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RNS Number : 7336S Thor Explorations Ltd 18 November 2021
NEWS RELEASE
NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR
DISTRIBUTION TO U.S. WIRE SERVICES
FOR IMMEDIATE RELEASE
TSXV / AIM: THX
November 18, 2021
Vancouver, British Columbia
MAIDEN MINERAL RESOURCE ESTIMATE AND MANSA DISCOVERY DRILLING RESULTS DECLARED
FOR THE DOUTA GOLD PROJECT, SENEGAL
For Full Release Including Figures Follow the Link Here:
http://www.rns-pdf.londonstockexchange.com/rns/7336S_1-2021-11-17.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/7336S_1-2021-11-17.pdf)
Thor Explorations Ltd. (TSX VENTURE/AIM: THX) ("Thor" or the "Company") is
pleased to announce an initial NI 43-101 standard Maiden Mineral Resource
Estimate ("MRE") for the Makosa Deposit which is located in the southern
portion of the Douta Gold Project in Senegal.
Highlights:
- Maiden Resource Estimate for Douta Project is supported by a total of 35,728
metres of drilling
- Maiden Resource of 730,000 ounces of gold grading at 1.5g/tAu
- Mineralisation at Makosa remains open along strike with further growth
potential
- New mineralised discovery at the Mansa Prospect located 5km along strike
from Makosa
The MRE is classified as Inferred Resources and is constrained within
optimised pit shells and comprises 15.3 million tonnes grading 1.5 grammes per
tonne ("g/t") gold ("Au") for 730,000 ounces of gold.
The Company is also pleased to announce that exploration drilling at the Mansa
Prospect, which is located 5km along strike from Makosa, resulted in
encouraging drilling intersections including 4 metres ("m") grading 3.11 g/t
Au, 5m grading 1.75g/t Au and 2m grading 10.65g/t Au.
The Makosa MRE encompasses the Makosa, Makosa North and Makosa Tail zones,
which all remain open along strike and down dip, and are expected to grow with
ongoing drilling either along strike or at depth.
The MRE provides a foundation for continued resource growth along strike to
the north from Makosa North together with the satellite deposits, including
the newly discovered Mansa, that are currently being assessed along the 30
kilometre long Makosa gold corridor.
Segun Lawson, President & CEO, stated
"The Makosa Maiden Resource Estimate is the Company's first major milestone at
the Douta Project. The resource is the culmination of the first round of
mostly wide-spaced exploration drilling conducted over a strike length of over
seven kilometres. This provides for a solid growth platform for Thor following
the greenfield discoveries of Makosa and Makosa Tail in 2018 and 2020
respectively.
"We are now focussing our exploration towards expanding the resource along the
prospective corridor that runs along the full 30km length of our exploration
licence. Priority will be given to extensional drilling at Makosa North where
the mineralisation remains open-ended towards the north-east.
"We are equally excited with the first drilling results from our new
greenfield discovery Mansa which is located on the same structure as Makosa.
In addition to undertaking definition drilling at Mansa the 5km gap between
Makosa North and Mansa will also be targeted in our next drilling program."
About Thor
Thor Explorations Ltd. is a Canadian mineral exploration company engaged in
the acquisition, exploration and development of mineral properties located in
Nigeria, Senegal and Burkina Faso. Thor holds a 100% interest in the Segilola
Gold Project located in Osun State of Nigeria and a 70% interest in the Douta
Gold Project located in south-eastern Senegal. Thor trades on the TSX Venture
Exchange under the symbol "THX".
THOR EXPLORATIONS LTD.
Segun Lawson
President & CEO
Qualified Person
The above information relating to the resource estimate has been prepared by
Mr Babacar Diouf (MSc Queens University, Ontario, M.AusIMM, Member Association
des Ingenieurs Geologues sortant de I'IST(AGIST), Principal Geologist of
Azimuth Consulting Senegal, who is responsible for this Mineral Resource
statement and is an "Independent Qualified Person" as defined in NI43-101 and
is a qualified person under the AIM Rules and has reviewed and approves the
content of this news release.
The information relating to exploration results has been prepared under the
supervision of Alfred Gillman (Fellow AusIMM, CP), who is designated as a
"qualified person" under National Instrument 43-101 and the AIM Rules and has
reviewed and approves the content of this news release. He has also reviewed
QA/QC, sampling, analytical and test data underlying the information.
