THOR MINING PLC
QUARTERLY ACTIVITIES REPORT
PERIOD ENDING MARCH 2015
Dated: 30 April 2015
The Directors of Thor Mining PLC ("Thor" or the "Company") (AIM, ASX: THR) the Australian tungsten and gold explorer and developer, today lodge the following March 2015 quarterly report. It is has also been released today with the Australian Securities Exchange (ASX) as required by the listing rules of ASX.
Highlights |
Outlook for June Quarter 2015 |
TUNGSTEN & MOLYBDENUM Molyhil NT · Revised feasibility study completed demonstrating robust economics |
· Continued discussions on project financing · Continue off-take discussions for balance of concentrate production |
Pilot Mountain, Nevada USA · Exploration upside evaluation |
· Develop plans for initial exploration phase |
GOLD Spring Hill NT · Acquisition of a further 49% interest takes Thor to 100% |
· Continue to evaluate potential for profitable production |
Dundas WA · No work during the quarter |
· Aircore drilling program contingent upon available funds |
Commenting, Mr Mick Billing, Executive Chairman of Thor Mining, said:
"Thor has embarked on an exciting period. We are hopeful that a financing arrangement to develop Molyhil can be achieved in the near-term. This should provide a catalyst for shareholder value, and put Thor on the path to tungsten production. Additionally, moving to 100% ownership of the Spring Hill gold project is very positive, particularly with the recent generally sustained strength of the gold price."
MOLYHIL TUNGSTEN-MOLYBDENUM PROJECT (NT) (100% THOR)
Upgraded Feasibility Study
During quarter, Thor announced an updated feasibility study for Molyhil with robust outcomes.
In February 2015, Thor appointed advisors to introduce parties and lead discussions with a view to securing finance necessary for project development.
Several entities are reviewing the project and it is hoped that appropriate financing will be secured in the near-term.
Subject to securing the necessary project finance, the Molyhil project is scheduled to commence production during 2016.
Table1. Molyhil Key Features
Project NPV post tax & Royalties |
A$67 million |
|
|
Project IRR after tax & royalties |
44% |
All Equity Case |
|
Project Capex |
A$70 million |
All Equity Case |
|
Life of Mine C1 Cash Cost |
US$112/mtu |
|
|
Life of Mine EBITDA |
A$201 million |
|
|
Payback from 1st production |
18 months |
|
|
Project Life |
6 years |
|
|
Average feed grade |
0.31% WO₃ |
0.41% WO₃after ore sorting |
|
0.12% Mo |
0.12% Mo after ore sorting |
Operating throughput · Crushing & Sorting · Milling/Flotation etc |
500,000 tpa 400,000 tpa |
After ore sorting |
Annual Production Average |
130,000 mtu * |
*1mtu = 10kg of contained WO₃ |
Table 2: Molyhil Open Cut Ore Reserve Statement - Compliant with JORC 2012 (Announced 29 July 2014)
Classification |
Reserve |
WO3 |
Mo |
|
'000 Tonnes |
Grade % |
Contained metal (t) |
Grade % |
Contained metal (t) |
Probable |
3,000 |
0.31 |
9,200 |
0.12 |
3,600 |
Total |
3,000 |
0.31 |
9,200 |
0.12 |
3,600 |
Notes:
· Thor Mining PLC holds 100% equity interest in this reserve
· Estimates have been rounded to reflect accuracy
· All estimates are on a dry tonne basis
· The reserve estimate extends to a maximum depth below surface of 150 metres
PILOT MOUNTAIN TUNGSTEN PROJECT - NEVADA USA (100% Thor)
The Pilot Mountain Project, acquired in late 2014, is located approximately 200 kilometres south of the city of Reno and 20 kilometres east of the town of Mina located on US Highway 95.
The Pilot Mountain Project is comprised of four tungsten deposits: Desert Scheelite, Gunmetal, Garnet and Good Hope. All are in close proximity (~3 kilometres) of each other and have been subjected to low-scale mining activities at various times during the 20th century.
A full background on the project is available on the Thor Mining website.
Directors are evaluating a number of opportunities for this project, with first on-ground exploration activities planned for later in 2015.
SPRING HILL GOLD PROJECT - NT (THOR exercising agreement for 100% equity)
Subsequent to the end of the quarter, Thor announced that following the appointment of receivers and managers of Western Desert Resources Limited, Thor Mining PLC has been advised that terms have been agreed terms for Thor to acquire the balance of the equity in the Spring Hill Gold Project. Agreement documentation for the acquisition is currently being finalised.
Consideration for the acquisition has been agreed at A$210,000 plus Thor CDI's to the value of A$100,000 payable upon Foreign Investment Review Board approval and Ministerial agreement to the title transfer.
The Spring Hill gold project is located on pastoral leasehold land approximately 150 km south east of Darwin in Australia's Northern Territory. The location is served by all-weather access and is in close proximity to the sealed arterial Stuart Highway, north-south rail, gas pipeline and trunk powerlines.
A full background on the project is available on the Thor Mining website.
Directors continue to evaluate various opportunities for this project. However, prioritising expenditure on other projects has prevented progress on additional exploration activities at Spring Hill.
Recent movements in the gold price, however, have added significant value to this project.
DUNDAS PROJECT - WA (60% THOR)
The Dundas gold project is located approximately 100 kilometres east-south-east of Norseman in Western Australia. The tenements are in close proximity to the sealed arterial Eyre Highway, providing all-weather access to the project area. Within the tenements, access is provided by bulldozed tracks. It is also approximately 250 kilometres south of the major regional mining centre of Kalgoorlie.
A full background on the project is available on the Thor Mining website.
Targets for drilling at Dundas have been identified. However prioritising expenditure on other projects has prevented progress of exploration activities.
Competent Persons Report
The information in this report that relates to exploration results is based on information compiled by Richard Bradey, who holds a BSc in applied geology and an MSc in natural resource management and who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Bradey is an employee of Thor Mining PLC. He has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Richard Bradey consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
Enquiries:
Mick Billing |
+61 (8) 7324 1935 |
Thor Mining PLC |
Executive Chairman |
Ray Ridge |
+61 (8) 7324 1935 |
Thor Mining PLC |
CFO/Company Secretary |
Colin Aaronson/ Harrison Clarke/ Richard Tonthat |
+44 (0) 207 383 5100 |
Grant Thornton UK LLP |
Nominated Adviser |
Gerry Beaney/ David Hignell John Howes/ Mark Treharne |
+44 (0) 207 382 1100 |
Northland Capital
Partners Limited |
Broker |
Alex Walters |
+44 (0) 7771 713608 +44 (0) 207 839 9260 |
Cadogan PR |
Financial PR |
