TIDMTHR
RNS Number : 4200K
Thor Mining PLC
07 July 2017
7 July 2017
THOR MINING PLC
STRATEGIC OUTLOOK UPDATE
The Board of Thor Mining Plc ("Thor" or the "Company") (AIM,
ASX: THR), is pleased to provide an update on the Company's outlook
and strategic priorities for the second half of 2017.
Review of First Half 2017:
During the first half of the calendar year, Thor made
significant advances both operationally and financially. Key
highlights from the first half include:
-- Pilot Mountain tungsten drilling - a successful drilling
program completed in early March delivered a 55% increase in the
resource inventory;
-- Dundas gold drilling - drilling program has been completed, with assays due shortly;
-- Spring Hill gold sale completion - A$1.5million received in
February, significantly strengthening the Company's balance sheet,
and a royalty stream is expected from the Spring Hill project in
the medium term.
-- New Projects - June announcement of entry in a Lithium
exploration company with projects in Arizona and New Mexico,
USA.
Outlook and Strategic Priorities for Second Half 2017:
The second half of the calendar year is expected to be equally
eventful with an exciting new drill program scheduled for Pilot
Mountain, and the potential acquisition of the residual 75% of US
Lithium Pty Limited. Key highlights include:
-- Pilot Mountain, Tungsten - drill program scheduled for early
August to test the Good Hope deposit, and also some deeper drilling
at Desert Scheelite;
-- Dundas, Gold - drill assays expected shortly with follow up
work dependent upon assay outcomes;
-- Big Sandy, Lithium - following the completion of due
diligence, should Thor exercise its option to acquire the residual
75% of US Lithium Pty Limited, as is expected, an exploration
program will be developed;
-- New projects - the Company continues to assess a range of
opportunities with a particular focus on copper projects, and we
hope to be in a position to advise investors of developments
shortly.
Mick Billing, Executive Chairman of Thor: "We are very pleased
to have delivered on all forecasted activities for the first half
of the year, and the second half, which, following the completion
of the conditional placing, will be fully funded, looks equally
exciting.
"The Pilot Mountain drilling program at Good Hope and Desert
Scheelite, to commence in August, demonstrates our strong belief
that Pilot Mountain will become a very significant multi commodity
deposit.
"The new exploration licence adjacent Molyhil could deliver
additional mineralisation to add critical mass to Molyhil and we
look forward to developing exploration plans for this.
"Our business development efforts have led us to a very
attractive lithium opportunity. We continue with a particular focus
on several attractive copper deposits and we look to providing
advice on these assessments at the first appropriate
opportunity"
Pilot Mountain Tungsten 2017 Program
-- Two diamond drill holes at Desert Scheelite, aimed at
extending the 5.7% copper ("Cu") equivalent at depth
-- Up to four RC drill holes at the Good Hope deposit to follow
up on historical high grade intersections including 36.5 m @ 0.4%
WO , 0.25% Cu, and 0.47% Zn.
-- Depending upon outcomes of this next program, further drilling will be scheduled.
Thor's Pilot Mountain Project is located approximately 200
kilometres ("km") south of the city of Reno and 20km east of the
town of Mina located on US Highway 95.
The Pilot Mountain Project comprises four tungsten deposits:
Desert Scheelite, Gunmetal, Garnet and Good Hope. All are in close
proximity (three kms) to each other and have been subjected to
small-scale mining activities at various times during the 20th
century. Union Carbide acquired the project in 1978, for US$7.0
million (estimated at US$26million - US$40million in 2017 dollars),
and conducted detailed exploration and feasibility activities
until, following a global downturn in the tungsten industry in the
1980s, they suspended further work.
Link to Figure 1: Desert Scheelite drill intersections viewed in
long section looking northwards.
http://www.rns-pdf.londonstockexchange.com/rns/4200K_-2017-7-7.pdf
A drill program in 2012 at Desert Scheelite facilitated the
estimate and publication of a resource estimate for that deposit,
shown in Table1. Importantly, the final hole of the program
intersected 17.5 metres @ 1.80% Copper (Cu) plus 2.2% Zinc (Zn) and
32 g/t Silver (Ag), along with 13.5metres of 0.89% tungsten
trioxide (WO ). At current commodity prices (US$2.66/lb Cu,
US$1.26/lb Zn, US$16.80/oz Ag, and US$220/mtu WO ) this delivers an
equivalent copper grade of 5.7%.
Good Hope comprises a small inlier (window) of mineralised skarn
exposed within an area overlain by younger volcanic rock. The area
has been worked to some extent with small scale exploratory shafts,
plus trenches & adits but little systematic exploration of
basement below the volcanic cover is apparent.
Exposed mineralisation in the exploration trenches and the
vertical extent of mineralisation in RDH-2 (highlighted in bold
Figure. 2) indicate Good Hope mineralisation is likely to be
steeply dipping and similar to the Desert Scheelite deposit rather
than the flat lying mineralisation to the west.
