Why the Thomson Resources (ASX:TMZ) share price rocketed 14% higher at lunchtime

Australia has some of the world's richest resource deposits.

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The Thomson Resources Ltd (ASX: TMZ) share price began a meteoric rise higher right as most Aussie were sitting down to lunch today.

At 12:34pm AEDT, the Thomson Resources share price was flat for the day, at 11 cents per share. At time of writing shares for the ASX resource explorer are trading for 12 cents. That's up 10% since lunchtime, after earlier posting gains of more than 14%.

Below we take a look at the company's ASX market announcement, released at 1:00 pm, that appears to be driving investor interest.

A drawing of a white rocket streaking up, indicating a surging share pirce movement

Image source: Getty Images

What did Thomson Resources report?

The Thomson Resources share price is surging after the company reported on the first Mineral Resource estimate in accordance with JORC 2012 for its Conrad silver polymetallic deposit, located in New South Wales.

The promising results build on a 2008 Mineral Resource estimate delivered by a previous resource company at the site which was reported in accordance with JORC 2004.

According to the release, the results – which include assays from 6 drill holes completed since the 2008 resource estimate, reported silver, lead, zinc, copper and tin metals.

Conrad's total Mineral Resource estimate contains 3.33 Mt at 86 g/t Ag, 1.22% Pb, 0.62% Zn, 0.11% Cu, and 0.17% Sn.

Commenting on the progress, Thomson Resources' executive chairman, David Williams said:

We are very pleased to deliver this strong outcome for the Conrad project with a 20.72 million ounce AgEq [silver equivalent calculations] Mineral Resource Estimate within an Optimised Pit and underground mining configuration, and a significant upgrade of the resource confidence, with 51% in the higher confidence indicated category.

Thomson is now firmly focused on delivering metallurgical results and new MRE's reported in accordance with the 2012 JORC Code for the Texas, Silver Spur and Webbs projects, as the next milestones toward our objective of aggregating 100 million ounces silver equivalent resource available to the New England Fold Belt Hub and Spoke central processing strategy.

The company said higher grade mineralisation remains open at depth beneath 5 of the 6 known shoots at Conrad and "open along strike to the NW adjacent to the Moore and Mystery shoots".

This indicates the potential for step out and down plunge drilling in these areas to expand the Conrad underground resource.

Thomson Resources share price snapshot

Over the past 12 months Thomson Resources' share price is up 188%, far surpassing the 25% gains posted by the All Ordinaries Index (ASX: XAO).

Year-to-date the Thomson Resources share price is down 4%.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. 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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