The Thomson Resources (ASX:TMZ) share price crashes 10%

Thomson Resources (ASX: TMZ) share price has plunged 10% this afternoon. Let’s look at the mineral extraction company’s latest announcements.

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Share price plummet

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After starting the day with a healthy 6.4% boost in early trade, the Thomson Resources Ltd (ASX: TMZ) share price has taken a turn for the worse this afternoon.

Shares in the mineral extraction company have plummeted from an intraday high of 16.5 cents apiece to 14.0 cents at the time of writing, down almost 10%.

The miner has made 2 announcements, yesterday and today, after coming out of a trading halt.

Let’s take a closer look at what’s driving the Thomson Resources share price today.

Project update

In yesterday’s announcement, Thomson Resources updated the market on the status of its projects in New South Wales.

The minerals extraction company declared its maiden drilling program at the Mallee Hen gold prospect in the Lachlan Fold Belt, NSW, was complete.

The mining company drilled 7 holes at the site, including one abandoned when the company struck a large cavern. The company claimed to have passed “several intervals of strong quartz veining” during the drilling process.

Thomson will now move the drill rig from Mallee Hen to its Bygoo tin project with the hope of discovering more tin depositories at the site. The company will move the rig to its Bald Hill tin prospect from there.

Silver mining

Today’s ASX announcement concerns a silver mining site in Texas, Queensland.

Thomson advised it has entered into a binding agreement with liquidators overseeing the dissolution of MRV Metals Ltd to buy a site 8km east of Texas near the NSW border.

The already existing mine site is located in the Silver Spur Basin of southern Queensland in the New England Fold Belt.

Commenting on the acquisition, Thomson Resources chair David Williams said:

I am very pleased we have been successful in our tender for the Texas Silver Project in Southern Queensland. This provides a key piece for our implementation of the Fold Belt Hub and Spoke Strategy.

Not only will it provide Thomson with an ideal location for a central processing facility that we envisage, but it will also bring the additional resources which will take us close to our goal of having at least 100 million ounces of silver equivalent resources available at the facility if required.

The Texas project also brings considerable exploration potential for silver, and also gold, zinc, lead and copper.

Thomson Resources share price snapshot

Thomson Resources share price has been on the up over the past year. If an investor bought shares in the company a year ago, they would be sitting on a mouth-watering 625% return on investment.

The company has a market capitalisation of $51.3 million.

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Motley Fool contributor Marc Sidarous 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.

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