Thomson Resources (ASX:TMZ) share price surges on exploration results

Thomson Resources says its Conrad Project may be bigger and better than originally thought.
The post Thomson Resources (ASX:TMZ) share price surges on exploration results appeared first on The Motley Fool Australia. –

The Thomson Resources Ltd (ASX: TMZ) share price rallied on Wednesday after the miner posted an update on its Conrad Project.

The miner and its technical consultants have identified significant exploration potential at its silver project.

The Thomson Resources share price jumped 7.7% to close the day at $0.14 when the S&P/ASX 200 Index (Index:^AXJO) fell 0.3%.

Conrad fires up the Thomson Resources share price

The miner said that Conrad is historically the largest silver producer in the NSW section of the New England Fold Belt.

The area’s historic production of 3.5 million ounces (Moz) silver at a grade of approx. 600 g/t and significant co-products of lead, zinc, copper and tin.

The more bullish estimate for Thomson Resources’ Conrad Project came through the assessment of holes completed post the previous mineral resource estimate and new mine modelling based on true width, rather than the previously artificially constrained mining widths.

Bigger and more prospective than originally thought

Previous exploration data at the project seemed to have underestimated the potential of Conrad.

For instance, six core holes were drilled within the Conrad mineral resource area in 2010 by its previous owner. These were not included in the 2008 mineral resource estimate.

Two of these holes intersected significant mineralisation with estimated true widths including 1.2 m @ 790.9 g/t of silver (Ag) and 1.6 m @ 159.5 g/t Ag.

Potential upgrade in the wings

Thomson has appointed AMC Resource Consultants to undertake the systematic mineral resource re-estimations.

“A re-validated 138 drill hole data database and a new 3D Lode and Alteration model has been built for Conrad by Thomson’s technical consultants Global Ore Discovery and delivered to AMC to initiate the new resource calculation,” said the miner.

“The average estimated true width for the intercepts within the Conrad Lode Model is 1.7m, suggesting that significantly more tonnes of mineralisation will be considered in the new mineral resource estimate when compared to the fixed 1.2 m mining width parameters applied in the 2008 mineral resource estimate.”

Surging commodity prices adds fuel to the Thomson Resources share price

The recent surge in commodity prices also bodes well for the economics of the project. The price run may allow for lower cut off grades to be used for both the high-grade shoots and lower grade near surface Greisen Zone.

“New AgEq gram x metre modelling of the Conrad Lode system shows that several of the key mineralised shoots are open and untested below 350 m depth, indicating priority mineral resource extension drill targets,” added Thomson.

“VLF-EM geophysical surveys completed in 2010 of 7.5 km along the trend identified conductivity anomalies coincident with the known lodes and a series of high priority conductivity anomalies along the 5 km trend south-east of the known lodes. These represent priority exploration drill targets.”

The post Thomson Resources (ASX:TMZ) share price surges on exploration results appeared first on The Motley Fool Australia.

Wondering where you should 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 could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

More reading

These 3 ASX 200 shares are the most actively traded today

NAB (ASX:NAB) trying to combat crime loopholes with ‘Project Apollo’
Why the Chalice Mining (ASX:CHN) share price is outperforming today
Why ‘value’ and ‘growth’ share categories are meaningless

2 ASX 200 blue chip shares named as buys

Brendon Lau does not own shares mentioned in this article. Connect with me on Twitter @brenlau.

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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.

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!