TIDMTHR
RNS Number : 6960S
Thor Mining PLC
18 March 2021
18 March 2021
Thor Mining PLC
US URANIUM-VANADIUM PROJECT
Exploration Update
The Directors of Thor Mining PLC ("Thor" or the "Company") (AIM,
ASX: THR, OTCQB: THORF), the diversified resource company, are
pleased to report that three priority targets have been identified
for drilling at its 100% owned Wedding Bell and Radium Mountain
Project, located in the historic uranium-vanadium mining district
within the Uravan mineral belt, south west Colorado.
Highlights:
-- Project prospective for "Salt wash" type sandstone hosted
mineralisation within the high-grade uranium-vanadium Uravan
mineral belt.
-- Three priority target areas identified - Section 23,
Groundhog and Rim Rock.
-- Field sampling by Thor returned assay results of high-grade
uranium (up to 1.25% U(3) O(8) ) and vanadium (up to 3.47% V(2)
O(5) ) as announced on 21 July 2020.
-- Historic uranium-vanadium mining jurisdiction, within close
proximity to well-developed infrastructure.
-- Close to the White Mesa mill which has historically acted as
toll milling plant
-- Shallow depth of prospective uranium-vanadium fluvial
sandstone hosted uranium is conducive to testing with low-cost
reverse circulation ("RC") drilling.
-- We aim to quickly and inexpensively see if there is
mineralisation which may require further investigation
-- Drilling is scheduled to commence in May 2021, once
permitting is complete.
Mick Billing, Executive Chairman of Thor Mining, commented:
"With uranium prices at current levels, we are pleased to be in
a position to commence drilling at our Colorado uranium-vanadium
project once permitting is complete. Based on the historic mining
in the region and our due diligence, we are excited to be testing
this prospective area which is known to host high-grade uranium
deposits.
"In particular, Section 23 appears to have not been drill tested
by previous mining companies despite the geological setting which
appears very similar to that of the nearby historical high-grade
production areas, hopefully providing Thor with a potential
opportunity to make a significant new discovery.
"Thor is led by a management and technical team with proven
uranium credentials, working closely with our US team.
"We look forward to updating investors on the progress of this
project in due course."
PROJECT LOCATION AND HISTORY
The US Uranium-Vanadium Project comprising Vanadium King, Radium
Mountain, and the Wedding Bell group of claims, lies within the
110km long Uravan mineral belt extending across Colorado and Utah,
USA.
The Uravan mineral belt and adjacent uranium-vanadium mining
districts of the Colorado Plateau are reported to have produced,
over the past 100 years, in excess of 85million lbs U(3) O(8) and
over 660 million lbs of V(2) O(5) from the Salt Wash Sandstone
member of the Jurassic, Morrison Formation. The average production
grades from the Uravan mineral belt from the 1940s to January 1979
are reported be 0.25% U(3) O(8) and 1.29% V(2) O(5) (Thamm. et al.,
1981(b) ).
(b) www.osti.gov/servlets/purl/6512174
The Uravan mineral belt is a historic uranium-vanadium mining
jurisdiction, close to well-developed infrastructure. A processing
plant which has historically taken ore from the region on a toll
treatment basis is located near Blanding, Utah within relatively
close proximity to Thor's claims.
A map showing the project location and the nearby White Mesa
processing plant location is on the Thor website via the following
link:
www.thormining.com/sites/thormining/media/Maps/20-003-2-VKRMWB-Locn.jpg
PROJECT TENURE
On September 10, 2020, the Company advised it had completed the
acquisition of 100% of the shares in American Vanadium Pty Ltd, a
private Australian company, which in turn owns 100% each of the
shares in Colorado company, Standard Minerals INC ("Standard"), and
Utah company, Cisco Minerals INC ("Cisco").
https://www.thormining.com/sites/thormining/media/pdf/asx-announcements/20200910-us-uranium-and-vanadium-completion-of-acquisition.pdf
Colorado Claims
Standard holds 199 contiguous Bureau of Land Management ("BLM")
claims in south-west Colorado, and within the Uravan mineral belt.
The claims include the Wedding Bell and Radium Mountain groups of
mines which are reported to have operated during the First World
War and again in the second half of the 20(th) century (USGS
Professional paper 300(a) ). The Colorado Claims are Thor's initial
area of focus.
