TIDMTHR
RNS Number : 5475B
Thor Mining PLC
31 January 2020
31 January 2020
THOR MINING PLC
("THOR" OR THE "COMPANY")
QUARTERLY REPORT OCTOBER TO DECEMBER 2019
Highlights Outlook for March Quarter
2020
-------------------------------------------------------------------- -------------------------------------------------------------
COPPER
Kapunda, SA Australia
* Field pump test drilling. * Confirmatory assays from field pump test drilling.
* High tenor copper (preliminary) from pump test * Continue field pump studies.
drilling.
* Preparation for field recovery trial.
TUNGSTEN & MULTI COMMODITIES
Molyhil, NT Australia
* Marketing activities around potential project finance * Discussions with Australian government agencies
and off-take agreements for both tungsten and mandated to assist Australian critical minerals
molybdenum concentrates. projects.
* Significant upgrade Molyhil Mineral Resource * Continued discussions with potential Molyhil project
Estimate. financiers and off-take partners.
* Drilling success at Bonya results in maiden resource * Tungsten price has strengthened by more than 25%
estimates. since early September 2019.
Pilot Mountain, Nevada USA
* Commenced discussions with various US parties aimed * Continuing discussions with US parties to secure
at securing specific investment to progress this project investment.
project.
GOLD & OTHER COMMODITIES
* Ground reconnaissance survey over Pilbara tenements * Secure grant of Hamersley tenements
provided very encouraging gold, nickel & chromium
results.
* Follow-up ground reconnaissance work over areas of
gold, nickel, & chromium prospectivity.
* Execution of agreements with traditional owners of
Hamersley licences
CORPORATE & FINANCE
During the quarter, the Company advised of a two stage placing
of capital, to raise, before expenses, UKGBP510,000 (approximately
A$955,000).
The Company has had expressions of interest in acquiring the
Spring Hill gold royalty entitlement, and will advise the market
further with progress in due course.
The Company has, during and subsequent to the end of the
quarter, sold potion of its shares in Hawkstone Mining Limited.
Mr Mick Billing, Executive Chairman, commented:
"Challenging market conditions continue, however we continue to
focus on adding to its value through resource upgrade at Molyhil,
and also with the release of resource estimates at Bonya,
potentially adding significantly to the life of the project, and
also to the economic outcomes. We believe this will significantly
improve the production profile and economics of the Molyhil
project, and also increase the overall attractiveness of the
project to strategic investors and offtake partners. Discussions
with these parties are ongoing."
"In addition, recent renewed interest by the Australian and US
governments in critical minerals has resulted in increased support
for projects of this nature, and we hope to be able to take
advantage of this."
"Our ISR copper investments continue to show great promise with
positive initial pump flow test results, and drill assays due
shortly."
"Finally, the initial sampling program in our 100% owned Pilbara
project produced some outstanding initial results, and we look
forward to follow up work on these."
COPPER PROJECTS
KAPUNDA and MOONTA COPPER PROJECTS - SA
Thor holds a 25% equity interest in private Australian company,
EnviroCopper Limited ("ECL"), along with rights to acquire a
further 5% interest via investment of an additional A$0.4million.
In turn ECL 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"), and rights to 75% of Moonta copper project comprising
the northern portion of exploration licence EL5984 held by
Andromeda Metals Limited (ASX:ADN).
Information about EnviroCopper Limited and its projects can be
found on the EnviroCopper website:
https://www.envirocopper.com.au/
Kapunda
During 2018, the Australian Government Ministry for Science,
Jobs and Innovation announced an offer to ECR for research funding
of A$2,851,303, over a 30 month period, for the Kapunda In-Situ
Copper and Gold Recovery Trial.
During the June 2019 quarter the Company advised of successful
gold recovery from Kapunda core, in addition to copper recovery,
using a CSIRO developed thiosulphate product, instead of, the more
normal, cyanide.
