TIDMTHR
RNS Number : 8981Z
Thor Mining PLC
21 January 2011
THOR MINING PLC
CORRECTING ANNOUNCEMENT
Acquisition of Spring Hill Gold project in Northern
Territory
Dated: 21 January 2011
The Directors of Thor Mining PLC ("Thor" or the "Company") (AIM,
ASX: THR) the exploration company focussed on gold and base metal
projects and advancing tungsten-molybdenum projects in the Northern
Territory of Australia, advise a correction to the RNS announcement
released at 8.45 a.m. today under RNS number 8747Z headed
"acquisition of Spring Hill project". The following amendment has
been made to the 'Resource Estimate' heading in the lead in to the
table:
(3.6 million ounces @2.34g/t gold. Cut-off grade 1.0 g/t) now
reads:
(3.6 million tonnes @2.34g/t gold. Cut-off grade 1.0 g/t)
All other details remain unchanged.
Insert Figure 1: NT location map
http://www.rns-pdf.londonstockexchange.com/rns/8747Z_-2011-1-21.pdf
HIGHLIGHTS
-- Spring Hill hosts an Indicated Resource of 274,000oz gold
within 3.64Mt @ 2.34 grams per tonne (g/t) gold;
-- Potential for significant exploration upside using the
"Callie" model;
-- Initial acquisition of 25% interest with staged options to
increase to 80%;
-- Two pronged approach to development:
-- Feasibility for early open pit production; and
-- Exploration for a substantial orebody at depth.
SPRING HILL GOLD DEPOSIT
Location
The tenements are located approximately 150 km south of Darwin
in Australia's Northern Territory. Importantly the location is
served by all-weather access and is in close proximity to the
arterial Stuart highway, north-south rail, gas pipeline, and trunk
powerlines (Figure 1).
Geology & Gold Mineralisation
Discovered around 1880, the Spring Hill gold deposit yielded
approximately 20,000 ounces of recorded high grade gold production
(15-30 g/t) over the following 25 years.
It shows many of the characteristics frequently associated with
numerous gold deposits in the NT's Pine Creek region. The host
rocks are (meta) sedimentary greywackes and siltstones of the lower
part of the Mt Bonnie Formation.
Gold occurs mainly in quartz veins concentrated in fracture
zones and the axial zones of anticlinal fold structures. Much of
the gold is relatively coarse-grained, in the visible range,
imparting significant 'nugget effect' to drill samples.
Four main zones of gold mineralisation cover an area of
approximately 1 000 x 400 metres (Figures 2 & 3). They have
been outlined during the early 1990's and mid 2000's by drilling
conducted by previous owners of the project around historic
workings. Several subordinate occurrences have been identified in
adjoining areas, but are little tested.
Insert Figure 2: Summary map of geology & gold mineralised
zones
http://www.rns-pdf.londonstockexchange.com/rns/8747Z_1-2011-1-21.pdf
Resource Estimate
(3.6 million tonnes @2.34g/t gold. Cut-off grade 1.0 g/t)
Measured Indicated Inferred Total
Contained
Grade Grade Grade Grade ounces
Tonnes g/t Tonnes g/t Tonnes g/t Tonnes g/t Gold (K
(Mt) Au (Mt) Au (Mt) Au (Mt) Au oz)
--------- ------- ------- --------- ------- ------ ------- ------ ----------
Zone of
Oxidation - - 1.32 2.16 - - 1.23 2.16 92
Transition
Zone - - 0.50 2.37 - - 0.50 2.37 38
Unweathered
Zone - - 1.82 2.47 - - 1.82 2.47 144
--------- -------- ------- ----- ------- ------ ------- ------
Total - - 3.64 2.34 - - 3.64 2.34 274
Estimate: McDonald Speijers, June 2003, Compliant with JORC Code
September 1999
Insert Figure 3: Summary Cross Section
http://www.rns-pdf.londonstockexchange.com/rns/8747Z_2-2011-1-21.pdf
ECONOMIC EVALUATION
Open pit mine optimisation studies were undertaken in 2003 based
on the most recent resource block model. These indicated that a
modest proportion of the resource might be economically mineable
within then-current cost & gold price assumptions (long-since
superseded).
Metallurgical test work was undertaken in 1995 and 2003 on
composite samples obtained from drilling. These investigations
encompassed both crushing & grinding characteristics, and gold
extraction performance. They have enabled the general
characterisation of the gold mineralisation and preliminary design
of treatment process and plant, but are yet to address some areas
of detail in these regards. Notably, more than 30% of contained
gold is recoverable by gravity methods in both oxidised and primary
mineralisation, at relatively coarse grind size.
Both the mining and metallurgical design elements of the 2003
scoping study need to be upgraded, confidence in the resources
needs to be enhanced, and other elements of project preparation
evaluated (site logistics, environmental and Aboriginal
considerations, water supply, etc) before the project is properly
scoped, at which time it should be possible to compile feasibility
studies at increasing levels of detail.
SPRING HILL EXPLORATION POTENTIAL
The Spring Hill gold deposits remain open at depth. Satellite
deposits along strike from the main deposits remain essentially
untested by drilling. These areas present opportunities for
increasing the resource base of the known mineralisation.
