TIDMTHR
RNS Number : 2160V
Thor Mining PLC
01 November 2017
1 November 2017
THOR MINING PLC
("THOR" OR THE "COMPANY")
QUARTERLY REPORT JULY TO SEPTEMBER 2017
Highlights Outlook for December
Quarter 2017
-------------------------------------------------------------- ------------------------------------------------------------------
TUNGSTEN & MULTI COMMODITIES
Pilot Mountain, Nevada
USA * Transition from exploration mode to commercialisation
* Significant tungsten price increase. activities of scoping, feasibility, and partner
engagement.
* Successful drilling campaign.
* High grade mineralisation intersected at Good Hope.
* Depth extension & confirmation of 2(nd) zone of
mineralisation at Desert Scheelite.
Molyhil, NT Australia
* Uptick in tungsten price fuels development interest * Review Open Cut Ore Reserve with a view to a
from potential development partners. subsequent upgrade of the Molyhil Definitive
Feasibility Study.
* Positive results from sorting low grade ore enhances
potential to add low grade ore to the mining plan.
Copper
Kapunda, SA Australia
* Execution of agreement to earn equity interest. * Mineral resource estimate expected on portion of
mineralisation amenable to insitu recovery
techniques.
LITHIUM/OTHER
US Lithium Investment
* Due diligence activities undertaken * Maintain 25% project interest and assess related
Lithium project opportunities.
Other opportunities
* Due diligence underway in respect of opportunities in * Continuing due diligence to identify low cost
Pilbara region (Lithium/Gold) exposure to Australian Lithium/Gold opportunities in
the Pilbara region
FINANCE
-- In July 2017, the Company completed a share placement to
sophisticated investors to raise GBP460,000 before expenses,
following approval at a general meeting of shareholders.
-- In October 2017, the Company announced a share placement to
sophisticated investors to raise GBP565,000 before expenses,
including just over GBP329,000 subject to approval at a general
meeting of shareholders, to be scheduled during the December
quarter.
Commenting, Mr Mick Billing, Executive Chairman of Thor Mining,
said:
"High cost exploration is no longer a key activity for Thor as
we move towards accelerated commercialisation of key tungsten and
copper projects, as described briefly below."
"At Molyhil, this is likely to include a review of the Open Cut
Ore Reserve, and subsequently an upgraded Definitive Feasibility
Study as we look for partners and financiers to develop this
project."
"At Pilot Mountain the emphasis is likely to be on scoping &
pre-feasibility studies, and we are engaging with industry partners
to participate in this process."
"At Kapunda we look towards the resource estimate for that
portion of the deposit amenable to in-situ recovery techniques, and
proof of concept activities which we hope will progressively yield
increasing confidence in this exciting project."
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 of
these deposits are in close proximity (three kilometres) to 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 and
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 www.thormining.com/projects.
A drill program was completed successfully during the quarter
with assays results announced on 6(th) October 2017.
At Good Hope, a 28-metre-wide zone of copper zinc and tungsten
mineralisation has been confirmed beneath shallow alluvial
cover.
Better than expected assay results for drill hole 17GHRC-02 mean
a potential 70 metre strike extension of the Good Hope lode to the
west.
Significant Assays:
-- 17GHRC01: 26.6m @ 0.21% WO(3) , 1.2% Zn, 1.0% Cu from 0.8 metres downhole
-- 17GHRC02: 12.2m @ 0.12% WO3 from 57.8m and 3m @ 0.37% WO(3) within 8.4m @ 0.59% Cu from 80.8m
At Desert Scheelite drill hole 17DSDD-02 intersected two
mineralised zones; the upper intersection represents a new second
lode previously identified by geophysical targeting prior to
drilling. The new second lode sits approximately 20 metres to the
hanging wall (north) of the existing Desert Scheelite lode and may
extend the entire strike length of the Desert Scheelite
resource.