Field pump tests of the flow of fluids through the deposit for
successful ISR activities were conducted during the quarter. The
program involved drilling three holes, in the southern portion of
the deposit, with tests to measure connectivity, porosity and
permeability then conducted. These tests are continuing, however
interim results show good potential connectivity, and good interim
copper values via portable X-Ray Fluorescence (XRF) determination,
with (to be confirmed by laboratory assay) values of:
-- KPFRT01 intersected 66 metres @ 0.27% Cu including 5m @ 0.72%
Cu and 11 metres @ 0.54% Cu (Pilot Hole);
-- KPFRT02 intersected from 8m 23m @ 0.49% Cu to end of hole
-- KPFRT03 intersected from 22m, 6m @ 0.47% Cu to end of
hole.
The geochemical analysis results may vary from those obtained
from XRF, and these are expected shortly, to confirm copper values,
and the presence of any measurable gold. The released results can
be accessed via the following link:
https://www.thormining.com/sites/thormining/media/pdf/asx-announcements/20191127-preliminary-drilling-results-at-kapunda-project.pdf
Other near-term activities at Kapunda include continued
community liaison in respect of project activities, testwork on
historical drill core to determine the optimum extraction agent
(lixiviant) most suited to the Kapunda deposit and establishing
appropriate parameters for future field trials.
Moonta
During the September quarter the Company advised that Enviro
Copper Limited, on behalf of Environmental Metals Recovery, had
completed a Mineral Resource Estimate (MRE) on several of the
deposits at Moonta, based on substantial historical drilling. The
results of this study was an Inferred Resource estimate of 66.1
million tonnes (MT) grading 0.17% copper (Cu), containing 114,000
tonnes of contained copper, at a cutoff grade of 0.05%Cu.
The full details of the resource announcement may be accessed
via the following link:
https://www.asx.com.au/asxpdf/20190815/pdf/447hw9dbbkg94b.pdf
TUNGSTEN PROJECTS
Tungsten and Molybdenum Price Trends
Tungsten prices recovered during the early part of the December
quarter and have held those gains into January 2020. There is an
expectation of a further upward movement in the March 2020 quarter,
after the traditional Chinese New Year slowdown, and any downward
pressure from the Chinese Coronavirus had not translated into
negative price movements to date.
At the date of this report, the price of tungsten, per mtu of
APT (Ammonium Para Tungstate) sits between US$230/mtu and
US$240/mtu, while the molybdenum price sits at US$10.30/lb.
Industry discussion continues to forecast tight supply
conditions for tungsten concentrates and downstream products, with
dominant supplier, China, enforcing improved environmental
standards, and restricting the issue of new mine production
licences. This implies a recovery in tungsten pricing in the near
term. In addition, industry expectations are that molybdenum will
be subject to supply constraints for several years.
MOLYHIL TUNGSTEN PROJECT - NT (100% Thor)
During the quarter, Thor continued discussions with various
potential partners who have expressed interest, in either off-take,
joint venture or debt finance arrangements. It is hoped that, on
the back of improved tungsten prices, and the release of resource
estimates at the nearby Bonya deposits, a favourable arrangement
can be finalised in the near term.
Adjacent to Molyhil, the Bonya tenements, in which Thor holds a
40% interest, host outcropping tungsten deposits, a copper resource
and a vanadium deposit.
During the quarter, a reverse circulation (RC) drilling program
was conducted at Bonya, generating sufficient assay information for
maiden mineral resource estimates on the White Violet and Samarkand
tungsten deposits.
A full background on the project is available on the Thor Mining
website www.thormining.com/projects.
During the quarter, on 10 October 2019, the Company reported an
updated Mineral resource estimate for the Molyhil deposit
comprising Indicated and Inferred Mineral Resources of 4.7 million
tonnes at 0.28% WO (Tungsten trioxide), 0.14% Mo (Molybdenum),
0.05% Cu (Copper), and 18.0% Fe (Iron) above a cut-off grade of
0.12% WO(3) equivalent.
