REG - Thor Mining PLC - Quarterly Activities Report to December 2014 <Origin Href="QuoteRef">THRL.L</Origin>

Thor EnergyAnnouncement

29/01/2015 07:01

RNS Number : 4219D
Thor Mining PLC
29 January 2015
THOR MINING PLC
QUARTERLY ACTIVITIES REPORT 
PERIOD ENDING DECEMBER 2014
Dated: 29 January 2015

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 December 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 March Quarter 2015
TUNGSTEN & MOLYBDENUM
Molyhil NT
 Revised feasibility study completed demonstrating robust economics
 Continue off-take discussions for balance of concentrate production
 Negotiations to secure project finance
Pilot Mountain, Nevada USA
 Project acquisition completed
 Exploration upside evaluation
 Develop plans for initial exploration phase
GOLD
Spring Hill NT
 No work during the quarter
 Gold price now over A$1,600/oz
 Continue to evaluate potential for profitable production
Dundas WA
 No work during the quarter
 Aircore drilling program contingent upon
available funds
Commenting, Mr Mick Billing, Executive Chairman of Thor Mining, said: 
"Thor is poised to add significant shareholder value, following recent progress. The updated Molyhil feasibility study has delivered very robust results, and it is hoped that discussions with potential financiers will result in project finance in the near term. In addition, the evaluation of the Pilot Mountain Tungsten Project acquisition suggests potential for a tungsten mining & processing operation with considerable life. Finally, the improvement in the gold price to over A$1,600/ounce at the time of writing has added considerable value to the 400,000 ounce gold resource at Spring Hill."
MOLYHIL TUNGSTEN-MOLYBDENUM PROJECT (NT) (100% THOR)
Upgraded Feasibility Study
Subsequent to the end of the December quarter, Thor announced an updated feasibility study for Molyhil with robust outcomes
Table1. Molyhil Key Features
Project NPV post tax & Royalties
A$67 million


Project IRR after tax & royalties
44%
All Equity Case

Project Capex
A$70 million
All Equity Case

Life of Mine C1 Cash Cost
US$112/mtu


Life of Mine EBITDA
A$201 million


Payback from 1st production
18 months


Project Life 
6 years


Average feed grade
0.31% WO
0.41% WO after ore sorting

0.12% Mo
0.12% Mo after ore sorting
Operating throughput
 Crushing & Sorting
 Milling/Flotation etc
500,000 tpa
400,000 tpa
After ore sorting
Annual Production Average
130,000 mtu *
* 1mtu = 10Kg of contained WO
Table 2: Molyhil Open Cut Ore Reserve Statement - Compliant with JORC 2012 (Announced 29 July 2014)
Classification
Reserve
WO3
Mo

'000 Tonnes
Grade %
Contained metal (t)
Grade %
Contained metal (t)
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
Mining
Mining is planned using conventional open cut mining methods; contract drill & blast, followed by owner operated excavation and haulage.
An average pit slope of 48 currently provides for a waste to ore ratio of 5.2:1. There may be an opportunity to improve this ratio during operations and via targeted geo-technical drilling.
The resource estimate extends below the level of the open cut ore reserve used in this study, providing potential to extend the project life either by deepening the open pit, or via underground mining methods depending upon subsequent costs and metal prices.
Processing
Mineral processing involves:
 Two stage crushing to -55mm
 X-Ray (XRT) ore sorting at two sizes: 
o 55mm to +25mm, 
o 25mm to +10mm
 Tertiary crushing
 Two stage grinding using a rod mill followed by a ball mill
 Three stage flotation circuit:
o Molybdenum flotation
o Sulphide flotation
o Scheelite flotation
 Concentrate dressing
The revised process flowsheet involves replacing the previous scheelite gravity recovery method with flotation which has achieved substantial improvements in economic recovery and also in reducing levels of some deleterious elements in final concentrate compared with the original circuit. The scheelite concentrate dressing process which follows the flotation step has been tested but is not yet optimised. It is expected that this optimisation process will be completed during the detailed design phase.
PILOT MOUNTAIN TUNGSTEN PROJECT - NEVADA USA (100% Thor)
During the quarter Thor completed the acquisition of the Pilot Mountain tungsten project in the United States from Black Fire Minerals Limited, now Animoca Brands Limited(ASX: "AB1") for consideration of 418,750,000 ordinary shares in Thor. These shares are subject to a 12 month escrow period.
Following the acquisition, Thor holds 100% equity interest in:
 An Indicated and Inferred Resource of 6.8 million tonnes @ 0.31% WO3, plus attractive copper and silver credits.
 Exploration targets of 11.0 to 23.0 million tonnes @ 0.30 - 0.50% WO3 within very close proximity
 Exploration Targets are conceptual in nature and there has been insufficient exploration to define a Mineral Resource under the 2012 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 a 2012 JORC Compliant 6.8 million tonnes @ 0.31% WO3, 0.17% Copper, and 22.8g/t (grams/tonne) Silver, announced on 10 June 2014.
Table 3: Desert Scheelite Resource Estimate - Compliant with JORC 2012(Announced 10 June 2014)
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:Thor Mining PLC holds 100% equity interest in this resource
Table 4: Pilot Mountain Exploration Target summary (Announced on 1 December 2014)

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
SPRING HILL GOLD 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 on additional exploration activities at Spring Hill.
Recent movements in the gold price, however, have added significant value to this project.
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.
Targets for drilling at Dundas have been identified. However prioritising expenditure on other projects has prevented progress of exploration activities.
 
CORPORATE AND FINANCE
During the quarter, Thor completed a share placement to raise, in aggregate, A$112,500 (approximately UK61,000)before expenses from sophisticated Australian investors.
Competent Persons Report
The information in this report that relates to exploration results is based on information compiled by Richard Bradey, whoholds 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/ Richard Tonthat
+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

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