Special Report: With silver prices on the upswing, the previously producing Webbs and Conrad silver projects in NSW are looking like the jewels in Thomson Resources’ crown.

Besides previous production, these projects also have significant in-ground resources that remain untapped with previous operator Malachite Resources estimating that the value of the gross contained metal in the Conrad project was about $648m.

This estimate was made when silver prices were similar to the level they are currently trading at, or about $US23.94 ($31.75) an ounce.

While the Conrad resource of 2.65 million tonnes at 206 g/t silver equivalent for 17.5 million ounces of silver equivalent is based on the older JORC 2004 standards and thus ineligible to be considered as a resource by the ASX, it still provides a springboard for Thomson Resources (ASX:TMZ) to define a more rigorous JORC 2012 compliant resource.

Little wonder then that the company considers Conrad to be a high-grade polymetallic exploration and mining opportunity covering over 50sqkm.

Webbs likely offers similar potential given that it also has an existing resource (also the older JORC 2004) and historical production.


Conrad and Webbs silver/polymetallic projects

The Conrad silver project includes the Conrad mine that was previously the largest silver producer in the New England region, producing about 3.5 million oz of silver along with lead and tin.

Besides the remaining resource, the project has considerable exploration potential throughout the granites that are present.

Over 25,000m of predominantly diamond drilling has been completed in the modern era by Malachite Resources (now Pacific Nickel Mines).

Meanwhile, about 55,000t of ore grading at least 23oz was produced at Webbs from 1884 to 1901.

It remains one of the highest grade undeveloped silver projects with a JORC 2004 resource of 1.49Mt at 345g/t silver equivalent, or 16Moz of contained silver equivalent.

Additionally, there is potential to increase resources as several downplunge extensions remain to be drill tested while the remainder of the tenement is largely underexplored.




This article was developed in collaboration with Thomson Resources, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.