TIDMTHR
RNS Number : 8649Y
Thor Mining PLC
30 January 2014
THOR MINING PLC
QUARTERLY ACTIVITIES REPORT
PERIOD ENDING DECEMBER 2013
Dated: 30 January 2014
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 December 2013 quarterly report. It is
scheduled for release on 30 January 201 with the Australian
Securities Exchange (ASX) as required by the listing rules of
ASX.
Highlights Outlook for March Quarter 2014
---------------------------------------------------------------- ------------------------------------------------------------------
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
* Testwork on proposed variations to process flow sheet.
sheet.
* Negotiations to secure project finance.
GOLD
Spring Hill NT
* 2013 RC drilling program identifies high grade gold * Continued evaluation of potential for profitable
mineralisation adjacent to but outside resource production.
estimate boundaries.
* Screen fire assays provide substantial upgrades to
reported grades.
Dundas WA
* No work during the quarter. * Aircore drilling program contingent upon available
funds.
Commenting, Mr Mick Billing, Executive Chairman of Thor Mining,
said:
"Following the agreement for concentrate off-take with Global
Tungsten & Powders, we have ongoing discussions with other
interested parties for the balance of concentrate production and to
secure project finance. In addition to the possible reduction in
operating costs from ore sorting we have also identified other cost
saving initiatives, and associated testwork provides scope for an
upgraded feasibility study featuring a longer mine life and
improved economic outcomes. Add in the results of drilling and
screen fire assays at Spring Hill, and the Company has made very
good progress".
MOLYHIL TUNGSTEN-MOLYBDENUM PROJECT (NT) (100% THOR)
Project Development
Discussions with potential customers for project concentrates
resulted in Thor securing 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
The Company has determined that operating cost reductions hold
the potential to improve substantially the economic returns
particularly by converting more of the resource estimate into the
ore reserve and mining plan. Cost savings in the order of 15%
compared to those in the 2012 Definitive Feasibility Study (DFS)
have been identified to date, with more under evaluation.
Following the identification of the potential to pre-concentrate
of ore via ore sorting, a regime of metallurgical testwork
commenced to confirm that the pre-concentrated ore makeup does not
present issues for the metallurgical process, along with work to
reduce levels of some deleterious elements in the concentrate more
cost effectively. This work is nearing completion.
Metal Prices
The selling price in Europe of Tungsten APT now sits at
US$377/mtu, while the price of Molybdenum Roasted Concentrates has
improved slightly to US$10.20/lb.
Table 1: Summary of Molyhil Mineral Resource Estimate
Classification Resource WO(3) Mo Fe
Tonnes Grade % Tonnes Grade Tonnes Grade
% %
---------------- --------- ------- ------ ----- ------- ------
Indicated 3,820,000 0.29 10,900 0.13 4,970 18.8
Inferred 890,000 0.25 2,200 0.14 1,250 15.2
---------------- --------- ------- ------ ----- ------- ------
Total 4,710,000 0.28 13,100 0.13 6,220 18.1
---------------- --------- ------- ------ ----- ------- ------
Mineral Resource reported at 0.1% combined Mo + WO(3) Cut-off
and above 200mRL only.
Note 1: minor rounding errors may occur in compiled totals.
Note 2: Molyhil Resource Estimate compliant with JORC 2012 -
refer Competent Persons Statement and Appendix 1
GOLD
SPRING HILL PROJECT - NT (THOR 51%, with earn-in rights to up to
80% equity)
Project Exploration
A Reverse Circulation (RC) drilling program comprising 2171
metres from 25 holes was completed during the quarter. The program
which targeted near surface mineralisation most likely to enhance
the initial mining inventory was completed on 19 November. A
complete table of significant intercepts was reported in October
2013 and December 2013, with the following highlights.
-- SHRC257 5m at 4.1g/t Au from 22m
-- SHRC253 10metres (m) at 14.1grams/tonne (g/t) gold (Au) from 93m,
Including: 1m at 105.1 g/t from 99m
within, 21m at 7.2 g/t Au from 82m
bottom of hole assay 4.1 g/t Au
-- SHRC238 3m at 10.9g/t Au from 15m
within, 6m at 5.6g/t Au from 15m
-- SHRC250 4m at 10.1g/t Au from 16m
within, 6m at 6.8g/t Au from 15m
All depths and thicknesses are measured downhole rather than
true as the geometry of some of the mineralised zones is yet to be
determined.
The program proved very successful with mineralisation outside
of the existing resource intersected by several holes.
All assays provided above and in the summary tables which follow
have been determined by the industry standard fire assay process
which is based on a 50 gram subsample of rock sampled from drill
cuttings. In the event mineralisation comprises a substantial
portion of coarse gold, the 50 gram subsample preparation process
used in conventional fire assay may preferentially exclude some
coarse gold and therefore fail to be representative of the actual
interval drilled. When coarse gold is anticipated, a check assay
process known as screen fire assay may be conducted which uses a
much larger sub sample than for conventional fire assay, and a
preparation process designed to ensure that coarse gold particles
are included. It is therefore more representative particularly in
respect of any coarse gold. The screen fire assay process is
significantly more expensive and time consuming and thus not
routinely undertaken, however a much more accurate result is
obtained.
