TIDMTHR
RNS Number : 8021R
Thor Mining PLC
31 October 2013
THOR MINING PLC
QUARTERLY ACTIVITIES REPORT
PERIOD ENDING SEPTEMBER 2013
Dated: 31 October 2013
The Directors of Thor Mining PLC ("Thor" or the "Company") (AIM,
ASX: THR) the Australian gold, tungsten and molybdenum explorer and
developer, today lodge the following September 2013 quarterly
report. It is scheduled for release on 31 October 2013 with the
Australian Securities Exchange (ASX) as required by the listing
rules of ASX.
Highlights Outlook for December Quarter
----------------------------------------------------------------------- -------------------------------------------------------------------
TUNGSTEN & MOLYBDENUM
Molyhil NT
* Letter of Intent agreed for sale of 70% to 75% of * Seeking off-take agreements for balance of
tungsten concentrates to major US based tungsten concentrate production.
group.
* Ongoing cost reduction work.
* Ore sorting testwork identifies cost savings.
* Testwork on proposed variations to process flow
* Other initiatives targeting reduced capital & sheet.
operating costs.
* Negotiations to secure project finance.
GOLD
Spring Hill NT
* RC drilling program extends known mineralisation. * Follow up drilling
* Best down hole intercepts of: * Continued evaluation of potential for profitable
production.
* 6 metres @ 5.6g/t au
* Follow up ore sorting testwork.
* 6 metres @ 6.8 g/t au.
* Ore sorting testwork shows potential for lower costs
& improved economic outcomes.
Dundas WA
* No work during the quarter. * Aircore drilling program contingent upon available
funds.
Commenting, Mr Mick Billing, Executive Chairman of Thor Mining,
said:
"This has been a very productive period for Thor. A concentrate
off-take agreement with a company of the stature of Global Tungsten
& Powders is a big step forward. In addition the ore sorting
results and other cost saving initiatives provide some confidence
in the potential to generate additional profitable production at
Molyhil, including the potential for a longer mine life. Add in the
results of drilling and other progress at Spring Hill, and the
Company has made very good progress in challenging market
conditions".
MOLYHIL TUNGSTEN-MOLYBDENUM PROJECT (NT) (100% THOR)
Project Development
Discussions with potential customers for project concentrates
resulted in a Letter of Intent from US based Global Tungsten &
Powders undertaking, subject to due diligence and sourcing project
finance, to purchase 70% to 75% of tungsten concentrates produced,
at pricing benchmarked against Metal Bulletin (LMB) APT European
free-market price. Discussions with other parties, in respect of
the balance of the concentrates continue.
Ongoing Optimisation Studies
A number of initiatives are being evaluated with the objective
of reducing costs of the operation with considerable recent
success. Several of these initiatives will increase the capital
cost of project development. However, other identified savings will
largely offset these. Those savings identified to date include; ore
sorting, owner mining rather than contract mining, and funding
certain aspects of infrastructure via capital in preference to
leasing. More opportunities are being evaluated. Cost savings in
the order of 15% compared with the 2012 definitive feasibility
study (DFS) have been identified to date.
Metal Prices
The selling price in Europe of Tungsten APT now sits at
US$400/mtu, while the price of Molybdenum Roasted Concentrates has
eased to US$9.50/lb. While the price of tungsten has weakened
marginally since the June quarter, the price has still improved by
25% during 2013.
GOLD
SPRING HILL PROJECT - NT (THOR 51%, with earn-in rights to up to
80% equity)
Project Development
During the June quarter Thor signed a non-binding Memorandum of
Understanding (MOU) in respect of toll treatment of ore from Spring
Hill with Crocodile Gold Australian Operations Pty Ltd, a
subsidiary of Toronto-listed Crocodile Gold Corporation (TSX: CRK),
and also announced that Thor is preparing for mine development
following positive results of a study to extract over 40,000 ounces
of gold from near surface oxide ore from the project.
During the September quarter Thor announced positive results
from initial ore sorting test work on near surface oxide ore from
the Spring Hill project. Pending confirmation by subsequent test
work on a larger sample size (currently being conducted), internal
modelling suggests that material cost savings can be achieved at
the proposed Spring Hill operation, from this pre-concentration
process, with additional potential benefits of increasing the
economic mineable inventory.
Project Exploration
A reverse circulation (RC) drilling program of 1,606 metres over
19 holes commenced in September, and was completed shortly after
the end of the quarter. Assays highlights include downhole
intersection of:
-- SHRC238 6metres(m) at 5.6 grams/tonne (g/t) gold from 15m
Including: 3m at 10.9g/t from 15m
-- SHRC250 6m at 6.8g/t from 15m
Including: 4m at 10.1g/t Au from 16m
-- SHRC244 28m at 1.2g/t Au from 3m
Including: 1m at 2.5g/t Au from 10m,
: 1m at 2.7g/t Au from 12m,
: 1m at 2.2g/t Au from 15m, and
: 2m at 2.3g/t Au from 18m
In addition, 11 holes of the 19 hole program, intersected
mineralisation within 50 metres of surface at grades consistent
with what Thor has come to expect from Spring Hill suggesting that
the planned near term oxide mining inventory may be extended.
The program comprised 1,606 metres of reverse circulation (RC)
drilling targeting near surface mineralisation most likely to
enhance the initial mining inventory. Holes SHRC238 and SHRC250
demonstrate the potential to further add significant value to the
near surface resource at Spring Hill.
Drilling to test up-dip continuation of mineralisation, from
SHDD010 in the 2012 drilling program, has shown mineralisation may
roll in an easterly direction as a saddle reef rather than extend
directly to the surface as previously postulated.
DUNDAS PROJECT - WA (60% THOR)
Prioritising expenditure on Molyhil and Spring Hill has
prevented drilling the gold targets at Dundas. Testing these
targets continues to be conditional upon the availability of
working capital.
CORPORATE AND FINANCE
During the quarter, the Company raised additional funds through
the issue of 293,788,887 million ordinary shares, in placements to
sophisticated investors in the UK. These issues raised
AUD$1,121,000 before associated costs.
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 Thor Mining Executive Chairman
1935 PLC
Allan Burchard +61 (8) 7324 Thor Mining CFO/Company Secretary
1935 PLC
Colin Aaronson/ +44 (0) 207 383 Grant Thornton Nominated Adviser
David Hignell 5100 Corporate Finance
Nick Emerson/ +44 (0) 1483 Simple Investments Broker
Renato Rufus 413500
Alex Walters +44 (0) 7771 Cadogan PR Financial PR
713608
+44 (0) 207 839
9260
This information is provided by RNS
The company news service from the London Stock Exchange
END
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