have been cut and sampled and will be submitted to the laboratory for gold and base metal analysis. No assay results are currently available.
Addressing the results, Executive Chairman David Williams commented: “We had put these holes, which were not exploration holes, to one side as we set about renegotiating the terms of our earn-in and option to JV agreement with White Rock.
With that done and the freeing up of our resources we came back and had a look at them to see what we could see. As we noted in our ASX Release on 22 June 2022 on our updated polymetallic MRE’s for the Strauss and Kylo deposits, we believed it was likely that the polymetallic mineralisation extended beyond those constrained pit shells.
To have that view reinforced by holes not drilled for that purpose demonstrates our shift in approach with Mt Carrington to focus on the potential coalescing of the deposits into a large polymetallic resource, is the correct one.”
Since the earn-in and JV agreement was amended in May 2022, Thomson’s initial focus has been on the Mt Carrington “Polymetallic Core Zone” deposits where preliminary analysis suggests significant value can be unlocked by capturing the combined gold-silver-copper zinc mineralisation, as defined by the existing drilling, into an updated JORC 2012 MRE and by additional exploration drilling in between the Kylo, Strauss and Guy Bell deposits to determine if the mineralisation could coalesce into a larger polymetallic deposit.
The first of the updated polymetallic MREs, for Strauss and Kylo, was published by Thomson on 22 June 2022.
The Mt Carrington gold-silver-base metal project is located 5km from the township of Drake in northern NSW on the Bruxner Highway. The Project is located 1 hour from the regional centres of Casino and Tenterfield in NSW and importantly located within potential trucking distance of Thomson’s 100% owned Texas District, Conrad and Webbs silver base metal projects.
Mt Carrington is one of a number of gold-silver +/- base metal districts that formed along the east coast of Australia during the Permian age back arc extensional volcanic basins.
Thomson said that notable examples of these deposits include the Cracow gold mine (2.5Moz Au @ 4.97g/t), Mt Carlton gold mine (1.2 Moz Au @ 2.46 g/t Au, 12Moz Ag @ 24g/t Ag, 22Kt Cu @ 0.15% Cu) and historic Mt Chalmers volcanogenic massive sulphide.
Write to Adam Orlando at Mining.com.au
Images: Thomson Resources Limited
