20170504 - project update final - · pdf file• finalising contractor agreements to...

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4May2017AustralianSecuritiesExchangeLevel5,20BridgeStreetSYDNEYNSW2000

ASXANNOUNCEMENT

ProjectUpdate

Summary:

• Rietfontein Pre Feasibility Study (PFS) work underway including plant engineering anddesigningofthemetallurgicalworkprogramme

• ResourcedefinitiondrillingtocommenceincomingweeksatRietfontein(2.55Mt@11g/tAuJORC)

• Advanceddrillingcontractornegotiations

• Finalising contractor agreements to commence work on opening the Southern Adit (highgradesections)atRietfontein

• ScopingstudyontheBetamine(4.72Mt@6.61g/tAuJORC)underway

Stonewall Resources Ltd (ASX: SWJ) (“Stonewall”) is pleased toupdate shareholders on funding, theRietfonteinPFSanddrillingprogramandscopingstudyforBetaMine.

InitialRietfonteinPFSworkisorientatedtowardspotentialrapidcommencementofminingoperationsandprocessing at the TGMEplant given that these are fully permitted. The initialwork is a targeteddrilling campaign designed to increase confidence levels of the JORC resource. At the same time,detailedmetallurgicalworkwillbeundertaken.Discussionwithgeologicalandengineeringconsultants,contractorsandworkplansareunderwayinordertocommencethisdrilling.Simultaneously,Stonewallwillre-opentheshallow,adit-entryaswellascommenceworkonthenewSouthernadittoaccessthehighgradesectionsatRietfonteinundergroundmine.

The Beta scoping study work is well underway. It has being undertaken to establish the potentialsynergies of developing TGME in a twophase and twominedevelopment approachwithRietfonteinbeingtheleadminedevelopment.Aspreviouslyannouncedit istheintentionofStonewalltodevelopstaged operations targeting 100,000+ ozpa. Work required to enable gold production includesupgrading the TGME processing plant, refurbishment and expanding of underground adit access toenabletruckingoforetosurface,andestablishmentofappropriatepower,ventilationandassociatedinfrastructureatthesites.

Rietfontein contains a JORC resource of 2.55Mt @ 11g/t for 905Koz (Indicated & Inferred). BetacontainsaJORCMineralResourceof4.72Mt@6.61g/tfor1.00Moz(48%Indicated&52%Inferred).

SWJcompanystrategy is to initially focuson low-cost,high-gradeorewhichcanbeproducedathighmargin. The company has a large resource base (26.6Mt @ 4.3g/t Au for 3.72Moz JORC), which is

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growing rapidly with the analysis and review of historical information through modern technicalevaluation,including3Dmodellingwhichisongoing.

Workisunderwaytoexamineotherareasintheportfolio,whichfitthestrategyandcriteriaandcanbebrought into production in a short timeframe (within two-three years). We expect to make furtherannouncementsregardingactivitiesandforwardplansincomingmonths,commencingwiththereleaseofthescopingstudyintotheBetaMine(adjacenttotheTGMEplant)incomingweeks.

Figure1:PartofTGMEplantpicture

Figure2:Resourcedrillingtobefocusedinitiallyonareasofhighergradetothesouthoftheproject

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Figure3:Betagrademodeloverchannelwidthwithundergrounddevelopment

ABOUTSTONEWALLRESOURCESLIMITED

StonewallResourcesLimited(ASX:SWJ)isagoldminingcompanythatholdsarangeofprospectivegoldassetsinaworld-renownedSouthAfricangoldminingregion.Theseassetsincludeseveralsurfaceandnear-surfacehigh-gradegoldprojects,providecostadvantagesrelativetoothergoldproducers intheregion.

Historicalproductionisapproximately7MozandwithaJORCresourceapproaching4Mozthisunderpinsthecompanystrategy.Stonewallhasaccesstoover43historicalminesandprospectareasthatcanbeaccessedandexplored

SWJ’s core project is TGME, located next to the historical gold mining town of Pilgrims Rest, inMpumalangaProvince,some370kmeastofJohannesburgbyroador95kmnorthofNelspruit(CapitalCityofMpumalangaProvince).

Following commercial production from hard rock ore in 2013 and low grade tailings and PMR ( PreMinedResidue ) resourcesat theTGMEplant in2015, theplantandassociated tailings facilityare ingood standing as it remains connected to the national electricity grid. The Company plans to fullrefurbish andupgrade theplant to increase capacity andproduction efficiency. The TGME site is thebase for our South African team. The Company is currently focussing on the refurbishment of theexisting CIL plant and nearby mines with the intention of resuming gold production in 2018. TheCompanyaimstobuildasolidproductionplatformtoover100kozpabasedprimarilyaroundshallow,adit-entryhardrockminingsources.

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Formoreinformationpleasevisit:www.stonewallresources.com

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Forfurtherinformationpleasecontact: GeneralEnquiries InvestorEnquiriesRobThomson,ManagingDirector RichieYang,DirectorStonewallResourcesLimited or StonewallResourcesLimitedM:+61414324960 M:+61404831804E:robt@stonewallresources.com E:richiey@stonewallresources.com

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