TIDMTHR
RNS Number : 9359U
Thor Mining PLC
30 October 2017
30 October 2017
THOR MINING PLC
IMPROVED ORE SORT RESULTS BOOST MOLYHIL
The Directors of Thor Mining PLC ("Thor" or the "Company") (AIM,
ASX: THR) are pleased to announce a step forward in the potential
commercial enhancement of Molyhil, the Company's Australian
tungsten and molybdenum project in the Northern Territory.
Ore sorting testwork has been progressively undertaken with the
objective of increasing the portion of the Molyhil known
mineralisation that could be economically extracted to produce
tungsten and molybdenum concentrates. Results from this recently
completed work have been reviewed internally and the Board expects
that this testwork could lead to an enhancement of the economic
potential and therefore implicit underlying value of the Molyhil
project.
Highlights:
-- Thor has previously published a Definitive Feasibility Study
demonstrating a project NPV of A$67million (approximately
UKGBP39million), further details for which are available on the
Company's website (refer to the Company's announcement of 12
January 2015). Outcomes from ore sorting testwork were included in
this study;
-- Recent ore sorting testwork has achieved substantially
improved outcomes which the Company believes have the potential to
materially increase the portion of the Molyhil resource estimate
which is economic to recover;
-- An improvement in rejecting waste material, to 41% of total
sample mass, from ore sorting, with the latest trials on ore
averaging 0.23% WO . This compares with previous sorting testwork,
achieving waste rejection of between 15% and 25% of the total
sample mass, on ore grading between 0.35%WO and 0.56% WO .
Mr Mick Billing, Executive Chairman, commented:
"Thor is taking steps towards accelerated commercialisation of
its key projects, including Molyhil."
"The impact of the ore sorting work undertaken, all other
assumptions unchanged, is potentially to increase that portion of
the mineral resource estimate which converts to the ore reserve,
and therefore to increase the potential mine life of Molyhil."
"Increased conversion to ore reserve and an extended mine life,
if applied to Molyhil, could materially enhance the value
proposition of this project, at a time when there is increasing
vibrancy in the tungsten sector, particularly with the rising
tungsten commodity price in 2017."
"We have previously signalled that we have identified cost
reductions in both operating and capital cost estimates, and these
will be incorporated, with these sorting results, in a review of
the Open Cut Ore Reserve for Molyhil, the results of which we
expect shortly, and will be announced when available."
Further Information:
Notwithstanding the robust economics already demonstrated, the
Company has undertaken a number of initiatives to further enhance
this project from a commercial perspective. An important element of
this has been detailed work to enhance the ore sorting technology
proposed for Molyhil to maximise the return available from existing
known mineralisation.
The ore sorting testwork, consistent with the Company's
commercialisation strategy, is aimed at improving the mine life and
economic returns for the Molyhil Tungsten project in the Northern
Territory of Australia. The process involved testing Molyhil
mineralisation of a lower tenor than prior testwork, with outcomes
demonstrating a substantially higher gangue material rejection
rate.
Previous ore sorting testwork on ore grading between 0.35%WO and
0.56% WO , had generated waste rejection of between 15% and 25% of
the total sample mass.
Latest sorting trials on ore grading 0.23% WO resulted in a
rejection of waste material representing 41% of the total mass.
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
Daniel Bush/ 383 5100 UK LLP Adviser
Richard Tonthat
Elliot Hance +44 (0) 207382 Beaufort Securities Joint Broker
8300 Limited
Nick Emerson +44 (0) 1483 SI Capital Ltd Joint Broker
/ Andy Thacker 413 500
Tim Blythe/ +44 (0) 207 Blytheweigh Financial
Camilla Horsfall 138 3222 PR
Updates on the Company's activities are regularly posted on the
Thor Mining website: www.thormining.com, which includes a facility
to register to receive these updates by email, and on the Company's
twitter page @ThorMining.
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.
About Thor Mining PLC
Thor Mining PLC is a resources company quoted on the AIM Market
of the London Stock Exchange and on ASX in Australia.
Thor holds 100% of the advanced Molyhil tungsten project in the
Northern Territory of Australia, for which an updated feasibility
study in 2015(1) suggested attractive returns. Thor also holds 100%
of the Pilot Mountain tungsten project in Nevada USA which has a
JORC 2012 Indicated Resources Estimate(2) on 1 of the 4 known
deposits.
Thor is also acquiring up to a 60% interest Australian copper
development company Environmental Copper Recovery SA Pty Ltd, which
in turn holds rights to earn up to a 75% interest in the mineral
rights and claims over the portion of the historic Kapunda copper
mine in South Australia recoverable by way of in situ recovery.
Thor also holds a production royalty entitlement from the Spring
Hill Gold project(3) of:
-- A$6 per ounce of gold produced from the Spring Hill tenements
where the gold produced is sold for up to A$1,500 per ounce;
and
-- A$14 per ounce of gold produced from the Spring Hill
tenements where the gold produced is sold for amounts over A$1,500
per ounce.