The lower 17DSDD02 intersection represents a 60 metre down dip
extension to the existing Desert Scheelite lode. This down dip
extension could occur along the entire length of the resource.
Significant Assays:
-- 17DSDD02: 23.3m @ 0.21% WO(3) from 198m and 15.2m @0.25% WO(3) from 253.3m
MOLYHIL TUNGSTEN PROJECT - NT (100% Thor)
In January 2015, Thor announced an updated feasibility study for
its wholly-owned Molyhil tungsten project, demonstrating a project
NPV of A$67million (approximately GBP39million).
A full background on the project is available on the Thor Mining
website www.thormining.com/projects.
Subsequent to the end of the quarter (on 30 October 2017) Thor
announced substantially improved results from ore sorting compared
with prior testwork.
Results from this work have been reviewed internally, and the
Board expects that this testwork has the potential to allow a
materially increased portion of the Molyhil resource estimate which
is economic to recover.
The recent increases in tungsten prices has resulted in the
Company being encouraged by potential off-takers and financiers to
move toward enhancing feasibility and development. The Company is
considering its options, including the potential for joint venture,
offtake, or acquisition agreements, should there be sufficient
third-party interest.
KAPUNDA COPPER PROJECT - SA (Thor earning 45%)
On 1(st) August 2018 Thor announced an investment in a newly
incorporated private Australian company, Environmental Copper
Recovery SA Pty Ltd. ("ECR"), initially via convertible loan notes
of up to A$1.8 million, which will be used to fund field test work
and feasibility activities at Kapunda over the next 3 years. In
turn ECR has entered into an agreement to earn, in two stages, up
to 75% of the rights over metals which may be recovered via in-situ
recovery ("ISR") contained in the Kapunda deposit from Australian
listed company, Terramin Australia Limited ("Terramin" ASX:
"TZN").
ECR have advised a staged approach in the evaluation,
assessment, and permitting of Kapunda, with an initial milestone
being a mineral resource estimate on that portion of the deposit
amenable to ISR techniques, expected in the December quarter.
SPRING HILL GOLD PROJECT - NT (ROYALTY ENTITLEMENT)
In February 2017 Thor completed the A$3.5 million sale of its
Spring Hill Gold project(1).
The sale transaction carries an ongoing residual royalty 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.
Gold is currently trading for approximately A$1,660/oz, and has
remained above A$1,500 per ounce since completion of the project
sale.
(1)Refer ASX and AIM announcement of 29 February 2016
US Lithium Investment
On 14(th) June 2017, the Company announced the acquisition of a
25% interest in US Lithium Pty Ltd ("USL"), along with an option to
acquire the remaining 75% of USL, subject to satisfactory
completion of project due diligence.
During the quarter, Thor representatives visited each of the
Arizona project sites as part of the due diligence exercise
following the acquisition.
While field sampling results did not raise issues of concern,
recent positive developments in respect of the Company's core
business activities, have influenced the directors to pause in
regard to the opportunity with US Lithium and at this point have
chosen to not exercise the option to acquire the remainder of US
Lithium. This decision also avoids the need to issue a significant
number of Thor shares at, 0.9pence, which is now a substantial
discount to the current share price.
We also understand from US Lithium, that third party interest
has been shown in their business, and by standing aside, we will
allow this interest to be developed more proactively.
The directors' intention is to maintain Thor's current interest
in USL and assess related strategic Lithium opportunities for the
company as they arise.
Other opportunities
The Company has chosen to focus the thrust of its activities and
expenditure on work in relation to commercialisation of its
principal assets at Pilot Mountain, Molyhil and Kapunda.
Alongside this the Company has also become aware of additional
low cost opportunities to provide exposure to the Pilbara region,
which has recently seen considerable interest in ground prospective
for conglomerate hosted gold; and lithium.
The Company is currently assessing an opportunity in this region
and is conducting due diligence activities in this regard. If
successful the Company could have exposure to the Pilbara, on a low
cost basis, at an extremely important time for the region following
the discovery of conglomerate hosted gold and with the need for new
Lithium discoveries.
