TIDMTHR
RNS Number : 5698N
Thor Mining PLC
27 October 2016
27 October 2016
THOR MINING PLC
QUARTERLY REPORT JULY TO SEPTEMBER 2016
The Directors of Thor Mining PLC ("Thor Mining", "Thor" or the
"Company") (AIM, ASX: THR) the Australian tungsten and gold
explorer and developer, today announces the quarterly report for
the period ended 30 September 2016. It has also been released today
with the Australian Securities Exchange (ASX) as required by the
listing rules of ASX.
Highlights Outlook for December
Quarter 2016
---------------------------------------------------------- ----------------------------------------------------------
TUNGSTEN & MOLYBDENUM
Molyhil NT
* Shallow drilling adjacent to Molyhil points to * Follow up drilling in 2017
potential additional tungsten deposits.
* Continuing discussions to secure project finance
* Ongoing discussions for balance of concentrate
production off-take.
Pilot Mountain, Nevada
USA
* Permitting approval for drill program at Garnet * Drilling scheduled for early 2017
prospect and the eastern extension of Desert
Scheelite.
New Projects
The Company has during much of 2016 conducted assessments of new
project opportunities. The review process has identified several
which have potential for near term development with attractive
capital and operating cost structures, and these are being
investigated and evaluated further.
Commenting, Mr Mick Billing, Executive Chairman of Thor Mining,
said:
"The identification of potential new sources of tungsten
mineralisation close to Molyhil is an important step forward for
this project. While there is much to do before any economic
deposits can be confirmed, we are very pleased with this first
step.
"The next phase of field activities for Thor is a drilling
campaign at the Pilot Mountain tungsten project in Nevada USA,
where we have received regulatory approval to drill test for an
extension to previous high grade intercepts at the Desert Scheelite
deposit, and also at the Garnet prospect which, if historical
drilling results can be confirmed, should allow preparation of a
resource estimate in due course.
"The company continues to evaluate a number of new project
opportunities and we hope to provide a further update to market in
this regard at the earliest opportunity."
TUNGSTEN PROJECTS
Tungsten and Molybdenum Price Trends
Seasonal factory shutdowns, in the northern hemisphere summer,
have resulted in commodity prices losing part of their recent
gains, as demand temporarily contracts. Industry commentators still
predict strengthening prices, particularly for tungsten, in the
medium term.
MOLYHIL TUNGSTEN PROJECT - NT (100% Thor)
In January 2015, Thor announced an updated feasibility study for
its wholly-owned Molyhil tungsten project, with robust
outcomes.
The project development cost for Molyhil is estimated at A$64
million, or US$48 million at current exchange rates. Of this,
approximately US$10 million is for equipment, for which equipment
or leasing finance could be secured, thus reducing the project
finance requirement to below US$40 million.
Molyhil has a forecast 12 month construction schedule from
development commencement to first production.
A full background on the project is available on the Thor Mining
website.
During the quarter, a program of 65 short holes, up to 18m in
depth, was drilled to sample bedrock beneath shallow alluvium in
five target areas satellite to the Company's existing Molyhil
tungsten deposit.
Prospective host rocks (skarn & calc-silicate, with proximal
granite) are confirmed to exist under shallow alluvial cover in
three prospects tested (Cattle Track, Gap Track, and Think
Big).
Laboratory analyses of drill samples (announced 19th October
2016) show tungsten elevated at several times background levels in
the vicinity of the Molyhil Pinnacle (Cattle track) and along the
southern margin of the Gap Track prospect. At Gap Track, where a
broader spread of data points were collected, a trend of elevated
tungsten is apparent which reflects the trend in elevated magnetic
response. These are encouraging results albeit at subdued levels.
Additionally elevated titanium assays were obtained from multiple
samples recovered from the Think Big prospect.
A follow up drilling program is scheduled for 2017.
PILOT MOUNTAIN TUNGSTEN PROJECT - NEVADA USA (100% Thor)
Thor's Pilot Mountain Project, acquired in 2014, is located
approximately 200 kilometres south of the city of Reno and 20
kilometres east of the town of Mina located on US Highway 95.