The revised resource estimate increased contained WO by 1.5% ,
and contained Mo by 9.3% compared with the previous estimate, and
includes copper, which had not previously been reported since
2006.
An update to the Open Cut Ore Reserve, and the Definitive
feasibility Study (DFS) has not been commissioned at this stage,
however the directors may elect to revisit these with any
improvement in the Bonya deposits resources classification beyond
Inferred status.
Table A: Molyhil Summary JORC (2012) Mineral Resource Estimate -
Reported 10 October, 2019
Classification '000 WO(3) Mo Cu Fe
Tonnes
--------
Grade Tonnes Grade Tonnes Grade Tonnes Grade
% % % %
---------------- -------- ----- ------ ----- ------- ----- ------ ------
Indicated 3,780 0.29 11,000 0.14 5,400 0.05 1,800 18.7
Inferred 930 0.25 2,300 0.15 1,400 0.04 300 15.2
-------- ----- ------ ----- ------- ----- ------ ------
Total 4,710 0.28 13,300 0.14 6,800 0.05 2,200 18.0
-------- ----- ------ ----- ------- ----- ------ ------
Notes:
-- Thor Mining PLC holds 100% equity interest in this
project.
-- The Mineral Resource is reported at 0.12% WO(3) equivalent
cut-off and above 200mRL only on a dry, in-situ basis
-- The Company is not aware of any information or data which
would materially affect the Mineral Resource, and all assumptions
and key technical parameters relevant to the previous estimate
remain unchanged.
Details of the resource announcement may be accessed via the
following link:
https://www.asx.com.au/asxpdf/20191011/pdf/449d2szw7y7hzy.pdf
While the Molyhil project is still largely a tungsten asset, it
is increasingly developing as a polymetallic project, with
projected revenues from Molyhil molybdenum production providing an
additional approximately 50% to tungsten revenue, at current market
pricing, and with now the likelihood of, quite valuable, additional
credits from sale of copper concentrates from both Molyhil and also
from the nearby Bonya deposits.
The Company has approaches in with several Australian
Commonwealth government agencies each of which are mandated to
assist companies with projects to develop and produce critical
minerals, which includes tungsten. These agencies include; Export
Finance Australia, Defence Export Facility, Critical Minerals
Facilitation Office and the North Australian Infrastructure
Facility. Further announcements will be made as appropriate.
Bonya (Tungsten, Copper, Vanadium) (40% Thor)
During the quarter, a follow up RC drilling program targeting an
estimation of Mineral Resources for the White Violet and Samarkand
deposits was carried out successfully intersecting high grade
tungsten mineralisation along with some very useful copper grades.
The program was funded by the JV participants in proportion to
their respective equity.
Results from this program have been released and can be accessed
via the following link:
https://www.thormining.com/sites/thormining/media/pdf/asx-announcements/20200109-bonya---high-grade-tungsten--copper-assays.pdf
This program generated additional supporting information, and
extension, to the results of the first drill Bonya drill program
(announced 24 June 2019) and allowed the preparation of a maiden
resource estimate for the White Violet and Samarkand deposits on 29
January 2020.
https://www.thormining.com/sites/thormining/media/pdf/asx-announcements/20200129-mineral-resource-estimates---bonya-tungsten--copper.pdf
The updated Mineral Resource Inventory for Bonya licence to date
is shown in Table B and Table C below:
Table B: Bonya Tungsten Mineral Resources (announced 29 January
2020)
Oxidation Tonnes WO(3) Cu
% Tonnes % Tonnes
White Violet Inferred Oxide 25,000 0.41 90 0.16 40
Fresh 470,000 0.21 980 0.06 260
Sub Total 495,000 0.22 1,070 0.06 300
Samarkand Inferred Oxide 25,000 0.11 30 0.07 20
Fresh 220,000 0.20 430 0.13 290
Sub Total 245,000 0.19 460 0.13 310
Combined Inferred Oxide 50,000 0.26 120 0.14 60
Fresh 690,000 0.21 1,410 0.08 550
Total 740,000 0.21 1,530 0.09 610
-------------------------- ----------- -------- ----- ------- ----- -------
Notes:
-- 0.05% WO(3) cut-off grade.
