TIDMTHR
RNS Number : 3351A
Thor Mining PLC
31 January 2011
THOR MINING PLC
QUARTERLY ACTIVITIES REPORT
PERIOD ENDING 31 DECEMBER 2010
Dated: 31 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, today lodged the following December 2010
quarterly report with the Australian Securities Exchange (ASX) as
required by the listing rules of ASX.
QUARTERLY REPORT OCTOBER TO DECEMBER 2010
Highlights Outlook for March 2011
Quarter
------------------------------------ ----------------------------------------
GOLD -- 2,500m RAB drilling
Dundas WA program to test geochemical
-- Heritage clearance anomalies.
by traditional owners -- Further geochemical
of preferred drill locations. (calcrete) sampling.
-- Other regulatory
approvals for drilling
program received.
Figure 1
http://www.rns-pdf.londonstockexchange.com/rns/3351A_-2011-1-31.pdf
Spring Hill NT -- Negotiate formal
-- Agreed terms for agreement.
the staged acquisition -- Submit project for
of 274,000oz Indicated shareholder approval.
resource with exciting -- Commence evaluation
potential for an additional of early production
substantial orebody potential.
at depth. -- Commence preparation
for drilling at depth.
--
TUNGSTEN & MOLYBDENUM -- Planning for a drill
Molyhil NT program to test deeper
-- Tungsten price increased extensions of the Molyhil
strongly to US$340/mtu. deposit.
-- Molybdenum price
firmed slightly to US$17/lb.
Figure 2
http://www.rns-pdf.londonstockexchange.com/rns/3351A_1-2011-1-31.pdf
GOLD EXPLORATION
Dundas Gold Project
Preparation for a 2,500 metres RAB drilling program proceeding,
including securing regulatory and environmental approvals, and
completion of, in conjunction with Traditional Owners, a heritage
clearance of the most preferred drilling locations.
It is expected that initial drilling at Dundas will now be
conducted during February 2011.
The second round of geochemical (calcrete) sampling commenced in
January 2011.
The Dundas project tenements lie on the general strike-extension
of the most prolific gold-bearing belt of the Yilgarn Province -
the 700km Wiluna-Kalgoorlie-Norseman greenstone belt, in an area
where the trend of the Albany-Fraser belt is displaced
south-eastwards by about 50km. The Albany-Fraser belt hosts a
number of recent gold discoveries including the +5 million ounce
Tropicana gold deposit, and other discoveries including
Beachcomber, Socrates, Hercules, and Corona.
Figure 3
http://www.rns-pdf.londonstockexchange.com/rns/3351A_2-2011-1-31.pdf
Figure 4
http://www.rns-pdf.londonstockexchange.com/rns/3351A_3-2011-1-31.pdf
Figure 5
http://www.rns-pdf.londonstockexchange.com/rns/3351A_4-2011-1-31.pdf
SPRING HILL GOLD PROJECT - NT ("Spring Hill") (THR acquires
earn-in rights to up to 80% equity)
In January 2011, the Company announced it had agreed terms for
the staged acquisition from Western Desert Resources Limited
("WDR") of up to an 80% interest in the 274,000oz Spring Hill in
the Northern Territory.
The Spring Hill project is 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).
Spring Hill hosts an Indicated Resource of 274,000oz gold within
3.64Mt @ 2.34 grams per tonne (g/t) gold. However, Directors
believe significant potential exists for exploration upside, both
for increments to the resource accessible for open pit mining, and
at depth for a major resource using the "Callie" model.
Resource Estimate (Reported to ASX on 22 January 2011)
(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
(Mt) Au (Mt) Au (Mt) Au (Mt) Au (K 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
Gold at Spring Hill 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 (Figure 6). They have been
outlined during the early 1990s and mid 2000s by drilling conducted
by previous owners of the project around historic workings. These
zones have not been drill tested below 150 metres. Additionally,
several subordinate occurrences have been identified in adjoining
areas, but are little tested.
