REG - Thor Energy PLC - Quarterly Activities and Cash Flow Report
31/07/2024 07:00
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RNS Number : 4580Y Thor Energy PLC 31 July 2024
31 July 2024
Thor Energy PLC
("Thor" or the "Company")
Quarterly Activities and Cash Flow Report
April to June 2024
Highlights Outlook for next quarter (September 2024)
URANIUM & VANADIUM
Wedding Bell & Radium Mountain, Colorado, USA · Planning and gain final permitting for drilling at Wedding Bell and
Radium Mountain Projects, and initial drilling at Vanadium King Project
Vanadium King, Utah, USA
· Reconnaissance surface geochemical sampling continuing
· Rock Chip sampling at Edna Mae Prospect returned up to 0.54 % U(3)O(8), 1.6
% V(2)O(5) and 2.74 % Cu
COPPER - RARE EARTH ELEMENTS (REE)
Alford East, SA, Australia
· Permitting for drilling and hydrological assessment approved · Preparation for diamond drilling program
EnviroCopper ("ECL") (via 26.3% equity holding)
Kapunda, SA, Australia
· Site Environmental Lixiviant trials ("SELT") underway · Copper-gold recoveries to be reported from lixiviant trials
Alford West, SA, Australia · Continuing to assess the amenability of Alford West for In-Situ
Recovery ("ISR"), including baseline hydrogeological assessment, pump testing
· Hydrogeological drilling underway and tracer testing
Tungsten-Molybdenum-Copper
Molyhil, NT, Australia
· Investigator Resources Ltd ("IVR") have successfully completed their Stage · Completion of transfer of 25% interest in tenure to IVR
1 Commitment Earn-in by funding A$1m on exploration activities
· Upon formation of joint venture ("JV"), IVR to issue Thor A$250k in IVR
· Updated Mineral Resource Estimate ("MRE") now comprises 4.65Mt @ 0.26% shares
WO(3) (tungsten trioxide), and 0.09% Mo (molybdenum) for 12.1kt WO(3) and
4.4kt Mo (JORC 2012)
GOLD/NICKEL
Ragged Range, Pilbara region, WA, Australia
· Seeking divestment or joint venture partner
Nicole Galloway Warland, Managing Director, Thor Energy Plc, commented:
"The macro-outlook for our uranium projects remains strong. Over the past
year, spot prices for uranium have surged by 50%, and the recent US ban on
uranium imports from Russia is expected to further constrain supply. The US is
focused on obtaining a secure and reliable energy supply, and our projects are
strategically positioned to be a domestic source of uranium for the US market.
"During this quarter we have continued to see high-grade uranium and vanadium
results in our US projects. Furthermore, our Rock Chip sampling at the Edna
May Prospect returned exciting high-grade copper results. These copper results
are promising, and we look forward to continuing our reconnaissance surface
sampling program.
"IVR has also made strong progress with the Molyhil project during the period,
announcing an updated MRE. Its diamond drilling program resulted in an
improvement in resource confidence. Based on the Heads of Agreement, IVR is
now entitled to a 25% interest in the Project and the surrounding tenure, and
we look forward to working with IVR to form a successful JV.
"We were also delighted to appoint Timothy Armstrong to the Board as a
Non-Executive Director. His experience as a financial advisor and
Non-Executive Director at Cooper Metals will prove valuable as we progress our
uranium and copper projects in Australia and the USA.
"With these different areas of progress, along with our raise of A$1.3
million, we are in a strong position to plan for the next phases of
exploration at our USA and South Australian projects. We look forward to
starting various further drilling programmes across our uranium and vanadium
projects, including a Diamond Drilling program at Alford East and resource
drilling at Wedding Bell and Radium Mountain, as well as reviewing new
opportunities to add to our portfolio."
URANIUM AND VANADIUM PROJECTS (USA)
Thor holds a 100% interest in two US companies with mineral claims in Colorado
and Utah, USA (Figure 1). The claims host uranium and vanadium mineralisation
in an area known as the Uravan Mineral Belt, which has a history of high-grade
uranium and vanadium production.
Within an economical transport distance is the only uranium and vanadium
processing facility in the region (Energy Fuels, White Mesa Mill), which may
enable a low-hurdle processing option for any production from these projects.
Details of the projects may be found on the Thor website
(https://thorenergyplc.com/projects/uranium-vanadium-projects-usa/) .
Figure 1: Uravan Mineral Belt showing project locations and nearby White Mesa
processing plant
Wedding Bell and Radium Mountain Project, Colorado:
Reconnaissance Surface Sampling
Reconnaissance mapping and surface rock sampling across the Wedding Bell
Project are continuing to systematically assess and prioritise historic
workings and geophysical anomalies, identified by Thor's 2023 Radiometric
Survey (ASX/AIM: 27 July 2023
(https://www.londonstockexchange.com/news-article/THR/uranium-targets-identified/16058031)
) for future drill testing (Figures 2 and 3).
Previously reported rock samples returned up to 1.25% U(3)O(8) at Rim Rock
(WR-016) and 3.87 % V(2)O(5) at Jack Knife (WR-20) (Figure 2) (ASX/AIM: 20
July 2020 (https://wcsecure.weblink.com.au/pdf/THR/02256983.pdf) ). Please
refer to Table 2 for rock chip sample results to date. Of the ten-plus areas
that have been assessed, only two areas have been drill-tested by Thor to date
(Rim Rock and Groundhog).
Edna Mae Prospect
Edna Mae lies on the edge of Paradox Copper Belt, which includes the producing
Lisbon Valley Copper Mine, Utah (Figure 1). The sediment-hosted copper
mineralisation is believed to be a later, younger event to the uranium
mineralisation.
