REG - Thor Mining PLC - Pilot Mountain Tungsten Project Development Plan <Origin Href="QuoteRef">THRL.L</Origin>
RNS Number : 4014YThor Mining PLC01 December 20141 December 2014
THOR MINING PLC
Thor Mining PLC ("Thor" or the "Company")
Development Plan
Pilot Mountain Tungsten Project - Nevada USA
The Directors of Thor Mining PLC' ("Thor") (AIM, ASX: THR) are pleased to announce the Development Plan for the Company's recently acquired Pilot Mountain tungsten project, in the US state of Nevada.
The three stage development plan has been designed to optimise, develop and permit the existing Desert Scheelite resource and project Exploration Targets* through to project development ready status.
*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.
The Desert Scheelite Indicated + Inferred Resource comprises 6.8 million tonnes @ 0.31% WO3, 0.17% Copper, and 22.8g/t (grams/tonne) Silver, announced on 10 June 2014.
Table 1: Pilot Mountain Exploration Target summary
Tonnage (Mt)
% WO3
Comment
Tier 1 Targets*
7.5 - 13.5
0.3 - 0.5
Based on historic drill intersections
Tier 2 Targets*
3.5 - 9.1
0.3 - 0.5
Based on favourable geology and proximity to known mineralisation.
Total Exploration Target*
11.0 - 23.0
0.3 - 0.5
Combined Tier 1 & 2
These targets are in addition to the Indicated and Inferred Resource Estimate at Desert Scheelite, below.
The Desert Scheelite Indicated + Inferred Resource comprises 6.8 million tonnes @ 0.31% WO3, 0.17% Copper, and 22.8g/t (grams/tonne) Silver, announced on 10 June 2014.
Table 2: Desert Scheelite Resource Estimate - Compliant with JORC 2012
Desert Scheelite
Resource
WO3
Ag
Cu
Tonnes
Grade %
Contained metal (t)
Grade g/t
Contained metal (t)
Grade %
Contained metal (t)
Indicated
6,090,000
0.31
18,900
24.2
150
0.16
10,000
Inferred
700,000
0.30
2,100
9.1
10
0.24
2,000
Total
6,790,000
0.31
21,000
22.8
160
0.17
12,000
Note: Resource 100% owned by Thor Mining PLC
Pilot Mountain situated in south-western Nevada comprises the Desert Scheelite, Gunmetal, Garnet and Good Hope deposits, all within a ~3 kilometre range of each other. A review of geological data including recently unearthed archive data has been undertaken to determine the project's development potential summarised in Table 1.
http://www.rns-pdf.londonstockexchange.com/rns/4014Y_1-2014-11-30.pdf
Figure 1: Pilot Mountain Exploration Target PlanTier 1 targets have demonstrated tungsten mineralisation based upon existing historic drill data generated largely by the Union Carbide Corporation in the 1970s. This data, however, is not adequate to support a resource estimate. Exploration Target values quoted above for Tier 1 areas have been derived from extrapolation of existing drill data.
Tier 2 targets do not have demonstrated tungsten mineralisation but are deemed prospective as a function of favourable geology and proximity to areas of known mineralisation. Exploration Target values quoted above for Tier 2 areas have been derived by comparison with similar Tier 1 target areas and factored for relative size. Testing of Tier 2 targets will comprise part of the second stage of the development plan.
The three stage development plan will comprise;
1. Confirmatory drilling of Tier 1 targets, enabling updated resource estimate including Garnet and Gunmetal deposits, initial scoping studies, and advancement of project permitting.
2. Expansion and infill of Tier 1 resource drilling and testing of Tier 2 targets. Upgrade of resource estimates to enable initial assessment of reserves. Continue project permitting, feasibility and associated studies.
3. Completion of resource drilling and studies for reserve estimate. Definitive feasibility study and project permitting.
Individual Exploration Targets and their derivation are provided below.
Mr Mick Billing, Executive Chairman of Thor Mining:
"The potential for the Pilot Mountain project to be ranked as one of the larger, non-Chinese, tungsten deposits should not be discounted. Previous exploration was halted due to market forces, rather than lack of targets. At Pilot Mountain, Thor has a number of "walk up" drill targets along with very interesting longer-term exploration opportunities. There is much to do, including follow up work on very promising metallurgical testwork as well as other environmental and other technical studies, however this has potential to become a project of considerable substance."
Enquiries:
Mick Billing
+61 (8) 7324 1935
Thor Mining PLC
ExecutiveChairman
Ray Ridge
+61 (8) 7324 1935
Thor Mining PLC
CFO/Company
Secretary
Colin Aaronson/
David Hignell/
Jamie Barklem
+44 (0) 207 383 5100
Grant Thornton UK LLP
Nominated Adviser
Andrew Monk/
Bhavesh Patel
+44 (0) 20 3005 5000
VSA Capital Ltd
Broker
Alex Walters
+44 (0) 7771 713608
+44 (0) 207 839 9260
Cadogan PR
Financial 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.
