TIDMTHR
RNS Number : 4500W
Thor Mining PLC
01 August 2018
1 August 2018
THOR MINING PLC
("THOR" OR THE "COMPANY")
QUARTERLY REPORT APRIL TO JUNE 2018
Highlights Outlook for September Quarter
2018
------------------------------------------------------------ ----------------------------------------------------------------
TUNGSTEN & MULTI COMMODITIES
Molyhil, NT Australia
* Execution of acquisition agreement for Bonya project * Complete Bonya acquisition & schedule initial
hosting multiple outcropping tungsten deposits drilling program.
adjacent Molyhil.
* Completion of upgraded DFS.
* Definitive Feasibility Study upgrade activity
* Continued strength in global tungsten and molybdenum
pricing.
Pilot Mountain, Nevada USA
* Internal scoping study to determine high level * Evaluation of scoping study outcomes.
operating parameters.
* Stage 2 of metallurgical testwork.
COPPER
Kapunda, SA Australia
* Announcement of Australian Commonwealth Government * Leach testing on historical core samples.
CRCP research grant of A$2.85million.
* Preparation for field pump testing.
INVESTMENTS
USA Lithium to be acquired by ASX listed Hawkstone Mining
Limited in restructured agreement, valuing the Thor holding at
approximately A$500,000.
CORPORATE & FINANCE
Cash position remains sound with forecast activities fully
financed well into 2019.
Commenting, Mr Mick Billing, Executive Chairman of Thor Mining,
said:
"Progress on all fronts while our cash position remains robust.
It is very pleasing to report that we have sufficient funds to
carry out all planned activities well into 2019."
"In particular the recent announcement of the Australian
government research grant is a tremendous endorsement of the
approach taken by Thor and ECR in this exciting project"
"While we have experienced some delays in completing the Molyhil
DFS upgrade, and also the Pilot Mountain scoping study, these tasks
are nearing completion."
"The upgraded DFS for Molyhil, is incorporating some revisions
to the process flowsheet, aimed at delivering efficiencies which
are expected to be quantified very soon."
"The Pilot Mountain scoping study has advanced with positive
indications for potential medium term open pit mining at the Desert
Scheelite deposit."
"We will continue to provide investors with regular updates in
respect of activities and progress."
TUNGSTEN PROJECTS
Tungsten and Molybdenum Price Trends
At the date of this report, the price of tungsten, per mtu of
APT (Ammonium Para Tungstate) was US$335.00/mtu, while the
molybdenum price has held its strengthened position at around
US$12.00/lb.
Industry discussion suggests that these stronger pricing levels
for both commodities are likely to continue for some time, with
some forecasters predicting APT tungsten prices in excess of
US$400/mtu. In addition, suggestions for molybdenum are for supply
constraints for several years.
MOLYHIL TUNGSTEN PROJECT - NT (100% Thor)
In January 2015, Thor announced an updated feasibility study for
its wholly-owned Molyhil tungsten project, demonstrating a robust
project NPV of A$67million (approximately GBP39million).
A full background on the project is available on the Thor Mining
website;
www.thormining.com/projects.
Earlier in the year (8 January 2018) Thor announced an upgraded
Statement of Open Pit Ore Reserve.
This new ore reserve increases the open pit mine life by 1 year
to 7 years, with increases in metal content of 10% for tungsten and
19% for molybdenum.
The study also identified portions of the Indicated and Inferred
resource estimate, remaining outside the revised pit shell, which
appear economic for mechanised underground mining techniques.
Table A:
Molyhil Open Cut Ore Reserve Statement (announced 8 January
2018)
Classification Reserve WO(3) Mo
'000 Tonnes Grade Tonnes Grade Tonnes
% %
---------------- ------------ -------- ------- -------- -------
Probable 3,500 0.29 10,200 0.12 4,300
Total 3,500 0.29 10,200 0.12 4,300
-------- --------
-- Thor Mining PLC holds 100% equity interest in this reserve.
-- The Company is not aware of any changes which could affect this reserve statement.
