Why the Thomson Resources (ASX:TMZ) share price is soaring 14% today

The Thomson Resources (ASX: TMZ) share price is soaring today, up 14% after posting gains of almost 23% earlier today. Here's why…

| More on:
A miner reacts to a positive company report mobile phone representing rising iron ore price

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Thomson Resources Ltd (ASX: TMZ) shares are soaring today, up 13.64% to 12.5 cents at the time of writing. In earlier trade, the Thomson Resources share price posted gains of almost 23% before retreating to its current level. 

This comes after the ASX resource share released a series of market-sensitive updates today, following on from its quarterly activity report released on Friday. We take a look at what's motivating investors below.

What did Thomson Resources report?

The Thomson Resources share price is rocketing today after the company's flurry of updates.

First, Thomson Resources reported it had restarted drilling at its Bygoo tin project in New South Wales. Drilling had previously been put on hold due to inclement weather. The drilling program is currently more than half completed, with another 1,500 metres of drilling in the pipeline.

Commenting on the drilling progress, Thomson Resources executive chair David Williams said:

We are happy with the progress of drilling at Bygoo and look forward to receiving first results towards the end of June 2021. Time permitting, we are hopeful of commencing the Bald Hill drilling program in the coming weeks. Due to unexpected laboratory delays caused by heightened activity in the region, the results from the Mallee Hen gold project have taken longer than expected, but we anticipate receiving them in the next few weeks.

Agreement on Mt Carrington gold and silver project

In a separate release this morning, Thomson Resources revealed it has now entered into a definitive agreement with White Rock Minerals Ltd (ASX: WRM) for a "3 stage earn-in and option to joint venture agreement".

Thomson reported it can now move ahead to earn up to 70% of White Rock's Mt Carrington gold-silver project. If Thomson so opts, it can also form a joint venture (JV) to fund additional exploration at the Mt Carrington leases for epithermal gold-silver (base metal) mineralisation and conceptual large copper-gold targets.

Commenting on the definitive agreement, Mr Williams said:

The signing of the definitive agreement is a great achievement for both Thomson and our partner at Mt Carrington, White Rock… Thomson has targeted, in aggregate, in ground material available for the strategy's central processing facility of 100 million ounces of silver equivalent and with this agreement now executed, and following the completion of the Texas acquisition in the near future, we believe we will have achieved that target.

Matt Gill, White Rock CEO added, "Securing a quality partner to advance Mt Carrington is a key and timely step in White Rock's strategy to unlock the value in all of our projects."

In a busy few days for the company, Thomson Resources also released its quarterly activity report on Friday 30 April. Thomson reported it has been rapidly advancing its Fold Belt Hub and Spoke strategy, aiming for a centralised processing facility, and making progress at its Lachlan Fold Belt.

Thomson Resources share price snapshot

No doubt about it, Thomson Resources has shot the lights out over the past 12 months, with shares up an eye-popping 1,150%. By comparison, the All Ordinaries Index (ASX: XAO) has gained 36% over that same time.

Year to date, it's been a bit slower for shareholders, with the Thomson Resources share price up 8.7% so far in 2021.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Resources Shares

Three miners wearing hard hats and high vis vests take a break on site at a mine as the Fortescue share price drops in FY22
Resources Shares

Did you catch what happened with the big 3 ASX 200 mining stocks in April?

BHP, Rio Tinto, and Fortescue all reported their latest mining results in April.

Read more »

Miner looking at a tablet.
Resources Shares

After its earnings result, what's Macquarie's price target on Fortescue shares?

Let’s dig into what Macquarie thinks of Fortescue after its quarterly update.

Read more »

Two mining workers on a laptop at a mine site.
Resources Shares

The Mineral Resources share price is down 72% in a year. Time to pounce?

Two top experts ran their slide rules over Mineral Resources shares. Here’s what they found.

Read more »

Miner looking at a tablet.
Resources Shares

Mineral Resources share price shoots 15% higher on third-quarter report

The ASX 200 iron ore and lithium giant has released its 3Q FY25 activities report.

Read more »

Image from either construction, mining or the oil industry of a friendly worker.
Resources Shares

Why Macquarie says this ASX 200 mining stock could rocket 67% in a year

Macquarie forecasts a big potential rebound for this diversified ASX 200 miner.

Read more »

Female miner smiling at a mine site.
Resources Shares

3 reasons why the Fortescue share price could still be a buy

Here’s why I view Fortescue as an opportunity.

Read more »

A man wearing a hard hat and high visibility vest looks out over a vast plain where heavy mining equipment can be seen in the background.
Resources Shares

Here's the latest earnings forecast out to 2029 for Rio Tinto shares

Let’s unearth what this mining giant is predicted to achieve.

Read more »

Female miner smiling in front of a mining vehicle.
Resources Shares

Is the BHP share price a buy? Here's UBS' view

Let’s dig into what an expert thinks of this mining giant.

Read more »