TG Metals Boosts Van Uden Gold Resource by 120% and Advances Lithium Project

Significant Resource Growth at Van Uden Gold Project

TG Metals Limited (ASX:TG6) has delivered a major upgrade to its Van Uden Gold Project in Western Australia's Forrestania Region, announcing a 120% increase in indicated gold resources to 270,800 ounces. This boost comes from an updated Mineral Resource Estimate (MRE) that now totals 7.9 million tonnes at 1.1 g/t gold, underpinning the company’s push toward mine planning and development.

The company also extended the known mineralised strike length of the Van Uden shear to approximately 4.3 kilometres following successful drilling campaigns. Recent reverse circulation (RC) drilling confirmed gold mineralisation continuing 1.8km further south along strike, with notable intercepts including 6 metres at 5.57 g/t Au from 84 metres depth.

Heap Leach Metallurgy Enhances Project Economics

Metallurgical testwork on laterite ore from Van Uden has produced encouraging results, with gold recoveries exceeding 90% in column leach tests. This supports the feasibility of a heap leach processing approach, which benefits from lower capital and operating costs compared to conventional processing methods. The laterite resource alone accounts for 1.05 million tonnes at 0.52 g/t Au, equating to 17,700 ounces of gold, with additional transition material potentially amenable to heap leaching.

The heap leach strategy is particularly attractive given the laterite ore’s surface location, requiring minimal waste stripping and enabling a lower-cost mining operation. Studies are underway to optimise mining and pad design parameters, feeding into an upcoming scoping study expected to clarify the project’s development pathway.

Advancing Lithium Development at Lake Johnston

Alongside its gold assets, TG Metals is progressing its Lake Johnston Lithium Project, lodging a mining lease application for the Burmeister lithium deposit during the quarter. Burmeister holds an Exploration Target between 15.6 and 20.1 million tonnes grading 0.97% to 1.19% Li2O, with metallurgical testwork supporting the potential for a direct shipping ore (DSO) product.

The mining lease application marks a key step toward development, positioning the company to capitalise on a buoyant lithium market with current prices ranging from US$362 to US$430 per tonne CIF China for 1.2% Li2O product. The project benefits from proximity to existing lithium processing plants and infrastructure, enhancing its attractiveness.

Commercial Processing Deal Unlocks Near-Term Value

Post-quarter, TG Metals executed an Ore Purchase and Profit Share agreement with Medallion Metals Limited for the treatment of approximately 60,000 tonnes of gold-bearing stockpiles from Van Uden. Under the non-binding arrangement, Medallion will process the stockpiles at its Cosmic Boy Concentrator, recovering operating costs first before splitting pre-tax operating profits evenly with TG Metals.

This deal provides a near-term revenue stream while the company advances its heap leach study and resource expansion efforts. Medallion’s proximity, about 70 kilometres south of Van Uden, facilitates efficient processing and cashflow generation.

Financial Position and Outlook

TG Metals closed the quarter with A$642,000 in cash, having spent $318,000 on exploration predominantly at Van Uden. The company anticipates reduced cash outflows in the coming quarter following completion of major drilling programs and expects to receive a pending R&D tax rebate of approximately $260,000. Management also signals readiness to raise additional equity or debt if required, supported by prior successful capital raises.

No mining production occurred during the quarter, and the company continues to focus on advancing its development studies and permitting processes to unlock value from its gold and lithium assets.