TIDMTHX
RNS Number : 3437W
Thor Explorations Ltd
17 April 2023
NEWS RELEASE
NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR
DISTRIBUTION TO U.S. WIRE SERVICES
April 17, 2023 TSXV/AIM: THX
This Announcement contains inside information as defined in
Article 7 of the Market Abuse Regulation No. 596/2014 ("MAR"). Upon
the publication of this Announcement, this inside information is
now considered to be in the public domain.
THOR EXPLORATIONS ANNOUNCES Q1 2023 OPERATING UPDATE
Thor Explorations Ltd. (TSXV / AIM: THX) ("Thor Explorations" or
the "Company") is pleased to provide an operational update for the
Segilola Gold mine, located in Nigeria ("Segilola"), and for the
Company's mineral exploration properties located in Nigeria,
Senegal and Burkina Faso for the three months to March 31, 2023
(the "Quarter" or "Q1").
Highlights
Segilola Production
-- Gold production of 20,629 ounces ("oz") during the Quarter at
an average grade of 2.95 grammes per tonne ("g/t") of gold
("Au")
Segilola Near-Mine Exploration
-- Identification of new high grade quartz vein system within
15km of Segilola, with multiple high grade drillhole intercepts
including 1m at 310 g/t Au which equates to 10 ounces of gold per
tonne
Douta Exploration
-- Mineral Resource Estimate ("Douta Resource") updated to
approximately 1.78 million ounces ("Moz") of gold, an increase of
144% in total resource as compared with the 2022 maiden mineral
resource estimate declared for Douta in November 2021
-- Douta Resource constrained within optimised pit shells and comprised of:
o an initial Indicated Mineral Resource of 20.2 million tonnes
("Mt") grading 1.3 g/t Au for 874,900 oz Au; and
o Inferred Mineral Resource of 24.1 Mt grading 1.2 g/t Au for
909,400 oz Au
-- Douta Resource supported by a total of 64,567 metres of drilling
-- Updated Douta Resource encompasses the Makosa, Makosa Tail
and the recently discovered Sambara prospects, all of which remain
open along strike and down dip
-- Drilling is ongoing at Douta with a further 40,000 metre
drilling programme to be completed in 2023 consisting of diamond
drilling and reverse circulation drilling. Mineralisation remains
open along strike between the known prospects with further growth
potential along 20 kilometres of under-explored prospective strike
length covered by the Douta exploration permit
Corporate
-- Senior debt facility with Africa Finance Corporation ("AFC")
amended and restated to facilitate the Company's growth
opportunities
-- Senior debt facility reduced to $27.9 million as at 31 March 2023
Outlook
-- FY 2023 production guidance range remains at 85,000 to 95,000
oz of gold weighted towards the second half of the year
-- H1 2023 drilling programs:
o Resumption of drilling at Segilola aimed at increasing
resources for potential future transition to underground operation
and mine life extension
o Step-out drilling at Douta project in Senegal, aimed at
further increasing existing resource
o Continuation of drilling at Segilola regional targets
o Initial program at the Company's new Malete prospect
-- Completion of the Douta preliminary feasibility study ("PFS") in Q4 2023
-- Applications for and acquisition of identified prospective
exploration properties in Nigeria
-- Continued exploration programs across exploration portfolio in Nigeria
Segun Lawson, President & CEO, stated :
"I am pleased to report another quarter of solid production at
Segilola for Q1 2023. The planned west wall push-back is
progressing and we are well positioned for an increase in gold
production following its completion late in Q2 2023 as the mine
head grade improves over the next 3-6 months.
"The 2023 Mineral Resource Estimate at Douta has more than
doubled the contained gold within the Douta permit to over 1.7
million ounces, with the Indicated Resource component of the
resource alone exceeding 870,000 oz of gold. This is an excellent
result and we're targeting further growth of the total resource as
we proceed with a further 40,000 metres of drilling over the course
of the year.
"Exploration is continuing on a number of greenfield
opportunities in Nigeria which are delivering encouraging results
as highlighted by our recent ten oz per ton drillhole intersection
near Segilola. We have also continued to evaluate potential
opportunities to leverage our technical capabilities and first
mover advantage in Nigeria and I look forward to presenting our
progress in this respect in Q2 2023."
