Thomson Resources (ASX:TMZ) reports that the NSW Government has awarded a grant to the company regarding its New England Fold Belt Hub and Spoke (NEFBHS) strategy under the Critical Minerals and High-Tech Metals Activation Fund (CMAF).
NSW Deputy Premier Paul Toole announced yesterday (21 November), that the government had awarded Stream 1 Grants under the CMAF to 19 projects aggregating more than $8.685 million including a grant to Thomson for its identified further test work on its NEFBHS strategy. The grant to Thomson will be a co-contribution out of the CMAF of $500,000.
Toole, who was in the state’s Far West over the weekend to announce 19 organisations would share in more than $8.6 million under Stream 1 of the $130 million fund, said: “Critical minerals and high-tech metals are going to be crucial to future technologies like advanced manufacturing, aerospace, ag-tech and renewables, and this fund will progress projects and support feasibility studies right across the state.”
The grant is subject to 2 conditions being satisfied by 16 December 2022, namely evidence that the proposed cash co-contribution has been secured; and supporting quotes for the budget proposed.
Thomson’s primary focus is its aggressive “New England Fold Belt Hub and Spoke” consolidation strategy in NSW and Queensland border region. The strategy has been designed and executed in order to create a large precious (silver – gold), base and technology metal (zinc, lead, copper, tin) resource hub that could be developed and potentially centrally processed.
Addressing the grant, Thomson Executive Chairman David Williams commented: “The awarding of the Stream 1 CMAF Grant to Thomson is a fantastic outcome for our strategy and hard-working team and demonstrates the growing recognition of the importance and tangibility of the NEFBHS.
The support from the NSW Government with this grant coupled with their overall support for Thomson progressing the NEFBHS, gives Thomson great confidence in progressing this strategy through the feasibility stages.
“The support from the NSW Government with this grant coupled with their overall support for Thomson progressing the NEFBHS, gives Thomson great confidence in progressing this strategy through the feasibility stages”
The CMAF is a clear demonstration by the NSW Government of its understanding and commitment to ensuring Australia has a dependable and accelerated supply of critical minerals and high-tech metals.
NSW’s list of critical minerals and high-tech metals includes the following which have already been identified on the NEFBHS projects – silver, copper, tin, zinc, and indium. As we look more closely, we may well find other minerals on the list.”
The NSW Government announced in June 2022 that it had allocated $130 million to activate the critical minerals and high-tech metals sector, which is now known as the CMAF, which is designed to activate the sector and diversify mining in regional NSW.
There are several streams of funding including providing grants ranging from $300,000 to $500,000 to support industry and research institutions undertake the necessary studies to progress their projects and reduce risk for future investment. Part of funding also focuses on studies that are needed to activate the sector, such as research and development, feasibility studies and environmental studies.
As identified in stage one of the NEFBHS Central Processing Pathway Study, Thomson put forward for the grant the test work identified by Core Resources to refine and enhance the processing pathway.
Thomson’s NEFBHS is about developing a number of silver focused deposits into a central processing facility. The NSW projects comprised in the NEFBHS at the moment are Webbs, Conrad and Mt Carrington. The Study commissioned by Thomson determined the NEFBHS was technically viable with a central processing facility located near Tenterfield. Key areas needing to now be addressed are reducing transport costs, dealing with elevated arsenic in Webbs and Conrad, improving recoveries at some of the Mt Carrington deposits and if possible reducing the level of processing at Mt Carrington.
This study proposed for the grant aims to address these issues with a range of test work that is defined in a detailed scope.
The test work is required to provide necessary data for further engineering work required to complete a Prefeasibility Study (PFS). Importantly the study will result in a concept level process package for the NEFBHS project that will feed into the PFS work.
Thomson Resources holds a diverse portfolio of minerals tenements across gold, silver and tin in New South Wales and Queensland. The key projects underpinning this strategy have been strategically and aggressively acquired by Thomson in only a 4-month period.
These projects include the Webbs and Conrad Silver Projects, Texas Silver Project and Silver Spur Silver Project, as well as the Mt Carrington Gold-Silver base metal Earn-in and JV. As part of its New England Fold Belt Hub and Spoke Strategy, Thomson is targeting, in aggregate, in ground material available to a central processing facility of 100 million ounces of silver equivalent.
Write to Adam Orlando at Mining.com.au
Images: Thomson Resources Ltd & iStock
