TG Metals Limited has reported promising metallurgical test results from its Van Uden Gold Project stockpiles, confirming high gold recoveries and favorable ore characteristics. These findings pave the way for potential toll treatment agreements and support ongoing project development.
- Independent testwork shows gold recoveries up to 90.7%
- Ore exhibits soft to medium hardness and low reagent consumption
- Results support potential third-party toll treatment of stockpiles
- Testwork underpins future feasibility studies for Van Uden resources
- Ongoing drilling and site preparations continue for resource expansion
Positive Metallurgical Testwork Validates Van Uden Stockpiles
TG Metals Limited (ASX, TG6) has announced encouraging metallurgical testwork results from its Van Uden Gold Project in Western Australia. Independent testing conducted by Independent Metallurgical Operations Pty Ltd (IMO) confirmed that the stockpile ore is highly amenable to conventional processing methods, achieving gold recoveries as high as 90.7% through gravity concentration and cyanide leaching.
The testwork focused on composite samples derived from sonic core drilling of historic stockpiles, representing different ore types including mafic, sediments, oxide, and laterite materials. The ore demonstrated favorable processing characteristics, including soft to medium hardness and low lime consumption during leaching, which are positive indicators for efficient and cost-effective treatment.
Implications for Toll Treatment and Project Development
These results provide a strong technical foundation for TG Metals’ strategy to pursue toll treatment agreements with third-party processing facilities in the region. CEO David Selfe highlighted that the data not only confirms the suitability of the stockpiles for treatment at standard Carbon in Leach (CIL) plants but also offers a pathway to potentially process larger Van Uden resources in the future.
With the metallurgical testwork report now available, TG Metals is actively engaging with potential toll treatment partners, aiming to secure commercial arrangements that would enable offsite processing of the stockpiles. This approach could accelerate cash flow generation while the company continues to advance its broader resource expansion and feasibility studies.
Ongoing Exploration and Optimization Efforts
In parallel with metallurgical progress, TG Metals is maintaining a vigorous drilling campaign targeting resource expansion at Van Uden, including the Tasman in-pit and Gold City exploration areas. Results from these drilling programs are expected to be released starting later in October, potentially adding further value to the project.
Additionally, further metallurgical optimization testwork is planned to enhance gold recoveries and refine processing parameters, as recommended by IMO. Site preparations are underway to facilitate stockpile haulage once suitable treatment agreements are finalized, underscoring the company’s commitment to advancing the project efficiently.
Context within the Western Australian Gold Sector
The Van Uden Gold Project is situated within a prolific gold-producing region of Western Australia, known for its established processing infrastructure and mining activity. TG Metals’ ability to demonstrate strong metallurgical performance from stockpiled material positions it well to leverage existing regional facilities, potentially reducing capital expenditure and accelerating project timelines.
While the results are promising, the company acknowledges that further work is needed to optimize processing and finalize commercial arrangements. Nonetheless, these developments mark a significant step forward in unlocking value from Van Uden’s mineral inventory.
Bottom Line?
TG Metals’ positive metallurgical results set the stage for toll treatment deals and resource growth, but key commercial and optimization milestones remain ahead.
Questions in the middle?
- What timeline can investors expect for finalizing toll treatment agreements?
- How will ongoing drilling results impact the overall resource and project economics?
- What improvements in gold recovery might further optimization testwork deliver?