Thomson Resources : Expansion of Exploration Land in IRG Prospective Lachlan Fold Belt

PO Box 956, Crows Nest, NSW 1585

Tel: [phone]

Web: www.thomsonresources.com.au

Expansion of exploration land in IRG

Prospective Lachlan Fold Belt

21 September 2020

Highlights

• Applications lodged for 4 new Exploration Licences in Lachlan Fold Belt
• Extensions of existing tenements holding Harry Smith and Yalgogrin gold prospects and Bygoo tin prospect
• Additional 1,180 square kilometres more than doubles footprint in region
• Prospective for Intrusion-Related Gold Systems ("IRGS")
• Historic drilling at the Kildary gold field returned best results of 2m at 10.6 g/t Au from 26m in KDRC04 and 2m at 13.7 g/t Au from 40m depth in KDRC10
• Strengthens IRGS prospective portfolio of Harry Smith, Yalgogrin, Hortons and Chillagoe

Lachlan Fold Belt Tenement Applications

Thomson Resources Ltd ("Thomson" or "Company", ASX:TMZ), is pleased to advise that it has submitted applications for 4 new Exploration Licences in the Lachlan Fold Belt in New South Wales. The Applications, once granted, will add an additional 1,180 km2 to the existing 764 km2 of exploration licences already held by the Company in the Lachlan Fold Belt, more than doubling of its existing holding in the region.

The 4 Applications (ELAs), each covering 100 units or 295 km2, are:

ELA 6130 Grellman - southeast and adjacent Yalgogrin

ELA 6131 Four Mile - southeast and adjacent to Harry Smith ELA 6132 Buggajool - south end of the Yalgogrin granite ELA 6133 Kildary - north of and adjacent to Bygoo

(see Figure 1 for location of the ELAs in relation to Thomson's existing tenements).

Thomson's Chairman, David Williams, said:

"These 4 Applications continue to build the Company's IRG prospective portfolio of gold projects - Lachlan Fold Belt, Hortons gold project (New England Fold Belt) and Chillagoe. The work Thomson has undertaken at Harry Smith and Yalgogrin and our growing knowledge of Hortons and Chillagoe has encouraged us to build on our IRG prospective portfolio.

Whilst Thomson continues to evaluate the acquisition of new projects, these ELAs demonstrates that there is plenty of good ground out there for us to pick up and we will continue to do so where they enhance our projects."

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Figure 1 - Location of ELAs

The ELAs cover a number of known gold occurrences and trends currently being explored by the Company in the Lachlan Fold Belt. Thomson has had recent success in drilling neglected historic gold prospects in the region such as at the Harry Smith gold prospect which contains a best intercept of 9m at 9.2 g/t Au from 38m in HSRC009, within a broader zone of 17m at 5.2 g/t Au (see ASX Release dated 16 January 2019) and at the Yalgogrin gold project which contains a best intercept of 5m at 10.3 g/t Au from 92m depth in TGRC06 (see ASX Release dated 18 August 2020).

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ELA 6130 Grellman - contains five known gold occurrences and covers the continuation of the Yalgogrin granite southeast within the Gilmore Fault Zone. Three of the gold occurrences feature historic prospecting shafts, while one is an isolated rock sample of 4.8 g/t Au collected in a regional survey. No drilling has been reported from any of these areas. In addition, limited soil and rock chip sampling by Shell Minerals in 1997 outlined a 2km gold anomaly up to 0.6 g/t Au 6km northeast of Tallimba. Again, no follow up drilling was reported.

ELA 6131 Four Mile - contains several groups of historic gold workings including the Four Mile and Pikes prospects. No drilling of these has been reported. The ELA covers the continuation of the Grong Grong granite southeast of Harry Smith and also brings in the Ganmain granite to the east.

ELA 6132 Buggajool - this area contains several known gold, tin and tungsten occurrences and brings in the south end of the Yalgogrin granite. Two areas of historic workings for gold are at Buggajool and Valley View, from which a 9 g/t Au gold sample is reported in the NSW mineral occurrence database. The only reported drilling in the ELA area was 2km east of the Buggajool prospect and actually had minor gold - 2m at 0.4 g/t Au from 2m depth - and at the Mirrool tin mine area. Both drilling programs carried out for tin-tungsten exploration (Open File Report R00011754). The gold was associated with anomalous tungsten (0.03%) in a greisenised granite.

ELA 6133 Kildary - contains the extensive Kildary gold field. The gold field is alongside a strong magnetic anomaly, also running NW-SE. Limited drilling (10 holes) of the 2km line of workings returned significant results from hole KDRC04 with 2m at 10.6 g/t Au from 26m and 2m at 13.7 g/t Au from hole KDRC10 at 40m depth (Open File Report R00020084). The magnetic anomaly is interpreted as a hornfels related to a blind intrusive body into the Ordovician sediments of the area. No exploration has been undertaken in the past to assess the wider potential of the carapace zone at the top of the intrusive or for breccia and fracture hosted mineralisation in the immediate region about the intrusive. The ELA area covers the north end of the Ardlethan granite, adjacent to Thomson's Bygoo Tin EL 8260.

Intrusion Related Gold Systems

Thomson's gold projects are all considered prospective for the Intrusion Related Gold (IRG) deposit type as described from Alaska, the Yukon in Canada and from Queensland e.g. Kidston. These deposits are typically located either within or adjacent to granitoid intrusions, generally within their thermal aureoles, and are often associated with tin-tungsten belts. Like other belts worldwide, exploration in the Wagga Tin Belt in NSW has previously been focussed on tin and tungsten exploration, not gold.

Intrusion related gold deposits are most commonly of sheeted vein type, although greisen, disseminated and breccia deposits are also described. Gold may also be concentrated outboard with respect to the intrusions, but essentially within their thermal aureole, where deposits may be of skarn, disseminated replacement or vein types (see Figure 2).

IRG deposits often have a great vertical extent, but limited horizontal footprint, requiring targeted exploration rather than regional widely spaced surveys (see Figure 3). The mineralisation is often associated with pyrrhotite, particularly where the intrusion takes place into sulphur bearing host rocks (as IRG deposits themselves are low in sulphur). This can give a distinctive magmatic signature with a circular magnetic "aureole" around the intrusion. High resolution magnetic surveys are a useful exploration tool.

IRG deposits can be quite significant when found such as with the recent discovery of the Hemi IRG deposit by De Grey Mining Limited (see DEG Investor Presentation of 10 September 2020).

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Figure 2 - Intrusion Related Gold Deposit types

Figure 3 - Geological Exploration Model for IRGS

(Source: Dr Tim Baker, SE Europe Geoscience Foundation Shortcourse presentation on IRGS Deposits 2005)

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Thomson Resources ASX Release	ASX code: TMZ