(a) https://pubs.er.usgs.gov/publication/pp300
A map showing the Colorado claims and areas of immediate
priority is on the Thor website via the following link:
www.thormining.com/sites/thormining/media/maps/21-003-1-us-uranium.jpg
Utah Claims
Cisco holds 100 BLM claims in south east Utah, approximately
40km north of the town of Moab. There is no evidence of historical
mining activities, however there is reporting of significant
uranium and vanadium mineralised body(ies) from drilling activities
by Hunt Oil, Mineral Division, in 1980 and 1981, reported by Terra
Ventures (TSX-V: TAS) in a report dated May 21, 2007.
https://www.thormining.com/sites/thormining/media/miscellaneous/terra-ventures-20070521.pdf
Thor Mining wishes to reiterate that the Hunt Oil estimate 1980
- 81 does not comply with either the JORC or NI 43-101 guidelines
for mineral resource reporting and is therefore not a valid
resource estimate. The Hunt Oil estimate does however provide
substantial indication of widespread uranium-vanadium
mineralisation in the Cisco mineral claims in a similar geological
setting to multiple deposits elsewhere in the region including the
previously mined Colorado mineral claims included in this
acquisition.
Available data to date of the Vanadium King (Utah) historical
drilling suggest that the drilling programs focussed upon
mineralisation in the upper Brushy Basin Member of the Jurassic
Morrison Formation. The deeper and normally higher-grade Salt Wash
Member remains substantially untested - a focus for future work by
Thor.
GEOLOGY AND MINERALISATION
The uranium-vanadium deposits hosted mainly in the Salt Wash
member of the Morrison Formation on the Colorado Plateau are
classified by the International Atomic Energy Agency (IAEA) as
"Saltwash type" sandstone hosted uranium deposits. They are
considered unique amongst the sandstone-hosted type of deposits in
that they are predominantly vanadium (V(2) O(5) ) with accessory
uranium (U(3) O(8) ). They occur as tabular bodies in reduced
sequences of highly oxidised, feldspar-rich sandstones that have
substantial fossilised plant material. High-grade uranium and
vanadium occur together, although vanadium has a much larger halo.
Based on production figures, the vanadium exceeds uranium in ratios
ranging from 3:1 to 10:1 with the ratio increasing southward;
averaging 5:1 in the Wedding Bell/Groundhog area.
Larger deposits are found in paleochannels (braided streams
formed in the Jurassic period) where accumulations of plant
material led to more reduced conditions being retained over time.
The Salt Wash member consists of interbedded fluvial sandstone and
floodplain-type mudstone. The Salt Wash member is gently folded
into a shallow dome meaning it is often close to surface or
exposed. The sandstone beds form cliffs or rims with the mudstone
units forming slopes. The upper most sandstone contains the
majority of the ore deposits.
Uranium occurs primarily as uraninite and coffinite, while
vanadium is mostly found in the mineral montroseite and vanadium
rich alumino-silicates. At surface, the yellow uranium-vanadate
carnotite is easily spotted.
The high-grade uranium orebodies can be traced following the
oxidation/reduction front (red to grey colours in the sandstone) to
define a deposit. The section through the Bitter Creek Mine shows
the stratabound nature of the deposit. The grade of the uranium
mineralisation may vary considerably over short distances (metres),
however at a larger scale (+100m and kilometres) the mineralisation
is persistent and predictable both laterally and along the
channel.
A diagram of showing Simple Stratigraphy of the Uravan Mineral
Belt highlighting the prospective Morrison Formation is on the Thor
website via the following link:
www.thormining.com/sites/thormining/media/maps/21-003-2-us-uranium.jpg
A photograph showing the Sandstone Outcrop at Ground Hog with
Thor sample (WR-001) value of 0.52% U O , and 1.63% V O is on the
Thor website via the following link:
www.thormining.com/sites/thormining/media/maps/wr-001-sample-site.jpg
DRILLING PROGRAM
High-grade assay results from due diligence work completed by
Thor, returning up to 1.25% U(3) O(8) and 3.47% V(2) O(5) , confirm
uranium and vanadium mineralisation within the Salt Wash Member of
the Morrison Formation, which is consistent and typical of the
historical production in the Wedding Bell and Radium Mountain areas
of the Uravan mineral belt.
Following this work, three priority areas within the Colorado
Project were highlighted for drill testing - Section 23, Rim Rock,
and Ground Hog. The drill program comprises 15 holes at an average
depth of 80-100m for a total meterage of 1500m. Due to the shallow
depth, low-cost RC drilling will be implemented. Drilling is
scheduled for April/May 2021, subject to permits and weather.
