REG - Thor Mining PLC - Stage 1 Earn-in Completed at Alford East

Thor EnergyAnnouncement

16/11/2021 07:35

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RNS Number : 5144S  Thor Mining PLC  16 November 2021

16 November 2021

 

 

Thor Mining PLC

Stage 1 Earn-in Completed
Alford East Copper-Gold ISR Project, South Australia

 

The directors of Thor Mining Plc ("Thor") (AIM, ASX: THR, OTCQB: THORF) are
very pleased to advise that Thor has fulfilled its Stage 1 expenditure
obligations, as agreed in the Agreement, triggered Stage 1 of the earn-in and
entitling the Company to increase its interest to 51% interest in the oxide
mineral rights from Spencer Metals Pty Ltd ("Spencer") over the Alford East
Copper-Gold Project, South Australia.

 

Highlights:

 

§ Thor to acquire up to an 80% interest directly in the Alford East Project,
covering portions of EL6255 and EL6529 (AIM:THR 20 November 2020).

 

§ Stage 1: Thor has earned a 51% interest by completing the Stage 1
requirements by funding A$500,000 of expenditure and will issue the Stage 1
consideration of A$250,000 in fully paid Thor shares, issued at the 5-day ASX
VWAP (volume weighted average price) on the date immediately prior to
allotment, together with two free attaching options per share issued,
exercisable at $0.03 within 5 years from the date of issue.

 

§ Stage 2: Thor can earn a further 29% interest (80% in total) by funding an
additional A$750,000 of expenditure over a subsequent 2 years and for an
additional consideration of A$250,000 in fully paid Thor shares, issued at the
5-day ASX VWAP on the date immediately prior to allotment and two free
attaching options per share issued, exercisable at A$0.03 within 5 years from
the date of issue (Stage 2 expenditure).

 

Nicole Galloway Warland, Managing Director of Thor Mining, commented:

 

"Following the recently completed, highly successful drilling program at
Alford East, including highlights of 72.7m @ 1.0% Cu and 0.19g/t Au from 6.3m
and 18.2m @ 2.0% Cu and 0.34g/t Au from 15.8m (21AED005), Thor has
successfully earned in to a 51% interest of the project.

"The Company is now progressing with the completion of the Stage 2 earn in,
which will result in Thor having an 80% interest in this highly prospective
project. This demonstrates our confidence in Alford East and the value it can
bring to the Company.

"We look forward to keeping shareholders updated on the progress of the Stage
2 earn-in and our continued exploration of the project."

 

A copy of the Tenement and Prospect Location Plan may be viewed via the
following link:

http://www.thormining.com/sites/thormining/media/maps/21-001-4-ae-mre-%E2%80%93-location.jpg
(http://www.thormining.com/sites/thormining/media/maps/21-001-4-ae-mre-%E2%80%93-location.jpg)

 

A plan view showing the Alford East Project's eight mineralised domains, may
be viewed via the following link:

http://www.thormining.com/sites/thormining/media/maps/mre_ae_5-drilling.jpg
(http://www.thormining.com/sites/thormining/media/maps/mre_ae_5-drilling.jpg)

 

 

 

The Agreement Structure and Commercial Terms

Under the terms of the Agreement, Thor is granted the right to explore for
minerals on the agreed portions of the exploration licences (EL6255 and
EL6529), and to conduct feasibility and development activities in respect
thereto, and via funding expenditure on these activities [and payment of
consideration as set out below], earn an interest in oxide minerals of up to
80% over two stages:

§ Stage 1: Thor has earned a 51% interest by completing the Stage 1
requirements by funding A$500,000 of expenditure and will issue the Stage 1
consideration of A$250,000 in fully paid Thor shares, issued at the 5-day ASX
VWAP (volume weighted average price) on the date immediately prior to
allotment, together with two free attaching options per share issued,
exercisable at $0.03 within 5 years from the date of issue.