Production and Sales update
In Q1 2023, mined and processed ore were 198,425 tonnes and
231,001 tonnes respectively. The average mine head grade was 2.85
g/t and processed grade 2.95 g/t, blended from mining and existing
stockpile.
Gold production during the Quarter was approximately 5% lower
than planned due to lower production drilling rates as a result of
more challenging ground conditions (large boulders) at the upper
levels of the western push-back. Approximately 25% of total
material mined and 31% of mined ore during the Quarter was from
lower grade areas which were originally planned to be mined later
in the year. Mining of this area has now been mostly completed and
the deficit is expected to be recovered later in the year as
operations re-align with the 2023 mine plan.
At the end of the Quarter, an additional two production drilling
rigs and fourteen new haul trucks were imported by the mining
contractor in order to prepare for the planned step-up in
production over the next 12 months. The drilling rigs have been
commissioned and are now in operation and the haul trucks have been
released from Lagos port and are en-route to site.
Process plant operations were impacted by the lower than planned
mine head grade. Recoveries are generally correlated to mill feed
grade and consequently, recovery reduced to 94.1% for the
Quarter.
The process plant throughput continued to be well above design
during the Quarter. A modification of the CIP circuit to CIL is
currently being implemented in order to increase the residence time
for carbon adsorption and the existing agitators are to be replaced
with a larger model in order to improve circulation in the tanks.
These enhancements are due to be completed in Q4 2023 and are aimed
at further improving process plant recoveries.
Ore stockpile of 270,215 tonnes of ore grading 1.14 g/t
containing approximately 9,931 oz compared to Q4 2022 of 300,531
tonnes of ore grading 1.48 g/t containing approximately 14,323
oz.
Gold in-circuit of approximately 1,643 oz compared to Q4 2022 of
1,031 oz.
During the Quarter, Segilola exported 21,322 oz of payable gold
and 1,989 oz of payable silver.
Units Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022
Mining
---------------- -------- ---------- ---------- ---------- ---------- ----------
Total Mined Tonnes 4,194,689 4,296,494 4,018,431 4,031,584 3,759,524
Waste Mined Tonnes 3,996,264 3,974,073 3,793,249 3,747,504 3,533,610
Ore Mined Tonnes 198,425 322,421 225,182 284,079 226,314
Grade g/t Au 2.85 3.51 4.43 3.63 2.68
Processing
---------------- -------- ---------- ---------- ---------- ---------- ----------
Ore Processed Tonnes 231,001 254,824 241,434 211,582 221,900
Grade g/t Au 2.95 3.38 3.58 3.66 3.18
Recovery % 94.1 95.0 95.5 95.5 94.1
Gold Recovered oz 20,629 26,331 26,523 23,785 21,343
Further details can be found on the Company's website:
www.thorexpl.com
About Thor Explorations
Thor Explorations Ltd. is a mineral exploration company engaged
in the acquisition, exploration, development and production of
mineral properties located in Nigeria, Senegal and Burkina Faso.
Thor Explorations holds a 100% interest in the Segilola Gold
Project located in Osun State, Nigeria and has a 70% economic
interest in the Douta Gold Project located in south-eastern
Senegal. Thor Explorations trades on AIM and the TSX Venture
Exchange under the symbol "THX".
THOR EXPLORATIONS LTD.
Segun Lawson
President & CEO
For further information please contact:
Thor Explorations Ltd
Email: info@thorexpl.com
Canaccord Genuity (Nominated Adviser & Broker)
Henry Fitzgerald-O'Connor / James Asensio / Thomas Diehl
Tel: +44 (0) 20 7523 8000
Hannam & Partners (Broker)
Andrew Chubb / Matt Hasson / Jay Ashfield / Franck Nganou
Tel: +44 (0) 20 7907 8500
Fig House Communications (Investor Relations)
Tel: +1 416 822 6483
Email: investor.relations@thorexpl.com
Ibu Lawson (Investor Relations)
Tel: +447909825446
Email: ibu.lawson@thorexpl.com
BlytheRay (Financial PR)
Tim Blythe / Megan Ray / Said Izagaren
Tel: +44 207 138 3203
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