Historic literature describes four prominent sandstone layers in
the Salt Wash Member of the Morrison Formation in the Wedding Bell
group of mines area of the project claim blocks. The Wedding Bell
group of mines is said to occur in the third sandstone unit located
about 100m up from the base of the Salt Wash (estimated to be 125m
thick in this area). This target sandstone is reported to be 10 to
20m thick in the Wedding Bell area. The Rim Rock Mine can be
visually traced, from a distance, to be at this same third
sandstone level as the Wedding Bell group of mines. The vast bulk
of production of uranium in the project area has come from these
two mine groups. Therefore, the top quarter of the Salt Wash
Member, enclosing the third sandstone unit of the Salt Wash, is the
primary target of this proposed drilling program. Sedimentary units
in the project area strike northwest and dip 2 - 2.5 degrees to the
northeast, with mineralization trending east -west matching the
strike of the fluvial channels in the Salt Wash. This is oblique to
the north-south Uravan mineral belt trend.
Section 23 , in the southeast corner of the Wedding Bell claims
has been identified by Thor Mining and World Industrial Minerals
LLC (US Consulting team) as the highest priority drill target in
the Colorado Uranium-Vanadium Project. This area represents the
only large area in the claim block that has been precluded from
historic drilling and mine production with no evidence found to
indicate the area does not host a continuation of Salt Wash
uranium-vanadium mineralisation. Proposed drill holes for this area
are designed to target potential mineralisation in the third
sandstone unit that estimated to be within 30-40m depth,
stratigraphically, of the mapped contact with the upper Brushy
Basin Member of the Morrison Formation.
The Rim Rock Mine area represents the second priority drill
target. The proposed drill holes are designed to straddle the ESE
projection of the sampled Rim Rock Mine whose adit opening is
located to the west. The Rim Rock Mine was the largest
uranium-vanadium producer in the project area. When the adit area
was sampled, a laterally continuous layer of vanadium
mineralization was identified, including:
-- 0.89% U(3) O(8) and 1.68%V(2) O(5) - WR-004
-- 0.14 % U(3) 0(8) and 1.9% V(2) 0(5) - WR-017
-- 0.05% U(3) O(8) and 2.14% V(2) O(5) - WR0018
https://www.thormining.com/sites/thormining/media/pdf/asx-announcements/20200721-high-grade-uranium-assays.colorado-field-sampling.pdf
It is hoped that this same layer or a stratigraphically
equivalent layer of mineralisation can be intercepted by the
proposed drill holes. Vanadium layers, such as this one, relatively
low in uranium content (by the standards of historical uranium
mining in the Uravan District), were usually ignored by the
miners.
Drilling proposed at the Ground Hog Mine area is designed to
test for any lateral continuation of mineralisation parallel to the
east-west mineralization mined to the south.
MARKET OUTLOOK FOR URANIUM AND VANADIUM
Uranium
The spot price of uranium currently sits at US$27.30/lb of U O (
www.kitcometals.com/ ), although most uranium sales are conducted
contractually without reference to the spot price. Market
forecasters anticipate an accelerated rise in uranium prices in the
short to mid-term. This is based on ongoing annual supply deficits
and the rationalization of capacity by the major producers, along
with production cutbacks due to the COVID-19 pandemic.
In addition, the 'green wave' is impacting the uranium sector
with the world turning towards nuclear energy: to generate power in
safe, reliable, carbon-free nuclear reactors. There is an ever
increasing demand for clean baseload electricity while delivering
safe, reliable solutions to today's clear-air crisis.
The US is the world's biggest uranium consumer, importing
approximately 95% of its uranium, with nuclear reactors providing
approximately 30% of American baseload electricity needs, and
accounts for more than half of all carbon free power generation in
the USA. With President Biden's energy policy and the US re-signing
the Paris Agreement under which the country pledged to cut carbon
emissions by 26% over 2005 levels by 2025, nuclear energy, hence
uranium is forecast to be in significant short supply.
In the event of a geopolitial rift with China or Russia, it is
likely that America will focus on producion of uranium domestically
for its security of supply of carbon free electric power. The US
Congress has recognized this need and recently funded a program to
buy domestic uranium.
Thor are very encouraged by the recent bipartisan approval of
the Nuclear Infrastructure Act 2020 by the US Senate Committee on
Environment and Public Works (EPW).
https://www.epw.senate.gov/public/index.cfm/2020/12/committee-approves-nuclear-infrastructure-legislation-at-business-meeting
Key remarks by Senator Barrasso include:
"The American Nuclear Infrastructure Act will promote U.S.
international leadership, preserve America's nuclear fuel supply
chain, prevent more carbon emissions from entering our atmosphere,
and it will protect our economic, our energy, and our national
security.
"American uranium should fuel America's nuclear reactors.
"The American Nuclear Infrastructure Act establishes a national
uranium reserve.
"The reserve will ensure that America is not dependent on our
rivals for our nuclear fuel.