This announcement contains inside information for the purposes of Article 7 of
Regulation (EU) 596/2014.
For further information please contact:
Thor Explorations Ltd
Email: info@thorexpl.com (mailto:info@thorexpl.com)
Canaccord Genuity (Nominated Adviser & Broker)
Henry Fitzgerald-O'Connor / James Asensio / Thomas Diehl
Tel: +44 (0) 20 7523 8000
Hannam & Partners (Broker)
Andrew Chubb / Matt Hasson / Nilesh Patel / Franck Nganou
Tel: +44 (0) 20 7907 8500
Fig House Communications (Investor Relations)
Tel: +1 416 822 6483
Email: investor.relations@thorexpl.com
(mailto:investor.relations@thorexpl.com)
Blytheweigh (Financial
PR)
Tim Blythe / Megan Ray / Rachael Brooks
Tel: +44 207 138 3203
Introduction
The Douta Gold Project is a gold exploration permit, E02038, which covers an
area of 58 square kilometres ("km(2)") and is located within the Kéniéba
inlier, eastern Senegal. The northeast trending permit (Figure 1) has an area
of 58 km(2). Thor, through its wholly owned subsidiary African Star Resources
Incorporated ("African Star"), has a 70% economic interest in partnership with
the permit holder International Mining Company SARL ("IMC"). IMC has a 30%
free carried interest in its development until the announcement by Thor of a
Probable Reserve.
The Douta licence is strategically positioned 4km east of the deposits Massawa
North and Massawa Central deposits which form part of the world class
Sabadola-Massawa Project that is owned by Endeavour Mining (Figure 1). The
Makabingui deposit, belonging to Bassari Resources Ltd, is located immediately
to the east of the northern portion of E02038.
Figure 1: Douta Project Location Map
Mineral Resource Estimate
Summary
Thor is pleased to declare an initial resource estimate (MRE) of 15 million
tonnes ("Mt") grading 1.53g/t Au for 730,000 ounces gold in the Inferred
category at the Douta Gold Project in eastern Senegal. The MRE encompasses the
Makosa, Makosa North and Makosa Tail zones, which are collectively named the
Makosa Resource.
The MRE has been estimated by an independent consultant and is reported at a
cut-off grade of 0.3g/t Au within optimised shells using a gold price of
US$2,200.
Deposit Classification Tonnage Grade Contained Metal
Thor Interest (70%)
Mt Au g/t koz Au koz Au
Makosa Inferred 11.7 1.5 550 385
Makosa Tail Inferred 3.6 1.6 180 126
Total Makosa Inferred 15.3 1.5 730 511
Table 1: Douta Gold Project Mineral Resource Estimate, November 2021 (reported
at cut-off grade of 0.3g/t Au)
· Open Pit Mineral Resources are reported in situ at a cut-off
grade of 0.30 g/t Au. An optimised Whittle shell ($2,200) was used to
constrain the resources.
· The Mineral Resource is considered to have reasonable prospects
for economic extraction by open pit mining methods above a 0.30 g/t Au and
within an optimised pit shell.
· Metallurgical and mining recovery factors not applied.
· Mineral Resources are not Mineral Reserves and do not have
demonstrated economic viability.
· Totals may not add exactly due to rounding.
· The statement used the terminology, definitions and guidelines
given in the CIM Standards on Mineral resources and Mineral Reserves (May
2014) as required by NI 43-101.
· Bulk density is assigned according to weathering profile with a
weighted average of 2.78.
· Mr B. Diouf (CP), Principal Geologist of Azimuth Consulting
Senegal, is responsible for this Mineral Resource statement and is an
"Independent Qualified Person" as defined in NI 43-101.
· Mr Diouf has undertaken several site visits during the course of
the resource drilling and is satisfied that industry-standard sampling and
QAQC procedures have been followed.
Drilling
Thor completed a total of 37,665m of drilling consisting of 1,937m of diamond
drilling and 35,728m of Reverse Circulation ("RC") drilling which have been
used to generate the updated MRE. RC drilling was carried out by International
Drilling Company (2017), Sendrill Consulting (2018) and Sengold (2020-2021),
while historic diamond drilling was carried out by ADS (2012).