Edna Mae was identified as a geophysical anomaly in 2023 and is in the
southern portion of the Wedding Bell mining claims, approximately 1km east of
Section 23 and along strike of Groundhog (Figure 2 and Figure 3). The copper
and uranium-vanadium mineralisation occurs within altered, bitumen-spotted
Jurassic sandstones of the Salt Wash Member of the Morrison Formation (Photo 1
& 2). Mineralisation sits in the lower first Rim of the Salt Wash
Sandstone at a similar stratigraphic position to Section 23 prospect.
Recent Rock Chip sampling at Edna Mae Prospect returned up to 5,425ppm (0.54
%) U(3)O(8), 1.6 % V(2)O(5), 2.74 % Cu and 100g/t Ag (Table 1 and Table 2).
Although elevated copper values have been noted and used as pathfinder
elements in drilling at Groundhog, Rim Rock and Section 23, this is the first
high-grade copper value reported in rock chips.
Further work is needed to understand the copper distribution, and its
relationship and distribution relative to the uranium-vanadium
mineralisation.
Table 1: Edna Mae rock sample assay results include:
Sample No. U(3)O(8) ppm U(3)O(8) % V(2)O(5) % Cu % Ag g/t Sample Type
WBNG001 598 0.06 1.60 2.74 100 Dump
WBNG002 5424 0.54 1.38 0.31 6.4 Dump
WBNG003 2235 0.22 0.69 0.52 21.3 Adit wall
Next Steps and Upcoming Potential News Flow:
§ Continuing our reconnaissance mapping and surface sampling program across
tenure, to build and prioritise future drill targets. There remain several
unsampled radiometric anomalies to assess (Figure 3).
§ Detailed mineralisation and geological interpretations combining the 2022
and 2023 drilling results.
§ Gain full approvals to carry out a drilling program at Groundhog and Rim
Rock.
§ Maiden drilling at Vanadium King, Utah.
Figure 2: Surface Rock Sampling Results across the Wedding Bell and Radium
Mountain Projects, Colorado
Figure 3: Radiometric image (U2/Th ratio) draped over Digital Elevation Model
(DEM) showing uranium anomalies in red, green and light blue with Rock Chip
samples collected to date
Table 2: Rock Sample Assay Results for Wedding Bell Project
Prospect Sample No. Easting Northing U(3)O(8) ppm U(3)O(8) % V(2)O(5) % Cu % Ag g/t Sample Type
Edna Mae WBNG001 689628 4222808 598 0.06 1.60 2.74 100 Dump
Edna Mae WBNG002 689628 4222807 5424 0.54 1.38 0.31 6.4 Dump
Edna Mae WBNG003 689706 4222727 2235 0.22 0.69 0.52 21.3 Adit wall
Ground Hog WR-001 687927 4223836 5188 0.52 1.82 NA NA Outcrop
Ground Hog WR-002 688030 4223849 943 0.09 1.11 NA NA Outcrop
Rim Rock WR-003 687660 4225839 8844 0.88 1.87 NA NA Adit wall
Rim Rock WR-004 687660 4225839 10023 1 1.30 NA NA Grab
Wedding Bell WR-005 687333 4224766 4363 0.44 0.38 NA NA Grab
Wedding Bell WR-006 687202 4224797 2358 0.24 0.67 NA NA Grab
Big Bull WR-007 692453 4226633 1179 0.12 0.74 NA NA Outcrop
Big Bull WR-008 692468 4226632 472 0.05 0.35 NA NA Outcrop
Lark Mine WR-009 691031 4226911 2358 0.24 0.25 NA NA Dump
Lark Mine WR-010 690763 4226921 11674 1.17 1.89 NA NA Dump
Lark Mine WR-011 690468 4226608 3891 0.39 1.23 NA NA Dump
Diana Mine WR-012 690142 4225830 11084 1.11 2.32 NA NA Dump
Babe Ruth WR-013 689730 4225628 118 0.01 1.04 NA NA Outcrop
Babe Ruth WR-014 689732 4225603 3420 0.34 2.62 NA NA Dump
unnamed WR-015 688347 4225808 9080 0.91 0.61 NA NA Grab
Rim Rock WR-016 687627 4225392 12500 1.25 0.97 NA NA Dump
Rim Rock WR-017 687660 4225839 1415 0.14 2.12 NA NA Adit wall
Rim Rock WR-018 687731 4225668 472 0.05 2.39 NA NA Outcrop
Jack Knife WR-019 687108 4224016 236 0.02 1.20 NA NA Pit Wall
Jack Knife WR-020 687081 4223998 6839 0.68 3.87 NA NA Pit Wall
Groundhog WR-021 687921 4223833 943 0.09 0.51 NA NA Outcrop
COPPER - REE PROJECTS (SA)
Thor holds direct and indirect interest in over 400,000 tonnes of Inferred
copper resources in South Australia, via its 80% farm-in interest in Alford
East copper-gold Project and its 26.3% equity interest in ECL in Kapunda and
Alford West (Figure 4).
Each of these projects is considered by the Thor directors to have significant
growth potential, and each is being advanced towards development via low-cost,
environmentally friendly ISR techniques.
Figure 4: Location Map - Copper Projects (left) and Tenement Map (right)
showing Thor's Alford East Project and ECL's adjoining Alford West Project
Alford East Copper-Gold Project
Environmental approvals were granted for a proposed diamond drilling program,
and to construct wells and conduct further hydrogeological baseline studies
for ISR assessment at Alford East.
