en.Wedoany.com Reported - TG Metals (ASX:TG6) has identified extensive surface laterite gold mineralization beyond existing resources in a recently completed 213-hole auger drilling program at the Van Uden project in Australia.
TG Metals CEO David Selfe stated that final assay results from the auger drilling targeting Van Uden laterites revealed widespread and strong gold mineralization within target soil anomalies. These results provide high confidence that laterite resources can be easily expanded through low-cost infill drilling. Expanding laterite resources has the potential to significantly enhance the economics of the Van Uden heap leach project by extending mine life and supporting increased throughput. As a low-capital, near-term development opportunity, heap leach operations represent a significant potential cash flow stream while the company continues to advance the broader Van Uden gold development strategy.
For TG6, the proposed heap leach operation on existing laterite resources offers a compelling near-term cash flow opportunity. Low capital and operating costs are supported by gold recoveries exceeding 90% in tests. Auger drilling and soil geochemical sampling have identified several targets for resource definition drilling adjacent to the current laterite Mineral Resource Estimate (MRE) of 1.053 million tonnes at 0.52 g/t gold, totaling 17,700 ounces. Result highlights include: TGAU189: 3m at 1.01 g/t gold from surface, ending in laterite; TGAU200: 0.8m at 0.87 g/t gold from surface, ending in laterite; TGAU024: 0.5m at 0.86 g/t gold from surface, ending in laterite.
TG6 explained that laterite resource growth has the potential to deliver significant increases in cash flow generation through longer operational life and increased production capacity. The company plans to advance infill resource definition drilling in mid-August, with air core drilling, a relatively inexpensive drilling method, to be used to identify near-surface mineralization and is planned for newly identified targets as well as other untested soil geochemical anomalies nearby.
In terms of follow-up work, the laterite resource definition drilling program is underway. Laterite resources represent a potential low-capital, near-term revenue-generating development opportunity, while Van Uden hosts a larger resource: 7.9 million tonnes at 1.1 g/t, containing 270,800 ounces, supporting sustainable long-term cash flow. Indicated resources have recently increased from 68,340 ounces to 152,600 ounces, a 120% increase. Assay results from recent diamond drilling testing the down-dip extensions of the Van Uden deposit are expected to be released in the coming weeks. Approval for reverse circulation drilling along the north-south strike of the Van Uden MRE is also progressing. Transport road lease L77/372 has been approved, providing uninterrupted access from the Van Uden deposit to the main Marvel Loch to Forrestania public road. The heap leach study report is expected to be released within 2 to 4 weeks. Final metallurgical testing, engineering design, equipment procurement, and financing discussions are proceeding concurrently.