A selection of 89 samples from the 2013 RC drill program was
resubmitted for screen fire assay. The results confirmed that a
significant amount of the gold mineralisation is coarse grained and
thus is potentially amenable to gravity separation. Additionally,
the screen fire assays returned predominantly higher gold grades
than from the earlier conventional fire assay. The following table
(Table 2) shows average upgrades for various grade ranges, as
reported in January 2014, and indicates a substantial improvement
in most ranges.
Table 2: Percentage upgrade of contained gold from
screen fire assay of 2013 RC drilling program
From To No of Original Screen Fire Upgrade % Upgrade
Samples Assay Average Assay Average
g/t g/t g/t g/t g/t
----- ----- --------- --------------- --------------- -------- ----------
<0.5 2 0.39 0.33 -0.06 -15%
0.5 1.0 17 0.72 1.29 0.57 +79%
1.0 1.5 9 1.26 1.85 0.59 +47%
1.5 2.0 6 1.68 2.02 0.34 +20%
2.0 2.5 8 2.29 4.75 2.46 +107%
2.5 3.0 10 2.68 4.15 1.47 +55%
3.0 3.5 6 3.23 4.05 0.82 +25%
3.5 4.0 9 3.76 5.29 1.53 +41%
>4.0 21 16.54 17.91 1.37 +8%
All original fire assays greater than 2.0g/t au were submitted
for subsequent screen fire assay testing, and approximately one
third of those between 0.5g/t and 2.0 g/t.
Historical records show that less than 5% of samples, in the
grade range from 0.5g/t and above from 23 kilometres of drilling in
the early 1990's were subject to follow-up screen fire assays.
Information about any upgrade in values from this time is not, at
this stage, available.
The implications on the overall resource at Spring Hill of a
grade increase, from screen fire assaying, is being assessed by
independent resource consultants. Further confirmatory testing may
be undertaken. If the trends shown in Table 2 are supported, then a
substantial upgrade in both the resource estimate, and the size and
scope of future mining operations may result.
Project Development
During the quarter ended June 2013, 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.
An assessment of any upgrade possible following the 2013 drilling
program and subsequent screen fire assay results has not yet been
conducted.
During the quarter ended September2013 Thor announced positive
results from initial ore sorting test work on near surface oxide
ore from the Spring Hill project. Subsequent test work on a larger
sample size has been inconclusive.
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 40 million ordinary shares, in placements to
sophisticated investors in Australia. These issues raised
AUD$200,000 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.
The information in this report that relates to the Molyhil
Mineral Resource is based on information compiled by Mr Trevor
Stevenson. Mr Stevenson is a Fellow of the Australasian Institute
of Mining and Metallurgy, a member of MICA and a CP, and a full
time employee of RPM. Mr Stevenson has sufficient experience which
is relevant to the style of mineralisation and type of deposit
under consideration and to the activity which he has undertaken to
qualify as a Competent Person as defined in the 2012 Edition of the
'Australasian Code for the Reporting of Exploration Results,
Mineral Resources and Ore Reserves'.
Mr Stevenson is not aware of any new information or data that
materially affects the information included in the RUL 2012 report
on which this current report is based. Mr Stevenson has no
economic, financial or pecuniary interest in Thor Mining PLC and
there is no issue that could be perceived as a conflict of
interest.
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/Jamie 5100 UK LLP
Barklem
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
Appendix 1 - Molyhil Deposit JORC 2012 Table 1
Section 1 Sampling Techniques and Data
Criteria JORC Code explanation Commentary
Sampling
techniques * Nature and quality of sampling (eg cut channels, * The mineralised lodes at the Molyhil deposit were
random chips, or specific specialised industry sampled using surface diamond drill holes, percussion
standard measurement tools appropriate to the holes, and underground shaft and cross-cut bulk
minerals under investigation, such as down hole gamma sampling. Drilling was conducted primarily on nominal
sondes, or handheld XRF instruments, etc). These 25m by 25m line spacing, reduced in areas to 12.5m by
examples should not be taken as limiting the broad 12.5m and drilled on the GDA94 National Grid system.
meaning of sampling.
* Three winzes (2m x 1.2m) totalling 96m and three
cross-cuts (2.1m x 1.2m) totalling 102m were sunk
* Include reference to measures taken to ensure sample into the orebody. The winzes and cross-cuts were all
representivity and the appropriate calibration of any sampled at 2m intervals.
measurement tools or systems used.
