Thompson Resources Brings Gold Project into the Fold (ASX:TMZ)

Thompson Resources Brings Gold Project into the Fold (ASX:TMZ)

Microcap mineral explorer Thompson Resources Ltd [ASX:TMZ] has watched its share price lift strongly today thanks to a new gold project.

The NSW focused explorer owns several tenements hosted in the well-endowed Lachlan Fold Belt.

The company explores a host of mineral deposits, which include gold, copper and tin.

All three elements have rebounded strongly since March on the back of a boom in commodity prices.

At time of writing, TMZ shares are up 22.73% to trade at 5.4 cents per share.

NSW apparently made of gold

Our resident gold expert Shae Russell has tipped Australia to become the next gold epicentre.

Meaning we could surpass China as the undisputed global leader in gold exploration, mining, and production.

And it is not hard to imagine given the massive uptick in gold exploration over the past few years.

Usually, WA springs to mind when we talk about the big gold potential of Australia.

But that perception could be changing.

The gold scene in NSW is re-emerging.

After all, it already hosts one of Australia’s largest and low-cost gold mines in Newcrest Mining Ltd’s [ASX:NCM] Cadia mine.

While TMZ’s tenements are largely focused in the fabled Lachlan Fold Belt, its latest acquisition is positioned much further north.

The explorer announced today it has entered into a binding agreement to the Horton’s gold tenement near Tenterfield, NSW.

The new project was acquired from private company Syndicate Minerals Pty Ltd.

Syndicate will receive 5.7 million TMZ shares and a 1% royalty from the minerals extracted from the site as part of the deal.

Historic drilling at Horton’s has returned significant gold mineralisation including:

  • 67m at 3.8 grams of gold per tonne (g/t) from 15m
  • 5m at 7.5 g/t from 24m, including 4m at 40 g/t
  • 44m at 4.3 g/t from 46m

TMZ said they are required to undertake at least 1,000m of drilling at the project over the next three years.

Failure to do so will enable Syndicate to have the tenement transferred back to it.

Thomson said it will now undertake further due diligence and develop work programs going forward.

Outlook for Thompson Resources

As I mentioned before, TMZ is a multi-mineral play.

They have exploration licenses for several gold, copper, and tin resources across NSW.

ASX TMZ Gold Project - Metals Most Impacted by Technology Chart

Source: Reuters

According to research conducted by MIT and published by Rio Tinto Ltd [ASX:RIO], tin and gold have big upside potential from new technology.

Gold has climbed ~28% over the past 12 months and tin has pushed ~13% higher.

Copper has also put in a strong performance, rising ~20%.

Although, TMZ’s projects could be years away from development.

If they ever reach that point.

Small gold explorers can be risky stocks and there is no guarantee they will ever reach production.

Kind regards,

 Lachlann Tierney

For The Daily Reckoning Australia

PS: To discover how Australia’s role in the next gold bull run could result in a huge boom in ASX-listed gold stocks, get your free copy of ‘“The Gold Epicentre” 5 Compelling Reasons to Buy Aussie Gold Stocks Now’ right away. Click here to download.