TIDMTHR
RNS Number : 6519Q
Thor Mining PLC
13 September 2017
13 September 2017
THOR MINING PLC
DEVELOPMENT ASSESSMENT PLAN
KAPUNDA COPPER PROJECT - SOUTH AUSTRALIA
The Board of Thor Mining Plc ("Thor" or the "Company") (AIM,
ASX: THR), is pleased to provide a progress update in respect of
the Kapunda Copper Project (the "Project") in South Australia.
Following the announcement on 1 August 2017, the Company's
review of the Project has advanced and a development plan has been
prepared as outlined below.
Highlights:
-- Copper is naturally leaching into groundwater around the
deposit, a very positive indication, and water testing from local
existing bores, to determine metal content, will be an early
focus;
-- Project process is proposed via in-situ recovery, and other
early activities will be directed at confirming the current
understanding that the geology of the deposit is favourable for
this method;
-- Applications to be submitted to secure Australian government
research funding to assist with costs of the proposed work
program;
-- No requirement identified for additional exploration drilling
thus reducing the cost of development.
The staged development plan is designed to progressively confirm
that the known copper mineralisation at the historic Kapunda mine
can be extracted profitably, but also safely, and without adverse
environmental outcomes.
Mr Mick Billing, Executive Chairman of Thor:
"We are very excited about this copper opportunity at Kapunda.
We are fortunate that there is no requirement for exploration
drilling in the hope of finding economic mineralisation - that work
has been done, and the mineralisation is well known.
"The global copper environment has improved considerably in
recent months and there is an understandable expectation that with
the increasing demand for copper, the forward market pricing
dynamics remain favourable."
"We note from investor feedback that there is a real desire by
the market for new and exciting copper investment opportunities,
and with Kapunda Copper, Thor now has a project interest that falls
squarely into copper space, alongside our extensive tungsten
portfolio.
"A project of this nature cannot proceed without community
support, and consultation with the local community forms a key part
of our strategy".
"We will ensure that we continue to inform and update investors
as we look to advance this opportunity."
On 1(st) August 2017 Thor announced that it had signed a binding
term sheet to invest in the Kapunda Copper Project via a newly
incorporated private Australian company, Environmental Copper
Recovery SA Pty Ltd ("ECR"), initially by way of the staged
subscription for convertible loan notes of up to A$1.8 million,
which are convertible into ECR equity at Thor's discretion, and
which will be used to fund field test work and feasibility
activities at Kapunda over the next 3 years. In turn, ECR has
entered into a binding term sheet to earn, in two stages, up to 75%
of the rights over the mineral rights and claims 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").
Investors wishing to learn more about this investment should
review the announcement detailing the Company's agreement to invest
in this copper interest, released to the market on 1 August
2017.
Staged Approach
The Company and ECR propose that evaluation and testwork at
Kapunda is expected to proceed in stages, with decision milestones
between each stage and increasing levels of confidence in ultimate
outcomes.
As each stage advances, and in preparation for successive
stages, a proactive program of public consultation will be a
critical component of the assessment.
Stage 1 activities
-- Finalisation and publication of a JORC compliant resource estimate
-- Stakeholder and regulatory approvals for subsequent "onsite" activities
-- Testing of water from local boreholes for content of copper
and other minerals "naturally leached"
-- Bench scale testing of historical core samples to establish
-- Potential flow rates of the mineralised zones
-- Verification of copper and potentially other metal recovery using a variety of "lixiviants"
-- Seek to secure agreements for cooperative research and other
Australian government funding, where possible, to bring in
additional financial support and 3(rd) party technical expertise
without dilution of project interest.
Stage 2 activities
-- Field pump testwork using several boreholes to confirm that the deposit is likely to allow transmissivity of lixiviants and copper bearing fluids through the mineralised sections.
-- Hydrological evaluation of the field pump testwork
Stage 3 activity
-- Field Recovery Trial - a limited selection of boreholes
configured as a small-scale production test, designed to test the
potential economic return of copper recovery (figure 3)
Stage 4 activity
-- Feasibility study activity along with environmental,
community, and regulatory approval processes to secure development
approval.
July - Dec 2017 Jan - Jun Sep 2018-Sep
2018 2019
------------------------------- ------------------ --------------- ----------------
Resource Secure Water Pump Testing Field Recovery Feasibility
Est' Gov't Sampling Hydro Evaluation Trial &
Grants Core Development
Testing Approval
--------- -------- ---------- ------------------ --------------- --- -------------
COMMUNITY CONSULTATION
--------------------------------------------------------------------------------------------
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.
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 2 of the 4 known
deposits.
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
right and claims over the portion of the historic Kapunda copper
mine in South Australia recoverable by way of ISR.
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
This information is provided by RNS
The company news service from the London Stock Exchange
END
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