Taruga steps up lead and silver game with acquisition of Thowagee

• Taruga Minerals exercises option to acquire Thowagee
• Initial rock chip assays confirm an outcropping high-grade base and precious metals system
• Thowagee is contiguous with Taruga’s current Gascoyne applications

Special report: Taruga Minerals has strengthened its WA footprint, exercising the option to acquire 100% of the Thowagee tenement in the northern Gascoyne. 

This follows Taruga Minerals (ASX:TAR) entering into an option agreement for Thowagee in November last year, complementing its existing application portfolio, now spanning 416.5km2 of contiguous ground and a dominant landholding.

Thowagee includes two sites of historic mining (Thowagee Mine and Thowagee Bore) with high grade polymetallic mineralisation occurring in outcropping veins and gossans.

So far, the company’s initial reconnaissance and rock chip sampling of the Thowagee area proves positive and confirms the general mineralisation trends and high-grade polymetallic nature of the mineralisation in the area.

Results including heavy mineralised altered country rock samples next to the historical quartz vein focus notably showed potential hefty scale to add to the mineralised system.

Per the terms of the option agreement, in consideration for the acquisition of Thowagee, the company will issue the vendors of the project with Taruga shares to the value of $85,000.

Reviving Thowagee

TAR intends to revive the mine, which has gone curiously underexplored since 1956, when 15.2t of lead and 5878g of silver were extracted in a concentrate produced on site, along with hints of gold, copper and zinc.

Field exploration at the project kicked off this month, with work focusing on exploiting the potential riches below high-grade base and precious metals mineralisation in outcrops.

Up to now, two distinct polymetallic mineralised trends have been mapped, with historical workings extending over 800m along a north-northeast strike and over 350m along a north-northwest strike.

New rock chip results include 26.3% lead, 14.5% zinc and 0.9g/t gold – as well as a standout silver grade of 130g/t.

At about US$32.50 an ounce, silver is still some distance from its 2011 high of US$50/oz, but looming supply deficits point to a likely price rebound that could benefit a new wave of emerging producers.

Coming up next

Adjacent to the Thowagee Mine, a focus is on identifying and sampling gossans, their location and significance.

Other activities include the use of geophysical datasets and in field mapping to trace out the extents of host shear zones and mineralisation potential.

Available data sets include radiometrics, VTEM, magnetics, mapped outcrop geology and interpreted bedrock maps.

Field observations and verified historical data, including from neighbouring workings/mines, will be incorporated and interrogated as part of a broader review of the applicable geological models for potential mineralising events.

This article was developed in collaboration with Taruga Minerals, 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.