exploration progress to confirm open cut...
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Stonewall Resources Limited ABN 30 131 758 177 Level 18, 111 Pacific Highway, North Sydney NSW 2060 Tel: (02) 9460 2021 Email: [email protected] www.stonewallresources.com
08 December 2017 Australian Securities Exchange Level 5, 20 Bridge Street SYDNEY NSW 2000
ASX ANNOUNCEMENT
EXPLORATION PROGRESS TO CONFIRM OPEN CUT AND EARLY MINING OPPORTUNITIES
SUMMARY
Phase 1 (11 of 20 holes) Reverse Circulation (RC) drilling completed at Theta Hill
Initial Theta Hill assay results expected mid‐December
Columbia Hill drilling campaign commenced
Reopening of Rietfontein Mine for metallurgical/bulk sampling testwork
Auger drilling of the TGME tailings dam completed
Stonewall Resources Limited (ASX: SWJ) (“Company”) is pleased to update shareholders on development at the TGME Gold Project.
Project Bentley ‐ Theta Hill RC Drilling
The initial program of Reverse Circulation (“RC”) drilling at Theta Hill has been completed (Figures 1 to 4). The objective of this program is to confirm the concept of a potential open‐cut resource, following the identification of shallow, multiple stacked reefs through the review of historical information and data.
The Company is adopting a phased approach to evaluation of the open‐cut potential of the area. Initial assay results are expected in the coming week.
A total of 544m has been drilled for the 11 RC holes, which ranged in depth from 20m – 90m, to an average depth of 49.5m. Drilling aimed to intersect the Bevett’s, Upper Theta, Lower Theta and Beta Reefs (see Figure 1 for location and Figures 8 and 9 for the respective reef geology). Geological modelling is underway to integrate variably oxidised and broken ground, intersections of reef horizons, along with some apparent stope cavities not identified in the desktop work.
Following results from the current drilling program, the Company intends to follow up with infill diamond drilling to more accurately record the respective reef width and grades and progress towards a maiden JORC (2012) resource, and ultimately, feasibility studies.
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Figure 1) Plan view of current Theta Hill Phase 1 drilling (Source: Minxcon)
Figure 2) RC rig on top of Theta West Hill (Signal Hill, looking north)
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Figure 3) RC Borehole 27 at Theta Hill, chip trays showing visible quartz reef (yellow arrows). Both Bevett’s and Theta Reefs intersected within close proximity.
Project Bentley ‐ Columbia Hill RC Drilling
As previously announced to the ASX, the Columbia Hill target also represents a potential high grade, open‐cut resource, within close proximity to the TGME CIL Plant at Pilgrim’s Rest.
An initial 7 hole program will be drilled at Columbia Hill ahead of the planned Christmas break, with results of the first few holes expected by late December.
A Phase 1 drilling program has been designed for Colombia Hill, with access constructed this week and drilling due to commence by Friday December 8 (Johannesburg time). The initial 7 RC boreholes will target:
1. Opencast Rho Reef and Leader style mineralisation (see Figures 8, 9)
2. Under‐explored Bentley lenses mined historically at the “Dukes Hill channel” and peripheral to Morgenzon #5 adit and Dukes Hill South
3. Shale hosted gold that has not been exploited historically.
Field work at Columbia Hill has noted the existence in the old workings of ‘lense’ style mineralisation potentially hosting a broader, bulk mineable style of gold mineralisation (see Figure 4). The Company’s geological consultants, Minxcon are currently finalising a 3‐D model of the Columbia Hill mineralisation which should further assist drill targeting.
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Figure 4) Recently observed brecciated ‘lense’ style mineralisation on the Bevett’s thrust plane, Adit 25a, west Columbia Hill
Rietfontein Mine re‐opening
As part of the Rietfontein Pre‐Feasibility Study program, the Company has commenced underground exploration activities for resource definition and metallurgical investigation work ahead of the planned diamond infill drilling program. In addition to adit #3 in the northern end, which has been the main entry for investigation of Rietfontein, Stonewall has now accessed the orebody from the southern end.
This is expected to accelerate the process of gathering reef samples for geological and metallurgical purposes (see Figure 5).
The reconnaissance program has thus far revealed that the conditions underground in Rietfontein are generally good despite the fact that the mine has been closed since the early 1950’s. The team will continue to work their way into the deeper parts of the mine to allow for an evaluation of the work required to fully open‐up the mine, and re‐establish mining operations in the shortest possible timeframe.
Some initial inspection work has been done on the geology in the underground section by Phil Bentley and as the mine is made safe, this will be followed up by more comprehensive reef identification and sampling with the aim of both confirming the current resource model and upgrade the JORC category to Indicated/Measured ahead of declaration of ore reserves planned for 2018.
Drilling is planned at Rietfontein in early 2018, initially from surface, followed by later underground drilling, where appropriate. A more detailed schedule of the planned drilling will be available following completion of drilling at Columbia Hill.
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Figure 5) Rietfontein Mine Adit #19 reopening.
(Note the competent ground conditions)
TGME Tailings Dam evaluation
In April 2011 Stonewall commenced gold production by reprocessing the upper metres of the TGME tailings dam before moving to underground mining at Frankfort, before the mine ceased operations in 2015.
The TGME tailings dam material is predominantly derived from the historical Rand Mines dump retreatment and thereafter from underground mining by Cheston Minerals and Simmers and Jack at Frankfort, Dukes Hill, Morgenzon and other areas (mined prior to Stonewall’s ownership).
The TGME tailings dam (see Figures 6, 7) was never systematically drill‐tested or evaluated from a resource perspective until now. Tails dam drill specialists (Dump & Dune Drilling, now part of SGS) have completed 34 auger boreholes (totaling 431 metres) penetrating to the base of the dam, yielding 311 samples for assay and metallurgical testwork.
Results for this work are pending, and are part of an integrated strategy by the Company to determine potential gold reserves proximal to the existing treatment facility. This information will be integrated in the TGME Pre‐feasibility Study (PFS) in examining options for a quicker ramp‐up through processing of easily accessible, and short‐development timeframe ores.
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Figure 6) View from Columbia Hill of the TGME tailings dam
Figure 7) Auger Drilling the TGME Tailings Dam (November 2017)
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Figure 8) Known mineralisation within Stonewall’s TGME tenement package
Figure 9) Respective historical gold producing reefs surrounding the TGME CIL Plant
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ABOUT STONEWALL RESOURCES LIMITED Stonewall Resources Limited (ASX: SWJ) is a gold development company that holds a range of prospective gold assets in a world‐renowned South African gold mining region. These assets include several surface and near‐surface high‐grade gold projects which provide cost advantages relative to other gold producers in the region.
Stonewall’s core project is TGME, located next to the historical gold mining town of Pilgrim’s Rest, in Mpumalanga Province, some 370km east of Johannesburg by road or 95km north of Nelspruit (Capital City of Mpumalanga Province).
Following small scale production from 2011 – 2015, the Company is currently focussing on the refurbishment of the existing CIL plant and nearby mines with the intention of resuming gold production. The Company aims to build a solid production platform to over 100kozpa based primarily around shallow, adit‐entry hard rock mining sources. Stonewall has access to over 43 historical mines and prospect areas that can be accessed and explored. For more information please visit: www.stonewallresources.com
For further information please contact: General Enquiries Investor Enquiries Rob Thomson, Managing Director Phil Retter Stonewall Resources Limited or NWR Communications M: +61 409 843 963 M: + 61 407 440 882 [email protected] [email protected]