Notes
-- (1) Refer ASX and AIM announcement of 12 January 2015
-- (2) Refer AIM announcement of 22 May 2017 and ASX announcement of 23 May 2017
-- (3) Refer AIM announcement of 26 February 2016 and ASX announcement of 29 February 2016
-- At the date of this announcement gold is trading at approximately A$1,660/oz
JORC Code, 2012 Edition - Table 1 report template
Section 1 Sampling Techniques and Data
Criteria JORC Code explanation Commentary
------------- ------------------------------------------------------------ ------------------------------------------------------------
Sampling
techniques * Nature and quality of sampling (eg cut channels, * Sample material for the ore sorting test work was
random chips, or specific specialised industry sourced from residual stockpiles at the Molyhil mine
standard measurement tools appropriate to the site.
minerals under investigation, such as down hole gamma
sondes, or handheld XRF instruments, etc). These
examples should not be taken as limiting the broad * No resource or exploration potential is inferred or
meaning of sampling. implied from the sample or the reported test work.
* Include reference to measures taken to ensure sample
representivity and the appropriate calibration of any
measurement tools or systems used.
* Aspects of the determination of mineralisation that
are Material to the Public Report.
* In cases where 'industry standard' work has been done
this would be relatively simple (eg 'reverse
circulation drilling was used to obtain 1 m samples
from which 3 kg was pulverised to produce a 30 g
charge for fire assay'). In other cases more
explanation may be required, such as where there is
coarse gold that has inherent sampling problems.
Unusual commodities or mineralisation types (eg
submarine nodules) may warrant disclosure of detailed
information.
------------- ------------------------------------------------------------ ------------------------------------------------------------
Drilling
techniques * Drill type (eg core, reverse circulation, open-hole * No drilling was undertaken or reported.
hammer, rotary air blast, auger, Bangka, sonic, etc)
and details (eg core diameter, triple or standard
tube, depth of diamond tails, face-sampling bit or
other type, whether core is oriented and if so, by
what method, etc).
------------- ------------------------------------------------------------ ------------------------------------------------------------
Drill
sample * Method of recording and assessing core and chip * No drilling was undertaken or reported.
recovery sample recoveries and results assessed.
* Measures taken to maximise sample recovery and ensure
representative nature of the samples.
* Whether a relationship exists between sample recovery
and grade and whether sample bias may have occurred
due to preferential loss/gain of fine/coarse
material.
------------- ------------------------------------------------------------ ------------------------------------------------------------
Logging
* Whether core and chip samples have been geologically * No drilling was undertaken or reported.
and geotechnically logged to a level of detail to
support appropriate Mineral Resource estimation,
mining studies and metallurgical studies. * The sample collected was visually identified as
scheelite (tungsten trioxide) mineralised skarn but
otherwise not logged in any way.
* Whether logging is qualitative or quantitative in
nature. Core (or costean, channel, etc) photography.
* The total length and percentage of the relevant
intersections logged.
------------- ------------------------------------------------------------ ------------------------------------------------------------
Sub-sampling
techniques * If core, whether cut or sawn and whether quarter, * The entire sample was crushed and screened into three
and sample half or all core taken. sizes (-9.5mm, 9.5 - 25mm, +63mm) Only the coarser
preparation two fractions were subject to the ore sorting test
work.
* If non-core, whether riffled, tube sampled, rotary
split, etc and whether sampled wet or dry.
* The ore sorting trial used x-ray transmission to
distinguish and segregated mineralised from
* For all sample types, the nature, quality and un-mineralised particles.
appropriateness of the sample preparation technique.
* Following sorting, all material including the
* Quality control procedures adopted for all unsorted fines was sent for assay.
sub-sampling stages to maximise representivity of
samples.
* Measures taken to ensure that the sampling is
representative of the in situ material collected,
including for instance results for field
duplicate/second-half sampling.
* Whether sample sizes are appropriate to the grain
size of the material being sampled.
------------- ------------------------------------------------------------ ------------------------------------------------------------
Quality
of assay * The nature, quality and appropriateness of the * Prepared samples were digested using sodium peroxide
data assaying and laboratory procedures used and whether fusion which is considered a total digest.
and the technique is considered partial or total.
laboratory
tests * Laboratory quality control procedures were
* For geophysical tools, spectrometers, handheld XRF implemented including blanks, certified standards and
instruments, etc, the parameters used in determining duplicates.
the analysis including instrument make and model,
reading times, calibrations factors applied and their
derivation, etc.
* Nature of quality control procedures adopted (eg
standards, blanks, duplicates, external laboratory
checks) and whether acceptable levels of accuracy (ie
lack of bias) and precision have been established.
------------- ------------------------------------------------------------ ------------------------------------------------------------
Verification
of sampling * The verification of significant intersections by * No drilling and no verification was undertaken.
and assaying either independent or alternative company personnel.
* Data was received electronically and checked against
* The use of twinned holes. anticipated results.
