Thomson defines 20.7Moz silver equivalent resource at Conrad
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Thomson’s updated resource of 20.7 million ounces of silver equivalent for its Conrad project provides a strong base for its New England Fold Belt Hub and Spoke strategy.
The resource of 3.33 million tonnes grading 193 grams per tonne AgEq is divided into a 2.4Mt resource at 152g/t AgEq for 11.68Moz AgEq for the optimised open pit and an underground resource of 0.94Mt at 300g/t AgEq, or 9.04Moz AgEq.
Significantly for Thomson Resources (ASX:TMZ), Conrad is just the first of five updated resource estimates that it plans to deliver over the coming months as it seeks to define a minimum 100Moz AgEq resource as the initial step in its central processing strategy in Queensland.
“We are very pleased to deliver this strong outcome for the Conrad project with a 20.72Moz AgEq mineral resource estimate within an optimised pit and underground mining configuration, and a significant upgrade of the resource confidence, with 51% in the higher confidence indicated category,” executive chairman David Williams said.
He added the company will now focus on delivering metallurgical results and new resources for the Texas (Twin Hills and Mt Gunyan), Silver Spur and Webbs projects.
The company noted that its modelling approach, that uses geologically defined wireframes of the lodes and limiting the reported resource to spatially constrained, geologically continuous shoots, has delivered a more robust, higher confidence resource estimate than the previously reported estimate.
Notably, the resource model demonstrates that higher grade mineralisation remains open at depth beneath five of the six shoots and is open along strike to the north west adjacent to the Moore and Mystery shoots.
This suggests that step out and down plunge drilling in these areas has good potential to expand the Conrad underground resource.
Thomson plans to test and demonstrate the size potential of the Conrad polymetallic system by undertaking step out drilling around the shoots defined in the new resource estimate, detailed EM surveys to refine targets followed by exploratory drilling along strike of the current resource.
It also intends to implement a broader metallurgical and geotechnical program to support future mining studies and understand metallurgical and mineralogical variations within the deposit.
Additionally, the drill density within the current resource area will be improved to convert material into higher confidence resource categories.
The company’s New England Fold Belt Hub and Spoke Strategy is aimed at creating a large precious, base and technology metal resource hub.
It seeks to process ore from the multiple regional deposits in the one centralised processing facility, which could potentially be located at Texas given that it has permitted mine infrastructure.
Previous owners also maintained a heap leach circuit and plant in turnkey condition that Thomson is evaluating for an interim restart.
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.