Next Steps:
§ Drill preparations (based on drill targeting from ANT and structural
modelling)
§ Pump testing and preparations for push/pull connectivity testing, followed
by Site Environmental Lixiviant Trial (SELT)
Kapunda and Alford West Copper Projects (Figure 4)
Thor holds a 26.3% equity interest in the private Australian company,
EnviroCopper Limited. In turn, ECL has agreed to earn, in two stages, up to
75% of the rights over metals which may be recovered via ISR contained in the
Kapunda deposit from Australian listed company, Terramin Australia Limited
("Terramin" ASX: "TZN"), and rights to 75% of the Alford West copper project
comprising the northern portion of exploration licence EL5984 held by
Andromeda Metals Limited (ASX: ADN).
Information about ECL and its projects can be found on the EnviroCopper
website (http://www.envirocopper.com.au/) .
Alford West
§ Commencement of drilling program comprising three water bores for
hydrogeological baseline assessment and subsequent push-pull and tracer
testing as part of the first phase of ISR SELT.
§ This program is the first step in assessing whether the Alford West
orebodies are amenable to a sustainable recovery of copper using ISR. This is
a low-impact, small-footprint form of metal recovery that significantly
reduces the surface impacts and allows rehabilitation of the land back to its
original farming state.
§ The work at Alford West follows on from Thor's successful drilling and
copper recovery hydrometallurgical work at its adjacent Alford East Copper ISR
Project (ASX/AIM: 11 December 2023
(https://www.londonstockexchange.com/news-article/THR/copper-recoveries-advance-isr-assessment/16245684)
).
§ If these ISR trials are successful, they will significantly increase the
potential to extract economic copper via ISR along the Alford Copper Belt.
This area of known copper oxide resources extends over 50km along the contact
between the Tickera Granite and the Wallaroo Metasediments (Figure 4).
§ The Alford West Copper ISR Project includes the Bruce, Larwood and Wombat
deposits (Figure 4), with an Inferred Mineral Resource Estimate of 66.1Mt @
0.17% Cu containing 114,000t of contained copper ((ASX/AIM: 15 August 2019
(https://wcsecure.weblink.com.au/pdf/THR/02134018.pdf) ) (Table 3)).
Photo 3: Drill Rig Alford West Project
Kapunda
The first phase of the SELT is underway, involving mixing a biodegradable
solution called a "lixiviant" with groundwater for placement within the copper
orebody. The lixiviant will reside in-situ for a period while being sampled
and monitored, it will then be extracted, and the site rehabilitated.
The results are expected to be announced in October 2024.
Table 3: Alford West Mineral Resource Estimate - JORC 2012 (ASX/AIM: 15 August
2019)
ALFORD WEST MINERAL RESOURCE ESTIMATE (15 AUG 2019)
RESOURCE CLASSIFICATION DEPOSIT TONNES CU CU AU AU
(MT) (%) (METAL T) (g/t) (OZ)
Inferred Wombat 46.5 0.17 80,000
Bruce 11.8 0.19 22,000
Larwood 7.8 0.15 12,000 0.04 10,000
TOTAL 66.1 0.17 114,000
Notes:
• Figures are rounded to reflect appropriate levels of confidence.
Apparent differences may occur due to rounding.
• Cut-off grade used of 0.05% Cu.
Table 4: Alford East Mineral Resource Estimate as of 22 January 2021-JORC 2012
(ASX/AIM: 27 January 2021)
ALFORD EAST MINERAL RESOURCE ESTIMATE (22 JANUARY 2021)
Domain Tonnes (Mt) Cu % Au g/t Contained Cu (t) Contained Au (oz)
AE_1 24.6 0.12 0.021 30,000 16,000
AE_2 6.8 0.13 0.004 9,000 1,000
AE_3 34.9 0.09 0.022 33,000 25,000
AE_4 8.0 0.11 0.016 8,000 4,000
AE_5 11.0 0.22 0.030 24,000 11,000
AE-8 (NP) 31.3 0.19 0.008 61,000 8,000
AE-7 (LW_E) 7.7 0.14 0.025 10,000 6,000
AE-6 (LW_W) 1.3 0.13 0.011 2,000 500
Total 125.6 0.14 0.018 177,000 71,500
Notes:
· MRE reported on oxide material only, at a cut-off grade of 0.05% copper
which is consistent with the assumed ISR method.
· Thor Energy PLC has 80% interest in the Alford East Project.
· All figures are rounded to reflect appropriate levels of confidence.
Apparent differences may occur due to rounding.
· The Company is not aware of any information or data which would materially
affect this previously announced resource estimate, and all assumptions and
technical parameters relevant to the estimate remain unchanged.
TUNGSTEN PROJECT
Molyhil Tungsten - Molybdenum-Copper Project - NT (100% Thor)
The Molyhil tungsten-molybdenum-copper deposit is 100% owned by Thor and 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 (Figure 5).
Figure 5: Molyhil Project Location map
The deposit consists of two adjacent outcropping iron-rich skarn bodies, the
northern 'Yacht Club' lode and the 'Southern' lode. Both lodes are marginal to
a granite intrusion; both lodes contain scheelite (CaWO(4)) and molybdenite
(MoS(2)) mineralisation (Figure 6). Both the outlines of the lodes and the
banding within the lodes strike approximately north and dip steeply to the
east.
Thor executed an A$8m Farm-in and Funding Agreement through a Heads of
Agreement ("HoA") with Investigator Resources Limited operating as Fram Ltd
(Fram) (ASX: IVR) to accelerate exploration at the Molyhil Project on 24
November 2022 and the sale of Thor's interest in the Bonya tenement (EL29701)
(ASX/AIM: 24 November 2022
(https://www.londonstockexchange.com/news-article/THR/farm-in-funding-agreement-molyhil-project/15728495)
).
A full background on the project is available on the Thor website
(https://thorenergyplc.com/projects/molyhil-tungsten-project/) .
