TG Metals (ASX:TG6) is updating the resource estimate for its Van Uden gold project in Western Australia and planning a near-term production path. The company acquired an 80% interest in the project last year, with the remaining portion held by China's Barto Gold. The Van Uden project is located within the Forrestania greenstone belt, approximately 120 kilometers south of Southern Cross and near Barto's operational Marvel Loch processing plant.
The project has a historical mining record, with the Tasman and Diemens pits having produced over 11,000 ounces of gold. Currently, Van Uden has a gold resource of 6.35 million tonnes at a grade of 1.1 g/t, containing approximately 227,000 ounces of gold. TG Metals CEO David Selfe stated in a recent meeting: "The facilities are fully permitted, and ore can be shipped once a toll treatment agreement is reached." The company expects to release an updated resource estimate next month, with Selfe indicating the resource will see "substantial" growth and extend below 200 meters depth.
The latest drilling results show promising gold grades, including intervals of 30 meters at 1.6 g/t Au and 15 meters at 2.22 g/t Au. The project's strike length has been extended from 2.5 kilometers to 7 kilometers, highlighting significant exploration potential. Selfe noted: "There is a new discovery 550 meters south of the Tasman pit, with drilling intersecting 3 meters at 3.46 g/t Au. The opportunity for resource expansion along strike is huge." Additionally, the company has identified undrilled targets to the west through soil sampling and recognized potential satellite deposits at the Gold City prospect, located 20 kilometers to the south.
Beyond gold, TG Metals is also advancing its lithium business. At the Lake Johnston lithium project, approximately 130 kilometers away, the Burmeister deposit has an exploration target of 15.6 to 20.1 million tonnes with a lithium oxide grade of 0.97% to 1.19%. Selfe stated that due to rising lithium prices, the company will increase its work program in the area. He added: "The Burmeister pegmatites are very consistent, which is favorable for drill targeting." The company has developed a proprietary metallurgical process to improve spodumene recovery and has filed a provisional patent application.
Overall, TG Metals is focused on resource updates and production readiness for the Van Uden gold project while leveraging lithium opportunities to diversify its business. The company plans to establish a standalone, open-pit operation at Burmeister, while the permitted infrastructure at Van Uden will support a rapid start to gold production.
