TIDMTHR
RNS Number : 8968N
Thor Mining PLC
14 August 2017
14 August 2017
THOR MINING PLC
SUPPLEMENTARY ADVICE
The Directors of Thor Mining PLC advise that the following
updated version of the announcement dated 10 August 2017 was today
released on the Australian Securities Exchange ("ASX"). The updated
announcement contains additional information concerning, inter
alia, the determination of the copper equivalent grade stated in
the original announcement and further information on the
exploration targets identified in Table 2.
THOR MINING PLC
TUNGSTEN EXPANSION DRILLING - PILOT MOUNTAIN, NEVADA USA
SUPPLEMENTARY ADVICE
The Board of Thor Mining Plc ("Thor" or the "Company") (AIM,
ASX: THR), is pleased to advise the commencement of drilling in a
campaign designed to expand the tungsten resource at the Company's
wholly owned Pilot Mountain tungsten project in Nevada, USA (Figure
1).
The program comprises four reverse circulation ("RC") drill
holes and two diamond ("DD") drill holes designed to confirm and
expand upon existing high-grade drill intersections at the Good
Hope deposit, and also further test for extensions of high grade
mineralisation, intersected in the Desert Scheelite resource in
2012. The program follows drilling success and resource upgrade
earlier in 2017.
Highlights:
Good Hope deposit - four RC holes each of up to 150 metres depth
designed to confirm and extend high grade tungsten (WO ), copper
(Cu), and zinc (Zn) mineralisation, including 36.5 m @ 0.4% WO ,
0.25% Cu, and 0.47% Zn
Desert Scheelite deposit - two RC holes, each with a diamond
core tail to test for extensions below high grade mineralisation
previously intersected
Tungsten price uplift - a recent increase in the published APT
tungsten price takes the cumulative increase for the year to
25%
Mr Mick Billing, Executive Chairman of Thor:
"The Pilot Mountain drilling program at Good Hope and Desert
Scheelite demonstrates our strong belief that Pilot Mountain will
become a very significant multi commodity deposit. We are
particularly encouraged by the recent tungsten price improvement
showing tightness in the market, during what is normally a period
of seasonal weakness.
"The program is expected to cost no more than US$250,000 and is
scheduled to last two to three weeks with assay results due several
weeks after."
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.
.A drill program in 2012 at Desert Scheelite facilitated the
estimate and publication of a resource estimate for that deposit,
shown in Table 1. Importantly, the final hole of the program
intersected 17.5m @ 1.80% Cu plus 2.2% Zn and 32 g/t Ag, along with
13.5m of 0.89% WO . At current commodity prices (US$2.91/lb Cu,
US$1.32/lb Zn, US$16.90/oz Ag, and US$245/mtu WO ) this delivers an
equivalent copper grade of 5.7%#. This program has been designed to
test for high grade extensions to that mineralisation at depth.
# Note copper equivalence was determined upon the following
commodity prices on 8 August 2017:
-- Commodity prices; US$2.91/lb Cu, US$1.32/lb Zn, US$16.90/oz Ag, and US$245/mtu WO
-- Metallurgical recovery of 80% for each element
-- Copper Equivalent grade is comprised of the sum of the
equivalent copper grades of the contributing elements weighted by
respective metallurgical recoveries. The individual copper
equivalent grade for each element is determined as follows: element
price per pound / copper price per pound X interval grade
DSDD015 falls within the Desert Scheelite Inferred Resource and
has thus been independently determined to have a reasonable
likelihood of economic extraction.
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 RGH-02 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.
This drill program has been designed to confirm and extend high
grade tungsten, copper, and zinc mineralisation, including 36.5m @
0.4% WO , 0.25% Cu, and 0.47% Zn.
Table 1: Pilot Mountain Resource Summary 2017 (JORC 2012) - 100%
owned by Thor Mining Plc. Announced May 21 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 22,700
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 (above), exploration
targets (summarised in Table 2) tonnes and grades 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
------------------- -------- -------- --------------------------
Note:
Recent and historic drilling at the Pilot Mountain project
comprised in excess of 350 drill holes.
Other mineralisation exposures include multiple historic mine
openings and natural surface outcrop.
Exploration to test these targets will comprise drilling as
described in this announcement. Geophysical survey possibly
comprising IP and gravity methods may also be undertaken to develop
further targets in areas of alluvial cover.
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.
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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