TG Metals makes ASX debut to advance nickel exploration at Lake Johnston
Nickel and lithium explorer TG Metals (ASX: TG6) makes its ASX debut this week with high hopes of transforming a ‘historically overlooked and underexplored’ area of the eastern gold fields. Western Australia into a quality nickel asset.
The Perth-based explorer has a portfolio focused on nickel, lithium and gold and aims to identify “future-looking metals” project opportunities.
The company launched an initial public offering last month to raise $6 million by issuing 30 million shares at $0.20 each.
The funds will be used primarily to explore its base metal, lithium and gold projects located in the Johnston Lake greenstone belt, which stretches between the prolific gold and nickel producing Norseman greenstone belts. -Wiluna and Southern Cross in WA.
TG Metals is expected to begin trading on the ASX this Thursday under the ticker code ‘TG6’. Its indicative market capitalization at listing is approximately $11.5 million.
Johnston Lake Project
The Lake Johnston leases wholly owned by TG Metals include five projects: Bremer Range, Lake Tay, Maggie Hays South, Medcalf South and Lake Percy. The properties cover approximately 333 km² and are located approximately 450 km east of Perth in the goldfields region of eastern Western Australia.
The company considers the area “historically neglected and under-explored” because it was never the primary focus of the project for nickel majors who previously held the land and surface cover and deep weathering made the discovery a challenge.
TG Metals hopes to turn the tide by planning an aggressive exploration strategy, aided by modern geophysical systems, which it says should “make discoveries”.
The company plans to use “stronger” electromagnetic (EM) techniques where conductive targets may not have been fully tested or completely missed in previous explorations.
Of the five Johnston Lake subprojects, the Bremer Range nickel laterite deposit presents a near-term opportunity with further drilling and sampling planned to define nickel-cobalt oxide resources.
Planned exploration at Johnston Lake
Following its listing on the ASX, TG Metals’ primary objective is to consolidate an economic mineral resource that has the potential to be developed into a mine.
It plans to spend $3.7 million on exploration over the next two years, with the scope of its work including collecting more than 27,000 historic geochemical surface samples and drilling results from more than 6,000 historic holes. .
The company then intends to identify nickel-copper-cobalt anomalies in the subsoil and define the nickel-cobalt oxide potential for the zones already drilled.
TG Metals will prioritize untested targets and follow up with more powerful infill geophysics and, where appropriate, drill on existing and new targets.
It also expects to obtain work program approvals for the initial exploration program potentially including a combination of high power ground geophysical surveys and drilling.
TG Metals’ main areas of interest are Bremer Range and Lake Tay, located south of the Maggie Hays nickel sulphide mine which produced nearly 120,000 tonnes of nickel before operations ceased in 2014.
The Bremer Range is believed to be the southern extension of the Maggie Hays ultramafic trend, while more than 40 prospects have been defined by preliminary work at Tay Lake, including eight priority areas and 19 individual targets recommended for follow-up .
TG Metals Board of Directors
The TG Metals board is led by non-executive chairman Richard Bevan, whose resume includes former managing director of Cassini Resources and other senior roles at Killi Resources and Narryer Metals Limited.
Geologist David Selfe was appointed Managing Director in recognition of his experience in lateritic and sulphide nickel deposits. Mr. Selfe’s expertise extends to base metals, in particular copper-gold and copper-cobalt exploration, including ore estimation and grade control.
Senior geologist Brett Smith and international business adviser Gloria Zhang have also joined the board as non-executive directors and the position of company secretary is held by legal and business advisory expert Nicki Farley. .