* Drill holes used in the resource estimate included 15
diamond holes, 89 percussion holes, and 3 underground
* Aspects of the determination of mineralisation that shafts with associated cross-cuts for a total of
are Material to the Public Report. In cases where 14,906.9m within the resource wireframes. The
'industry standard' work has been done this would be supplied database contained a total of 162 drill hole
relatively simple (eg 'reverse circulation drilling records for a total of 19,163.25m of drilling. Holes
was used to obtain 1 m samples from which 3 kg was were generally angled at -60deg towards the -west
pulverised to produce a 30 g charge for fire assay'). (average of 252deg azimuth) to optimally intersect
In other cases more explanation may be required, such the mineralised zones.
as where there is coarse gold that has inherent
sampling problems. Unusual commodities or
mineralisation types (eg submarine nodules) may * All accessible drill hole collars and starting
warrant disclosure of detailed information. azimuths and downhole deviations were accurately
re-surveyed by Direct Systems surveyors in 2011. Dip
and azimuth values were measured at 10m intervals
down hole using North Seeking Gyro equipment.
* Drilling was conducted by Petrocarb, Tennant Creek
Gold and by Thor. Petrocarb drilling prior to 2005
was not included in the data used for Resource
Estimation. Diamond drilling used 63.5mm core
diameter (HQ) with sampling at varying intervals
based on geological boundaries. Half-split core was
sampled and sent for analysis. RC drilling used a 5"
face sampling bit, a cyclone and an industry standard
riffle splitter. All samples were sent for
preparation (crushing and pulverising) and analysed
using the XRF method at various laboratories
including ALS Perth, Amdel Adelaide and Genalysis
Perth.
Drilling
techniques * Drill type (eg core, reverse circulation, open-hole * Diamond or percussion drilling were the primary
hammer, rotary air blast, auger, Bangka, sonic, etc) techniques used at Molyhil. Diamond holes make up 12%
and details (eg core diameter, triple or standard of the total metres drilled with core diameter at
tube, depth of diamond tails, face-sampling bit or 63.5mm. Hole depths ranged from 55m to 207m.
other type, whether core is oriented and if so, by Percussion drilling makes up 88% of the total holes
what method, etc). drilled with depths ranging from 12m to 502m. Shaft
or cross-cut sampling accounts for less than 1% of
the database.
Drill sample
recovery * Method of recording and assessing core and chip * Recoveries from diamond core were only recorded when
sample recoveries and results assessed. there was significant core loss, examination of the
photographs of the core trays indicates that overall
recovery was very good. All diamond core was oriented
where possible.
* Measures taken to maximise sample recovery and ensure
representative nature of the samples.
* Diamond core was reconstructed into continuous runs
for orientation marking with depths checked against
core blocks.
* Whether a relationship exists between sample recovery
and grade and whether sample bias may have occurred * Most percussion samples were visually checked for
due to preferential loss/gain of fine/coarse recovery and moisture content and the data recorded.
material. The recorded recovery figures average 84%, most
samples are recorded as being dry.
* No relationship was noted between sample recovery and
grade. The mineralised zones have predominantly been
intersected with generally good recoveries. The
consistency of the mineralised intervals suggests
sampling bias due to material loss or gain is not an
issue.
Logging
* Whether core and chip samples have been geologically * All holes were field logged by company geologists to
and geotechnically logged to a level of detail to a high level of detail.
support appropriate Mineral Resource estimation,
mining studies and metallurgical studies.
* Although the core was oriented it was not routinely
logged for RQD, or number and type of defects. The
supplied database contained tables with some
* Whether logging is qualitative or quantitative in information vein shearing and vein percent with
nature. Core (or costean, channel, etc) photography. observations but no alpha/beta angles, dips, azimuths
,
and true dips.
* The total length and percentage of the relevant
intersections logged. * All drill samples were logged for lithology, rock
type, colour, mineralisation, alteration, and
texture. Logging is a mix of qualitative and
quantitative observations. It has been standard
practice by Thor (since 2005), that all diamond core
be routinely photographed.
* All drill holes were logged in full.
Sub-sampling
techniques and * If core, whether cut or sawn and whether quarter, * Diamond core is cut in half using a core saw with
sample half or all core taken. half core submitted for assay.
preparation
* If non-core, whether riffled, tube sampled, rotary * Percussion drill samples were collected at 1m
split, etc and whether sampled wet or dry. intervals. Samples were collected at the rig and
split with a riffle splitter at the drill site..
Samples were predominantly dry. Drilling was through
bedrock from surface. Sampling of diamond core and RC
* For all sample types, the nature, quality and chips used industry standard techniques.
appropriateness of the sample preparation technique.
* Thor has used systematic standard and pulp duplicate
sampling since 2005. Detailed data from the 2011
* Quality control procedures adopted for all program indicates that a sequence of every 25th
sub-sampling stages to maximise representivity of sample is submitted as a standard, a different
samples. sequence of every 25th sample is inserted as a field
duplicate and a third sequence of every 25th sample
is inserted as a blank. This results in 3 samples in
* Measures taken to ensure that the sampling is every 25 being a QAQC sample or 12%.
representative of the in situ material collected,
including for instance results for field
duplicate/second-half sampling. * Sample sizes (3-5kg for core and 2-5kg for chips) are
considered appropriate to correctly represent the W
and Mo mineralisation based on: the style of
mineralisation, the thickness and consistency of the
* Whether sample sizes are appropriate to the grain intersections, the sampling methodology and assay
size of the material being sampled. value ranges for W and Mo.