More importantly, the Company believes that the Spring Hill gold
deposit could be just the indicator of much more substantial
mineralisation at depth. Figure 4 (a publication of the Northern
Territory Geological Survey) indicates the conceptual setting of
gold throughout the Pine Creek Inlier. The Northern Territory's
Tanami Region shares a near-identical geological history and gold
endowment. Importantly, in the Tanami, the Callie deposit
(resources + production >5 million ounces at 5-6 g/t gold)
occupies a structural-stratigraphic setting comparable to that of
Cosmo Howley (resources + production >1 million ounces at 3-4
g/t) in Figure 4. Consequently the Company is targeting a sheeted
vein system deeper in the anticline, below the known Spring Hill
mineralisation and which it believes has substantial Company-making
potential.
The targeted stratigraphy is exposed, up the plunge of the
Spring Hill anticline, only a few hundred metres north-northwest of
the Spring Hill deposit and is believed to exist in the subsurface
at depths which are reasonable to test by drilling. The target
deposit is much more than an extension of the exposed
mineralisation; it is a separate deposit in a separate but related
setting. The sheeted vein characteristic of much of the Hong Kong
Lode at Spring hill provides evidence of favourable structural
settings, while the magnitude of the Spring Hill system gives
promise of additional gold concentrations in chemically more
favourable environments at depth. The concept has yet to be tested
at Spring Hill.
Insert Figure 4: Structural and stratigraphic setting and styles
of gold mineralisation in the Pine Creek Inlier (After N.T.
Geological Survey)
http://www.rns-pdf.londonstockexchange.com/rns/8747Z_3-2011-1-21.pdf
EXPLORATION/ EVALUATION PROGRAM
Thor is proposing during the 2011 dry season (March-November) to
advance investigations into both feasibility of open cut mining and
the deep 'Callie-style' discovery target.
In the near surface the program includes diamond and Reverse
Circulation (RC) drilling to provide further confirmatory
information in support of renewed resource estimation, and
additional fresh sample for metallurgical testing. In addition
consultant studies will be launched to address gaps in the current
scoping and pre-feasibility databases.
Deep target exploration may be preceded by a geophysical survey
later this year with the objective of completing an initial drill
hole of 500-600m depth.
A budget of A$1.0 - 1.5 million is envisaged.
ACQUISITION
Key terms of the Spring Hill project acquisition are as
follows:
-- initial acquisition of a 25% interest in ML23812 and EL22957
for consideration of A$1,250,000 plus the issue to WDR of 10
million Thor ordinary shares;
-- the option to acquire an additional 26% interest in the
tenements for consideration of an additional 5 million Thor
ordinary shares plus additional ordinary shares to the value of
A$250,000, to be issued to WDR, exercisable following expenditure
by Thor of A$1.5 million in exploration and development expenditure
within 18 months of completion of the acquisition of the initial
25% interest. If Thor elects not to exercise this option it will
forfeit its 25% interest in the tenements to WDR;
-- the option to acquire an additional 29% interest in the
tenements for consideration of a further 5 million Thor ordinary
shares plus additional ordinary shares to the value of A$500,000,
to be issued to WDR, exercisable following the expenditure by Thor
of a further A$1.5million in exploration and development
expenditure within 30 months of completion of the acquisition of
the initial 25% interest;
-- if Thor elects not to increase its interest in the tenements
to 80%, then the parties will form a joint venture. WDR may then
sell its interests with Thor holding a 1st right of refusal. In the
event that WDR does not sell its interest & is diluted to 5% or
less it may elect to withdraw from the joint venture in exchange
for a 1.5% net smelter return royalty;
-- Thor to sole fund all exploration activities on the
tenements, have sole discretion as to the exploration programs and
keep the tenements in good standing pending exercise of its options
to increase its equity interests in the tenements.
The transaction is subject to:
-- execution of a definitive transaction document;
-- approval by Thor shareholders proposed to be sought at a
general meeting within 3 months;
-- obtaining all necessary approvals under the Mining Act 1980
(NT) to the initial acquisition;
-- The securities to be issued being admitted to the AIM market
of the London Stock Exchange ("AIM"); and
-- Thor raising a minimum of A$2.5 million in equity capital
(inclusive of the capital raising announced on 17th January
2011).
Comment on the proposed transaction by the Chairman of Thor, Mr
Mick Billing:
"We are delighted to secure an interest in this historic but
still very promising gold project. The existing resource is
significant and we will be very active in assessing the potential
for open pit production in the near term. Importantly however we
are very excited about the potential for significant mineralisation
at depth. Geologically the Pine Creek region of the Northern
Territory is very similar to the Tanami region to the south and
which hosts the giant Callie gold mine. A project with this type of
mineralisation at and near surface is a very good place to look for
the large deeper deposits of the style of Callie."
Competent Persons Statements
The information in this report that relates to exploration
results is based on information compiled by Trevor Ireland, who is
a Fellow of The Australasian Institute of Mining and Metallurgy. Mr
Ireland is a Non-executive Director of Thor Mining PLC and provides
professional services on a contractual basis. 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'. Trevor Ireland
consents to the inclusion in the report of the matters based on his
information in the form and context in which it appears.
The information in this report that relates to mineral resources
or ore reserves is based on information compiled by Diederik
Speijers who is a Fellow of The Australasian Institute of Mining
and Metallurgy. Mr Speijers is the principal of consulting firm
McDonald Speijers. 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'. Diederik Speijers 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) Thor Mining Executive
7324 1935 PLC Chairman
Allan +61 (8) Thor Mining CFO/Company
Burchard 7324 1935 PLC Secretary
John Simpson +44 (0)20 Daniel Stewart Nominated
7776 6550 & Co. plc Adviser
Nick Emerson/ +44 (0) Simple Investments Broker
Renato 1483 413500
Rufus
Updates on the Company's activities are regularly posted on
Thor's website www.thormining.com, which includes a facility to
register to receive these updates by email.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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