TIDMTHR
Thor Mining PLC
23 March 2015
23 March 2015
THOR MINING PLC
Thor Mining PLC ("Thor" or the "Company")
MOLYHIL TUNGSTEN PROJECT UPDATE
The Board of Thor Mining Plc ("Thor") (AIM, ASX: THR) is pleased
to advise the appointment of corporate advisors to Thor for the
purpose of securing project finance for the advanced Molyhil
Tungsten Project, in Australia's Northern Territory.
London-based Grant Thornton UK LLP Corporate Finance has been
mandated to introduce parties and lead discussions with a view to
securing finance necessary for project development. A number of
suitable parties have been introduced and several of these are
conducting reviews of the Molyhil Tungsten Project and of Thor.
Similarly, Brookville Capital Limited and its Australian
associate Grand Private Equities Pty Ltd have also been appointed
to make capital introductions.
In addition, further to recent disclosure in respect of the
Molyhil Feasibility Study and the project's current JORC 2012
reserve of 3.0Mt @ 0.31% WO(3) , Thor is pleased to advise on a
number of potential mine life extensions from nearby Exploration
Targets* and project optimisation upside.
*Exploration Targets are conceptual in nature and there has been
insufficient exploration to define a Mineral Resource under the
JORC Code and it is uncertain if further exploration will result in
the determination of a Mineral Resource.
Table 1: Molyhil Project Extension Potential
Summary
---------------------------------------------------------------
Source Tonnage % WO(3) Comment
(Mt)
-------------- -------- -------- ---------------------------
Project 0.3 0.3 Improved resource to
Optimisation - 0.5 - 0.4 reserve conversion of
existing Molyhil.
-------------- -------- -------- ---------------------------
Exploration 6.0 0.3 Exploration targets
Targets* - 12.0 - 0.5 based on proximity to
known mineralisation,
favourable geology and/or
geophysical signature.
-------------- -------- -------- ---------------------------
Total 6.3 0.3
- 12.5 - 0.5
-------------- -------- -------- ---------------------------
Mr Mick Billing, Executive Chairman of Thor Mining:
"We believe the Molyhil project is robust and we are pleased to
have secured the services of these eminently qualified advisors,
and that a number of entities are conducting a review. Project
payback of 18 months is very positive, and even at the low point of
tungsten pricing for the past 4 years, that payback period is still
no more than 2 years. In addition the potential for a substantially
longer life operation via the exploration targets identified is
significant and we look forward to developing these."
Table 2: Molyhil Tungsten Project Extension Opportunities
------------------------------------------------------------------------------------
Prospect Target Range Comment
--------------------- ------------- ----------------- ---------------------------
Project Optimisation Molyhil 0.3-0.5Mt Converting existing
Resource @ 0.3-0.4%WO(3) resources into additional
reserves via project
optimisation accessible
by open cut mining.
--------------------- ------------- ----------------- ---------------------------
Exploration Molyhil 0.1-0.2Mt Future drilling discovery
Targets* Resource @ 0.2-0.4%WO(3) of resource extensions
Extension accessible by open
Discovery cut mining.
--------------------- ------------- ----------------- ---------------------------
Molyhil 2 - 4 Mt Target identified
underground @ 0.4-0.6%WO(3) by unconstrained 3D
magnetic modelling.
Access by underground
mining
--------------------- ------------- ----------------- ---------------------------
Stockyard 1 - 2Mt @ Geology/Magnetic targets
EL22349 0.2-0.4%WO(3)
------------- ----------------- ---------------------------
Solar Farm 1 - 2Mt @ Geology/Magnetic targets
EL22349 0.2-0.4%WO(3)
------------- ----------------- ---------------------------
Gap Track 1 - 2Mt @ Geology/Magnetic targets
EL22349 0.2-0.4%WO(3)
------------- ----------------- ---------------------------
Think Big 1 - 2Mt @ Geology/Magnetic targets
EL22349 0.2-0.4%WO(3)
--------------------- ------------- ----------------- ---------------------------
Total project extension 6.0 - 12.5Mt @ 0.3-0.5%WO(3)
potential
------------------------------------ ----------------------------------------------
Project Optimisation - Improved Reserve Conversion
Conversion of additional Molyhil resource to reserve is proposed
as a result of future project optimisation including; operating
cost reductions, improved process recoveries and pit design. The
range of this potential is estimated to be in the order of 10% of
the existing Mining Reserve.