Sample Analysis and Database
Drilling has been almost exclusively sampled on 1m intervals with the primary
laboratory for analysis being ALS Global's laboratory in Bamako, Mali. Split
samples ranging in weight from 0.5 kilogrammes ("kg") to 3.5kg, with an
average of 2.3kg were collected for analysis. After the sample preparation
analysis, a fire assay with an atomic absorption finish on a 50 grammes ("g")
subsample of the pulp (AA26), was completed umpire samples were submitted to
the MSA laboratory in Abidjan.
Standard QA/QC protocols were followed with inserts of certified standards,
blanks and duplicates representing approximately 10% of all analyses.
The Company's database is maintained internally with independent audits
carried out by Cube Consulting (Perth) on request.
Mineral Resource Estimation
A two-pass ordinary kriged grade estimation was carried out within hard
geological boundaries defined by a nominal modelling grade cut off of
0.5g/tAu. Twenty two individual veins for Makosa/Makosa North and 16 veins for
Makosa Tail were created and then combined into a single domain for
Makosa/Makosa North and a single domain for Makosa Tail.
A weathering model was developed so bulk densities could be assigned according
to weathering state.
The tonnage factor in the block models was determined by assigning the bulk
densities to the following material types:
· 2.70 t/m3 for Fresh (FRS),
· 2.65 t/m3 for weakly oxidized (WOX),
· 2.50 t/m3 for moderately oxidized (MOX), and
· 2.40 t/m3 for strongly oxidized (SOX).
At this stage of the project, it is appropriate that blocks within the Makosa
mineralised zones have the same average bulk densities as the blocks within
the Makosa waste zones.
Exploratory Data Analysis and Top Cut Selection
Prior to selecting the composite length, the average sample length was
determined. The majority (91%) of the samples are 1.0m long, thus a 1m
composite length was adopted.
Statistical analysis was completed on assay values composited to 1m and
extracted from within the mineralised zone domains for the two prospect areas,
with a top cut (cap) being selected to reduce the influence of any 'outlier'
high grades.
Globally, a total of 1,879 composites were included in the database for top
capping analysis. At Makosa Main, seven (7) composite gold values that
exceeded 15g/t were reduced to 15g/t. At Makosa Tail, three (3) Composite gold
values that exceeded 30g/t were reduced to 30g/t. Gold composite values below
were unchanged. The effect of the application of the top cuts is summarised in
Table 3.
At Makosa, the top capping reduced the average mean grade from 1.31g/t Au to
1.27g/t Au.
At Makosa Tail, the top capping reduced the average mean grade from 1.64g/t Au
to 1.51g/t Au.
Domain No of Maximum Mean Au Top Cut Capped Mean No of %
Composites Au (g/t) (g/t) Au (g/t) Au (g/t) Composites Metal
affected
Makosa 1401 38.6 1.31 15 1.27 7 -3%
Makosa Tail 478 57.9 1.64 15 1.51 3 -8%
Total 1879 57.90 1.39 1.330 10 -4%
Table 3: Composite statistics and effect of top cut on contained metal
Estimation Methodology
Variography was carried out on each combined domain with the appropriate
parameters used to estimate the gold grade using Ordinary Kriging (OK). Due to
the difference in orientation between Makosa Tail and Makosa/Makosa North two
separate blocks were created to better align blocks with the orientation of
the lode systems.
Block estimation used a two-pass strategy with the number of required samples
(2 to 20) maintained in each pass, and search distance increased for the
second estimation pass.
Kriging statistics (estimated grade, kriging efficiency, conditional bias
slope, average distance to samples) were then plotted against the number of
informing samples to optimise the outcomes. This was done primarily to avoid
local conditional biases (too few samples) and over-smoothing (too many
samples) of the estimated grade.
Mineral Resource Constraints
To test the reasonable prospects for eventual economic extraction, the Makosa
Mineral Resource is constrained by an optimised pit shell (revenue factor of
1) defined by the parameters shown in Table 4.
A cross-section showing the pit shell in relation to the mineral resource at
Makosa Tail is illustrated in Figure 3.