Vanadium
The price of vanadium currently sits at US$18.30/Kg of V O in
fused flake (metals.argusmedia.com/). Vanadium remains a
steel-driven market, however a key catalyst to watch out for is the
battery segment, as vanadium has high potential in energy storage.
Vanadium redox batteries (VRFBs) saw a regain of interest with low
vanadium prices. Any breakthrough could increase demand
significantly and contribute to a tighter market/prices in coming
years.
The information contained within this announcement is deemed to
constitute inside information as stipulated under the UK Market
Abuse Regulation. Upon the publication of this announcement, this
inside information is now considered to be in the public
domain.
- Ends -
For further information on the Company, please visit
www.thormining.com or contact the following:
Thor Mining PLC
Mick Billing, Executive Chairman Tel: +61 (8) 7324 1935
Ray Ridge, CFO / Company Secretary Tel: +61 (8) 7324 1935
WH Ireland Limited (Nominated Adviser Tel: +44 (0) 207 220
and Joint Broker) 1666
Jessica Cave / Darshan Patel
Jasper Berry (Corporate Broking)
SI Capital Limited (Joint Broker) Tel: +44 (0) 1483 413
500
Nick Emerson
Yellow Jersey (Financial PR) thor@yellowjerseypr.com
Sarah Hollins / Henry Wilkinson Tel: +44 (0) 20 3004
9512
Competent Person's Report
The information in this report that relates to exploration
results is based on information compiled by Nicole Galloway
Warland, who holds a BSc Applied geology (HONS) and who is a Member
of The Australian Institute of Geoscientists. Ms Galloway Warland
is an employee of Thor Mining PLC. She has sufficient experience
which is relevant to the style of mineralisation and type of
deposit under consideration and to the activity which she 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'. Nicole Galloway
Warland consents to the inclusion in the report of the matters
based on her information in the form and context in which it
appears.
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; OTCQB: THORF) is a diversified
resource company quoted on the AIM Market of the London Stock
Exchange, ASX in Australia and OTCQB Market in the United
States.
The Company is advancing its diversified portfolio of precious,
base, energy and strategic metal projects across USA and Australia.
Its focus is on progressing its copper, gold, uranium and vanadium
projects, while seeking investment/JV opportunities to develop its
tungsten assets.
Thor owns 100% of the Ragged Range Project, comprising 92 km(2)
of exploration licences with highly encouraging early stage gold
and nickel results in the Pilbara region of Western Australia, for
which drilling is planned in the first half of 2021.
At Alford East in South Australia, Thor is earning an 80%
interest in copper deposits considered amenable to extraction via
Insitu Recovery techniques (ISR). In January 2021, Thor announced
an Inferred Mineral Resource Estimate of 177,000 tonnes contained
copper & 71,000 oz gold(1).
Thor also holds a 30% interest in Australian copper development
company EnviroCopper Limited, 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 and the
Alford West copper project, both situated in South Australia and
both considered amenable to recovery by way of ISR.(2)(3)
Thor holds 100% interest in two private companies with mineral
claims in the US states of Colorado and Utah with historical
high-grade uranium and vanadium drilling and production
results.
Thor holds 100% of the advanced Molyhil tungsten project,
including indicated and inferred resources , in the Northern
Territory of Australia, which was awarded Major Project Status by
the Northern Territory government in July 2020.
Adjacent to Molyhil, at Bonya, Thor holds a 40% interest in
deposits of tungsten, copper, and vanadium, including Inferred
resource estimates for the Bonya copper deposit, and the White
Violet and Samarkand tungsten deposits.
Thor holds 100% of the Pilot Mountain tungsten project in
Nevada, USA which has a JORC 2012 Indicated and Inferred Resources
Estimate on 2 of the 4 known deposits.
Notes
(1)
www.thormining.com/sites/thormining/media/pdf/asx-announcements/20210127-maiden-copper.gold-estimate-alford-east-sa.pdf
(2)
www.thormining.com/sites/thormining/media/pdf/asx-announcements/20172018/20180212-asx-kapunda-resource.pdf
(3)
www.thormining.com/sites/thormining/media/aim-report/20190815-initial-copper-resource-estimate---moonta-project---rns---london-stock-exchange.pdf
(4)
www.thormining.com/sites/thormining/media/pdf/asx-announcements/20191011-molyhil-mineral-resource-estimate-enhanced.pdf
(5)
www.thormining.com/sites/thormining/media/pdf/asx-announcements/20200129-mineral-resource-estimates---bonya-tungsten--copper.pdf
www.thormining.com/sites/thormining/media/pdf/asx-announcements/20162017/20170522-tungsten-resource-increase.pdf
www.thormining.com/sites/thormining/media/pdf/asx-announcements/20182019/20181214-pilot-mountain-resource-update.pdf
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