§ Stage 2: earn a further 29% interest (80% in total) by funding an
additional A$750,000 of expenditure over a subsequent 2 years and for an
additional consideration of A$250,000 in fully paid Thor shares, issued at the
5 day ASX VWAP on the date immediately prior to allotment and two free
attaching options per share issued, exercisable at A$0.03 within 5 years from
the date of issue (Stage 2 expenditure);

§ Upon Thor completing the acquisition of an 80% interest in the project,
Spencer will hold a free carried 20% interest until decision to mine.

 

Alford East Project Background
The Alford East Copper-Gold Project is located on EL6529, where Thor is earning up to 80% interest from unlisted Australian explorer Spencer Metals Pty Ltd, covering portions of EL6255 and EL6529 (Figure 1) (ASX: THR Announcement 23 November 2020).
The Alford East Project covers the northern extension of the Alford Copper Belt, located on the Yorke Peninsula, SA.  The Alford Copper Belt is a semi coherent zone of copper-gold oxide mineralisation, within a structurally controlled, north-south corridor consisting of deeply kaolinised and oxidised troughs within metamorphic units on the edge of the Tickera Granite (Figure 1), Gawler Craton, SA.

Utilising historic drill hole information, Thor completed an inferred Mineral
Resource Estimate (MRE) (AIM: THR Announcement 26 January 2021):

§ 125.6Mt @ 0.14% Cu containing 177,000t of contained copper

§ 71, 500oz of contained gold

 

Further details of the Alford East Project can be found here:
www.thormining.com/sites/thormining/media/pdf/asx-announcements/20210127-maiden-copper.gold-estimate-alford-east-sa.pdf
(http://www.thormining.com/sites/thormining/media/pdf/asx-announcements/20210127-maiden-copper.gold-estimate-alford-east-sa.pdf)

 

Based on the nature on the oxide mineralisation, the deposit is considered
amenable to In Situ Recovery (ISR) techniques.  For further information on
ISR please refer to Thor's website via this link for an informative video:
www.youtube.com/watch?v=eG_1ZGD0WIw
(http://www.youtube.com/watch?v=eG_1ZGD0WIw)

 

 

 

Table A: Alford East Mineral Resource Estimate as at 22 January 2021, with
AR-5 extending towards AE-8 domains (previously Netherleigh Park) the focus of
the recently completed drilling program.

 

 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

 

Note: MRE reported on oxide material only, at a cut-off grade of 0.05% copper
which is consistent with the assumed In Situ Recovery technique.

 

The final batch of drill core from the recently completed drilling program is
currently at the laboratory, with all assay results anticipated in
approximately 2 weeks.

 

This announcement is authorised for release to the market by the Board of
Directors.

 

- Ends -

 

For further information on the Company, please visit www.thormining.com
(http://www.thormining.com)  or contact the following:

 Thor Mining PLC
 Nicole Galloway Warland, Managing Director               Tel: +61 (8) 7324 1935

 Ray Ridge, CFO / Company Secretary                       Tel: +61 (8) 7324 1935

 WH Ireland Limited (Nominated Adviser and Joint Broker)  Tel: +44 (0) 207 220 1666
 Jessica Cave / Darshan Patel / Megan Liddell

 Jasper Berry (Corporate Broking)
 SI Capital Limited (Joint Broker)                        Tel: +44 (0) 1483 413 500
 Nick Emerson

 Yellow Jersey (Financial PR)                             thor@yellowjerseypr.com
 Sarah Hollins / Henry Wilkinson                          Tel: +44 (0) 20 3004 9512

 

 

 

Elements: Cu=Copper, Au = Gold, Ag=Silver, Mo=Molybdenum, Co=Cobalt, Se=
Selenium, Bi=Bismuth, Ba=Barium and Te=Tellurium

 

Competent Persons Report

The information in this report that relates to Exploration Results and the
Estimation and Reporting of the Alford East Mineral Resource Estimation 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
Mining 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.