Parameter Unit
SOX Strongly oxidised: 4% of the resource 45 degrees
MOX Medium oxidised: 6% of the resource 45 degrees
WOX Weakly oxidised: 4% of the resource 50 degrees
Fresh Fresh Rock and sulphides: 86% of the resource 58 degrees
Mining Cost
- Load and Haul US$1.2/t @ surface, increase $0.1/t per 5m bench 1.2 $/t
D&B - SOX 2.60 Total cost $/t 2.6 $/t
D&B - MOX/WOX 3.10 Total cost $/t 3.1 $/t
D&B - Fresh 4.00 Total cost $/t 4 $/t
Total 10.9 $/t
Mining Recovery 95 %
Mining Dilution 5 %
Processing Cost
- Variable Cost power, reagents, consumables, direct labour costs 16 $/t ore
- G&A + overheads 5.5 $/t ore
- Grade Control blast hole sampling/gc program 0.5 $/t ore
- Ore Mining Included in Mining Cost $/t ore
Total 22 $/t
Process Recovery
SOX 90 %
MOX 90 %
WOX 90 %
Fresh 88 %
Product Sell Price Multiple gold prices to be run $2,200 US$/oz
Sell Price $70.73 US$/t
Discount Rate 8 %
Mill Limit 2.5 Mill Mt/pa
Table 4: Open Pit Optimisation Parameters
Classification
Drill hole density ranges from 50m to 200m spaced sections with spacing
between holes on-section typically 30m (refer Figure 2). Notwithstanding the
demonstrated geological continuity over a 7km strike length, the
classification as 100% Inferred Resources is considered appropriate for the
current level of understanding and development of the Mineral Resource.
Figure 2: Makosa Drillhole Location Plan
Metallurgical Factors
Thor has submitted metallurgical samples to ALS (Perth) and preliminary
recovery results indicate that oxide material may be recovered by normal
gravity/CIL methods whereas the fresh material is refractory to partially
refractory and may be recovered by either Biological Oxidation (BIOX) or
Pressure Oxidation (POX) methods. Ongoing metallurgical test work is focussed
on achieving the optimal operational flow sheet for the fresh material.
The initial metallurgical results at Makosa are comparable to those reported
from initial test work at the Massawa deposit which is located 4km to the west
and which is owned by Endeavour Mining. Following exhaustive metallurgical
testing the optimal laboratory flow sheet for Massawa achieved recoveries of
88% for fresh (refractory to partially refractory) using a BIOX processing
route and 90% for oxide to transitional.
Until a representative number of samples has been fully tested using optimal
recovery techniques Thor has adopted similar recovery factors used at Massawa.
This is considered appropriate for the current level of classification and
understanding of the Mineral Resource.
Environmental Factors
No impediments with respect to reserves, parks or other areas of significance
have been identified on the project area. The Douta exploration licence
consists of a modified environment as a result of human activities including
harvesting forest flora and burning vegetation as part of sporadic and
unregulated historic artisanal mining activity. There are no settlements
within the licence boundary.
Thor abide by the Senegal 2016 Mining Code which introduced an obligation for
mining title-holders to contribute annually to a local development fund in the
amount of 0.5% of sales, minus annual fees. Under the 2016 Code, mining
projects require a prior environmental impact assessment, to be approved by
the Directorate of the Environment and Classified Establishments.
To gain initial environmental baseline information within the Douta
exploration licence a dry season ecology survey was undertaken in May 2021 by
Senegal-based Synergie Afrique - a registered environment consultancy in
Senegal. The survey will form part of the overall Environment and Impact
Assessment ("EIA") which is expected to be completed in 18 months. It is
planned to undertake a wet season ecology survey in the near future when the
ephemeral streams are running.
Figure 3: Cross Section through Makosa Tail
Exploration Upside: Mansa Prospect Exploration Results
Geology
The Mansa Prospect is located 5km along strike to the northeast from Makosa.
The exploratory RC drilling programme comprised 31 holes totalling 2,405m and
tested anomalous zones as defined by the regional auger geochemical survey
completed in 2020. Significant intersections are listed in Table 5 and
located in Figure 4. Drill samples were analysed by ALS laboratories in Mali
using the AA26 fire assay method (50g charge).
This initial RC programme focussed on the zone from surface to a vertical
depth of about 60m, and although this initial drill coverage wide-spaced with
drill sections spaced between 200m and 400m apart, the results have confirmed
primary gold mineralisation associated with two parallel zones suggested by
the geochemical data.
The geological setting of Mansa is similar to that of Makosa with
mineralisation hosted by deformed sedimentary rocks near the contact with
gabbro or volcaniclastics. Gold mineralisation appears to be controlled by the
northeast trending brittle-ductile shear zones that dips steeply towards the
northwest. Grade and thickness variations occur along with the shear zone.