Derivation of Exploration Targets
Table 3 below lists the individual exploration targets that have been identified within the Pilot Mountain project area. Each target is described below.
Table 3: Pilot Mountain Exploration Targets
Target Name
Abbreviation
Exp Target
Totals
TIER 1
Exploration Targets
Garnet
GR
2 -3 Mt @ 0.3 - 0.4% WO3
7.5 to 13.5 Mt at 0.2- 0.4%WO3
Gunmetal South
GMS
2 - 3 Mt @ 0.3 - 0.5% WO3
Desert Scheelite East
DSE
2 - 3 Mt @ 0.3-0.5%WO3
Good Hope
GH
0.5-1.5Mt @ 0.4 - 0.5%WO3
Gunmetal Mine
GM
0.5-1Mt @ 0.4 - 0.5% WO3
TIER 2
Exploration Targets
Greasewood Spring
GWS
0.5-1.5Mt @ 0.2 - 0.4% WO3
3.5 to 9.1 Mt at 0.2 - 0.4%WO3
Good Hope Zone
GHZ
1 - 2Mt @ 0.2 - 0.3% WO3
Desert Scheelite (dip extension)
DSD
0.5-1.5Mt @ 0.2-0.4% WO3
Gunmetal West
GMW
0.5-1Mt @ 0.2 - 0.4% WO3
Garnet East
GRE
0.1-0.3Mt @ 0.2 - 0.4%WO3
Juniper
JNP
0.5-1.0Mt @ 0.2 - 0.3%WO3
Desert Scheelite (West extension)
DSW
0.2 -0.5 Mt @ 0.2-0.4% WO3
Fjiordland
FJL
0.1 - 0.5Mt @0.2 - 0.3%WO3
Sage
SGE
0.1 - 0.3Mt @0.2 - 0.4% WO3
http://www.rns-pdf.londonstockexchange.com/rns/4014Y_2-2014-11-30.pdf
Figure 2: Pilot Mountain Tier 1 Targets
http://www.rns-pdf.londonstockexchange.com/rns/4014Y_3-2014-11-30.pdf
Figure 3: Pilot Mountain Tier 2 Targets
Tier 1 Exploration Targets
Garnet
Widely spaced drillingoutlinesseveralareasofapparentlycoherent, sub horizontal tungsten mineralisation skarn hosted at shallow depth within a sequence of marble and hornfels. The mineralisation isdissected byarectilinear seriesof intersecting majorsubverticalfaultswithminorvertical displacements. The mineralised horizons total 12 metres in width and occur over a thickness of 30 to 40 metres which is near surface towards the east with the cover increasing up to 40 metres towards the west.
Definition of ore blocks requires significant infill drilling with short vertical holes. Once the historic indications are confirmed, estimation ofresources, plus economic modelling can be undertaken.
Across the 700,000square metre Garnet target area seven of the historic holes penetrate what is thought to be the full mineralised sequence comprising three mineralised horizons (the middle horizon is sometimes split to provide a fourth). Using these seven holes an average total mineralised thickness of 12 metres at 0.3%WO3 was derived.The Garnet Exploration Target value was derived from the mineralised thickness, the target area, an estimated bulk density of 2.8 and a conservative factor of 0.1 to allow for the improbability of the whole of a target area being mineralised.
The exploration target is therefore 2 -3 Million tonnes @ 0.3 - 0.4% WO3.
Gunmetal South
The Gunmetal South target area comprises 630,000 square metres of which 330,000 square metres has been tested by widely spaced drilling outlining multiple sub-horizontal zones of apparently coherent mineralisation within the metasediment. The mineralisation as currently drilled is constrained to the south and east by drilling, to the north by granite intrusions and to the west by an upward faulted block.
The Exploration Target provided is the resource estimate reported by Kaiser Engineering in 1981. This being a range of 2 - 3 million tonnes at 0.3% - 0.55% WO3. Validation of this estimate has been undertaken via the following estimate completed using the existing data and a series of detailed sections generated by Union Carbide. The mineralised area is approximately 500 x 250 metres comprising a total mineralised thickness of approximately 7 metres with a bulk density of 2.8, resulting in a figure of 2.5 million tonnes.
There exists some limited scopefor immediateextensions outside the currently drilled areabutthis is not included in the target figure.
DesertScheelite
The Desert Scheelite resource detailed in the Golder 2012 report is not included as an exploration target. The depositremainsopen toE,W&atdepth along itswholestrikelength. Extensions to mineralisation in each of these three directions are treated as individual targets and described separately below.
