TG Metals to target new JORC resource after acquiring majority stake in Van Uden gold project
TG Metals (ASX: TG6) has made completing a new JORC-compliant mineral resource estimate (MRE) its main priority at the Van Uden gold project in Western Australia after moving to acquire a majority interest in the asset.
The company has executed an agreement to purchase 80% of Van Uden from private company Montague Resources Australia.
In announcing the deal, the company said it is looking to upgrade the March 2013 non-JORC MRE that identified a total of 5.378 million tonnes at 1.38 grams per tonne for 238,000 ounces of gold.
Confirmatory drilling
The historical MRE will form the basis for further confirmatory and extensional drilling, along with bulk density analysis to calculate the new MRE.
The historical resource is sourced from an extensive drilling database, while additional drilling undertaken after 2019 and not previously reported will also be used.
The update will also include near-surface lateritic mineralisation excluded from the 2013 estimate.
Bulk density test work
TG Metals plans to commence confirmatory bulk density test work and drilling as soon as the transaction is completed.
The company has identified an opportunity to take advantage of the project’s strategic location close to the producing Marvel Loch and Westonia-Edna May gold processing plants.
Van Uden is also just 130 kilometers from TG’s established Burmeister lithium deposit at the Lake Johnston project.
Purchase terms
The transaction will involve an upfront cash payment of $2.5 million and the issue of 5,714,285 fully paid ordinary shares in TG Metals valued at $1m.
These shares will be issued at $0.175, a 67% premium to the closing share price on 28 February 2025.
TG will make an additional deferred cash payment of $0.5m either 12 months after completion of the acquisition or when the company has conducted an equity raising of at least $1m, whichever happens earlier.
‘Advanced gold project’
“This strategic acquisition provides TG Metals with an advanced gold project with opportunities for near-term cash flow at a time of record prices for gold,” chief executive officer David Selfe said.
“The Van Uden gold project has historically only been subject to shallow drilling, providing enormous exploration upside through testing the known mineralisation down-dip along its entire plus-2,000m strike length.”
“There are several near-term high-priority opportunities, including […] assessing the viability of existing ore stockpiles for toll treatment.”