Link to Figure 2: Cross section through the Good Hope prospect
showing RGH-02 intersection. No assays exist for GH-05 in the
historic database.
http://www.rns-pdf.londonstockexchange.com/rns/4200K_-2017-7-7.pdf
Table 1: Pilot Mountain Resource Summary 2017 (JORC 2012) - 100%
owned by Thor Mining Plc. Announced May21 2017
Resource WO(3) Ag Cu
MT Grade Contained Grade Contained Grade Contained
% metal g/t metal % metal
(t) (t) (t)
------------ ----------- ------ ----- ---------- ------ --------- ------ ---------
Garnet Indicated - -
Inferred 1.83 0.36 6,590
------------------------ ------ ----- ---------- ------ --------- ------ ---------
Sub
Total 1.83 0.36 6,590
------------------------ ------ ----- ---------- ------ --------- ------ ---------
Desert
Scheelite Indicated 8.41 0.27 22,700 21.3 179 0.14 11,800
Inferred 1.49 0.23 3,430 9.07 13 0.17 2,500
------------------------ ------ ----- ---------- ------ --------- ------ ---------
Sub
Total 9.90 0.26 26,130 19.39 192 0.14 14,300
------------------------ ------ ----- ---------- ------ --------- ------ ---------
Summary Indicated 8.41 0.27 22,690
Inferred 3.32 0.30 10,020
------------------------ ------ ----- ---------- ------ --------- ------ ---------
Pilot Mountain
Total 11.73 0.28 32,720
------------------------- ------ ----- ---------- ------ --------- ------ ---------
Note: All figures are rounded to reflect appropriate levels of
confidence. Apparent differences may occur due to rounding.
In addition to the Resource Estimate, Exploration Targets
(summarised in Table 2) have been determined. Even partial success
in the conversion of these targets will add significantly to the
project value.
Table 2: Summary of Pilot Mountain exploration
targets
-------------------------------------------------------------------
Tonnage % WO(3) Comment
(Mt)
------------------- -------- -------- --------------------------
Tier 1 Exploration 6.0 - 0.3 Based on historic
Targets* 10.5 - 0.5 drill intersections
------------------- -------- -------- --------------------------
Tier 2 Exploration 3.5 - 0.2 Based on favourable
Targets* 9.1 - 0.4 geology and proximity
to known mineralisation.
------------------- -------- -------- --------------------------
Total Exploration 9.5 - 0.2 Combined Tier 1
Target* 19.6 - 0.5 & 2
------------------- -------- -------- --------------------------
Tier 1 Exploration Targets* at Pilot Mountain are based on 1970s
drilling undertaken by Union Carbide Corporation and total 6.0 to
10.5 Mt at 0.2 to 0.4% WO(3) (Table 2).
*Exploration Targets are conceptual in nature and there has been
insufficient exploration to define a Mineral Resource under the
JORC Code and it is uncertain if further exploration will result in
the determination of a Mineral Resource.
Dundas Gold 2017 Program
-- A 50 hole air core drilling program was completed on the
identified gold targets during June 2017.
-- Depending upon assay outcomes, follow up drilling will be scheduled later in 2017.
The Dundas gold project is located approximately 100km
east-south-east of Norseman in Western Australia. The project is in
close proximity to the sealed arterial Eyre Highway, providing
all-weather access to the project area. It is also approximately
250km south of the major regional mining centre of Kalgoorlie.
A significant calcrete gold geochemical anomaly identified from
infill sampling over two areas, based on previous BHP calcrete
data, has been permitted for drilling.
Molyhil Tungsten 2017 Program
-- The Company will continue ongoing cost and resource
optimisation activities in order that at the first available
opportunity we can access development funding to bring Molyhil into
production.
-- The recently acquired exploration licence adjacent Molyhil is
likely to provide the near term focus to add additional critical
mass to this project.
The 100% owned Molyhil tungsten project is located 220km
north-east of Alice Springs (320km by road) within the prospective
polymetallic province of the Proterozoic Eastern Arunta Block in
the Northern Territory.
In January 2015, Thor announced an updated feasibility study for
its wholly-owned Molyhil tungsten project, with robust
outcomes.
The project development cost for Molyhil is estimated at A$64
million, or US$48 million at current exchange rates. Of this,
approximately US$10 million is for equipment, for which equipment
or leasing finance could be secured, thus reducing the project
finance requirement to below US$40 million.
Molyhil has a forecast 12 month construction schedule from
development commencement to first production.
Table.3 Summary of Molyhil Mineral Resource Estimate (Reported
30 January 2014)
Classification Resource WO(3) Mo Fe
'000 Grade Tonnes Grade Tonnes Grade
Tonnes % % %
---------------- --------- ----- ------ ----- ------- ------
Indicated 3,820 0.29 10,900 0.13 4,970 18.8
Inferred 890 0.25 2,200 0.14 1,250 15.2
---------------- --------- ----- ------ ----- ------- ------
Total 4,710 0.28 13,100 0.13 6,220 18.1
---------------- --------- ----- ------ ----- ------- ------
Notes
-- Thor Mining PLC holds 100% equity interest in this resource.
-- Mineral Resource reported at 0.1% combined Mo + WO(3) Cut-off and above 200mRL only.
-- Minor rounding errors may occur in compiled totals.
New Project Assessment
The existing portfolio of projects is very robust and has
substantial development potential; however, the directors are
continuing to assess opportunities to acquire interests in several
projects which also have potential for substantial near term
upside, with copper the preferred commodity.
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) 207 383 Grant Thornton Nominated
Daniel Bush/ 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) 207 138 Blytheweigh Financial
Camilla Horsfall 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.
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.
In February 2017, Thor completed the sale of its Spring Hill
Gold project(3) for A$3.5million on receiving A$1.5 for its
residual 40% interest in the project. Thor holds, further, a
production royalty entitlement 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 ASX and AIM announcement of 29 February 2016
-- At the date of this announcement gold is trading at approximately A$1,610/oz
This information is provided by RNS
The company news service from the London Stock Exchange
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