Quality of
assay * The nature, quality and appropriateness of the * The assay method used for all drill samples was XRF.
data and assaying and laboratory procedures used and whether The lower detection limit is in the order of 0.01% to
laboratory the technique is considered partial or total. 0.005% for Fe or 0.005% to 0.0001% for Mo or W and
tests well within the level of accuracy or grade cut-off
required for the resource estimate..
* For geophysical tools, spectrometers, handheld XRF
instruments, etc, the parameters used in determining * No geophysical tools were used to determine any
the analysis including instrument make and model, element concentrations used in this resource
reading times, calibrations factors applied and their estimate.
derivation, etc.
* The various programs of QAQC carried out by Thor over
the years have produced results which support the
* Nature of quality control procedures adopted (eg sampling and assaying procedures used at the various
standards, blanks, duplicates, external laboratory deposits..
checks) and whether acceptable levels of accuracy (ie
lack of bias) and precision have been established.
* A total of 6 different certified reference materials
representing a variety of grades from 0.12% to 0.28%
for W and 0.09% to 0.48% for Mo were inserted
regularly during the 2011 drilling program for a
total of 67 samples. Results highlighted that the
sample assays are within accepted values, showing no
obvious bias.
* A total of 88 blank samples were submitted during the
2011 drill program and results show that sample
contamination has been contained.
* Field duplicate analyses (68) honour the original
assay and demonstrate best practice sampling
procedures have been adopted by Thor.
Verification
of sampling * The verification of significant intersections by * RPM has independently verified significant
and assaying either independent or alternative company personnel. intersections of mineralisation. The 2011 site visit
inspected 2011 drill core and noted similar
identification of geological features. Resource
* The use of twinned holes. mineralisation outlines were agreed upon by Runge and
Thor geologists.
* Documentation of primary data, data entry procedures, * Twinned RC vs. diamond holes and RC vs. underground
data verification, data storage (physical and cross-cuts (bulk sample) has identified that Mo and W
electronic) protocols. upgrade factors should be applied.
* RPM conducted reviews of all the available data that
* Discuss any adjustment to assay data. could be related to the application of an upgrade
factor for the RC drillhole data. The upgrade factors
used for the Resource estimate were updated for the
January 2012 Mineral Resource estimate.
Location of
data points * Accuracy and quality of surveys used to locate drill * Drill hole collars and starting azimuths have been
holes (collar and down-hole surveys), trenches, mine accurately re-surveyed by independent surveyors. Down
workings and other locations used in Mineral Resource hole dip values and azimuths were recorded at 10m
estimation. intervals using digital equipment.
* Specification of the grid system used.
* Drill hole locations were positioned using the MGA
Grid System.
* Quality and adequacy of topographic control.
* The topographic surface over the Molyhil deposit was
provided to RPM by Thor. Drill hole collars have been
used to create a more accurate surface immediately
above the mineralised lodes.
Data spacing
and * Data spacing for reporting of Exploration Results. * Drill holes have been located at 25m by 25m
distribution throughout the mineralised lodes at Molyhil, and
mainly drilled steeply westward to intersect steeply
east dipping, moderately south plunging skarn bodies.
* Whether the data spacing and distribution is Some broader spaced drilling has been undertaken away
sufficient to establish the degree of geological and from near-surface mineralisation.
grade continuity appropriate for the Mineral Resource
and Ore Reserve estimation procedure(s) and
classifications applied. * The main mineralised domains have demonstrated
sufficient continuity in both geological and grade
continuity to support the definition of Mineral
Resource, and the classifications applied under the
* Whether sample compositing has been applied. 2012 JORC Code.
* Data density is sufficient to define reasonably
structured variograms for each element.
* Samples have been composited to 1m lengths using
'best fit' techniques.
Orientation
of data in * Whether the orientation of sampling achieves unbiased * Drill holes are orientated predominantly to an
relation sampling of possible structures and the extent to azimuth of 252deg and drilled at an angle of -60deg
to geological which this is known, considering the deposit type. to the west which is approximately perpendicular to
structure the orientation of the mineralised trends.
* If the relationship between the drilling orientation
and the orientation of key mineralised structures is
considered to have introduced a sampling bias, this
should be assessed and reported if material. * The orientation of the drilling is at a high angle to
the strike and dip of the mineralisation and is
unlikely to have introduced any sampling bias.
Sample
security * The measures taken to ensure sample security. * No information has been provided to RPM with respect
to the sample security for historical drilling.
Audits or
reviews * The results of any audits or reviews of sampling * A review of sampling techniques and data was carried
techniques and data. out during a site visit conducted in October 2011.