-- Totals may differ from the addition of columns due to rounding.
-- Thor Mining PLC holds 40% equity interest in this project.
-- The Company is not aware of any information or data which
would materially affect this previously announced resource
estimate, and all assumptions and technical parameters relevant to
the estimate remain unchanged.
Table C: Bonya Copper Mineral Resources (announced 26 November
2018)
Oxidation Tonnes Cu
% Tonnes
Inferred Oxide 25,000 1.0 200
Fresh 210,000 2.0 4,400
Total 230,000 2.0 4,600
----------------------- -------- ---- -------
Notes:
-- 0.2% Cu cut-off grade.
-- Totals may differ from the addition of columns due to rounding.
-- Thor Mining PLC holds 40% equity interest in this project
-- The Company is not aware of any information or data which
would materially affect this previously announced resource
estimate, and all assumptions and technical parameters relevant to
the estimate remain unchanged.
Vanadium
During the quarter, Thor and Arafura Resources, released details
of a study outlining the potential of the Jervois Vanadium Project,
along with a proposed development plan. The study details can be
accessed via the following link:
https://www.asx.com.au/asxpdf/20190703/pdf/446bv386tvk7fh.pdf
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.
A full background on the project is available on the Thor Mining
website www.thormining.com/projects.
The directors believe Pilot Mountain's resource is substantial
on a global scale, and has potential for significant growth, in
particular from the discovery in the August 2017 drilling program
of an additional parallel zone of scheelite mineralisation at the
Desert Scheelite deposit (Figure 6.).
The directors believe that the Desert Scheelite resource, which
outcrops at surface at the western end for more than 400 metres,
has potential to develop into a long term open pit mining operation
which, when supplemented by higher grade mineralisation from the
other deposits at Pilot Mountain, has the potential for a longer
term profitable operation.
This significant tungsten resource is strategically located in
the USA and tungsten has been confirmed by the US Department of the
Interior as a critical mineral in 2018.
Locked cycle testwork on material from the Desert Scheelite
deposit, was completed during the June quarter, resulting in
production of a high grade scheelite concentrate grading 68% WO
with recovery of 73.6%.
Environmental study parameters are being established with
relevant agencies, and Infrastructure studies have also
commenced.
During the quarter, two directors attended a mining investment
event in New York USA, partly aimed at inviting investment interest
in the Pilot Mountain project. A number of contacts have been made
& follow up discussions with several are in progress.
OTHER PROJECTS
During the March 2019 quarter the Company advised of an
agreement to acquire two private Australian companies (Hamersley
Metals Pty Ltd, and Pilbara Gold Pty Ltd) with licences and
applications in areas prospective for gold and uranium in Western
Australia and the Northern Territory.
During the quarter, a field reconnaissance program incorporating
soil and stream sediment sampling was conducted, on the Pilbara
Gold licences, with very positive outcomes announced on 16 January
2020.
The results showed mineralisation in 17 of the 44 sites sampled.
Of the mineralised samples, 15 contained gold, and two encountered
nickel and chromium. The released results can be accessed via the
following link:
https://www.thormining.com/sites/thormining/media/pdf/asx-announcements/20200117-asx-pilbara-gold-reconn-assays.pdf
The principle focus of the stream sediment survey was the
preliminary evaluation of the gold potential, and this appears to
have been very successful. The encouraging nickel and chrome
results achieved in the western part of E46/1262 were not expected.
