Why the Thomson Resources (ASX:TMZ) share price rocketed 14% higher at lunchtime

Australia has some of the world's richest resource deposits.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Thomson Resources Ltd (ASX: TMZ) share price began a meteoric rise higher right as most Aussie were sitting down to lunch today.

At 12:34pm AEDT, the Thomson Resources share price was flat for the day, at 11 cents per share. At time of writing shares for the ASX resource explorer are trading for 12 cents. That's up 10% since lunchtime, after earlier posting gains of more than 14%.

Below we take a look at the company's ASX market announcement, released at 1:00 pm, that appears to be driving investor interest.

A drawing of a white rocket streaking up, indicating a surging share pirce movement

Image source: Getty Images

What did Thomson Resources report?

The Thomson Resources share price is surging after the company reported on the first Mineral Resource estimate in accordance with JORC 2012 for its Conrad silver polymetallic deposit, located in New South Wales.

The promising results build on a 2008 Mineral Resource estimate delivered by a previous resource company at the site which was reported in accordance with JORC 2004.

According to the release, the results – which include assays from 6 drill holes completed since the 2008 resource estimate, reported silver, lead, zinc, copper and tin metals.

Conrad's total Mineral Resource estimate contains 3.33 Mt at 86 g/t Ag, 1.22% Pb, 0.62% Zn, 0.11% Cu, and 0.17% Sn.

Commenting on the progress, Thomson Resources' executive chairman, David Williams said:

We are very pleased to deliver this strong outcome for the Conrad project with a 20.72 million ounce AgEq [silver equivalent calculations] Mineral Resource Estimate within an Optimised Pit and underground mining configuration, and a significant upgrade of the resource confidence, with 51% in the higher confidence indicated category.

Thomson is now firmly focused on delivering metallurgical results and new MRE's reported in accordance with the 2012 JORC Code for the Texas, Silver Spur and Webbs projects, as the next milestones toward our objective of aggregating 100 million ounces silver equivalent resource available to the New England Fold Belt Hub and Spoke central processing strategy.

The company said higher grade mineralisation remains open at depth beneath 5 of the 6 known shoots at Conrad and "open along strike to the NW adjacent to the Moore and Mystery shoots".

This indicates the potential for step out and down plunge drilling in these areas to expand the Conrad underground resource.

Thomson Resources share price snapshot

Over the past 12 months Thomson Resources' share price is up 188%, far surpassing the 25% gains posted by the All Ordinaries Index (ASX: XAO).

Year-to-date the Thomson Resources share price is down 4%.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Resources Shares

Two miners standing together with a smile on their faces.
Resources Shares

These are the best ASX 200 mining shares to buy in March: Morgans

These mining shares are on Morgans' best ideas list in March.

Read more »

A man in his 30s holds his laptop and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.
Resources Shares

Rio Tinto share price dips despite copper mega-mine milestone

Rio Tinto owns 66% of what will soon become the world's fourth-largest copper mine.

Read more »

Miner looking at his notes.
ESG

'Not sure if that's the way we should go': Why BHP shares are making news today

BHP is trialling renewable diesel made from Hydrotreated Vegetable Oil (HVO) at its Western Australian Yandi iron ore mine.

Read more »

A young woman sits at her desk in deep contemplation with her hand to her chin while seriously considering information she is reading on her laptop
Resources Shares

Are Fortescue shares back on the menu amid job cuts?

Can cost reductions be the key to driving Fortescue ahead?

Read more »

A man wearing a hard hat and high visibility vest looks out over a vast plain where heavy mining equipment can be seen in the background.
Resources Shares

Could buying Fortescue shares at under $22 make me rich?

The iron ore miner Fortescue has seen volatility. Is it time to buy?

Read more »

Australian Strategic Materials employee wearing a hard hat at a mine looks into the distance as he checks a folder.
Resources Shares

Sayona Mining share price dumps 6% amid lithium lows

Lithium prices have fallen to their lowest level in more than a year.

Read more »

Rede arrow on a stock market chart going down.
Resources Shares

Why are ASX 200 lithium shares falling so hard today?

The lithium carbonate price has fallen to its lowest level in more than a year.

Read more »

A young man sits at his desk with a laptop and documents with a gas heater visible behind him as though he is considering the information in front of him. about the BHP share price
Resources Shares

Why is the BHP share price taking a flogging on Friday?

The commodity growth engine may not be firing on all cylinders.

Read more »