The Pilot Mountain Project is comprised of four tungsten
deposits: Desert Scheelite, Gunmetal, Garnet and Good Hope. All are
in close proximity (three kilometres) of each other and have been
subjected to small-scale mining activities at various times during
the 20th century.
In December 2014, Thor outlined a proposed exploration
development plan with the objective of upgrading the knowledge and
status of the mineralisation of these deposits where historical
drilling outlined potentially economic mineralisation.
A full background on the project is available on the Thor Mining
website.
During the September quarter the Company secured the necessary
permits to drill test both the Garnet prospect and the potential
eastern extension of the Desert Scheelite deposit.
Other prospects, Gunmetal and Good Hope and some regional
opportunities will be drill tested in subsequent programs.
The drill program is scheduled for January and February
2017.
Historical drilling on the Garnet prospect (75 holes during the
1970's) confirmed extensive mineralisation. However, while detailed
records of the drill hole data have been assessed, the raw data are
no longer available. It is expected that a limited number of drill
holes will validate the historical information to allow a resource
estimate to be produced, substantially enhancing the Pilot Mountain
resource inventory.
The Thor Mining exploration target(1) (reported 1 December 2014)
for the Garnet prospect is based upon historical drilling and
described below.
Widely spaced drilling outlines several areas of apparently
coherent, sub horizontal tungsten mineralisation skarn hosted at
shallow depth within a sequence of marble and hornfels. The
mineralisation is dissected by a rectilinear series of intersecting
major subvertical faults with minor vertical displacements. The
mineralised horizons total 12 metres in width and occur over a
thickness of 30 to 40 metres which is near surface towards the east
with the cover increasing up to 40 metres towards the west.
Definition of ore blocks requires significant infill drilling
with short vertical holes. Once the historic indications are
confirmed, estimation of resources, plus economic modelling can be
undertaken.
Across the 700,000 square metre Garnet target area seven of the
historic holes penetrate what is thought to be the full mineralised
sequence comprising three mineralised horizons (the middle horizon
is sometimes split to provide a fourth). Using these seven holes an
average total mineralised thickness of 12 metres at 0.3%WO3 was
derived.
The Garnet Exploration Target value was derived from the
mineralised thickness, the target area, an estimated bulk density
of 2.8 and a conservative factor of 0.1 to allow for the
improbability of the whole of a target area being mineralised.
The exploration target(1) for Garnet is therefore 2 -3 Million
tonnes @ 0.3 - 0.4% WO3.
At the Desert Scheelite deposit, the most easterly hole into
mineralisation (DSDD 15) (reported 10 June 2014) intersected
exceptionally strong mineralisation with 13.9m averaging 0.89% WO3,
and 1.75% Cu at depth 250m below plains level, indicating potential
extension of the deposit beyond previously known limits and
possibly a trend of increasing copper content.
(1) Quoted 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.
DUNDAS GOLD PROJECT - WA (60% THOR)
The Dundas gold project is located approximately 100 kilometres
east-south-east of Norseman in Western Australia. The tenements are
in close proximity to the sealed arterial Eyre Highway, providing
all-weather access to the project area. Within the tenements,
access is provided by bulldozed tracks. It is also approximately
250 kilometres south of the major regional mining centre of
Kalgoorlie.
Targets for drilling at Dundas have been identified. However,
prioritising expenditure on other projects has prevented progress
on further exploration activities.
A full background on the project is available on the Thor Mining
website.
CORPORATE AND FINANCE
During the quarter, a placement to raise UKGBP350,000 from
sophisticated investors was announced and partially completed. The
balance of the subscription was completed following approval at a
general meeting of shareholders in London on 6 October 2016, with
portion of the funds received after the end of the quarter. A Thor
director participated in the placing, and A$150,000 owed by the
Company to certain Thor directors was converted to equity on the
same terms and conditions as the placing.
During the quarter, Mr Gervaise Heddle and Mr Paul Johnson
joined the board of Thor Mining, while Mr Trevor Ireland and Mr
Mick Ashton both tendered their resignation.
Yours faithfully,
THOR MINING PLC
Mick Billing
Executive Chairman
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 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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