Figure 6
http://www.rns-pdf.londonstockexchange.com/rns/3351A_5-2011-1-31.pdf
Additionally, the Company believes that the Spring Hill gold
deposit could be just the indicator of much more substantial
mineralisation at depth. Figure 7 (based on 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 7. 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, within EL22957, and is
believed to exist in the subsurface below the Spring Hill deposit
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. This concept is proposed to be
tested at Spring Hill during the 2011 dry season (March to
November).
Figure 7
http://www.rns-pdf.londonstockexchange.com/rns/3351A_6-2011-1-31.pdf
RARE EARTHS EXPLORATION
HARTS RANGE PROJECT (NT)
During the quarter, a surface sampling program was conducted
with an objective of increasing the confidence in the occurrence of
previously reported elevated levels of uranium and associated rare
earth elements and planning more intensive follow up sampling
activities. Assays from these samples are expected shortly.
BASE METAL EXPLORATION
HARTS RANGE PROJECT (NT)
No exploration activities were conducted during the period.
TUNGSTEN EXPLORATION
HATCHES CREEK PROJECT (NT)
No exploration activities were conducted during the period.
MOLYHIL TUNGSTEN-MOLYBDENUM PROJECT (NT)
The selling price of Tungsten APT has increased strongly to
US$340/mtu, while the price of Molybdenum Roasted Concentrates has
firmed to US$17.00/lb.
Directors continue to believe that the fundamental drivers of
the Molyhil project are sound and that prices will in time recover
to economic levels leading to the development of the Molyhil
project.
Figure 8
http://www.rns-pdf.londonstockexchange.com/rns/3351A_7-2011-1-31.pdf
The 2009 Molyhil drilling program included, amongst other tests,
2 holes testing for potentially economic mineralisation below 150
metres. Assays from these holes (reported on 30 April 2009) are
displayed in the table below. The Company is encouraged by the
widths of mineralisaton and high grades reported from these deeper
holes, particularly in view of the recent increase in commodity
prices. Directors are reviewing a proposal to test Molyhil further
at depth, in an effort to demonstrate the potential for significant
increase in the size of the resource.
The drilling program proposed is likely to be conducted early
during the June 2011 quarter.
Hole ID N_Local E_Local RL L_Grid_Azi Dip Depth Width From To WO3% MoS2%
----------- -------- -------- ---- ----------- ---- ------ ------ ----- ---- ----- ------
09MHRC015 19931 10053 412 270 -65 168 2 97 99 0.24 0.25
=========== ======== ======== ==== =========== ==== ====== ====== ===== ==== ===== ======
AND 20 136 156 0.67 0.54
================================================================ ====== ===== ==== ===== ======
09MHRC016 19891 10101 411 270 -65 234 53 171 224 0.23 0.24
=========== ======== ======== ==== =========== ==== ====== ====== ===== ==== ===== ======
CORPORATE AND FINANCE
During the quarter, the Company has raised additional funds
through the issue of 57 million ordinary shares in a placement to
sophisticated investors in Australia. The issue raised AUD$912,000,
before costs associated with the issue.
Subsequent to the end of the quarter, in January 2011, the
Company raised further additional funds through the issue of
49,777,778 ordinary shares in a placement to sophisticated
investors in the UK and Australia. This issue raised approximately
AUD$1,760,000, before costs associated with the issue.
Enquiries:
Mick Billing +61 (8) 7324 1935 Thor Mining PLC Executive Chairman
=============== =================== =================== ===================
Allan Burchard +61 (8) 7324 1935 Thor Mining PLC CFO/Company
Secretary
=============== =================== =================== ===================
John Simpson +44 (0)20 7776 Daniel Stewart & Nominated Adviser
6550 Co. plc
=============== =================== =================== ===================
Nick Emerson/ +44 (0) 1483 Simple Investments Broker
Renato Rufus 413500
=============== =================== =================== ===================
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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