Studies to prepare an upgrade to the DFS are nearing completion
with most cost estimates now in hand. A re-evaluation of the
metallurgical process flow stream has resulted in resizing of some
equipment in the flotation area, a reduction of some cells in the
molybdenum flotation process, partially offset by additional cells
downstream. We expect some cost savings from this work which is
also near completion
Bonya
Earlier in the year (28 March 2018) the Company also announced
the conditional acquisition of an interest in a licence area
containing 13 known outcropping tungsten deposits and one copper
deposit close to Molyhil. Documents have been submitted to secure
ministerial consent for title transfer which is expected shortly.
An initial drilling program is an important next step is assessing
these deposits, and regulatory and traditional owner heritage
clearance work to this end is scheduled.
PILOT MOUNTAIN TUNGSTEN PROJECT - NEVADA USA (100% Thor)
Thor's Pilot Mountain Project, acquired in 2014, is located
approximately 200 kilometres south of the city of Reno and 20
kilometres east of the town of Mina, located on US Highway 95.
The Pilot Mountain Project is comprised of four tungsten
deposits: Desert Scheelite, Gunmetal, Garnet and Good Hope. All of
these deposits are in close proximity (three kilometres) to each
other and have been subjected to small-scale mining activities at
various times during the 20th century.
In December 2014, Thor outlined a proposed exploration and
development plan with the objective of upgrading the knowledge and
status of the mineralisation of these deposits where historical
drilling outlined potentially economic mineralisation.
A full background on the project is available on the Thor Mining
website;
www.thormining.com/projects.
The directors believe Pilot Mountain resource is substantial on
a global scale, and has potential for significant growth, in
particular from the discovery in the August 2017 drilling program
of an additional parallel zone of scheelite mineralisation at the
Desert Scheelite deposit (Figure 6.).
In addition, the directors believe that the Desert Scheelite
resource, which outcrops at surface at the western end for more
than 400 metres, has potential to develop into a long term open pit
mining operation which would make it one of the higher grade open
pit tungsten operations in the western world.
The significant tungsten resource is strategically located in
the USA and has been confirmed by the US Department of the Interior
as a critical mineral in 2018
Table B: Pilot Mountain Resource Summary (Announced 22 May
2017)
Resource WO(3) Ag Cu
Classification 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:
-- 100% owned by Thor Mining Plc
-- The Company is not aware of any changes which could affect this resource estimate
A scoping study was commissioned in late 2017, to provide a high
level economic assessment, along with initial parameters associated
with project site layout options for environmental and other
permitting.
Feedback from the consultants to date suggests that an open pit
mining operation with a medium term life at the Desert Scheelite
deposit offers the best opportunity to commence production at Pilot
Mountain, and this has become the focus for the scoping work.
Mining cost estimates sourced from US based mining contractors
are well below initial estimates from our consultants, and this may
impact subsequent studies on other deposits at Pilot Mountain,
however at this stage they appear to underpin projections for a
medium term mining operation.
We will provide further updates on this work at the earliest
opportunity.
Additionally, while previous metallurgical testwork has
demonstrated the production of saleable concentrates, further
testwork is required to advance this to pre-feasibility study
standard, and this next stage of metallurgical testwork has
recently been initiated.
During the quarter also, meetings were held in Nevada, aimed at
progressing economic evaluation, and environmental and regulatory
studies.
KAPUNDA COPPER PROJECT - SA (Thor earning 45%)
On 1(st) August 2017 Thor announced an investment in a newly
incorporated private Australian company, Environmental Copper
Recovery SA Pty Ltd. ("ECR"), initially via convertible loan notes
of up to A$1.8 million, 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 an agreement to earn, in two stages, up
to 75% of the rights 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").
Earlier in the year (12 February 2018) Thor announced an
Inferred Resource Estimate containing 119,000 tonnes of contained
copper considered amenable to Insitu Recovery techniques. The grade
of the resource, at 0.25%Cu, is considered typical for copper
Insitu Recovery operations.
Table C: Kapunda Copper Resource Estimate (Announced 12 February
2018)
Resource Copper
----------------------
Classification MT Grade Contained
% Cu (t)
------------------ --------------- ----- ----- ----------
Copper Oxide Inferred 30.3 0.24 73,000
Secondary copper
sulphide Inferred 17.1 0.27 46,000
------------------ --------------- ----- ----- ----------
Sub Total 47.4 0.25 119,000
---------------------------------- ----- ----- ----------
Notes:
-- ECR are earning a 75% interest in this resource, & Thor
have investment rights for up to 60% of ECR.