The conclusion made was that sampling and data
capture was to industry standards.
Section 2 Reporting of Exploration Results
Criteria JORC Code explanation Commentary
Mineral
tenement * Type, reference name/number, location and ownership * The tenements at Molyhil comprise EL22349, ML23825,
and land including agreements or material issues with third ML24429 and ML25721. For all tenements Thor Mining
tenure parties such as joint ventures, partnerships, PLC hold 100% Project Equity.
status overriding royalties, native title interests,
historical sites, wilderness or national park and
environmental settings. * Thor has completed the Public Environmental Report
for the Molyhil Tungsten and Molybdenum Project. This
report has been accepted by the Department of
* The security of the tenure held at the time of Regional Development, Primary Industry, Fisheries and
reporting along with any known impediments to Resources in the Northern Territory
obtaining a license to operate in the area.
* This report was approved on the 15th July 2007 by the
DRDPIFR (NT), who also confirmed in December 2011
that the approval remains current. The report is
available on request.
* THOR Mining PLC has also obtained all the required
agreements between the Traditional Owners of the land
,
and THOR Mining PLC, to enable the Molyhil Operations
to proceed with the recognition and support of the
Traditional Owners.
* The Tripartite Deed records the terms of the
Agreement between the parties in accordance with the
Native Title Act and is between the Arrapere People,
the Central Land Council and Thor Mining PLC.
Exploration
done by other * Acknowledgment and appraisal of exploration by other * Tungsten and molybdenum mineralisation was originally
parties parties. discovered at Molyhil in 1973. The Molyhil deposit
was initially drilled in 1977 with further drilling
carried out in 1981. The work was carried out by Fama
Mines Pty Ltd, Petrocarb NL, Nicron resources NL and
Geopeko. Between 1975 and 1976 approximately 20,000
tonnes of molybdenum and tungsten mineralisation were
mined from the northern Yacht Club skarn body. The
adjacent Southern skarn body was mined during 1978 to
1982 to a depth of approximately 25m
Geology
* Deposit type, geological setting and style of * The Molyhil deposit consists of two adjacent
mineralisation. outcropping iron rich skarn bodies, marginal to a
granite intrusion, that contain scheelite (tungsten
mineralisation as CaWO4) and molybdenite (molybdenum
as MoS2) mineralogy. Both the outlines of, and the
banding within the skarn bodies, strike approximately
north-south and dipsteeply to the east. The bodies
are arranged in an en-echelon manner, the northeast
body being named the Yacht Club and the southwest
body the Southern.
Drill hole
information * A summary of all information material to the * A complete table of all relevant drill holes is
under-standing of the exploration results including a attached to this report as A3
tabulation of the following information for all
Material drill holes:
* easting and northing of the drill hole collar
* Mining and drilling information prior to 2004 and RAB
* elevation or RL (Reduced Level - elevation above sea assay results were excluded from the resource
level in metres) of the drill hole collar estimate. This reflected concerns relating to the
completeness and accuracy of historical information
and the quality of RAB drill samples.
* dip and azimuth of the hole
* down hole length and interception depth
* hole length
* In the opinion of Thor, material drill results have
* If the exclusion of this information is justified on been adequately reported previously to the market as
the basis that the information is not Material and required under the reporting requirements of the ASX
this exclusion does not detract from the Listing Rules.
understanding of the report, the Competent Person
should clearly explain why this is the case.
Data
aggregation * In reporting Exploration Results, weighting averaging * Exploration results are not being reported.
methods techniques, maximum and/or minimum grade truncations
(e.g. cutting of high grades) and cut-off grades are
usually Material and should be stated.
* Where aggregate intercepts incorporate short lengths
of high grade results and longer lengths of low grade
results, the procedure used for such aggregation
should be stated and some typical examples of such * Not relevant.
aggregations should be shown in detail.
* The assumptions used for any reporting of metal
equivalent values should be clearly stated.
* Metal equivalent values are not being reported.
Relationship
between * These relationships are particularly important in the * Drill holes were orientated predominantly to an
mineralisation reporting of Exploration Results. azimuth of 252deg and angled to a dip of -60deg,
widths and which is approximately perpendicular to the
intercept orientation of the mineralised trends.
lengths * If the geometry of the mineralisation with respect to
the drill hole angle is known, its nature should be
reported.
* If it is not known and only the down hole lengths are
reported, there should be a clear statement to this
effect (e.g.'down hole length, true width not
known').
Diagrams
* Appropriate maps and sections (with scales) and * A plan showing mineralisation wireframes and drilling
tabulations of intercepts should be included for any is included in the body of the report (Figure 11-1).
significant discovery being reported. These should A typical section through the main lodes is also
include, but not be limited to a plan view of drill included (Figure 11-3).
hole collar locations and appropriate sectional
views.