During the quarter, Fram completed the "Stage 1 Commitment" obligations by
funding A$1m of exploration activities ((ASX/AIM: 24 April 2024
(https://www.londonstockexchange.com/news-article/THR/completion-of-stage-1-earn-in-commitment-molyhil/16437366)
) (geophysics and drilling - results pending)), as per the HoA (ASX/AIM:
(https://www.londonstockexchange.com/news-article/THR/farm-in-funding-agreement-molyhil-project/15728495)
(https://www.londonstockexchange.com/news-article/THR/farm-in-funding-agreement-molyhil-project/15728495)
24 November 2022
(https://www.londonstockexchange.com/news-article/THR/farm-in-funding-agreement-molyhil-project/15728495)
).
Under the HoA, Fram is now entitled to a 25% interest in the Tenements (25%
Fram and 75% Molyhil) and 40% in the Bonya tenement (EL29107). By electing to
transfer a 25% interest in the Tenements, a JV will become effective.
IVR as per the HoA is to issue Thor A$250,000 worth of IVR shares upon
formalising Fram's 25% JV interest.
Fram can opt to continue to earn up to 80% interest in the Tenements via a three-stage process.
As part of the exploration funding, Fram completed a 13-hole diamond drilling
program at Molyhil Project to verify and update the MRE. A gravity survey was
also conducted, with results from the exploration activities and revised MRE
anticipated in May 2024.
Mineral Resource Update
The Molyhil Mineral Resource Estimate now comprises 4.65Mt @ 0.26% WO(3)
(tungsten trioxide), and 0.09% Mo (molybdenum) for 12.1kt WO(3) and 4.4kt Mo
(JORC 2012) (Table 5).
The Measured Resource Category of the Molyhil Tungsten-Molybdenum Project
improved with a 150% increase in tonnes, 20% increase in WO(3) grade when
compared to the previous Thor 2021 MRE (Table 6) (ASX/AIM: 8 April 2021
(https://wcsecure.weblink.com.au/LSE_news/2021/04/08/Thormining_15023364.pdf)
) and contained tungsten metal in the Measured Resource Category increased by
200% to 3,945 tonnes.
Introduction
On entering the HoA with Thor in 2022, IVR engaged an independent resource
consulting group, H&S Consultants Pty Ltd ("HSC") to assist with a gap
analysis of the Molyhil MRE reported by Thor in 2021. This identified both
opportunities to improve confidence in the MRE classification and exploit some
areas of the resource with targeted drilling.
IVR, in conjunction with HSC, devised a program of drilling aimed at Quality
Assurance/Quality Control (QA/QC) verification of the pre-existing data, via
selective twinning of historic Reverse Circulation ("RC"), Diamond Drill
("DD") holes and confirmatory drilling in areas of lower drill density. This
drill program of 12 diamond holes (totalling 1,501 metres) was completed in
December 2023.
Data from historic drilling, in addition to IVR's newly acquired data, was
provided to HSC to be utilised by HSC to independently prepare the updated
Molyhil MRE.
Mineral Resource Estimate
HSC, following their due diligence review, recommended the use of Multiple
Indicator Kriging ("MIK") as a more appropriate method of estimation for
modelling the heterogeneous style of the Molyhil tungsten and molybdenum
mineralisation.
The tungsten and molybdenum resources were estimated by the MIK method and are
reported using E-type panel estimates above tungsten cut-off grades. The
copper resource estimate has been reported utilising the Ordinary Kriging
methodology.
Estimates of resources are reported at a range of tungsten cut-off grades for
open pit mining selectivity at practical block dimensions of 10m x 5m x 10m
(length x width x depth).
Given the near-surface nature and geometry of the Molyhil mineralisation, the
MRE has been undertaken on the assumption that the deposit would be mined
using open pit methods and HSC has modelled and classified the resource
accordingly.
Acknowledging the improved tungsten and molybdenum prices and the cut-off
grades adopted in peer open-cut projects, coupled with the potential recovery
improvements identified in the ore sorting study completed by Thor in 2021,
this updated MRE is reported at a 0.05% WO(3) cut-off grade to the 150mRL
level (a depth of 260m below surface. 50m deeper than Thor's 2021 MRE (Table
6). IVR considers that these parameters support a resource of which there is a
reasonable prospect of eventual economic extraction.
In comparison, Thor's Mineral Resource Estimate in 2021 (Table 6), utilising
Mixed Support Kriging used a 0.07% WO(3) cut-off grade to the 200mRL level (a
depth of 210m) (as reported to the ASX on 8 April 2021
(https://wcsecure.weblink.com.au/pdf/THR/02361544.pdf) ).
Classification
The updated Molyhil MRE for tungsten, molybdenum and copper has been
classified as Measured, Indicated and Inferred by HSC (Figure 6). The main
mineralised domains have demonstrated sufficient continuity in both geology
and grade continuity to support the definition of a Mineral Resource, and the
classifications applied under the 2012 JORC Code.
Estimates for mineralisation within the main mineralised Lodes are tested by
drilling spaced nominally at 25m x 25m in the more well-defined areas of the
deposit, reducing to 5m to 15m spacing within selected parts of the skarn
where recent drilling by IVR twinned older RC and DD holes to validate
historic grades.
Confidence categories assigned to the estimates reflect qualitative panel
criteria established by the resource consultant, including but not limited to,
the number of drillholes, number of samples, QA/QC (surveys, standards,
duplicates etc.) within each panel of the block model.
HSC was supplied sufficient information to support the utilisation of the
reported cut-off grade (0.05% WO(3)), and lower depth of the MRE (150mRL), and
HSC is satisfied with the assumptions and supportive information provided,
including metal price improvements, improvements in potential processing
options and taking into consideration improved confidence in the resource
classification.
Table 5: Updated Molyhil Resource Estimate by IVR, as of 28 May 2024 reported
at cut-off grade of 0.05% WO(3) Tungsten to 150mRL
Notes: Cut-off of 0.05% WO(3)
1. 100% owned by Thor Energy Plc
2. Variability of summation may occur due to rounding to an appropriate
level of significant figures.
