The Thomson Resources Ltd (ASX: TMZ) share price is soaring 11% higher in early afternoon trade.
The All Ordinaries Index (ASX: XAO) remains in positive territory as well, up 0.3%.
Below, we take a look at the ASX resource explorer's silver update that looks to be spurring investor interest.
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What silver update was reported?
The Thomson Resources share price is leaping higher after the company reported on positive progress at its 100% owned Silver Spur Mine, located in Queensland.
AMC, the company's resource consultants, have begun calculating an updated JORC 2012 Mineral Resource Estimate (MRE). Thomson's geoscience consultants, Global Ore Discovery, have analysed historic geophysics and recent structural interpretations, highlighting "a series of compelling exploration targets in the mine area".
According to the release, the updated MRE will include 11 drill holes with "significant" silver and zinc mineralisation. The 11 holes were drilled by previous miners and were not incorporated into the 2004 Silver Spur MRE, the most recent MRE for the project.
Commenting on the results, Thomson Resources' executive chairman, David Williams said:
Our second mineral resource estimate – Silver Spur – is now on the way with AMC. At the same time the Mt Gunyan relog and drill data validation is advancing a pace. The work undertaken so far is showing Silver Spur to be an exciting area with tremendous upside potential and we have the feeling that this sleeper is going to offer up a lot.
The recent work by the Global Ore team as part of the Resource Estimate project has thrown up exciting exploration potential which has been confirmed down dip and adjacent to the Silver Spur mine. There is also a very interesting district scale picture emerging of the larger Texas Silver district exploration potential which shows there is a lot more to come in this area.
The company has contracted Planetary Geophysics to resurvey the geophysics in the area surrounding its Silver Spur mine prior to renewed drilling. That's expected to start in December.
Thomson Resources share price snapshot
With today's intraday gains factored in, the Thomson Resources share price is up 18% over the past 12 months. That's right about in line with the 19% gains posted by the All Ords over that same time.
Over the past month, Thomson Resources shares are down 14%.