Balanced
Reporting * Accuracy and quality of surveys used to locate drill * Drill hole collars and starting azimuths have been
holes (collar and down-hole surveys), trenches, mine accurately re-surveyed by independent surveyors. Down
workings and other locations used in Mineral Resource hole dip values and azimuths were recorded at 10m
estimation. intervals using digital equipment.
* Where comprehensive reporting of all Exploration
Results is not practicable, representative reporting * Drill hole locations were positioned using the MGA
of both low and high grades and/or widths should be Grid System.
practiced to avoid misleading reporting of
Exploration Results.
* Exploration results are not being reported.
Other
substantive * Other exploration data, if meaningful and material, * Three winzes totalling 96m and three cross-cuts
exploration should be reported including (but not limited to): totalling 102m were excavated into the orebody.
data
geological observations;
geophysical survey * Historically three trenches were excavated into the
results; geochemical surface of the orebody.
survey results; bulk
samples - size and
method of treatment;
metallurgical test
results; bulk density,
groundwater, geotechnical
and rock characteristics;
potential deleterious
or contaminating substances.
Further work
* The nature and scale of planned further work (e.g. * Thor have recently completed a Feasibility Study and
tests for lateral extensions or depth extensions or ongoing metallurgical testwork.
large- scale step-out drilling).
* Diagrams clearly highlighting the areas of possible
extensions, including the main geological
interpretations and future drilling areas, provided
this information is not commercially sensitive.
Section 3 Estimation and Reporting of Mineral Resources
Database
integrity * Measures taken to ensure that data has not been * Drilling data is initially captured on paper logs and
corrupted by, for example, transcription or keying manually entered into a database. Thor carry out
errors, between its initial collection and its use internal checks to ensure the transcription is error
for Mineral Resource estimation purposes. free. Laboratory assay results are loaded as
electronic files direct from the laboratory so there
is little potential for transcription errors.
* Data validation procedures used.
* The data base is systematically audited by Thor
geologists. All drill logs are validated digitally by
the database geologist once assay results are
returned from the laboratory.
* RPM also performed data audits in Surpac and checked
collar coordinates, down hole surveys and assay data
for errors. No errors were found.
Site visits
* Comment on any site visits undertaken by the * A site visit was conducted by Craig Allison (formerly
Competent Person and the outcome of those visits. of RPM) and Joe McDiarmid of RPM in October 2011.
Drilling, logging, and sampling procedures were
viewed and it was concluded that these were being
* If no site visits have been undertaken indicate why conducted to best industry practice.
this is the case.
Geological
interpretation * Confidence in (or conversely, the uncertainty of) the * The Molyhil deposit consists of two adjacent
geological interpretation of the mineral deposit. outcropping iron rich skarn bodies, enclosed in
granite, that contain scheelite and molybdenite
mineralisation. Both the outlines of, and the banding
within the bodies, strike approximately north south
and dip steeply to the east. The bodies are arranged
in an en-echelon manner, the northeast body being
named the Yacht Club and the southwest body the
Southern.
* The geology of the Molyhil deposit is well understood
* Nature of the data used and of any assumptions made. * Drill hole logging by Thor geologists, through direct
observation of drill core and percussion samples have
been used to interpret the geological setting. The
bedrock is exposed by surface trenches and limited
* The effect, if any, of alternative interpretations on underground openings
Mineral Resource estimation.
* The continuity of the main mineralised lodes is
clearly observed by relevant grades within the drill
* The use of geology in guiding and controlling Mineral holes. The close spaced drilling and trench and
Resource estimation. underground sampling suggest the current
interpretation is robust. The nature of the lodes
would indicate that alternate interpretations would
have little impact on the overall Mineral Resource
* The factors affecting continuity both of grade and estimation.
geology.
* Mineralisation is coarse-grained and its distribution
is irregular. Two broad lithological variations are
present within the skarn
* "Black rock skarn": Mineralised, selectively mined on
the basis of colour, a calc-silicate containing a
high proportion of magnetite, pyrite, and iron-rich
minerals such as andradite-garnet, actinolite, and
ferro-amphibole.
* Unmineralised skarn: Pale green coloured
calc-silicate, containing diopsidic pyroxene and
garnet.
* The interpretations have been useful in predicting
the continuity of the mineralisation for the Resource
estimation
Dimensions
* The extent and variability of the Mineral Resource * The Molyhil resource area extends over a combined
expressed as length (along strike or otherwise), plan strike length of 300m from 19,850mN to 20,150mN, a
width, and depth below surface to the upper and lower width of 250m from 9,950mE to 10,200mE and includes
limits of the Mineral Resource. the vertical extent of 290m from 410mRL to 120mRL.