Molyhil Resource Extension Discovery
There is good discovery potential for additional mineralisation
extensional to the existing Molyhil resource from future drilling.
The unit cost of drilling will drop once a permanent facility is
established at the site which will allow the more exhaustive drill
testing of the margins of the current resource.
Nearby Magnetic Targets
Molyhil resource was discovered in 1976 by drilling a magnetic
target under shallow sediment cover. The four exploration targets
listed above; Stockyard, Solar Farm, Gap Track & Think Big
(Table 2) comprise untested magnetic targets in the vicinity of the
Molyhil resource. The Molyhil area is largely blanketed under
shallow (1-10metres) transported sediment preventing earlier
discovery by surface prospecting. In addition the four magnetic
anomalies share the Molyhil structural setting thus enhancing the
potential for the discovery of Molyhil style mineralisation.
The as yet untested anomalies; Stockyard, Solar Farm, Gap Track
& Think Big have been conservatively assigned Exploration
Target values in the range of one quarter of the Molyhil
resource.
Molyhil Underground
A fifth magnetic target has been identified via unconstrained 3D
magnetic modelling of the high resolution magnetic data collected
over the area of the Molyhil Mine. This target is located at depth
beneath the existing Molyhil resource and proposed mine. Drill
testing of this target for a potential underground resource will be
undertaken once project development is underway.
The exploration target value has been set at between 2 and 4
Million tonnes comparable with the existing Molyhil resource.
Competent Person's 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 2012 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.
Table 3: Summary of Molyhil Mineral Resource Estimate: (Reported
on 30 January 2014)
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
---------------- --------- ----- ------ ----- ------- ------
Notes
-- Compliant with JORC 2012
-- Thor Mining PLC holds 100% equity interest in this resource
-- Mineral Resource reported at 0.1% combined Mo + WO(3) Cut-off and above 200mRL only
-- Minor rounding errors may occur in compiled totals
Table 4: Molyhil Open Cut Ore Reserve Statement (Reported on 29
July 2014)
Classification Reserve WO(3) Mo
'000 Tonnes Grade Tonnes Grade Tonnes
% %
---------------- ------------ -------- --------- -------- -------
Probable 3,000 0.31 9,200 0.12 3,600
---------------- ------------ -------- --------- -------- -------
Total 3,000 0.31 9,200 0.12 3,600
---------------- ------------ -------- --------- -------- -------
Notes:
-- Compliant with JORC 2012
-- Thor Mining PLC holds 100% equity interest in this reserve
-- Estimate has 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
Table 5: Molyhil Key Features
Project NPV post A$67 million
tax & Royalties
Project IRR after 44% All Equity
tax & royalties Case
Project Capex A$70 million All Equity
Case
Life of Mine C1 US$112/mtu
Cash Cost
Life of Mine EBITDA A$201 million
Payback from 1(st) 18 months
production
Project Life 6 years
Average feed grade 0.31% WO 0.41% WO after ore
sorting
0.12% Mo 0.12% Mo after ore
sorting
Operating throughput
Crushing & Sorting 500,000
Milling/Flotation tpa After ore sorting
etc 400,000
tpa
Annual Production 130,000 Approximately 1.3%
Average mtu * of global market
* 1mtu = 10Kg of
contained WO
--------------------- -------------- ----------------------
Enquiries:
Mick Billing +61 (8) 7324 Thor Mining Executive
1935 PLC Chairman
Ray Ridge +61 (8) 7324 Thor Mining CFO/Company
1935 PLC Secretary
Colin Aaronson/ +44 (0) 207 Grant Thornton Nominated
Jamie Barklem 383 5100 UK LLP Adviser
Andrew Monk/ +44 (0) 20 VSA Capital Broker
Bhavesh Patel 3005 5000 Ltd
Alex Walters +44 (0) 7771 Cadogan PR Financial
713608 PR
+44 (0) 207
839 9260
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
NRABXGDXGBDBGUD
Thor Energy (LSE:THR)
Historical Stock Chart
From Aug 2024 to Sep 2024
Thor Energy (LSE:THR)
Historical Stock Chart
From Sep 2023 to Sep 2024
