Thomson wrapping up acquisition of key NSW silver projects
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Special Report: Thomson is closer towards wrapping up its acquisition of the previously producing Webbs and Conrad silver projects after completing due diligence work.
The company has now signed the definitive sale and purchase agreements for the projects in New South Wales and will carry out an extraordinary general meeting in mid-March to approve the equity consideration of the acquisition.
Silver is currently trading at $US25.46 an ounce, up more than 40 per cent from just a year ago.
Thomson Resources (ASX:TMZ) executive chairman David Williams says the two projects represent quality cornerstone assets that are key to the company’s strategy of becoming a significant silver and gold exploration and development company.
“Webbs and Conrad host multi-million ounce silver deposits and along with Thomson’s Horton gold project have considerable exploration potential,” he added.
“Thomson is building a significant footprint in the region and sees further opportunities to consolidate the company’s position in this mineral endowed corner of the New England Orogen.
Williams noted that the company plans to systematically explore both projects while evaluating the potential for other acquisitions in the region.
Webbs is a high-grade silver-polymetallic deposit about 65km from Inverell that was first discovered in 1884.
About 55,000t of ore grading at least 23oz (about 710 grams per tonne) silver was mined between 1884 to 1901.
Mining reached 210m below surface at Webb’s Main and extracted a high grade steep south plunging shoot while numerous additional shafts – some up to 50m deep – and smaller prospecting pits occur along the 2km long mineralized trend.
Thomson added that while the wider tenement area remains underexplored, there is over 30,000m of drilling data that was previously undertaken by the vendor Silver Mines (ASX:SVL).
This is expected to provide sufficient detailed information to plan follow up drill programs to test open high grade shoots to depth and to explore for additional concealed mineralisation in the area.
Conrad was historically one of the largest silver mines in the New England region, producing about 3.5 million oz of silver along with lead and tin.
Recorded average grades were about 19oz (600g/t) silver, 8 per cent lead, 4 per cent zinc, 1.5 per cent copper and 1.5 per cent tin.
The Conrad lodes were historically worked over a 1.4km strike length to a maximum depth of 267m.
The line of lodes extends south-eastwards for at least a further 2000 metres and there is potential to test open high grade shoots to depth, to explore for concealed shoots to the southwest and to explore for parallel lode systems.
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.