3. To satisfy the criteria of reasonable prospects for eventual economic
extraction, the Mineral Resources have been reported down to 150m RL which
defines material that could be potentially extracted using open-pit mining
methods.
Table 6: Molyhil MRE by Thor as of March 31, 2021, reported at a cutoff grade
of 0.07% WO(3) Tungsten to 200m RL
Note:
1. 0.07% WO(3) Cut-off
2. Figures are rounded to reflect an appropriate level of confidence.
3. Apparent differences may occur due to rounding.
4. 100% owned by Thor Energy Plc
5. To satisfy the criteria of reasonable prospects for eventual economic
extraction, the Mineral Resources have been reported down to 200m RL which
defines material that could be potentially extracted using open pit mining
methods.
Domains
The deposit is hosted predominantly within two adjacent magnetite skarn bodies
that overprint meta-carbonate units of the Deep Bore Metamorphics (1805 ± 7
million years ago, Ma), the skarn is proximal to Marshall Granite intrusions
(1780-1710 Ma) and outcrops at surface. The main logged units at the deposit
are magnetite skarn, calc-silicate and granite, additional minor lithologies
include aplite dykes, quartz veins and fluorite/barite veins.
A nominal cut-off grade of 10-15% Fe(2)O(3) was used to define the MRE's
constraining wireframe of the two main skarn zones, the Yacht Club Lode and
Southern Lode (Figure 6).
Data
The compiled drill hole database supplied to HSC by IVR, supported by QA/QC
reporting documentation, comprises information from 121 drill holes (89
reverse circulation and 32 diamond drill holes) for an aggregate total of
17,396m of drilling. Rotary Air Blast holes and other drilling before 2004
were used to inform the geological modelling, however, assays from these
sources were excluded from the updated MRE due to insufficient QA/QC support.
Additionally, three shafts and three underground crosscuts for a total
development length of 198m were completed in 2005 and verified geological and
assay data from this source was utilised as part of this current MRE. These
underground workings had been developed to resolve differences between costean
bulk sampling, which supported historical mined grades, and historic RC drill
hole grades.
One newly drilled DD hole was designed to pass close to the northern cross-cut
drive to assess grade continuity. The results verified the previously sampled
and reported grades observed in the cross-cut, in addition to the thorough
assessment of methodology and QA/QC undertaken for the underground workings,
HSC and IVR considered this data to be of sufficient quality for inclusion
into the updated MRE.
Drill holes within the main mineralised lodes are predominantly inclined RC
and DD holes, drilled in a westerly orientation to intersect the north-south
striking mineralised lodes. A small number of holes (four in 2004, one in 2021
and two in 2019) were drilled in alternate orientations to assess the
mineralisation distribution.
A plan view showing the distribution of drilling over the Molyhil deposit
(ASX/AIM: 8 Nov 2023
(https://www.londonstockexchange.com/news-article/THR/drilling-starts-at-molyhil-tungsten-project/16201678)
), concerning mineralisation constraining wireframes (Southern and Yacht Club
Lodes) is shown in Figure 6, whilst Figure 7 illustrates the updated Molyhil
MRE block model for the two mineralised Lodes (Southern and Yacht Club), with
panels coloured by resource classification.
Twin hole comparison from the 2023 IVR drill program to Thor's earlier
drilling (Table 7), showed broad lithological and grade continuity in all
elements, however, mineralisation was seen to extend beyond the historical
skarn wireframe, likely due to the expanded sampling regime adopted by IVR
sampling 10m into the granite, compared with the historic sampling which was
restricted to the mineralised skarn. Despite the good correlation with copper
and molybdenum, tungsten displays greater variability and was generally higher
grade in IVR's recently drilled diamond holes.
Table 7: List of Downhole Twin Comparison study - comparing mineralisation
from 2023 drilling (IVR) to earlier Thor drilling
2023 Drilling (IVR) Historic Drilling (THOR)
• IVRMHDD001 • MHDD068
• IVRMHDD007 • MHDD073
• IVRMHDD006 • TMRC010
• IVRMHDD005 • 07MHRC004
• IVRMHDD011 • TMRC015
Densities
Rock density was highlighted as an opportunity to improve on previous resource
estimations. Dry bulk density measurements for prior MRE's were estimated
utilising a linear (Y on X) iron (Fe) regression calculation to assign density
to each sample using specific gravity from a total of 69 RC Pycnometer samples
analysed from two holes only (one each from Yacht Club and Southern Lodes,
spaced 90m apart).
For the updated MRE, dry bulk densities were assigned to each sample within
the mineralised lode wireframes, allowing both the metals (WO(3)/Mo/Cu/Fe) and
density to be modelled at the same search criteria. HSC recommended the use of
an alternate regression method - Reduced Major Axis, which considers the
'error' in both variables (Fe and density) and is considered better suited for
this type of deposit. The iron regression was used to populate density for
each sample within the model but honoured actual field measurements where
present.
A sensitivity analysis was undertaken, whereby the density model was run an
additional four times using three alternate regression methods and using raw
data alone. The results of all methods were similar, providing confidence in
the model, which supported the uplift in tonnes in the Measured
classification, where most of the drilling and density data was available.
Mining and Metallurgical Work and Other Material Factors
The Molyhil Deposit occurs in two adjacent skarn bodies that contain
outcropping molybdenite and scheelite mineralisation. Since mid-2004, it has
been the subject of systematic test work comprising geophysical exploration,
diamond and RC drilling programmes, surface and underground bulk sampling,
metallurgical test work and a geotechnical study.
