TG Metals Advances Van Uden Gold Project with 80% Acquisition and Drilling Plans
TG Metals Limited has secured an 80% stake in the Van Uden Gold Project in Western Australia, setting the stage for renewed exploration and resource evaluation. The company is poised to unlock near-term production potential through drilling and stockpile assessments.
- Completed acquisition of 80% interest in Van Uden Gold Project
- Upfront payment of A$2.5 million plus shares issued; deferred A$0.5 million cash payment escrowed
- JORC-compliant Mineral Resource Estimate update expected by May 2025
- Programme of Work submitted to assess historic mining stockpiles for near-term processing
- Proximity to existing gold processing plants and lithium deposits enhances project value
Strategic Acquisition Completed
TG Metals Limited has officially completed the acquisition of an 80% interest in the Van Uden Gold Project from Montague Resources, marking a significant milestone in the company’s growth strategy. The Van Uden Project, located within the Forrestania Greenstone Belt of Western Australia, is strategically positioned near established gold processing plants operated by Ramelius Resources and Barto Gold, as well as TG Metals’ own lithium assets at Lake Johnston.
The transaction involved an upfront cash payment of A$2.5 million and the issuance of over 5.7 million fully paid ordinary shares, with a deferred cash payment of A$0.5 million subject to a 12-month escrow period. This structure balances immediate capital deployment with measured financial risk, reflecting confidence in the project’s potential.
Unlocking Near-Term Production Potential
Following completion, TG Metals has swiftly moved to submit a Programme of Work (POW) aimed at assessing historic mining stockpiles from previous operations dating back to the 1990s. These stockpiles, mined during a period of relatively low gold prices, are now being re-evaluated in the context of current gold prices exceeding US$3,200 per ounce. The company believes these stockpiles could provide a near-term source of gold production and cash flow, leveraging existing processing infrastructure nearby.
CEO David Selfe emphasized the priority of testing these stockpiles to fast-track production opportunities. He highlighted that the extensive drilling database, covering over 2.5 kilometres of strike length, supports a forthcoming updated Mineral Resource Estimate (MRE) compliant with the JORC 2012 code. This updated MRE, expected by May 2025, will underpin low capital cost startup studies and guide focused mining and processing plans.
Geological and Operational Context
The Van Uden Project comprises multiple granted exploration and mining leases, along with miscellaneous licenses for haul roads and infrastructure. Its proximity to the Marvel Loch and Edna gold processing plants, as well as the Burmeister lithium deposit, situates it within a well-established mining hub. This geographical advantage reduces logistical complexity and potentially accelerates project development timelines.
Consultants engaged by TG Metals are advancing the restatement of the MRE, incorporating extensive historical drilling data and modern geological interpretations. The company is also deploying LiDAR surveys and detailed drilling campaigns to refine stockpile volumes and grades, essential for accurate mine planning and economic assessment.
Looking Ahead
With ownership secured and initial workstreams underway, TG Metals is positioning the Van Uden Gold Project as a cornerstone asset for near-term production and longer-term growth. The combination of historic resource data, proximity to processing facilities, and a clear pathway to JORC-compliant resource definition provides a solid foundation for advancing feasibility studies and eventual mining operations.
Investors will be watching closely for the May 2025 MRE update and early drilling results, which will offer critical insights into the project’s scale and economic viability. TG Metals’ ability to convert these assets into cash flow will be a key determinant of its market trajectory in the coming months.
Bottom Line?
TG Metals’ acquisition and rapid mobilization at Van Uden signal a promising step toward unlocking value in a historically underexploited gold asset.
Questions in the middle?
- What will the updated Mineral Resource Estimate reveal about the scale and grade of the Van Uden deposit?
- How economically viable will the treatment of historic stockpiles be under current gold prices?
- What timelines can investors expect for transitioning from exploration to production and cash flow generation?
