The Thomson Resources (ASX:TMZ) share price crashes 10%

Thomson Resources (ASX: TMZ) share price has plunged 10% this afternoon. Let’s look at the mineral extraction company’s latest announcements.
The post The Thomson Resources (ASX:TMZ) share price crashes 10% appeared first on The Motley Fool Australia. –

Share price plummet

After starting the day with a healthy 6.4% boost in early trade, the Thomson Resources Ltd (ASX: TMZ) share price has taken a turn for the worse this afternoon.

Shares in the mineral extraction company have plummeted from an intraday high of 16.5 cents apiece to 14.0 cents at the time of writing, down almost 10%.

The miner has made 2 announcements, yesterday and today, after coming out of a trading halt.

Let’s take a closer look at what’s driving the Thomson Resources share price today.

Project update

In yesterday’s announcement, Thomson Resources updated the market on the status of its projects in New South Wales.

The minerals extraction company declared its maiden drilling program at the Mallee Hen gold prospect in the Lachlan Fold Belt, NSW, was complete.

The mining company drilled 7 holes at the site, including one abandoned when the company struck a large cavern. The company claimed to have passed “several intervals of strong quartz veining” during the drilling process.

Thomson will now move the drill rig from Mallee Hen to its Bygoo tin project with the hope of discovering more tin depositories at the site. The company will move the rig to its Bald Hill tin prospect from there.

Silver mining

Today’s ASX announcement concerns a silver mining site in Texas, Queensland.

Thomson advised it has entered into a binding agreement with liquidators overseeing the dissolution of MRV Metals Ltd to buy a site 8km east of Texas near the NSW border.

The already existing mine site is located in the Silver Spur Basin of southern Queensland in the New England Fold Belt.

Commenting on the acquisition, Thomson Resources chair David Williams said:

I am very pleased we have been successful in our tender for the Texas Silver Project in Southern Queensland. This provides a key piece for our implementation of the Fold Belt Hub and Spoke Strategy.

Not only will it provide Thomson with an ideal location for a central processing facility that we envisage, but it will also bring the additional resources which will take us close to our goal of having at least 100 million ounces of silver equivalent resources available at the facility if required.

The Texas project also brings considerable exploration potential for silver, and also gold, zinc, lead and copper.

Thomson Resources share price snapshot

Thomson Resources share price has been on the up over the past year. If an investor bought shares in the company a year ago, they would be sitting on a mouth-watering 625% return on investment.

The company has a market capitalisation of $51.3 million.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post The Thomson Resources (ASX:TMZ) share price crashes 10% appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!