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Thor EnergyAnnouncement

06/09/2014 22:41

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RNS Number : 7899N
Thor Mining PLC
31 July 2014 
 
THOR MINING PLC 
 
QUARTERLY ACTIVITIES REPORT 
 
PERIOD ENDING JUNE 2014 
 
Dated: 31 July 2014 
 
The Directors of Thor Mining PLC ("Thor" or the "Company") (AIM, ASX: THR) the
Australian tungsten and gold explorer and developer, today lodge the following
June 2014 quarterly report.  It is has also been released today with the
Australian Securities Exchange (ASX) as required by the listing rules of ASX. 
 
 Highlights                                                                                                                                                                                   Outlook for September Quarter 2014                                                                                                                                                                                                                                                                
 TUNGSTEN & MOLYBDENUMMolyhil NT.· Revised ore reserve extends mine life to 6 years· Metallurgical testwork confirms ore sorting benefits without impact on recovery or concentrate quality.  · Finalise testwork on proposed variations to process flow sheet.· Revise Definitive Feasibility Study (DFS) to reflect upgraded ore reserve, cost reductions & ore sort upgrade.· Continue off-take discussions for balance of concentrate production.· Negotiations to secure project finance.  
 Pilot Mountain, Nevada USA.· Agreement signed to acquire US project with tungsten resources                                                                                                  ·    Finalise project acquisition                                                                                                                                                                                                                                                                 
 GOLDSpring Hill NT· No work during the quarter                                                                                                                                               · Continued evaluation of potential for profitable production.                                                                                                                                                                                                                                    
 Dundas WA· No work during the quarter.· Sale of base metal rights with gold rights retained.                                                                                                 · Aircore drilling program contingent upon available funds.                                                                                                                                                                                                                                       
 
 
Commenting, Mr Mick Billing, Executive Chairman of Thor Mining, said: 
 
"Thor's tungsten business made significant steps forward during the June
quarter.  The upgraded Open Pit Ore Reserve statement for Molyhil potentially
sets up the project for a much improved financial outcome in an upgraded DFS
due shortly, and is the last significant step before securing project finance.
 The announced acquisition of the Pilot Mountain project in the USA (subject
to necessary approvals and completion) adds significantly to the Thor
portfolio.  The combined resource inventory, following this acquisition, of
>30,000 tonnes tungsten, plus significant upside via drilling known nearby
tungsten deposits, would  potentially position Thor towards the top end of
non-Chinese tungsten miners." 
 
MOLYHIL TUNGSTEN-MOLYBDENUM PROJECT (NT) (100% THOR) 
 
Upgraded Ore Reserve 
 
Subsequent to the end of the quarter, on 29 July 2014, Thor announced an
updated Ore Reserve Statement based upon the Resources Estimate reported to
the ASX and AIM on 30 January 2014, and following a re-estimate of costs and
metallurgical recovery factors. 
 
Mining consultancy, AVCS Pty Ltd, has issued a statement of Open Cut Ore
Reserve for the Molyhil deposit of 3.0 million tonnes averaging 0.31% WO3 &
0.12% Mo, classified as Probable. 
 
Table 1: Molyhil Open Cut Ore Reserve Statement 
 
 Classification  Reserve      WO3      Mo      
                 '000 Tonnes  Grade %  Tonnes  Grade %  Tonnes  
 Probable        3,000        0.31     9,200   0.12     3,600   
 Total           3,000        0.31     9,200   0.12     3,600   
 
 
Notes: 
 
·      Thor Mining PLC holds 100% equity interest in this reserve. 
 
·      Estimates have been rounded to reflect accuracy. 
 
·      All estimates are on a dry tonne basis. 
 
·      The reserve estimate extends to a maximum depth below surface of 150
metres. 
 
The statement is derived from the Indicated portion of the resource estimate
only, and the Inferred portion is excluded from the calculations. The
long-term prices used were US$408/mtu for WO3concentrate and US$12.76/lb for
Mo concentrate at an exchange rate of US$0.83 to A$1.00. The WO3and Mo
Processing Recovery post ore sorting used was 85% and 77.8% respectively. 
 
Ongoing Optimisation Studies 
 
The 2012 Molyhil DFS highlighted that a 7% improvement in revenue factors (or
the equivalent) was required to increase the Molyhil ore reserve by 50%, and
thus extend the life of the proposed operation from four years to six years. 
This upgraded ore reserve statement has delivered that result. 
 
Additional work continues on testing flotation recovery of the scheelite
mineral, as a more simple processing alternative to the gravity process. 
Results to date confirm that adoption of ore sorting does not adversely impact
on recovery and concentrate quality.  This work is well advanced and expected
to be complete in time for completion of the upgraded DFS in the September
quarter. 
 
Metal Prices 
 
The selling price in Europe of Tungsten APT now sits at US$370/mtu, while the
price of Molybdenum Roasted Concentrates has improved by approximately 30%
over the past 6 months to US$13.00/lb. 
 
