Stonewall Resources (ASX: SWJ) has struck numerous gold intervals from ongoing resource drilling at its Theta Hill deposit in South Africa including an intercept containing a bonanza 126 grams per tonne gold.
Theta Hill forms part of Stonewall’s flagship TGME project which hosted small scale production between 2011 and 2015.
The company has two diamond rigs resource drilling at Theta Hill pulling up what Stonewall describes as “impressive results”.
Notable assays from the diamond drill program were 1m grading 126g/t gold and 2m grading 70g/t gold from Bevetts Reef.
The program also returned 2m grading 5.3g/t gold from the lower Theta Reef, which adds to a previous reverse circulation drill intersection of 1m grading 17.9g/t gold.
“The resource evaluation work at Theta Hill, whilst being challenging due to difficult ground conditions, continues to deliver very positive grades and confirms the thesis of shallow, widespread gold mineralisation at this location,” Stonewall managing director Rob Thomson said.
Trenching has also been carried out at various prospects within the area including 38m grading 1.28g/t gold from DG4. Trench results continue from previously reported assays of 122m grading 1.3g/t gold which comprised 2m grading 14.8g/t gold.
“The recent focus on the DG [prospects], particularly DG4, should add to the ultimate ounces which form part of the mineral inventory we are currently targeting to underpin a resumption of gold production at the project as soon as possible,” Mr Thomson said.
TGME gold project
Stonewall is focused on bringing TGME back online, including refurbishing the project’s exciting processing plant and mines.
The company is exploring to prove up resources and reserves to underpin a 100,000 ounces of gold per annum operation.
Less than a week ago, Stonewell announced it was boosting its cash via a A$5 million private placement.
Mr Thomson said the funds would be used to carry out reserve drilling, resource upgrades and environmental and engineering studies at TGME and its other assets.
Stonewall was one the ASX’s best performers in intraday trade, with the stock up more than 18% at A$0.013 at midday.