* Documentation of primary data, data entry procedures, * Reported results were based on mass weighted average
data verification, data storage (physical and grades of individual assays.
electronic) protocols.
* Discuss any adjustment to assay data.
------------- ------------------------------------------------------------ ------------------------------------------------------------
Location
of data * Accuracy and quality of surveys used to locate drill * The test work is based upon a bulk sample from
points holes (collar and down-hole surveys), trenches, mine residual Molyhil stockpile material. No specific
workings and other locations used in Mineral Resource sample location is available.
estimation.
* Specification of the grid system used.
* Quality and adequacy of topographic control.
------------- ------------------------------------------------------------ ------------------------------------------------------------
Data
spacing * Data spacing for reporting of Exploration Results. * No resource or exploration potential is inferred or
and implied from the sample or the reported test work.
distribution
* Whether the data spacing and distribution is
sufficient to establish the degree of geological and
grade continuity appropriate for the Mineral Resource
and Ore Reserve estimation procedure(s) and
classifications applied.
* Whether sample compositing has been applied.
------------- ------------------------------------------------------------ ------------------------------------------------------------
Orientation
of data * Whether the orientation of sampling achieves unbiased * No resource or exploration potential is inferred or
in relation sampling of possible structures and the extent to implied from the sample or the reported test work.
to which this is known, considering the deposit type.
geological
structure
* 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.
------------- ------------------------------------------------------------ ------------------------------------------------------------
Sample
security * The measures taken to ensure sample security. * Samples kept within secure storage facilities.
------------- ------------------------------------------------------------ ------------------------------------------------------------
Audits * No audits or reviews.
or reviews * The results of any audits or reviews of sampling
techniques and data.
------------- ------------------------------------------------------------ ------------------------------------------------------------
Section 2 Reporting of Exploration Results
Criteria JORC Code explanation Commentary
--------------- --------------------------------------------------------------- ------------------------------------------------------------
Mineral
tenement * Type, reference name/number, location and ownership * The Molyhil project is situated within ML23825 100%
and land including agreements or material issues with third Thor Mining plc.
tenure parties such as joint ventures, partnerships,
status overriding royalties, native title interests,
historical sites, wilderness or national park and * ML23825 is in good standing.
environmental settings.
* The security of the tenure held at the time of
reporting along with any known impediments to
obtaining a licence to operate in the area.
--------------- --------------------------------------------------------------- ------------------------------------------------------------
Exploration
done * Acknowledgment and appraisal of exploration by other * No exploration activities or results reported.
by other parties.
parties
--------------- --------------------------------------------------------------- ------------------------------------------------------------
Geology
* Deposit type, geological setting and style of * Contact metamorphic skarn hosted scheelite and
mineralisation. molybdenite.
--------------- --------------------------------------------------------------- ------------------------------------------------------------
Drill
hole * A summary of all information material to the * No drilling was undertaken or reported.
Information understanding of the exploration results including a
tabulation of the following information for all
Material drill holes:
o easting and northing of
the drill hole collar
o elevation or RL (Reduced
Level - elevation above
sea level in metres) of
the drill hole collar
o dip and azimuth of the
hole
o down hole length and interception
depth
o hole length.
* If the exclusion of this information is justified on
the basis that the information is not Material and
this exclusion does not detract from the
understanding of the report, the Competent Person
should clearly explain why this is the case.
--------------- --------------------------------------------------------------- ------------------------------------------------------------
Data
aggregation * In reporting Exploration Results, weighting averaging * Averages of individual samples were weighted by mass.
methods techniques, maximum and/or minimum grade truncations
(eg 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
aggregations should be shown in detail.
* The assumptions used for any reporting of metal
equivalent values should be clearly stated.
--------------- --------------------------------------------------------------- ------------------------------------------------------------
Relationship
between * These relationships are particularly important in the * No drilling was undertaken or reported.
mineralisation reporting of Exploration Results.
widths
and intercept
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 (eg 'down hole length, true width not known').
--------------- --------------------------------------------------------------- ------------------------------------------------------------
Diagrams
* Appropriate maps and sections (with scales) and * No drilling was undertaken or reported.
tabulations of intercepts should be included for any
significant discovery being reported These should
include, but not be limited to a plan view of drill
hole collar locations and appropriate sectional
views.
--------------- --------------------------------------------------------------- ------------------------------------------------------------
Balanced
reporting * Where comprehensive reporting of all Exploration * No exploration results are reported.
Results is not practicable, representative reporting
of both low and high grades and/or widths should be
practiced to avoid misleading reporting of
Exploration Results.
--------------- --------------------------------------------------------------- ------------------------------------------------------------
Other
substantive * Other exploration data, if meaningful and material, * No exploration results are reported.
exploration should be reported including (but not limited to):
data geological observations; geophysical survey results;
geochemical 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 (eg * Results of the ore sorting test work will be used in
tests for lateral extensions or depth extensions or revising the Molyhil Ore Reserve.
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.
--------------- --------------------------------------------------------------- ------------------------------------------------------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
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