TG Metals Strikes High-Grade Gold at Van Uden's Tasman Pit
TG Metals Limited (ASX:TG6) has delivered exceptional results from its first drilling campaign at the historic Tasman Pit, with multiple high-grade gold intersections validating the company's near-term production strategy. The TG Metals gold discovery represents a significant achievement for the company's exploration programme.
The shallow reverse circulation drilling programme has confirmed significant remnant gold mineralisation below the historical pit floor, with standout results including 10m @ 4.98 g/t Au (including 1m @ 30.8 g/t Au) and 6m @ 2.37 g/t Au (including 1m @ 8.99 g/t Au). These results demonstrate the potential for immediate value creation through low-cost pit extensions.
Outstanding Grade Control Results Drive Near-Term Value
The drilling campaign targeted remnant gold mineralisation left behind from historical mining operations between 1998-2000, with 97 drillholes completed for 1,119 metres of drilling across a nominal 5m x 5m grid pattern.
Furthermore, this systematic approach has enabled precise targeting of high-grade zones that were previously uneconomic to extract during earlier mining operations.
Key Drilling Highlights
| Interval | Grade (g/t Au) | Including |
|---|---|---|
| 10m from 1.0m | 4.98 | 1m @ 30.8 g/t Au |
| 6m from 6.0m | 2.37 | 1m @ 8.99 g/t Au |
| 5m from 2.0m | 2.48 | 2m @ 4.15 g/t Au |
| 4m from 4.0m | 2.31 | 1m @ 5.5 g/t Au |
| 3m from 5.0m | 3.55 | 2m @ 4.85 g/t Au |
| 3m from surface | 2.51 | 1m @ 5.4 g/t Au |
"It's great to see the high grade gold from the Tasman pit drilling which will allow us to extend the depth of the pit with a minimum amount of waste removal. The presence of these high grade zones provide upside to priority targets for our ongoing drilling," stated David Selfe, CEO.
The drilling was conducted using a tracked Epiroc D65 drill rig, specifically suited for short-length drillholes and in-pit grade control work. In addition, samples were analysed using Photon assay method, which uses larger sample charges than traditional fire assay to mitigate coarse gold effects common in Western Australian deposits.
Understanding Grade Control Drilling: The Foundation of Mine Planning
Grade control drilling represents the detailed, close-spaced drilling conducted within existing or planned mining areas to precisely define ore boundaries and optimise extraction economics. Unlike exploration drilling, which aims to discover new mineralisation across wide areas, grade control drilling creates a high-resolution map of gold distribution.
For investors, this distinction is crucial. Grade control drilling results directly translate to mineable tonnes and grades, forming the basis for immediate production decisions.
The nominal 5m x 5m drill pattern used at Tasman Pit allows TG Metals to design grade control flitches – the small mining blocks that enable selective ore extraction whilst minimising dilution.
This approach maximises the economic value of each tonne mined and provides the precision needed for toll treatment processing, where accurate grade prediction determines profitability. However, the TG Metals gold discovery at Tasman Pit demonstrates how systematic grade control work can identify high-value zones that were previously uneconomic to extract.
What Makes This Discovery Significant?
The Tasman Pit results showcase several factors that distinguish this TG Metals gold discovery from typical exploration programmes. The shallow nature of the mineralisation reduces extraction costs whilst the high-grade intersections promise attractive economics.
Moreover, the presence of coarse gold effects, evidenced by the need for Photon assay methodology, suggests the potential for significant grade variability that could deliver exceptional individual parcels of ore.
The systematic grid drilling approach provides confidence in grade continuity and enables accurate resource modelling for mine planning purposes.
Strategic Development Timeline and Catalysts
TG Metals has outlined a clear pathway to monetising the Tasman Pit discoveries. The company's systematic approach ensures each development phase builds upon previous work to de-risk the project progression.
Immediate Next Steps
- Resource model updates incorporating new drill results
- Updated pit designs for the proposed Tasman pit extension
- Mining approval applications submission
- Remediation works to access previously inaccessible pit areas
Upcoming Catalysts
- Updated mineral resource estimate expected in the new year
- Maiden drilling results from Gold City prospect due within 1-2 weeks
- Deeper extensional drilling with larger RC drill rig arriving later this month
- 6.5km strike length testing pending approvals across the Van Uden shear
The company's strategy focuses on low strip ratio gold mineralisation suitable for adding to existing stockpile inventory and future toll processing. This cost-effective approach can generate cash flow whilst larger development projects mature.
