Ann: Strategy Enhanced with Addition of Texas Silver Project, page-5

HUB & SPOKE STRATEGY ENHANCED WITH
ADDITION OF THE TEXAS SILVER PROJECT
HIGHLIGHTS
 Thomson Resources acquires 100% of the Texas Silver Project (“Texas” for a total of
approx. A$2.5 M for the permitted mine infrastructure, mine and exploration leases, JORC 2012
silver - gold resources, connection to the state power grid and approx. A$3.3 M to replace the
existing rehabilitation bonds for the mine leases.
 Texas, along with the recent acquisition of Webbs and Conrad Silver deposits1 and the earn-in
and JV on Mt Carrington Silver-Gold Project2, is another significant step in Thomson’s
consolidation of a large silver dominant resource in the NSW and Queensland border region.
 Thomson will now control silver - gold, base and technology metal resources that could underpin
the Company’s Fold Belt Hub and Spoke Silver centralised processing Strategy2.
 Texas and Mt Carrington Projects both have comparable levels of permitted mine infrastructure,
giving optionality for the location of the proposed centralised processing facility.
 The Texas has a significant JORC 2012 silver - gold resources3,4 that extend beneath the
existing pit floor at the Twin Hills deposit and at the undeveloped Mt Gunyan deposit that outcrops
as a prominent hill on the mining lease. The Twin Hills deposit historically produced ~1.4 Moz Ag12
 Thomson is evaluating processing pathways to exploit the Texas deposits via open pit bulk mining
methods and to centrally process at the Texas site, via a new purpose-built facility, utilising
concentrates from Texas and the Company’s other Fold Belt Hub and Spoke projects to optimise
the recovery of the silver – gold and base metals.
 Texas project heap leach circuit and plant has been maintained in “turnkey” condition, 4 existing leach
pads contain a resource of recoverable silver5. Thomson is evaluating an interim re-start of the heap
leach circuit to potentially generate near-term cash flow.
 Reviewing debt financing options and feasibility of shareholder distributions of physical metal.
 Thomson’s consultants, Global Ore Discovery, are evaluating the exploration potential of Texas
district. At the regional scale initial interpretation suggests that:
o Twin Hills and Mt Gunyan deposits are part of a larger underexplored silver - gold,
base metal district that has potential to deliver further discoveries.
o Thomson has submitted exploration licence applications covering 518 sq. km to
secure extensions of the Texas district and surrounding gold and silver occurrences.
 At the deposit scale:
o The Mt Gunyan deposit contains significant gold, zinc and lead mineralization outlining deposit
scale zoning patterns that could be used to guide future exploration.
o Gold intersections toward the base of drilling at Mt Gunyan remain open to depth and along
strike, presenting priority targets for future exploration drill testing, these include the following
encouraging intersections from Mt Gunyan:
 Hole MGD001: 5m @ 8.8 g/t Au and 65 g/t Ag from 149m
including 1 m @ 43.2 g/t Au and 300 g/t Ag
 Hole MGP001: 6m @ 7.84 g/t Au & 27 g/t Ag from 130m
including 2m @ 22.65 g/t Au & 55 g/t Ag from 130m and
 6m @ 4.98 g/t Au & 40 g/t Ag from 156m
including 4m @ 7.37 g/t Au & 55 g/t Ag from 156m
ASX ANNOUNCEMENT
4 March 2021
THOMSON RESOURCES LTD ASX:TMZ ABN 82 138 358 728
Level 1, 80 Chandos Street, St Leonards, NSW 2065
Tel: +61 2 9906 6225 E:[email protected] www.thomsonresources.com.au
2
Thomson Resources (ASX: TMZ) (Thomson or the Company) advises that it has entered into a
binding Mine Sale Agreement with MRV Metals Pty Ltd (Receivers Appointed) (In Liquidation) (“MRV”
to acquire the Texas Silver Project located in the highly prospective Silver Spur Basin of Southern
Queensland in Southern Queensland and located in the New England Fold Belt.
The Project is located 8km east of the township of Texas in Queensland (Qld), approximately 10km
from the border with New South Wales (NSW) (Figure 1). The Texas mine is located in an area of
cleared grazing land and open woodland adjacent to the sealed Stanthorpe road 115 km from
Tenterfield in NSW. The mine is located 165km via sealed road from the Thompson – White Rock
Minerals’ Mt Carrington Silver-Gold Project and 100km from Thomson’s Webbs Silver Project in NSW.
Comment from David Williams:
"I am very pleased that 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 to that facility if required.
The Project has also been essentially maintained in a turnkey condition which will enable Thomson to extract
existing silver resources from 4 heap leach pads at an early stage if desired, as well as provide significant in
ground and above ground infrastructure in order to facilitate a ready route to early production with low capital
expenditure.
The Texas project also brings considerable exploration potential for silver, and also gold, zinc, lead and copper.
This has been a highly competitive sales process, keenly fought by a number of other parties. However, with
the addition of Texas to our Fold Belt Hub and Spoke Strategy, Thomson was uniquely placed as the best party
to realise the full and true value of the Texas Silver Project and we look forward to progressing the Project as
an integral part of a much larger and sustainable strategy