Theta Gold Mines (ASX:TGM) commences drill and blast operations at Frankfort gold mine, South Africa

• Theta Gold Mines (TGM) commences drill and blast operations at its Frankfort gold mine in South Africa
• The drilling activities aim to produce 3000 tonnes of gold ore to be sent in bulk samples to a processing plant owned by Pan African Resources
• The move will allow early cashflow generation for Theta as Pan African is liable to make an upfront payment once treatment is complete
• The company states it plans to move into more permanent arrangements with Pan African
• TGM shares are up 10 per cent, trading at 11 cents at 1:43 pm AEST

Theta Gold Mines (TGM) has commenced drill and blast operations at its Frankfort gold mine in South Africa.

The campaign forms part of a bulk sampling program for the mine which will see 3000 tonnes of gold ore sent to the Barberton Gold Plant, owned by Pan African Resources.

Theta will receive immediate payment for the bulk sample once the delivery is received.

This arrangement reflects the first stage of the partnership deal, as both parties aim to establish a permanent relationship moving forward.

Theta reported the bulk sampling deal would allow its shareholders to see accelerated cash flows in the early stages of production.

“This is an exciting step forward, as it will deliver cash flow in the near-term while also providing the framework for permanent early cash flow opportunities,” TGM Chair Bill Guy said.

“I anticipate that the ore from Frankfort will be completely processed during Q3 of this year.”

All permits are now fully secured by the company and activities are going ahead with all green lights in place.

A workforce of 30 staff are being refreshed on safety training and all South African regulatory overhead has been complied with – the regional Mines inspector has also ticked off on a safety inspection.

TGM shares were up 10 per cent, trading at 11 cents at 1:43 pm AEST.