Competent Person's Report
The information in this report that relates to exploration
results, and exploration targets, is based on information compiled
by Richard Bradey, 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.
+Rule 5.5
Appendix 5B
Mining exploration entity and oil and gas exploration entity
quarterly report
Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97,
01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13, 01/09/16
Name of entity
----------------------------------------
THOR MINING PLC
----------------------------------------
ABN Quarter ended ("current
quarter")
------------ ------------------------
121 117 673 30 September 2017
------------ ------------------------
Consolidated statement Current quarter Year to date
of cash flows $A'000 (3 months)
$A'000
--------------------------------------- ---------------- -------------
1. Cash flows from operating
activities
Receipts (Spring Hill
1.1 Royalty) 8 8
1.2 Payments for
(a) exploration & evaluation (456) (456)
(b) development - -
(c) production - -
(d) staff costs (31) (31)
(e) administration
and corporate costs (297) (297)
1.3 Dividends received - -
(see note 3)
1.4 Interest received - -
1.5 Interest and other - -
costs of finance paid
1.6 Income taxes paid - -
1.7 Research and development - -
refunds
1.8 Other (provide details - -
if material)
---------------- -------------
Net cash from / (used
1.9 in) operating activities (776) (776)
----- -------------------------------- ---------------- -------------
2. Cash flows from investing
activities
2.1 Payments to acquire:
(a) property, plant
and equipment (11) (11)
(b) tenements (see - -
item 10)
(c) investments (276) (276)
(d) other non-current - -
assets
2.2 Proceeds from the disposal
of:
(a) property, plant
and equipment - -
(b) tenements (see - -
item 10) - -
commission paid on
proceeds
(c) investments - -
(d) other non-current - -
assets
2.3 Cash flows from loans - -
to other entities
2.4 Dividends received - -
(see note 3)
2.5 Other (security bonds) - -
---------------- -------------
Net cash from / (used
2.6 in) investing activities (287) (287)
------- ------------------------------ ---------------- -------------
3. Cash flows from financing
activities
Proceeds from issues
3.1 of shares 728 728
3.2 Proceeds from issue
of convertible notes
3.3 Proceeds from exercise
of share options
Transaction costs related
to issues of shares,
convertible notes or
3.4 options (31) (31)
3.5 Proceeds from borrowings - -
Repayment of borrowings
3.6 (finance lease) (2) (2)
3.7 Transaction costs related
to loans and borrowings
3.8 Dividends paid
3.9 Other - -
---------------- -------------
Net cash from / (used
3.10 in) financing activities 695 695
------- ------------------------------ ---------------- -------------
4. Net increase / (decrease)
in cash and cash equivalents
for the period
Cash and cash equivalents
4.1 at beginning of period 685 685
Net cash from / (used
in) operating activities
4.2 (item 1.9 above) (776) (776)
Net cash from / (used
in) investing activities
4.3 (item 2.6 above) (287) (287)
Net cash from / (used
in) financing activities
4.4 (item 3.10 above) 695 695
4.5 Effect of movement - -
in exchange rates on
cash held
---------------- -------------
Cash and cash equivalents
4.6 at end of period 317 317
------- ------------------------------ ---------------- -------------
5. Reconciliation of cash Current quarter Previous
and cash equivalents $A'000 quarter
at the end of the quarter $A'000
(as shown in the consolidated
statement of cash flows)
to the related items
in the accounts
---- ------------------------------- ---------------- ---------
5.1 Bank balances 317 685
5.2 Call deposits
5.3 Bank overdrafts
5.4 Other (provide details)
---------------- ---------
Cash and cash equivalents
at end of quarter (should
5.5 equal item 4.6 above) 317 685
---- ------------------------------- ---------------- ---------
6. Payments to directors of the entity Current quarter
and their associates $A'000
----------------
Aggregate amount of payments to
these parties included in item
6.1 1.2 101
----------------
6.2 Aggregate amount of cash flow -
from loans to these parties included
in item 2.3
----------------
6.3 Include below any explanation necessary
to understand the transactions included
in items 6.1 and 6.2
---- --------------------------------------------------------
7. Payments to related entities of Current quarter
the entity and their associates $A'000
----------------
7.1 Aggregate amount of payments to -
these parties included in item
1.2
----------------
7.2 Aggregate amount of cash flow -
from loans to these parties included
in item 2.3
----------------
7.3 Include below any explanation necessary
to understand the transactions included
in items 7.1 and 7.2
---- --------------------------------------------------------
8. Financing facilities Total facility Amount drawn
available amount at at quarter
Add notes as necessary quarter end end
for an understanding $A'000 $A'000
of the position
----------------- --------------
8.1 Loan facilities
----------------- --------------
8.2 Credit standby arrangements
----------------- --------------
8.3 Other (please specify) 50 50
----------------- --------------
8.4 Include below a description of each facility
above, including the lender, interest rate
and whether it is secured or unsecured.
