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DJ Tectonic Gold Plc Update on Diamond Mining Project

 
TIDMTTAU 
 
16 December 2019 
 
                               TECTONIC GOLD PLC 
 
                      ("Tectonic Gold" or the "Company") 
 
                       UPDATE ON DIAMOND MINING PROJECT 
 
Tectonic Gold plc (TDIM: TTAU) is pleased to announce that its 100% owned 
subsidiary, Tectonic South Africa Pty Ltd ("Tectonic SA"), has been awarded an 
interim land mining contract on its South African diamond mining project at 
Alexander Bay. As announced on 30 September 2019, Tectonic SA was invited to 
tender for a direct land mining contract to replace the previous sub-contract 
the company had been operating under. The current interim contract enables 
Tectonic SA to resume mining as an independent operator with 100% ownership of 
the project economics until the full and final contract is awarded. This is 
anticipated to be in March of 2020 when the South African government owned 
entity that operates the Alexander Bay mining site is scheduled to complete the 
next round of approvals. 
 
Highlights: 
 
  * Tectonic SA has secured an interim contract to be a prime diamond mining 
    contractor 
 
  * 100% of the contract economics due to Tectonic SA, no dilution as 
    sub-contractor 
 
  * Enables immediate resumption of mining 
 
  * Final contract expected in March 2020 
 
About Tectonic Gold: 
 
Tectonic Gold is a specialist gold exploration company, focused on the 
identification and delineation of large-scale, multimillion-ounce Intrusion 
Related Gold System ("IRGS") assets. Tectonic Gold holds a number of gold 
discoveries in the New England Orogen in Eastern Australia, a prolific gold 
region that is home to Australia's two largest gold production companies, 
Newcrest Mining and Evolution Mining. 
 
A successful diamond drilling campaign in 2018 on the Company's flagship 
"Specimen Hill" project has confirmed a large diatreme IRGS system similar to 
regional multi-million ounce deposits such as Kidston and Mt Rawdon. Tectonic 
Gold intends to apply the cash flows from the diamond mining operations to 
further drilling at Specimen Hill under an existing drill for equity deal with 
Titeline Drilling. 7,500m of diamond drilling remains available on a 50% cash 
payment basis under this agreement. 
 
Mr. Brett Boynton, Managing Director - Tectonic Gold plc 
 
This is an important step forward in consolidating our interests in the 
Alexander Bay diamond project. The quick turnaround time in moving from a 
subcontractor with proportional revenue share to an independent operator with 
100% of the economics accruing to Tectonic SA is a great result for our 
in-country team. 
 
Recent difficulties reported at other diamond producers due to power supply 
constraints in South Africa will hopefully lead to higher diamond pricing in 
2020 and an opportunity for Tectonic to make the most of tightening supply. 
 
Qualified Person: 
 
Mr Jonathan Robbeson - BSc (Hons1), MEconGeol, MMinEng, (CP Geo) is a full-time 
employee of Signature Gold Limited and is a registered Chartered Professional 
(Geology) with the Australian Institute of Mining and Metallurgy (AusIMM - 
304542). Mr Robbeson has sufficient experience that is relevant to the style of 
mineralisation and type of deposit under consideration and the activity being 
undertaken to qualify as a Competent Person as defined in the Note for Mining 
Oil & Gas Companies, June 2009, of the London Stock Exchange and the 2012 
Edition of the 'Australian Code for Reporting of Exploration Results, Mineral 
Resources and Ore Reserves' (JORC Code). Mr Robbeson consents to the inclusion 
in the release of the matters based on his information in the form and context 
in which it appears. 
 
The Directors of the Company accept responsibility for the contents of this 
announcement. 
 
For further information, please contact: 
 
Tectonic Gold plc                                             +61 2 9241 7665 
Brett Boynton 
Sam Quinn 
www.tectonicgold.com 
@tectonic_gold 
 
NEX Exchange Corporate Adviser and 
Broker                                                       +44 20 7469 0930 
Peterhouse Capital Limited 
Mark Anwyl 
 
Financial Adviser and Broker 
VSA Capital Limited                                          +44 20 3005 5004 
Andrew Raca - Corporate Finance 
Andrew Monk - Corporate Broking 
 
 
                                     Ends 
 
The information contained within this announcement is deemed by the Company to 
constitute inside information as stipulated under the Market Abuse Regulations 
(EU) No. 596/2014. Upon the publication of this announcement via a Regulatory 
Information Service, this inside information is now considered to be in the 
public domain. 
 
 
 
END 
 

(END) Dow Jones Newswires

December 16, 2019 04:24 ET (09:24 GMT)