TG1 finished gold drilling in WA
TechGen Metals (ASX: TG1) just finished its second phase of drilling for gold in WA.
TG1 drilled a total of 9 holes for ~876m of drilling.
The whole purpose of the drill program is to follow up TG1’s hits from earlier this year when TG1 hit a 4m thick intercept with a gold grade of ~6.73g/t.
The new holes are testing a ~1.5km long soil anomaly that sit around that intercept.
What we want to see from the drill program:
At a very high level, we want to see two things:
- Gold mineralisation extend to either side of the 4m intercept.
- Gold grades >1/gt at a minimum.
As a result our bull,base & bear case expectations for the drill program are as follows:
- Bull case = Extensions to the 4m intercept with gold grades above 2g/t
- Base case = Extensions to the 4m intercept with gold grades between 1g/t and 2g/t.
- Bear case = No extensions or gold grades <1g/t.
With assay results pending, the key risk in the short term is “Exploration risk”:
Exploration risk
TG1 has made a gold discovery at its NSW gold project but is yet to define an in-ground JORC resource. Most of TG1’s other projects are still pre-discovery. As a result we think exploration risk remains a key risk for TG1.
Source: “What could go wrong?” section - TG1 Investment Memo 27 April 2023
TG1 is also working up its copper projects in WA:
While we wait for the gold drill results, TG1 is also working up its copper projects in WA.
Yesterday TG1 put out rock chip sample results from its Blue Devil copper-gold project and returned copper grades as high as 24.9% and gold grades as high as 18.5g/t.
Below is an image of the rock chip with that 24.9% copper grade:
Next for TG1 is geophysics which will hopefully show big colourful blobs that become potential drill targets for TG1.
So far the project hasn't seen any modern exploration so TG1’s geophysical surveys could throw up some interesting results.
What’s Next for TG1?
- 🔄 Drill results from TG1’s Ida Valley gold project
- 🔄 Geophysics to start on WA copper projects