A subsequent literature search specific to the nickel potential on
the tenement has highlighted the presence of a north south trending
gossan with anomalous nickel (1018 ppm) previously mapped by the WA
geological survey over a 1km strike length. The gossan occurs
approximately 2km south east and in the same ultramafic unit as the
recent positive stream sediment results. Because the gossan was not
identified before the recent stream sediment survey, that gossan
will not have been tested.
The Company now has a strong nickel target, as well as several
very promising gold targets, for follow up field evaluation during
the course of 2020.
During the quarter the Company also executed agreements with
traditional owners in respect of several of the Hamersley Metals
licence applications, thus enabling the grant of those licences -
expected shortly.
GOLD PROJECTS
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.
(1)Refer AIM announcement of 26 February 2016 and ASX
announcement of 29 February 2016
No royalties were received during the quarter, however the
owners of the Spring Hill project have advised that they are
progressing mine permitting, and also that the treatment plant for
toll processing the ore has been refurbished. They are hopeful of
commencement of operations in the near term.
The Company has engaged with several royalty companies who have
expressed interest in acquiring this royalty entitlement from Thor.
Due diligence is in progress, and we been advised by one party that
an indicative offer for the royalty will be made shortly.
INVESTMENTS
Thor holds an investment in Hawkstone Mining Limited, an ASX
listed company (ASX: HWK) with a 100% Interest in the Big Sandy
Lithium project in Arizona, USA.
During, and subsequent to the end of, the quarter the Company
has sold portion of this interest on market.
At the time of writing, Thor held just over 5.1 million
Hawkstone shares which were trading, prior to entering into a
trading halt on ASX, @ A$0.008/share.
Information about Hawkstone and its Big Sandy project can be
found at Hawkstone's website, http://hawkstonemining.com.au/.
CORPORATE AND FINANCE
During the quarter, the Company completed a two stage placing of
capital. To raise, before expenses, UKGBP510,000 (approximately
A$955,000).
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.
Enquiries:
Mick Billing +61 (8) 7324 Thor Mining PLC Executive Chairman
1935
Ray Ridge +61 (8) 7324 Thor Mining PLC CFO/Company Secretary
1935
Colin Aaronson/ +44 (0) 207 383 Grant Thornton Nominated Adviser
Richard Tonthat/ Ben 5100 UK LLP
Roberts
Nick Emerson +44 (0) 1483 SI Capital Ltd Joint Broker
Claire Louise Noyce 413 500 Hybridan LLP Joint Broker
/ +44 (0) 203 764
John Beresford-Peirse 2341
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.
About Thor Mining PLC
Thor Mining PLC (AIM, ASX: THR) 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 August 2018(1) suggested attractive returns.
Adjacent Molyhil, at Bonya, Thor holds a 40% interest in
deposits of tungsten, copper, and vanadium, including an Inferred
resource for the Bonya copper deposit(2).
Thor also holds 100% of the Pilot Mountain tungsten project in
Nevada USA which has a JORC 2012 Indicated and Inferred Resources
Estimate(3) on 2 of the 4 known deposits. The US Department of the
Interior has confirmed that tungsten, the primary resource mineral
at Pilot Mountain, has been included in the final list of Critical
Minerals 2018.
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 resource on the portion of the historic
Kapunda copper mine in South Australia recoverable by way of in
situ recovery.
Thor has an interest in Hawkstone Mining Limited, an Australian
ASX listed company with a 100% Interest in a Lithium project in
Arizona, USA.
Finally, Thor also holds a production royalty entitlement from
the Spring Hill Gold project 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 23 August 2018
(2) Refer ASX and AIM announcement of 26 November 2018
(3) Refer AIM announcement of 13 December 2018 and ASX
announcement of 14 December 2018
Refer AIM announcement of 10 February 2016 and ASX announcement
of 12 February 2018
Refer AIM announcement of 26 February 2016 and ASX announcement
of 29 February 2016
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END
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