PILOT MOUNTAIN PROJECT - NEVADA USA (AGREEMENT TO ACQUIRE 100%) 
 
On 10 June 2014 Thor announced that subject to due diligence and necessary
shareholder and regulatory approvals, an agreement to acquire the Pilot
Mountain tungsten project in the United States from Black Fire Minerals
Limited¹ ("Black Fire")(ASX: "BFE").  Consideration for the acquisition has
been agreed between the parties at 418,750,000 ordinary shares in Thor, and
which will be subject to a 12 month escrow period. 
 
¹Thor Chairman, Mick Billing is also non-executive chairman of Black Fire
Minerals Limited. 
 
As part of the acquisition, Thor will also acquire a debt of A$625,000,
partially secured against the project, payable by 30 September 2015.  The debt
was incurred by Black Fire to meet the final payment for the project in March
2014. 
 
Highlights 
 
·    Acquisition valued at A$1.675million. 
 
·    Desert Scheelite JORC Resource of 6.8million tonnes @ 0.31% WO3. 
 
·    Garnet Exploration Target² of 1.5 to 2.0 million tonnes @ 0.35 - 0.4%
WO3. 
 
·    Gunmetal Exploration Target² of 1.5 to 2.0 million tonnes @ 0.37 - 0.42%
WO3. 
 
·    Substantial exploration upside with high grade tungsten & copper
intercepts to follow up. 
 
²Exploration 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 Pilot Mountain project is situated in south-western Nevada approximately
200kms south of Reno.  It comprises deposits; Desert Scheelite, Gunmetal and
Garnet, plus Good Hope.  All are in close proximity (~3 kilometres), and have
been subjected to low scale mining activities at various times during the 20th
century.  At Desert Scheelite, a 2012 JORC-compliant Indicated & Inferred
resources have been estimated & reported. At Garnet and Gunmetal
mineralisation of similar grade and character has been outlined by drilling to
'Exploration Target' level of estimation. Good Hope comprises some minor
historic workings and one drill hole amongst several, which intersected 43m @
0.41% WO3, from surface. 
 
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 
 
 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 Black Fire Minerals Limited group 
 
The due diligence process on the Pilot Mountain project is proceeding and Thor
Mining shareholders will be asked to approve the issue of the consideration
securities to Black Fire Minerals at a General Meeting of shareholders on 31st
July 2014.  The acquisition is also subject to various Black Fire Minerals
Limited shareholder approval processes including an independent experts report
on the project, which has been commissioned by Black Fire. 
 
Exploration and evaluation activities at Pilot Mountain are not scheduled
until after the acquisition is finalised. 
 
GOLD 
 
SPRING HILL PROJECT - NT (THOR has earned rights to 80% equity) 
 
The Spring Hill gold project is located on pastoral leasehold land
approximately 150 km south east of Darwin in Australia's Northern Territory. 
The location is served by all-weather access and is in close proximity to the
sealed arterial Stuart Highway, north-south rail, gas pipeline and trunk
powerlines. 
 
A full background on the project is available on the Thor Mining website. 
 
Directors continue to evaluate all opportunities for this project.  However
prioritising expenditure on other projects has prevented progress of
exploration activities at Spring Hill. 
 
This gravity and CVL test work demonstrates the potential to achieve high gold
recoveries from the Spring Hill ore without the major capital and operating
cost burden of a conventional CIL process plant. 
 
Project Equity 
 
Thor holds a 51% equity interest in the Spring Hill Gold project and has the
right to complete the 80% acquisition at any time, subject to NT Government
consent, through the issue to Western Desert Resources Limited (WDR) of 5
million shares plus shares to the value of A$500,000. 
 
DUNDAS PROJECT - WA (60% THOR) 
 
The Dundas gold project is located approximately 100 kilometres
east-south-east of Norseman in Western Australia.  The tenements are in close
proximity to the sealed arterial Eyre Highway, providing all-weather access to
the project area.  Within the tenements access is provided by bulldozed
tracks. It is also approximately 250 kilometres south of the major regional
mining centre of Kalgoorlie. 
 
A full background on the project is available on the Thor Mining website. 
 
During the quarter, Thor sold its interest in base metals at Dundas, retaining
it 60% interest in gold and precious metals. 
 
Targets for drilling at Dundas have been identified. However prioritising
expenditure on other projects has prevented progress of exploration
activities. 
 
CORPORATE AND FINANCE 
 
Subsequent to the end of the quarter Thor announced a share placement to
raise, in aggregate, UK£600,000 (approximately A$1.1million) before expenses
from investors introduced by Thor's UK broker VSA Capital. 
 
The placement is in two tranches.  The initial tranche, pursuant to the
Company existing authorities, by way of a placement of 245,800,472 new
ordinary shares of 0.01p each in the capital of the Company at a price of 0.1p
(AUD0.181cents) per share was completed on 8th July 2014, with the second
tranche, subject to shareholder approval, of 354,199,528 new Ordinary Shares,
on the same terms and conditions as the first tranche, scheduled for
completion following the General Meeting of shareholders on 31 July 2014. 
 
Competent Persons 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
2004 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/ 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 Limited    Broker                 
 Alex Walters                                 +44 (0) 7771 713608+44 (0) 207 839 9260  Cadogan PR             Financial PR           
 
 
This information is provided by RNS
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