TG Metals views early cash flow from Van Uden gold stockpiles

• TG6 confident of early cash flow opportunity from stockpiles at Van Uden gold mine
• Results confirm average grades of 0.8 g/t and 1.0 g/t gold
• Metallurgical work underway to advance third-party toll treatment discussions

Special Report: Drilling of historical stockpiles at the Van Uden gold mine site in WA has delivered a strategic opportunity for TG Metals to generate near-term cash flow.

Van Uden consists of a gold resource on four granted mining leases, four granted exploration licences and one exploration licence application.

Just last month, the company updated the project’s resource to 6.35Mt grading 1.15g/t for 227,140oz of gold – confirming the deposit is continuous over a strike length of at least 2.5km.

Now, drilling of two of four stockpiles (two at Tasman with two at Dieman pending) has confirmed early cash flow potential.

Results confirm average Au grades of 0.8g/t and 1.0g/t, for a total of 42,933t at 0.90g/t Au weighted average grade.

Notably, the project lies to the south of the operating Marvel Loch gold plant and southeast of the Edna May gold plant, with the company eyeing potential toll treatment arrangements for the stockpiles.

Metallurgical test is underway to assist in discussions with third-party mill operators, with results expected in early August. 

TG Metals (ASX:TG6) has also secured mining approval for the removal of the stockpiles from the WA Government.

Paving the way for first gold production

The company said the stockpiles represented the first steps in a larger mining opportunity, with the stockpiles not included in the resource update.

“The assays returned so far are within our expectations from the historical mining records for the Tasman open pit, mined between 1998 and 2000,” CEO David Selfe said.

“Material grading between 0.6g/t gold and 1.5g/t gold was stockpiled on site and this is evident in the assays received from drilling the stocks. 

“We expect to receive the remaining drill assays from the Tasman and Dieman stockpiles imminently. 

“The receipt of the Small Mining Proposal approval paves the way to first gold production from the Van Uden Project stockpiles. 

“We see this as a key first step in realising a much larger future mining operation utilising our substantial resources base.”

The company plans to begin site establishment earthworks as soon as a contractor has been selected following a toll treatment or ore purchase agreement and milling schedule.

This article was developed in collaboration with TG Metals, 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.