With the improved tungsten and molybdenum prices and the cut-off grades
adopted in peer open-cut projects, coupled with the potential recovery
improvements identified in the Tomra ore sorting study completed by Thor in
2021, this updated MRE is reported at a 0.05% WO(3) cut-off grade to the
150mRL level (a depth of 260m below surface).
It is considered that these parameters, along with the near-surface nature and
geometry of the Molyhil mineralisation, that the MRE has been undertaken on
the assumption that the deposit would be mined using open pit methods and HSC
has modelled and classified the resource accordingly.
Figure 6: Collar plan showing location of the 12 new diamond drill holes
(yellow dots) informing the updated MRE, with historic holes coloured by drill
type. The two transparent wireframes display the plan view footprint of
mineralised Lodes.
Figure 7: Updated MRE classification block model, (dark green = Measured,
light green = Indicated, & blues = Inferred). Blocks below the 150m plane
on this figure are not reported as part of the updated MRE.
Bonya JV- Jervois Vanadium Projects (40% Thor)
The Bonya copper, tungsten and vanadium deposits are located approximately
30km to the northeast of Molyhil (Figure 9). Thor, in a joint venture with
Arafura, holds a 40% equity interest in the resources. Thor's interest in the
Bonya tenement EL29701 (copper and tungsten deposit) is planned to be divested
as part of the Farm-in and Funding Agreement with Investigator Resources
Limited.
Figure 9: Molyhil Project location showing adjacent Bonya JV tenements.
GOLD/COPPER PROJECT
Ragged Range Project (WA)
The Ragged Range Project, located in the prospective Eastern Pilbara Craton,
Western Australia is 100% owned by Thor - E46/1190, E46/1262, E46/1355,
E46/1340 and E46/1393 (Figure 10).
Since the acquisition, Thor has conducted several programs of stream sediment
and soil sampling to delineate drill targets. Thor has also flown an airborne
magnetics survey over the tenement area to better define the structural
features of the area.
As Thor focuses on its uranium and energy metal projects, a divestment or
joint venture partner is being sought for the Ragged Range Project. This
project has potential for gold, copper-gold, lithium, and nickel. With the
change in focus of Thor Energy towards critical minerals in the energy and
green economy, this group of tenements is no longer considered core in Thor's
exploration portfolio.
Figure 10: Ragged Range Project Location map (left) and Tenement Map (right)
showing priority targets
CORPORATE, FINANCE, AND CASH MOVEMENTS
Corporate
During the Quarter, the Thor Board appointed Mr Timothy Armstrong as
Non-Executive Director (ASX/AIM: 16 May 2024
(https://www.londonstockexchange.com/news-article/THR/directorate-change/16472620)
). Mr Armstrong brings eight years' experience in the finance sector, with
extensive networks in the equity markets in Australia and abroad, to Thor.
Tim is currently an Institutional financial advisor at Prenzler Group, a
Sydney-based boutique advisory firm with an extensive institutional network
across the broking and investment banking industries in Australia and abroad.
He previously worked in financial PR in Australia and London, which entailed
advising numerous listed and private companies on their corporate strategies
predominantly in the resources sector. Tim is also a former professional
sportsperson, spending five years as a first-class cricketer representing NSW,
WA and Australia. He is currently a Non-Executive Director at Cooper Metals
Limited (ASX: CPM).
Finance
In May 2024 Thor raised, gross proceeds of A$1.3 million via the placing of
100,000,000 new ordinary shares of 0.1p each ("Ordinary Shares") (the "Placing
Shares") at a price of 1.3 cents per Ordinary Share (the "Placing Price"). All
placees received one option for each two Placing Shares, to subscribe for a
further new Ordinary Share at 2.6 cents expiring in three years (ASX: 13 May
2024
(https://wcsecure.weblink.com.au/clients/thormining/headline.aspx?headlineid=21522951)
).
Cash Movement
For the Quarter, the Company had total net cash inflows of $1,036,000,
comprising:
§ Net cash outflows from Operating and Investing activities for the quarter
of $220,000 which included outflows of $113,000 directly related to
exploration activities.
§ Cash inflows from financing activities for the quarter were $1,261,000, as
a result of the $1,300,000 placement less costs.
§ Providing an ending cash balance of $1,535,000, after allowing for a $5,000
currency exchange rate movement on cash held in British pounds.
Cashflows for the Quarter include payments of $82,000 to Directors, comprising
the Managing Director's salary, and Non-Executive Directors' fees.
The Board of Thor Energy Plc has approved this announcement and authorised its
release.
For further information, please contact:
Thor Energy PLC
Nicole Galloway Warland, Managing Director Tel: +61 (8) 7324 1935
Ray Ridge, CFO & Company Secretary Tel: +61 (8) 7324 1935
Zeus Capital Limited (Nominated Adviser and Joint Broker) Tel: +44 (0) 2038 295 000
Antonio Bossi / Darshan Patel / Isaac Hooper
SI Capital Limited (Joint Broker) Tel: +44 (0) 1483 413 500
Nick Emerson
Yellow Jersey (Financial PR) thor@yellowjerseypr.com
Dominic Barretto / Shivantha Thambirajah / Bessie Elliot Tel: +44 (0) 20 3004 9512
Competent Person's Report
The information in this report that relates to exploration results is based on
information compiled by Nicole Galloway Warland, who holds a BSc Applied
geology (HONS) and who is a Member of The Australian Institute of
Geoscientists. Ms Galloway Warland is an employee of Thor Energy PLC. She has
sufficient experience which is relevant to the style of mineralisation and
type of deposit under consideration and to the activity which she 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'. Nicole Galloway Warland consents to the inclusion in the
report of the matters based on her information in the form and context in
which it appears.
About Thor Energy Plc
The Company is predominantly focused on uranium and energy metals that are
crucial in the shift to a 'green' energy economy. Thor has several highly
prospective projects that give shareholders exposure to uranium, vanadium,
copper, tungsten, lithium and gold, located in the favourable mining
jurisdictions of Australia and the USA.
