Thomson’s Bygoo tin project is firing again and just weeks away from first results
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Drilling has started again at Thomson Resources Ltd’s Bygoo tin project in the Lachlan Fold Belt, NSW, after delays due to bad weather.
It’s good news for Thomson Resources (ASX:TMZ) as previous intercepts from the Bygoo Tin Project have included a 35m interval of 2.1 per cent tin from a 50m drill hole, a 20m interval of 1.2% tin from a 56m drill hole and an 8m interval of 1.2% tin from a 16m drill hole.
Thomson Resources says the drilling program is now more than 50 per cent complete, with approximately 1,500 metres of drilling currently planned in the historic tin mining area.
Thomson’s executive chairman David Williams said: “We are happy with the progress of drilling at Bygoo and look forward to receiving first results towards the end of June 2021.
“Time permitting, we are hopeful of commencing the Bald Hill drilling program in the coming weeks.”
A drilling rig was moved to Bygoo after Thomson completed its program at its Mallee Hen gold project.
“Due to unexpected laboratory delays caused by heightened activity in the region, the results from the Mallee Hen gold project have taken longer than expected, but we anticipate receiving them in the next few weeks,” Williams said.
The Bygoo tin project was bought by Thomson in 2015 and lies on the 100 per cent owned exploration lease (EL) to the north of the Harry Smith gold project.
The EL surrounds the major tin deposit at Ardlethan, which was mined until 1986 with more than 31,500 tonnes of tin produced.
There are several early 20th century shallow tin workings scattered up to 10km north and south of Ardlethan but few have been tested with modern exploration.
Thomson had immediate success in drilling near two of the historic workings, Bygoo North and Big Bygoo, which lie towards the northern end of the tin-bearing Ardlethan Granite.
In other news out today, Thomson has finalised and executed a definitive agreement following completion of due diligence on the Mt Carrington gold and silver project with White Rock Minerals Ltd (ASX:WRM, OTCQX:WRMCF).
The agreement is part of Thomson’s efforts to build a large silver-gold resource base to support the company’s new centralised “Fold Belt Hub and Spoke” development strategy.
With regards to the “Fold Belt Hub and Spoke” development strategy Thomson’s executive chairman David Williams said:
“Thomson has targeted, in aggregate, in ground material available for the strategy’s central processing facility of 100 million ounces of silver equivalent and with this agreement now executed, and following the completion of the Texas acquisition in the near future, we believe we will have achieved that target.”
The Mt Carrington, Texas, Webbs and Conrad projects, all clustered in the New England region of north-eastern NSW and southern Queensland, have compelling precious metal exploration potential.
However despite their proximity to one another and attractive commodity mix, the projects have never been consolidated under one company and have to date remained largely undeveloped.
Williams said with the definitive agreement signed “the deal is now firm and we are another step further in implementing our Fold Belt Hub and Spoke strategy towards development.”
The agreement provides for a three-stage earn-in and option to a joint venture agreement whereby Thomson can earn-in for up to 70% of White Rock’s Mt Carrington gold and silver project and, at Thomson’s election, form a joint venture as outlined in the agreement.
It also considers Thomson funding the advancement of the Mt Carrington gold and silver project through to:
White Rock will be free-carried through the earn-in period while Thomson will assume management of the project. That includes having sole responsibility for funding all the site care and maintenance costs until formation of the joint venture agreement, be that on a 30:70, 51:49 or 70:30 basis.
Thomson is committed to Stage 1 of the earn-in, including a minimum spend of $500,000 in the first six months of the joint venture agreement and making progressive cash payments to White Rock along the way, totalling $550,000 over the first 18 months.
Mt Carrington has existing gold and silver in eight near-surface deposits that could be extracted through open-pit mining.
Adding to their lustre is that fact that they are located mainly on active mining leases that have significant existing infrastructure. This includes grid connected power, an existing tailings dam, waste rock facilities, water treatment facility and a mine office, all of which can help to fast track a potential development.
White Rock’s managing director and CEO Matt Gill was equally enthusiastic about the agreement and the vision behind it.
“Thomson has a clear strategy to unlock the potential from the consolidation of various gold and silver assets in and around our advanced Mt Carrington project in NSW,” he said.
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.