-- The Company is not aware of any changes which could affect
this resource estimate.
Other near-term activities at Kapunda include continued
community liaison in respect of project activities, testwork on
historical drill core to determine the optimum extraction agent
(lixiviant) most suited to the Kapunda deposit and establishing
appropriate parameters for future field trials.
A first stage extraction test on historical core using glycine,
a food additive, has been undertaken and outcomes showing copper,
and potentially other potentially valuable metals recovered, and
recovery rates, are expected shortly. Testwork trialling other
potential lixiviants is also proceeding.
On 30 July 2018, the Australian Government Ministry for Science,
Jobs and Innovation announced an offer to ECR for research funding
of A$2,851,303, over a 30 month period, for the Kapunda In-Situ
Copper and Gold Recovery Trial. This funding is expected to
significantly advance the Kapunda project feasibility work, while
minimising the ongoing funding requirement for Thor, other than for
the A$1.8 million required to earn the equity in ECR.
SPRING HILL GOLD PROJECT - NT (ROYALTY ENTITLEMENT)
In February 2017 Thor completed the A$3.5 million sale of its
Spring Hill Gold project(1). The sale transaction carries an
ongoing residual royalty 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.
During the first half of the financial year, Thor received
royalties from Spring Hill production totalling A$8,124. No
royalties were received during the quarter.
(1)Refer ASX and AIM announcement of 29 February 2016
OTHER OPPORTUNITIES
On 14 June 2017, the Company announced the acquisition of a 25%
interest in US Lithium Pty Ltd ("USL"), along with an option to
acquire the remaining 75% of USL, subject to satisfactory
completion of project due diligence. Whilst Thor elected not to
exercise the option, its continues to hold an interest in this
company, subsequently renamed USA Lithium.
On 29(th) March 2018, the Company advised that USA Lithium had
accepted a conditional offer for 100% of its issued capital from
ASX listed Hawkstone Mining Limited (ASX: HWK). These terms were
subsequently revised with the details announced by Thor on 27 June
3017.
We have been advised that a general meeting of shareholders of
Hawkstone is scheduled for 3 August 2018 to approve this
agreement.
If the acquisition proceeds, Thor will be issued 15,625,000
shares in Hawkstone in 2 equal tranches of 7,812,500 shares, with
the 2(nd) tranche conditional on;
a. Buyer within 36 months from completion, declaring an inferred
resource at the Big Sandy Lithium Project of not less than 30
million tonnes at a grade greater than 2,000ppm Lithium (Li) (or
equivalent, subject to a minimum average grade of 1,000ppm Li);
and
b. ASX granting a waiver from Listing Rule 7.3.2 for the issue
of the Deferred shares. Hawkstone announced on 20 July 2018 that
this waiver had been granted.
Hawkstone advised ASX on 25(th) July 2018 of the commencement of
a maiden drilling program at the Big Sandy lithium project in
Arizona.
At the date of writing, Hawkstone shares traded at A$0.033.
CORPORATE & FINANCE
Shortly after the end of the quarter Paul Johnson, non-executive
director, resigned from the board of Thor. The contribution by Paul
during his period as a director was significant and the Company is
in a much stronger position at the end of his tenure than at the
commencement.
At the end of the quarter, cash reserves stood at just under
A$2.5million, with expenditure forecasts for all activities funded
until well into 2019.
Competent Person's Report
The information in this report that relates to exploration
results, and exploration targets, is based on information compiled
by Richard Bradey, 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.
Enquiries:
Mick Billing +61 (8) 7324 1935 Thor Mining PLC Executive Chairman
Ray Ridge +61 (8) 7324 1935 Thor Mining PLC CFO/Company
Secretary
Colin Aaronson/ +44 (0) 207 383 5100 Grant Thornton Nominated Adviser
Richard Tonthat UK LLP
Nick Emerson +44 (0) 1483 413 500 SI Capital Ltd Broker
Tim Blythe/ +44 (0) 207 138 3222 Blytheweigh Financial PR
Camilla Horsfall
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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
QRFUAAWRWUAWRRR
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