Thor holds 100% interest in three uranium and vanadium projects (Wedding Bell,
Radium Mountain and Vanadium King) in the Uravan Belt region of Colorado and
Utah, with historical high-grade uranium and vanadium drilling and production
results.
At Alford East in South Australia, Thor has earnt an 80% interest in oxide
copper deposits considered amenable to extraction via In-Situ Recovery
techniques (ISR). In January 2021, Thor announced an Inferred Mineral Resource
Estimate.
Thor also holds a 26.3% interest in a private Australian copper development
company EnviroCopper Limited (ECL), holding interest in Kapunda copper project
and the Alford West copper project, both situated in South Australia, and both
considered amenable to recovery by way of ISR.
Thor holds 100% of the advanced Molyhil tungsten project, including measured,
indicated and inferred resources, in the Northern Territory of Australia,
which was awarded Major Project Status by the Northern Territory government in
July 2020. Thor executed a A$8m Farm-in and Funding Agreement with
Investigator Resources Limited (ASX: IVR) to accelerate exploration at the
Molyhil Project on 24 November 2022.
Thor owns 100% of the Ragged Range Project, comprising 92 km(2) of exploration
licences with highly encouraging early-stage gold and copper results in the
Pilbara region of Western Australia.
For further information on Thor Energy and to see an overview of its projects,
please visit the Company's website at https://thorenergyplc.com/
(https://thorenergyplc.com/) .
The Company notes that for the relevant market announcements noted above, that
it is not aware of any new information or data that materially affects this
information and that all material assumptions and technical parameters
underpinning any estimates continue to apply and have not materially changed.
TENEMENT SCHEDULE
As of 30 June 2024, the consolidated entity holds an interest in the following
Australian tenements:
Project Tenement Area kms(2) Area ha. Holders Company Interest
Molyhil EL22349 228.10 Molyhil Mining Pty Ltd 100%
Molyhil EL31130 9.51 Molyhil Mining Pty Ltd 100%
Molyhil ML23825 95.92 Molyhil Mining Pty Ltd 100%
Molyhil ML24429 91.12 Molyhil Mining Pty Ltd 100%
Molyhil ML25721 56.2 Molyhil Mining Pty Ltd 100%
Molyhil AA29732 38.6 Molyhil Mining Pty Ltd 100%
Molyhil MLS77 16.18 Molyhil Mining Pty Ltd 100%
Molyhil MLS78 16.18 Molyhil Mining Pty Ltd 100%
Molyhil MLS79 8.09 Molyhil Mining Pty Ltd 100%
Molyhil MLS80 16.18 Molyhil Mining Pty Ltd 100%
Molyhil MLS81 16.18 Molyhil Mining Pty Ltd 100%
Molyhil MLS82 8.09 Molyhil Mining Pty Ltd 100%
Molyhil MLS83 16.18 Molyhil Mining Pty Ltd 100%
Molyhil MLS84 16.18 Molyhil Mining Pty Ltd 100%
Molyhil MLS85 16.18 Molyhil Mining Pty Ltd 100%
Molyhil MLS86 8.05 Molyhil Mining Pty Ltd 100%
Bonya EL29701 204.5 Molyhil Mining Pty Ltd 40%
Bonya EL32167 74.54 Molyhil Mining Pty Ltd 40%
Panorama E46/1190 35.03 Pilbara Goldfields Pty Ltd 100%
Ragged Range E46/1262 57.3 Pilbara Goldfields Pty Ltd 100%
Corunna Downs E46/1340 48 Pilbara Goldfields Pty Ltd 100%
Bonney Downs E46/1355 38 Pilbara Goldfields Pty Ltd 100%
Hamersley Range E46/1393 11 Pilbara Goldfields Pty Ltd 100%
Alford East EL6529 315.1 Hale Energy Pty Ltd 80% oxide interest
As of 30 June 2024, the consolidated entity holds 100% interest in the uranium
and vanadium projects in USA States of Colorado and Utah as follows:
Claim Group Serial Number Claim Name Area Holders Company Interest
Vanadium King (Utah) UMC445103 to UMC445202 VK-001 to VK-100 100 blocks (2,066 acres) Cisco Minerals Inc 100%
Radium Mountain (Colorado) CMC292259 to CMC292357 Radium-001 to Radium-099 99 blocks (2,045 acres) Standard Minerals Inc 100%
Groundhog (Colorado) CMC292159 to CMC292258 Groundhog-001 to Groundhog-100 100 blocks (2,066 acres) Standard Minerals Inc 100%
Appendix 5B
Mining exploration entity or oil and gas exploration entity
quarterly cash flow report
Name of entity
THOR ENERGY PLC
ABN Quarter ended ("current quarter")
121 117 673 30 June 2024
Consolidated statement of cash flows Current quarter Year to date (12 months)
$A'000
$A'000
1. Cash flows from operating activities
1.1 Receipts from customers
1.2 Payments for (7) (7)
(a) exploration & evaluation
(b) development
(c) production
(d) staff costs (21) (154)
(e) administration and corporate costs (206) (1,007)
1.3 Dividends received (see note 3)
1.4 Interest received 4 37
1.5 Interest and other costs of finance paid (2) (14)
1.6 Income taxes paid
1.7 Government grants and tax incentives
1.8 Other 6 20
1.9 Net cash from / (used in) operating activities (226) (1,125)
2. Cash flows from investing activities
2.1 Payments to acquire or for:
(a) entities
(b) tenements
(c) property, plant and equipment
(d) exploration & evaluation (106) (1,864)
(e) equity accounted investments
(f) other non-current assets (bonds) (9) (38)
2.2 Proceeds from the disposal of:
(a) entities
(b) tenements (bond refunds) 69 105
(c) property, plant and equipment 52 52
(d) investments - 229
(e) other non-current assets
2.3 Cash flows from loans to other entities
2.4 Dividends received (see note 3)
2.5 Other (Government grants) - 87
2.6 Net cash from / (used in) investing activities 6 (1,429)
3. Cash flows from financing activities 1,300 2,550
3.1 Proceeds from issues of equity securities (excluding convertible debt
securities)
3.2 Proceeds from issue of convertible debt securities
3.3 Proceeds from exercise of options
3.4 Transaction costs related to issues of equity securities or convertible debt (27) (124)
securities
3.5 Proceeds from borrowings
3.6 Repayment of borrowings (lease liability) (12) (47)
3.7 Transaction costs related to loans and borrowings
3.8 Dividends paid
3.9 Other (funds received in advance of a placement)
3.10 Net cash from / (used in) financing activities 1,261 2,379
4. Net increase / (decrease) in cash and cash equivalents for the period
4.1 Cash and cash equivalents at beginning of period 499 1,711