Estimation and
modelling * The nature and appropriateness of the estimation * Ordinary Kriging ("OK") interpolation with an
techniques technique(s) applied and key assumptions, including oriented 'ellipsoid' search was used for the
treatment of extreme grade values, domaining, estimate. Surpac software was used for the
interpolation parameters and maximum distance of estimations.
extrapolation from data points. If a computer
assisted estimation method was chosen include a
description of computer software and parameters used. * Three dimensional mineralised wireframes were used to
domain the mineralised data. Sample data was
composited to 1m down hole lengths using the 'best
fit' method. Intervals with no assays were excluded
* The availability of check estimates, previous from the estimates.
estimates and/or mine production records and whether
the Mineral Resource estimate takes appropriate
account of such data. * The influence of extreme grade values was addressed
by reducing high outlier values by applying high
grade cuts to the data. These cut values were
* The assumptions made regarding recovery of determined through statistical analysis (histograms,
by-products. log probability plots, cv's, and summary
multi-variate and bi-variate statistics) using
Supervisor software.
* Estimation of deleterious elements or other non-grade
variables of economic significance (eg sulphur for
acid mine drainage characterisation). * RPM has not made assumptions regarding recovery of
by-products from the mining and processing of the
Molyhil resource.
* In the case of block model interpolation, the block
size in relation to the average sample spacing and * No estimation of deleterious elements was carried
the search employed. out. Fe, W, and Mo were the major variables
interpolated into the block model.
* Any assumptions behind modelling of selective mining * An orientated 'ellipsoid' search was used to select
units. data and was based on the observed lode geometry. The
search ellipse was orientated to the average strike,
plunge, and dip of the main lodes.
* Any assumptions about correlation between variables.
* Three passes were used in the estimation. For both
skarn domains, the first pass used a range 40m, with
* Description of how the geological interpretation was a minimum of 20 samples. For the second pass, the
used to control the resource estimates. range was extended to 100m, with a minimum of 12
samples A third pass radius of 200m with a minimum of
1 sample was used to fill the model. A maximum of 26
samples was used for all 3 passes. More than 61% of
* Discussion of basis for using or not using grade the blocks were filled in the first two passes.
cutting or capping.
* In addition to the extraction of bulk samples from
the winzes and cross-cuts historical mining has
* The process of validation, the checking process used, occurred at the Molyhil deposit. Between 1975 and
the comparison of model data to drill hole data, and 1976 approximately 20kt of molybdenum and tungsten
use of reconciliation data if available mineralisation was mined from the northern Yacht Club
skarn body. The adjacent Southern skarn body was
mined during 1978 to 1982 when approximately 900kt of
material (ore + waste) was extracted. A Mineral
Resource estimate was reported by RPM in January
2012.
* No assumptions were made regarding the recovery of
by-products.
* No non-grade deleterious elements were estimated.
* The parent block dimensions used were 10m NS by 5m EW
by 5m vertical with sub-cells of 2.5m by 1.25m by
1.25m. The parent block size was selected on the
basis of being approximately 40% of the average drill
hole spacing.
* No assumptions were made on selective mining units.
* Due to the independent mineralogical distribution
within the orebody it was not seen as beneficial to
carry out any Correlation analysis.
* The deposit mineralisation was constrained by
wireframes constructed using a 10-15% Iron Oxide
cut-off grade with a minimum intercept of 2m
required. The wireframes were applied as hard
boundaries in the estimate.
* Statistical analysis was carried out on data from
each domain. The high coefficient of variation within
some main lodes, and the scattering of high grade
outliers observed on the histograms, suggested that
high grade cuts were required if linear grade
interpolation was to be carried out.
* A three step process was used to validate the model.
A qualitative assessment was completed by slicing
sections through the block model in positions
coincident with drilling. A quantitative assessment
of the estimate was completed by comparing the
average grades of the composite file input against
the block model output for all the resource objects.
A trend analysis was completed by comparing the
interpolated blocks to the sample composite data
within the main lodes. This analysis was completed
for northings and elevations across the deposit.
Validation plots showed good correlation between the
composite grades and the block model grades.
Moisture
* Whether the tonnages are estimated on a dry basis or * Tonnages and grades were estimated on a dry in situ
with natural moisture, and the method of basis. No moisture values were reviewed.
determination of the moisture content.
Cut-off
parameters * The basis of the adopted cut-off grade(s) or quality * The nominal cut-off grade of 10-15% was used to
parameters applied. define the boundaries of the skarn zones, it was
determined from analysis of log probability plots of
all samples at the deposit. This cut-off was used to
define the mineralised wireframes.
* The Mineral Resource has been reported at a 0.1% Mo +
WO3 cut-off based on assumptions made by Thor in
regard to economic cut-off grades for open pit
mining.
Mining factors
or assumptions * Assumptions made regarding possible mining methods, * The results of an independent estimate of Open Cut
minimum mining dimensions and internal (or, if Ore Reserves indicate that the deposit could
applicable, external) mining dilution. It is always potentially be mined using small-scale open pit
necessary as part of the process of determining techniques.
reasonable prospects for eventual economic extraction
to consider potential mining methods, but the
assumptions made regarding mining methods and
parameters when estimating Mineral Resources may not
always be rigorous. Where this is the case, this
should be reported with an explanation of the basis
of the mining assumptions made.