For instance, the ability to process ore through existing regional facilities significantly reduces capital requirements compared to building standalone processing infrastructure.
Compelling Investment Proposition in Western Australia's Golden Triangle
TG Metals presents a unique dual-commodity exposure through its Van Uden Gold Project and Burmeister lithium deposit, both strategically located in Western Australia's resource-rich corridors.
The TG Metals gold discovery at Van Uden benefits from exceptional infrastructure positioning within established mining regions.
Van Uden Gold Project Fundamentals
| Resource Category | Tonnes | Grade (g/t Au) | Gold Ounces |
|---|---|---|---|
| Indicated | 1,710,000 | 1.2 | 68,340 |
| Inferred | 4,643,000 | 1.2 | 158,800 |
| Total Resource | 6,353,000 | 1.1 | 227,140 |
The project benefits from exceptional infrastructure advantages:
- 90km east-northeast of Hyden
- 120km south of Southern Cross
- Close proximity to Marvel Loch (producing) and Westonia-Edna May (care & maintenance) gold processing plants
- 130km from TG Metals' established Burmeister lithium deposit
Processing Infrastructure Advantage
The Van Uden Gold Project's proximity to existing processing facilities represents a significant competitive advantage. Toll treatment arrangements can dramatically reduce capital requirements whilst accelerating time to cash flow.
This infrastructure advantage becomes particularly important in today's high-interest rate environment where capital efficiency determines project viability. Furthermore, the TG Metals gold discovery at Tasman Pit is strategically positioned to benefit from this infrastructure network, enabling the company to convert drill results into production economics rapidly.
Why Investors Should Monitor TG Metals Closely
TG Metals has positioned itself as a compelling multi-commodity story with near-term catalysts across both gold and lithium portfolios. The Tasman Pit results validate the company's tactical approach of targeting low-cost, high-grade extensions to historical mines.
However, the company's success extends beyond just the current TG Metals gold discovery, encompassing a broader strategic vision for value creation.
Key Investment Differentiators
Immediate Production Potential: Grade control drilling results enable rapid progression from exploration to production planning, with existing infrastructure reducing development timelines.
Strategic Location Benefits: Proximity to multiple processing facilities provides operational flexibility and reduces execution risk compared to remote greenfield projects.
Multi-Commodity Exposure: Combined gold and lithium assets provide portfolio diversification across two critical sectors – precious metals and energy transition materials.
Experienced Management: CEO David Selfe brings relevant technical expertise as both a Fellow of the Australasian Institute of Mining and Metallurgy and the project's Competent Person.
In addition, the systematic approach to exploration and development reduces technical risk whilst maintaining significant upside potential across the broader mineralised system.
What's Next for TG Metals?
The company's immediate focus centres on converting the current TG Metals gold discovery into updated resource models and mine designs. This systematic progression from exploration results to production planning exemplifies best-practice project development.
Moreover, the pending results from Gold City prospect drilling could potentially expand the company's gold inventory beyond the current Tasman Pit success. The arrival of a larger RC drill rig later this month will enable deeper extensional drilling to test the full extent of mineralisation.
The 6.5km strike length of the Van Uden shear system remains largely untested, presenting significant exploration upside beyond the current discovery areas.
TG Metals has demonstrated the ability to convert historical mining areas into value-creating opportunities through systematic grade control work. The Tasman Pit results provide a blueprint for value creation across the broader 6.5km Van Uden mineralised corridor, with multiple catalysts approaching and strong infrastructure advantages positioning the company as a compelling opportunity in Australia's established gold and lithium regions.
The TG Metals gold discovery at Tasman Pit represents more than just exceptional drill results – it validates a replicable methodology for extracting value from Western Australia's extensive network of historical mining operations. The combination of high-grade intersections, established resources, and strategic infrastructure positioning makes TG Metals a stock worth following as it advances toward production decisions and resource updates in the coming months.
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