4.2 Net cash from / (used in) operating activities (item 1.9 above) (226) (1,125)
4.3 Net cash from / (used in) investing activities (item 2.6 above) 6 (1,429)
4.4 Net cash from / (used in) financing activities (item 3.10 above) 1,261 2,379
4.5 Effect of movement in exchange rates on cash held (5) (1)
4.6 Cash and cash equivalents at end of period 1,535 1,535
5. Reconciliation of cash and cash equivalents Current quarter Previous quarter
at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts
$A'000
$A'000
5.1 Bank balances 1,535 499
5.2 Call deposits
5.3 Bank overdrafts
5.4 Other (provide details)
5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above) 1,535 499
6. Payments to related parties of the entity and their associates Current quarter
$A'000
6.1 Aggregate amount of payments to related parties and their associates included 82
in item 1
6.2 Aggregate amount of payments to related parties and their associates included
in item 2
Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity
report must include a description of, and an explanation for, such payments.
The amount at item 6.1 above represents fees paid to Non-Executive Directors,
and remuneration paid to the Managing Director.
7. Financing facilities Total facility amount at quarter end Amount drawn at quarter end
Note: the term "facility' includes all forms of financing arrangements available to the entity.
$A'000
$A'000
Add notes as necessary for an understanding of the sources of finance available to the entity.
7.1 Loan facilities
7.2 Credit standby arrangements
7.3 Other (please specify)
7.4 Total financing facilities
7.5 Unused financing facilities available at quarter end
7.6 Include in the box below a description of each facility above, including the
lender, interest rate, maturity date and whether it is secured or unsecured.
If any additional financing facilities have been entered into or are proposed
to be entered into after quarter end, include a note providing details of
those facilities as well.
8. Estimated cash available for future operating activities $A'000
8.1 Net cash from / (used in) operating activities (item 1.9) (226)
8.2 (Payments for exploration & evaluation classified as investing activities) (106)
(item 2.1(d))
8.3 Total relevant outgoings (item 8.1 + item 8.2) (332)
8.4 Cash and cash equivalents at quarter end (item 4.6) 1,535
8.5 Unused finance facilities available at quarter end (item 7.5) -
8.6 Total available funding (item 8.4 + item 8.5) 1,535
8.7 Estimated quarters of funding available (item 8.6 divided by item 8.3) 4.6
No
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7.
8.8 If item 8.7 is less than 2 quarters, please provide answers to the following
questions:
8.8.1 Does the entity expect that it will continue to have the current
level of net operating cash flows for the time being and, if not, why not?
Answer:
8.8.2 Has the entity taken any steps, or does it propose to take any
steps, to raise further cash to fund its operations and, if so, what are those
steps and how likely does it believe that they will be successful?
Answer:
8.8.3 Does the entity expect to be able to continue its operations and
to meet its business objectives and, if so, on what basis?
Answer:
Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2
and 8.8.3 above must be answered.
Compliance statement
1 This statement has been prepared in accordance with accounting
standards and policies which comply with Listing Rule 19.11A.
2 This statement gives a true and fair view of the matters
disclosed.
Date: 31 July
2024...........................................................
Authorised by: the
Board....................................................................
(Name of body or officer authorising release - see note 4)
Notes
1. This quarterly cash flow report and the accompanying
activity report provide a basis for informing the market about the entity's
activities for the past quarter, how they have been financed and the effect
this has had on its cash position. An entity that wishes to disclose
additional information over and above the minimum required under the Listing
Rules is encouraged to do so.
2. If this quarterly cash flow report has been prepared in
accordance with Australian Accounting Standards, the definitions in, and
provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and
AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash
flow report has been prepared in accordance with other accounting standards
agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent
standards apply to this report.
3. Dividends received may be classified either as cash flows
from operating activities or cash flows from investing activities, depending
on the accounting policy of the entity.
4. If this report has been authorised for release to the
market by your board of directors, you can insert here: "By the board". If it
has been authorised for release to the market by a committee of your board of
directors, you can insert here: "By the [name of board committee - eg Audit
and Risk Committee]". If it has been authorised for release to the market by a
disclosure committee, you can insert here: "By the Disclosure Committee".
5. If this report has been authorised for release to the
market by your board of directors and you wish to hold yourself out as
complying with recommendation 4.2 of the ASX Corporate Governance Council's
Corporate Governance Principles and Recommendations, the board should have
received a declaration from its CEO and CFO that, in their opinion, the
financial records of the entity have been properly maintained, that this
report complies with the appropriate accounting standards and gives a true and
fair view of the cash flows of the entity, and that their opinion has been
formed on the basis of a sound system of risk management and internal control
which is operating effectively.
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