Metallurgical
factors or * The basis for assumptions or predictions regarding * Metallurgical and mineralogical analysis has been
assumptions metallurgical amenability. It is always necessary as conducted on drill samples taken from exploration
part of the process of determining reasonable programs. The metallurgical work has demonstrated
prospects for eventual economic extraction to successful molybdenum and tungsten recovery using a
consider potential metallurgical methods, but the combination of gravity extraction and flotation mill
assumptions regarding metallurgical treatment processes
processes and parameters made when reporting Mineral
Resources may not always be rigorous. Where this is
the case, this should be reported with an explanation
of the basis of the metallurgical assumptions made.
Environmental
factors or * Assumptions made regarding possible waste and process * No assumptions have been made by RPM regarding
assumptions residue disposal options. It is always necessary as possible waste and process residue disposal options.
part of the process of determining reasonable
prospects for eventual economic extraction to
consider the potential environmental impacts of the
mining and processing operation. While at this stage
the determination of potential environmental impacts,
particularly for a greenfields project, may not
always be well advanced, the status of early
consideration of these potential environmental
impacts should be reported. Where these aspects have
not been considered this should be reported with an
explanation of the environmental assumptions made.
Bulk density
* Whether assumed or determined. If assumed, the basis * The bulk density at Molyhil is mainly reflective of
for the assumptions. If determined, the method used, the magnetite content of the rock type. A regression
whether wet or dry, the frequency of the measurements plot of iron assay and bulk density testwork shows a
, well correlated, generally linear relationship and
the nature, size and representativeness of the covers a wide range of iron grades. The bulk density
samples. equation presented below and was also used for this
estimate. The minimum bulk density value possible
from the equation is 2.78 which is considered
* The bulk density for bulk material must have been reasonable.
measured by methods that adequately account for void
spaces (vugs, porosity, etc), moisture and
differences between rock and alteration zones within * Bulk Density = (0.0152 x converted model value Fe2O3)
the deposit + 2.7826 (after Baxter & Doepel, 2006).
* Discuss assumptions for bulk density estimates used * The bulk density equation was applied to the
in the evaluation process of the different materials. mineralised lode domain as it was only this part of
the model where iron was estimated. An average bulk
density of 2.75 t/m3 was applied to the background
domain.
Classification
* The basis for the classification of the Mineral * Mineral Resources were classified in accordance with
Resources into varying confidence categories. the Australasian Code for the Reporting of
Exploration Results, Mineral Resources and Ore
Reserves (JORC, 2012). The resource was classified as
Indicated and Inferred Mineral Resource on the basis
of data quality, sample spacing, and lode continuity.
* The Indicated portion of the resource included the
* Whether appropriate account has been taken of all area where drill hole spacing was in the order of 30m
relevant factors (ie relative confidence in by 40m or less and reasonable continuity was
tonnage/grade estimations, reliability of input data, apparent.
confidence in continuity of geology and metal values,
quality, quantity and distribution of the data).
* Those zones where drill hole spacing was greater than
30m by 40m, or where the continuity and/or geometry
ware uncertain were classified as Inferred Mineral
* Whether the result appropriately reflects the Resource.
Competent Person's view of the deposit.
* Mineralised areas below the 200mRL were not
classified as further work is required to determine
economic grade cut-offs below this level.
* The mineralised lodes interpreted at Molyhil are
based on a high level of geological understanding.
The drilling and sampling processes used by Thor are
'best practice' and certified laboratories have been
used for analyses of samples. The input data is
considered reliable and suitable for use in the
resource estimate.
* The Mineral Resource estimate appropriately reflects
the view of the Competent Person.
Audits or
reviews * The results of any audits or reviews of Mineral * Internal audits have been completed by RPM which
Resource estimates. verified the technical inputs, methodology,
parameters and results of the estimate.
* A review of the input data, estimation methods and
results was conducted by RPM in December 2013, to
ensure compliance with the JORC Code 2012.
Discussion of
relative * Where appropriate a statement of the relative * The relative accuracy of the Mineral Resource
accuracy/ accuracy and confidence level in the Mineral Resource estimate is reflected in the reporting of the Mineral
confidence estimate using an approach or procedure deemed Resource as per the guidelines of the 2012 JORC Code.
appropriate by the Competent Person. For example, the
application of statistical or geostatistical
procedures to quantify the relative accuracy of the
resource within stated confidence limits, or, if such
an approach is not deemed appropriate, a qualitative
discussion of the factors that could affect the
relative accuracy and confidence of the estimate.
* The statement should specify whether it relates to
global or local estimates, and, if local, state the
relevant tonnages, which should be relevant to
technical and economic evaluation. Documentation
should include assumptions made and the procedures * The Mineral Resource statement relates to global
used. estimates of tonnes and grade.
* These statements of relative accuracy and confidence
of the estimate should be compared with production
data, where available.
* No production data is available for comparison.
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