Nov 14, 2024

Tolu Minerals Hits 1.0m @ 61.2 g/t Au at Taula Prospect, Tolukuma Project, Papua New Guinea

Introduction:

Tolu Minerals (ASX: TOK) (Market Cap: $104M | Last Close: $0.92 | Cash: ~$30M ) has reported high-grade gold and silver results from its maiden drilling program at the Taula vein system, located 4.5km southeast of the Tolukuma gold mine in Papua New Guinea. The program was highlighted by 1.0m @ 61.20 g/t Au and 1979 g/t Ag within a broader 4.80m @ 22.79 g/t Au and 513.2 g/t Ag intercept.

Drill Results:

4.80m @ 22.79 g/t Au and 513 g/t Ag from 76m (including 1.0m @ 61.2 g/t Au and 1979 g/t Ag from 78m) (TDH08)
5.0m @ 9.69 g/t Au from 44m (including 1.0m @ 26.7 g/t Au and 59.7 g/t Ag from 46m) (TDH07)
4.7m @ 5.79 g/t Au from 30.40m (including 1.9m @ 11.9 g/t Au and 191 g/t Ag from 32.40m) (TDH02)
1.0m @ 17.80 g/t Au from 78.10m (TDH03)
5.0m @ 2.64 g/t Au from 54.5m (including 1m @ 7.73 g/t Au from 54.50m) (TDH05)
7.0m @ 2.43 g/t Au from 28.5m (including 1m @ 7.57 g/t Au from 30.5m) (TDH06)

Project Overview:

The Taula prospect is part of the Tolukuma Project located in Central Province, Papua New Guinea. The project comprises a Mining Lease (ML104) and surrounding exploration licenses. The Taula vein system extends over 1,500m strike length and remains open to the north and south. Recent drilling has extended known gold mineralization at depth to over 450m along strike.

The Tolukuma Project is a past-producing mine with existing infrastructure. Tolu Minerals is working to expand the mineral resource estimate and redevelop Tolukuma into a major new gold/silver producer. The company has previously released an Exploration Target of 2 to 3 Moz Au grading 8 to 11 g/t Au for the broader project area.

Program Details:

Tolu Minerals completed a nine-hole diamond drilling program totaling 638.85 meters at the Taula vein system. The program utilized the company's own man-portable diamond drill rig and crew. Drilling targeted extensions of known mineralization based on historical drilling, surface trenching, and geophysical surveys including 3D Induced Polarisation and Airborne Magneto Telluric data. Results confirmed high-grade gold and silver mineralization along structural inflexion zones, similar to features observed at the Tolukuma mine.

Understanding These Results:

The high-grade intercepts, particularly in holes TDH07 and TDH08, are associated with a "structural inflexion zone" where the vein system changes orientation. These results confirm and expand upon historical surface sampling and drilling in the area. The presence of both high-grade gold and silver values is characteristic of epithermal vein systems.

The drilling has extended known mineralization at depth and along strike, with the system remaining open for further expansion. The confirmation of high grades in structural zones is significant, as similar features were important for mining at the Tolukuma deposit. The results support the potential for defining additional resources that could be exploited using existing infrastructure.

Management Commentary:

Iain Macpherson, MD & CEO of Tolu Minerals Ltd. stated:

“It is exceptionally pleasing that Tolu has achieved this very important and significant milestone in the execution of the Company’s strategy of leveraging the existing Tolukuma infrastructure and proven operational performance, to substantially extend the Mineral Resource Estimate and ultimately redevelop Tolukuma into a major new gold/silver producer. It is also confirmation of the validity of Tolu’s previously released Exploration Target focussed on the Southern and Eastern areas of the mining lease and surrounding exploration license.”

“This program is the first absolute verification that Tolu’s geophysical programs including historical, 3D Induced Polarisation and the more recent Airborne Magneto Telluric survey provide an effective tool for targeted exploration. The small, nine-hole Taula diamond drilling program, utilising our own equipment, planned on a combination of the geophysical results and surface exploration, has defined a further zone of gold mineralisation at depth extending over 450m of strike that is open ended to the North and South. The confirmation of higher grade gold and silver zones along structural inflexion zones is an important indication, as that was an important feature of mining at Tolukuma.”

“This drilling program has demonstrated strong results extending mineralisation further to the South of Tolukuma mine. This represents an important milestone as it is the first drilling program out of the ML and having confirmed the geophysical results, it is now a relatively simple exercise to connect the dots to expand the Mineral Resource Estimate Resources that may be exploited by existing infrastructure well into the future.”

Next Steps & Catalysts:

With the completion of drilling at Taula, Tolu Minerals has re-mobilized its diamond drill rig to the Tolukuma mine site to continue exploration for additional gold resources and future life of mine extensions. The company is evaluating the Taula results for inclusion in a maiden JORC Resource estimate for the prospect.

Further exploration is planned to follow up on the geophysical targets identified by the 3D IP and Airborne MT surveys, particularly in the areas south and east of the Tolukuma mine. The company will continue to explore the broader Saki-Yava-Soju-Salat system of gold veins to expand its resource base.

Commodity Outlook:

Gold serves multiple markets, including investment assets, central bank reserves, jewellery manufacturing and industrial applications in electronics. Currently trading at US$2,573/oz (November 14, 2024), the metal has experienced record highs in 2024 despite recent volatility linked to U.S. political shifts and Federal Reserve policy expectations.

Gold and silver continue to be sought-after precious metals with strong fundamentals. The potential for a large-scale, high-grade gold-silver project in Papua New Guinea is significant, given the country's established mining industry and the project's existing infrastructure. The Tolukuma Project's location in a known gold province adds to its strategic value in the global precious metals market.

Conclusion:

Tolu Minerals' maiden drilling program at the Taula prospect has successfully extended known gold and silver mineralization, confirming the potential for significant resource growth at the Tolukuma Project. The high-grade intercepts and structural controls identified provide a strong foundation for future exploration and development. With ongoing drilling and exploration activities, Tolu Minerals is well-positioned to advance the Tolukuma Project towards its goal of becoming a major new gold and silver producer in Papua New Guinea.

Sources:

TOK Drill Result Announcement

Additional Figures:

Australia

ASX

Gold

Nov 7, 2024