Stonewall Resources Limited, an Australia-based gold mining company with operations in South Africa, is set to unveil its plans for 2018 following the discovery of high-grade deposits in the country.
The company, whose assets are mostly located in the world-renowned South African gold mining regions, this week said that its operators were looking forward to conducting further drilling in the nation’s Theta Hill area.
Theta Hill is part of Stonewall’s Transvaal Gold Mining Estates (TGME) project, which operates as a subsidiary of the Australian mining firm.
Stonewall Managing Director, Rob Thomson stated that test results confirming high-grade gold at shallow depths at the Theta Hill project were reassuring.
“The initial results at Theta Hill are highly encouraging, with shallow, high grades confirmed validating our geological modelling,” Thomson said in a statement released earlier this week.
“We look forward to conducting further drilling and work on mine planning into 2018, and will update the market on this strategy further in coming weeks,” he added.
The news is a boon for the nation, whose gold reserves were reported to be dwindling in 2016. At the time, industry experts said South Africa’s economic growth had stalled as China’s demand for minerals fell. China’s situation was a blow to South Africa’s mining sector since the Asian nation is a keen investor within the industry.
The mining sector has had a rough number of years.
In 2002, South Africa accounted for 15% of the world’s gold production and 12% in 2005, according to a geological survey by the United States.
Research indicates that despite declining production, South Africa’s gold exports were valued at $3.8 billion in 2005.
South Africa’s formal gold sector currently accounts for an estimated $4 billion in revenue every year.
The country’s Chamber of Mines, an industry regulator, said that mining has played a vital role in the economy for over 100 years. The Chamber noted that in 2016, the mining industry contributed R304 billion ($24 billion) towards South Africa’s gross domestic product (GDP), representing 7.3% of overall GDP.