 

Forward Looking Statements

This document may contain certain forward-looking statements. Forward-looking
statements include, but are not limited to, statements concerning Thor Mining
PLC current expectations, estimates and projections about the industry in
which Thor operates, and beliefs and assumptions regarding Thor's future
performance. When used in this document, words such as "anticipate", "could",
"plan", "estimate", "expects", "seeks", "intends", "may", "potential",
"should", and similar expressions are forward-looking statements. Although
Thor believes that its expectations reflected in these forward-looking
statements are reasonable, such statements are subject to known and unknown
risks, uncertainties and other factors, some of which are beyond the control
of Thor and no assurance can be given that actual results will be consistent
with these forward-looking statements

 

Updates on the Company's activities are regularly posted on Thor's website
www.thormining.com (http://www.thormining.com/) , which includes a facility to
register to receive these updates by email, and on the Company's twitter page
@ThorMining.

 

 

About Thor Mining PLC

Thor Mining PLC (AIM, ASX: THR; OTCQB: THORF) is a diversified resource
company quoted on the AIM Market of the London Stock Exchange, ASX in
Australia and OTCQB Market in the United States.

The Company is advancing its diversified portfolio of precious, base, energy
and strategic metal projects across USA and Australia. Its focus is on
progressing its copper, gold, uranium and vanadium projects, while seeking
investment/JV opportunities to develop its tungsten assets.

Thor owns 100% of the Ragged Range Project, comprising 92 km(2) of exploration
licences with highly encouraging early-stage gold and nickel results in the
Pilbara region of Western Australia, for which drilling is currently underway.

At Alford East in South Australia, Thor is earning an 80% interest in
copper-gold deposits considered amenable to extraction via In Situ Recovery
techniques (ISR). In January 2021, Thor has announced an Inferred Mineral
Resource Estimate of 177,000 tonnes contained copper & 71,000 oz
gold¹.

Thor also holds a 30% interest in Australian copper development company
EnviroCopper Limited, which in turn holds rights to earn up to a 75% interest
in the mineral rights and claims over the resource on the portion of the
historic Kapunda copper mine and the Alford West copper project, both situated
in South Australia, and both considered amenable to recovery by way of
ISR.²³

Thor holds 100% interest in two private companies with mineral claims in the
US states of Colorado and Utah with historical high-grade uranium and vanadium
drilling and production results.

Thor holds 100% of the advanced Molyhil tungsten project, including measured,
indicated and inferred resources⁴, in the Northern Territory of Australia,
which was awarded Major Project Status by the Northern Territory government in
July 2020. Diamond drilling is currently underway to test potential extension
to mineralisation.

Adjacent to Molyhil, at Bonya, Thor holds a 40% interest in deposits of
tungsten, copper, and vanadium, including Inferred resource estimates for the
Bonya copper deposit, and the White Violet and Samarkand tungsten deposits.⁵

Notes

(1) www.thormining.com/sites/thormining/media/pdf/asx-announcements/20210127-maiden-copper.gold-estimate-alford-east-sa.pdf
(http://www.thormining.com/sites/thormining/media/pdf/asx-announcements/20210127-maiden-copper.gold-estimate-alford-east-sa.pdf)
 

(2) www.thormining.com/sites/thormining/media/pdf/asx-announcements/20172018/20180222-clarification-kapunda-copper-resource-estimate.pdf
(http://www.thormining.com/sites/thormining/media/pdf/asx-announcements/20172018/20180222-clarification-kapunda-copper-resource-estimate.pdf)
 

³
www.thormining.com/sites/thormining/media/aim-report/20190815-initial-copper-resource-estimate---moonta-project---rns---london-stock-exchange.pdf
(http://www.thormining.com/sites/thormining/media/aim-report/20190815-initial-copper-resource-estimate---moonta-project---rns---london-stock-exchange.pdf)

 (4)
www.thormining.com/sites/thormining/media/pdf/asx-announcements/20210408-molyhil-mineral-resource-estimate-updated.pdf
(http://www.thormining.com/sites/thormining/media/pdf/asx-announcements/20210408-molyhil-mineral-resource-estimate-updated.pdf)
 

(5
)www.thormining.com/sites/thormining/media/pdf/asx-announcements/20200129-mineral-resource-estimates---bonya-tungsten--copper.pdf
(http://www.thormining.com/sites/thormining/media/pdf/asx-announcements/20200129-mineral-resource-estimates---bonya-tungsten--copper.pdf)
 

 

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