Desert Scheelite East
The most easterly hole into Deseret Scheelite mineralisation (DSDD 15) intersected exceptionally strong mineralisation of 13.9m averaging 0.89% WO3, 1.75% Cu at 180m below groundlevel and 130 metres below the base of unmineralised cover. There are currently no apparent reasons why this mineralisationshould not continue. A recent geophysical survey (gravity and IP) overDesert Scheelite and adjacent plainstotheeast was undertaken which indicated no significant down thrusting has occurred to the east. An exploration target of 2 - 3 million tonnes at 0.3 to 0.5% WO3 has been proposed based on an easterly extension equivalent to one third of the existing Desert Scheelite resource.
Good Hope
TheGood Hope mineralisation is little explored however historicdrill holeRDH2 reported an intersectionof 36m@0.41% WO3 from 3 metres, indicating significantpotential,albeitatunknown hole orientation relativeto the mineralisation. Initial indications from minimal surface outcrop in historic exploration gouges would suggest Good Hope mineralisation has a sub vertical orientation and compares more closely with the Desert Scheelite style of mineralisation than with Gun Metal / Garnet. The geology mapping at Good Hope indicates the presence of target lithologies comprising outcropping skarn and quartz monzonite within Luning Marble thus strong potential exists for economic quantities of tungsten mineralisation to occur at Good Hope.
The Good Hope Exploration Target of 0.5 - 1.5 million tonnes at 0.4% - 0.5% WO3 is based on one sixth to one quarter of the Desert Scheelite resource.
Gunmetal Historic
Gunmetal Historic is the zone around the historic mining area. Geological mapping indicates extensive skarn and quartz monzonite outcropping within Luning Marble. Historic mining and drill intersections in this area indicate robust tungsten mineralisation such as GM11 with the following intersections
4.2m @0.61% WO3 from 83m
8.1m @0.62% WO3 from 88m
6.1m @0.51% WO3 from 111m
2.8m @0.5% WO3 from 121m
The extent of this mineralisation is likely to be controlled by the distribution of the intrusive which will also limit the size of the target. An Exploration Target of 0.5 - 1.0 million tonnes at 0.4 - 0.5% WO3 is proposed. The potential of near surface and opencut mining make this a Tier 1 target.
Tier 2 Exploration Targets
Tier 2 Exploration Targets do not have demonstrated tungsten mineralisation but are prospective as a function of their geology and/or proximity to areas of known mineralisation.
Desert Scheelite dip extension is the Tier 2 exception as it is based on existing data and is relatively low risk. This target is classified as Tier 2 because it occurs at depth and is unlikely to be drilled in the foreseeable future.
Exploration Target values for Tier 2 areas have been derived by comparison with Tier 1 target area and factored for relative size. Each Tier 2 Exploration Target is described individually below.
Greasewood Spring
Greasewood Spring has comparable geology to Gunmetal Mine. There is wide spaced drilling of which only part of the data are available. The only mineralisation intersections recorded so far have been at depth.
The prospective geology including hornfels and skarn in addition to ~60% alluvial cover give this target area a reasonable level of prospectivity. The target value is derived from Gunmetal Historic scaled up to allow for the larger area of Greasewood Spring.
Drill target generation using geophysics, mapping and geochemistry work would be undertaken prior to any drilling in this area.
Good Hope Zone
The Good Hope Zone is a large area (247 Hectares) entirely under volcanic and alluvial cover. There are currently two gaps in this area of cover; the southern gap exposing the Desert Scheelite deposit, and the northern gap exposing tungsten mineralisation at Good Hope. (figure 3)
Between these two inliers at Good Hope and Desert Scheelite and beneath the shallow cover (in the order of 10s of metres thick) the geology comprises the target lithologies which have to date only been tested by three drill holes sited without benefit of contemporary geophysical targeting.
Application of contemporary systematic geophysical exploration techniques will be undertaken to develop targets in this area before any drilling is undertaken.
The Exploration Target for this area is set at 1 - 2 million tonnes at 0.2% - 0.3% WO3.
Desert Scheelite Dip Extension
The Desert Scheelite Dip Extension is a relatively low risk target located down dip of the currently deepest drilling at less than 300 metres. By nature of its depth the target will be high cost to drill and unlikely to be drilled before commencement of mining of the current Desert Scheelite resource.
The Exploration Target is based on one sixth of the current DS resource.
Remaining Tier 2 Targets
The remaining Tier 2 Exploration Targets; Gunmetal West, Garnet East, Juniper, Desert Scheelite West, Fjiordland and Sage all have target values of less than 1 million tonnes. They are considered prospective as a result of their geology predominantly including the presence of Luning Marble, and the interpreted proximity of quartz monzonite. As Tier 2 targets each of these would be subject to preliminary targeting ground work including mapping, geochemistry excluding areas of transported cover and geophysics to identify any drill targets.
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