Thomson adds Silver Spur to asset base

Thomson Resources is acquiring the Silver Spur mine in southern Queensland, building on a regional asset base focused on silver. The company has entered into a binding term sheet to acquire the relevant mining lease from Cuban Partners. It says the $950,000 acquisition will give it 100 per cent control of the Texas Silver base metal district in southern Queensland, a cornerstone of its new Fold Belt Hub and Spoke Strategy. "This is a key strategic acquisition for Thomson, with the Silver Spur ML representing delivery of an additional silver resource and prospective exploration targets to be included within our Fold Belt Project Portfolio," executive chairman David Williams said. "We now feel we have the “complete package”, controlling over 518 sq km of granted mining and exploration licences and new exploration licence applications covering and surrounding the prospective Texas silver district, a cornerstone asset in the company’s Fold Belt Hub and Spoke Strategy." This strategy is based on creating a large precious (silver–gold), base and technology metal (zinc, lead, copper, tin) resource hub that could be developed and potentially centrally processed. The key projects underpinning this strategy have been strategically and aggressively acquired by Thomson over the past four months. Thomson recently entered into an agreement to acquire the Texas Silver project, including the Twin Hills and Mount Gunyan silver and base metal resources. Other central assets include the Webbs and Conrad silver projects, Mount Carrington silver-gold project, and Hortons gold project in New South Wales. In addition to Thomson’s Fold Belt Hub and Spoke strategy the company is also progressing exploration activities at its Chillagoe gold and Cannington silver projects in Queensland. The Silver Spur mine is located 3.5km south-east of the Twin Hills silver mine, which has produced 1.4M oz silver via a heap leach operation since 2008 and also lies within the Texas Silver Project. Silver Spur mine historically produced 2.19M oz silver at an average grade of 800 g/t, as well as 690 tonnes of zinc, 1050 tonnes of lead and 990 tonnes of copper and by-product gold from approximately 100,000 tonnes of ore. In 2004 previous owner Macmin Silver announced a multi-million ounce silver equivalent JORC compliant Mineral Resource at Silver Spur, Thomson said. The consideration for Silver Spur acquisition is $350,000 in staged cash payments and 5,000,000 ordinary shares in Thomson for a nominal total value of $950,000 (based on a Thomson share price of 12c). Thomson Resources is collating all historic exploration for the Texas Silver district with the objective of stating new JORC-compliant silver polymetallic resources for the district including Twin Hills, Mount Gunyan and Silver Spur deposits.

Thomson adds Silver Spur to asset base

Industry Queensland

Related News

Trophy honour as gold mine heads for finish line

Citigold answers ASX queries on finances and project status

‘Coal not dead’, deserves support says McDonald

Get access to breaking mining news, now.