If any additional facilities have been entered
into or are proposed to be entered into
after quarter end, include details of those
facilities as well.
----- ---------------------------------------------------------------------
A Director had previously advanced funds to
the Company on an unsecured and interest free
basis.
----------------------------------------------------------------------------
9. Estimated cash outflows $A'000
for next quarter
----- ------------------------------------ -------------------------------
9.1 Exploration and evaluation (338)
9.2 Development -
9.3 Production -
9.4 Staff costs (30)
Administration and corporate
9.5 costs (216)
Other (Acquisition of equity
9.6 investment) (100)
-------------------------------
9.7 Total estimated cash outflows (684)
----- ------------------------------------ -------------------------------
Cash inflows expected for the next quarter: The Company expects
to receive GBP235,789 on or by 3 November 2017 from a placing
announced on the ASX on 23 October 2017. In addition, a second
tranche of the placement GBP329,211 is subject to shareholder
approval on 29 November 2017.
10. Changes in Tenement Nature of interest Interest Interest
tenements reference at beginning at end
(items 2.1(b) and location of quarter of quarter
and 2.2(b)
above)
----- ---------------------- -------------- ------------------- -------------- ------------
10.1 Interests
in mining
tenements
and petroleum
tenements
lapsed, relinquished
or reduced
----- ---------------------- -------------- ------------------- -------------- ------------
Interests
in mining
tenements
and petroleum
tenements
acquired Exploration
10.2 or increased EL31443 lease 0% 100%
----- ---------------------- -------------- ------------------- -------------- ------------
1.1 Compliance statement
1 This statement has been prepared in accordance with accounting
standards and policies which comply with Listing Rule 19.11A.
2 This statement gives a true and fair view of the matters disclosed.
Sign here: ........ .................................................... Date: .......31 October 2017............
(Company secretary)
Print name: ..Ray Ridge.........................................
Notes
1. The quarterly report provides a basis for informing the
market how the entity's activities have been financed for the past
quarter and the effect on its cash position. An entity that wishes
to disclose additional information is encouraged to do so, in a
note or notes included in or attached to this report.
2. If this quarterly report has been prepared in accordance with
Australian Accounting Standards, the definitions in, and provisions
of, AASB 6: Exploration for and Evaluation of Mineral Resources and
AASB 107: Statement of Cash Flows apply to this report. If this
quarterly report has been prepared in accordance with other
accounting standards agreed by ASX pursuant to Listing Rule 19.11A,
the corresponding equivalent standards apply to this report.
3. Dividends received may be classified either as cash flows
from operating activities or cash flows from investing activities,
depending on the accounting policy of the entity.
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
Thor's website www.thormining.com, which includes a facility to
register to receive these updates by email, and on the Company's
twitter page @ThorMining.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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