TMZ:Positive metallurgy from historic intercepts, MRE coming

Today our precious metals development investment Thomson Resources’ (ASX:TMZ) put out its updated interpretation of the historic drilling results at its Webbs silver deposit.

This news comes ahead of its final JORC 2012 mineral resource estimate (MRE), which is well advanced and due this quarter.

The newly interpreted data was used to produce a new 3D geological model of the deposit and we think it is likely to have significantly improved TMZ’s geological understanding of the deposit.

This is effectively TMZ taking all of the drilling data and putting it into a modern software suite that can model the resource based on all of the input data. This is normally then used to put together future exploration programs and try to work out which parts of a deposit should be targeted with drilling to test for extensions.

The image below really helps visualise this for us:

At the same time, TMZ also confirmed the previous metallurgical testwork done by the CORE Resources which returned a ~87.3% recovery of silver which should mean a large part of the drilling data can be put into an updated resource estimate for the project.

TMZ is now moving forward with the updated resource estimate for the Webbs project and expects to have it delivered before the end of this quarter.

We note that the previous resource estimate over the Webbs deposit which was put together by previous owner Silver Mines had a silver resource of ~16.5m silver equivalent ounces, so we will be hoping TMZ’s work will lead to an upgrade to the total silver equivalent figure.

Objective #1 of our 2022 Investment Memo is to see TMZ go on and deliver a total combined resource across its silver deposits of ~100 million silver equivalent ounces. At the moment TMZ sits at ~40.2 million silver equivalent ounces.

We will now be watching to see what number the Webbs resource estimate comes in at.

Here is why we invested in TMZ and what we expect them to achieve in 2022 - TMZ Investment Memo.