A huge 47,900% rise was recorded by Theta Gold Mines Limited (OTCQB: TGMGF) to close at $0.24 during the last trading session. A total of 107.9K shares were traded in Theta Gold stock, with an average volume of 41.68K shares over the last 30 days.
Over the course of the trading session, the TGMGF stock fluctuated between $0.19 and $0.37. A report of newly declared underground mining reserves prompted the TGMGF stock to rise.
What was the declaration?
Gold mining development company Theta Gold operates a range of prospective gold assets in one of South Africa’s most renowned gold-producing regions. A number of gold assets owned by TGMGF include near-surface and surface deposits with high-grade gold that provide a huge advantage in cost versus other gold producers in the region.
Theta Gold aims to build a production platform that surpasses the capacity of over 160 kozpa from the open pit or adit-entry hard rock mines. TGMGF has access to over 43 historical mines as well as prospect areas that are open for access and exploration, containing over 6.7Moz of historical production.
A last Thursday press release from Theta Gold stated that it has accumulated a Maiden Underground Mine Reserve in excess of 419K oz gold.
- TGMGF has now amassed a global Mining Reserve of 580,000 oz gold, while its global Mineral Reserve remains well over 6 Moz.
- In other words, a Prefeasibility Study for the Beta, Frankfort, and CDM mines resulted in the TGMGF’s Maiden Underground Mining Reserve of 419koz.
- The mines are all located in the Central Northern area, also referred to as the TGME Underground project, as a collective.
- The initial exploration conducted by the TGMGF on the TGME underground areas concentrated on the easily accessible gold resources estimated at 684 Koz.
- A conversion ratio of 63% was achieved for the Indicated Resource.
- Inferred Resources at Theta Gold still amount to around 3.5 Moz, and a portion of these could potentially be converted to Measured and Indicated Resources during additional studies.
In addition to having a large underground Mineral Resource, Theta Gold (TGMGF) concentrates on converting part of it into a Mine Reserve. And through this current development, TGMGF will be able to leverage a cost-effective way to convert its ongoing resource base into reserves.