HOLE-ID Easting Northing Elevation Length (m) From (m) To (m) Interval (m) Grade (g/tAu) True Width (m)
DTRC339 181675 1442731 200 90 56 58 2 10.65 1.8
DTRC341 181929 1442998 200 78 5 7 2 1.35 1.6
DTRC345 181247 1443265 200 90 46 49 3 1.08 2.7
DTRC346 181415 1443389 200 70 20 28 8 0.72 7.0
DTRC346 and 29 31 2 0.53 1.8
DTRC347 181393 1443404 200 90 48 53 5 1.75 4.5
DTRC349 181563 1443527 200 84 44 51 7 0.88 6.4
DTRC354 181798 1443855 200 81 39 41 2 1.58 1.8
DTRC363 182618 1443983 200 70 55 59 4 3.11 3.6
Table 5: Mansa Significant Results
(0.5g/t Au lower cut off; maximum 2m internal dilution)
Figure 4: Mansa Drillhole Location Map
The initial exploration results from Mansa indicate the occurrence of gold
mineralisation over a wide area measuring approximately 800m wide and 2,000m
along strike.
The best results, including 4m grading 3.11g/t Au from 55m, were returned from
drillhole DTRC363 which is located on the eastern shear zone in the northern
portion completed of the drilling coverage. There is very little drilling over
the eastern shear zone which appears to have been intersected in hole DTRC339,
located 2km to the southwest from DTRC363 and intersected 2m at 10.65g/t Au
from 56m.
Ongoing Exploration
Thor intends to progress the Makosa Resource expansion drilling together with
parallel workstreams including detailed metallurgical sampling and testing,
environmental and social baseline monitoring as part of an Environmental and
Social Impact Assessment, geotechnical and hydrological studies.
The main resource expansion priorities are:
1. Extensional drilling northwards from the Makosa Resource that will
bridge the gap between Makosa and Mansa prospect.
2. Infill and resource definition drilling at Mansa Prospect.
3. Continue exploration northwards from Mansa.
The broad Project-level objectives are:
· To upgrade the Inferred Resource to a sufficient inventory of
material in the Indicated Resource category so that preliminary mining studies
can be undertaken.
· To identify higher grade mineralisation in the oxide zone that
can be upgraded. to Indicated Resources as a priority.
· Continued drilling to increase the overall resource base through
extensional drilling along the prospective corridor.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
This press release does not constitute an offer to purchase securities. The
securities to be offered in the offering have not been and will not be
registered under the United States Securities Act of 1933, as amended, or any
state securities laws and may not be offered or sold in the United States or
to, or for the benefit or account of, a U.S. person, except pursuant to an
available exemption from such registration requirements.
Cautionary Note Regarding Forward-Looking Statements
Except for the statements of historical fact contained herein, the information
presented constitutes "forward looking statements" within the meaning of
certain securities laws, and is subject to important risks, uncertainties and
assumptions that could cause the actual results of the Company to differ
materially form the forward-looking statements. Such forward-looking
statements, including but not limited to, the Company's ability to fully
finance the Project, to bring the Project into operation or to produce gold
from the Project, and the use of the proceeds. The words "may", "could",
"should", "would", "suspect", "outlook", "believe", "anticipate", "estimate",
"expect", "intend", "plan", "target" and similar words and expressions are
used to identify forward-looking information. The forward-looking information
in this news release describes the Company's expectations as of the date of
this news release and accordingly, is subject to change after such date.
Readers should not place undue importance on forward-looking information and
should not rely upon this information as of any other date. While the Company
may elect to, it does not undertake to update this information at any
particular time.
Appendix 1
Mansa Drillhole Data
HOLE-ID Easting Northing Elevation Length (m) Azimuth Dip From (m) To (m) Interval (m) Grade (g/tAu) True Width (m)
DTRC338 181698 1442712 200 70 130 -50 NSR
DTRC339 181675 1442731 200 90 130 -50 56 58 2 10.65 1.8
DTRC340 181913 1443015 200 96 130 -50 NSR
DTRC341 181929 1442998 200 78 130 -50 5 7 2 1.35 1.6
DTRC342 181181 1443070 200 66 130 -50 NSR
DTRC343 181158 1443089 200 102 130 -50 NSR
DTRC344 181272 1443248 200 69 120 -50 NSR
DTRC345 181247 1443265 200 90 120 -50 46 49 3 1.08 2.7
DTRC346 181415 1443389 200 70 120 -50 20 28 8 0.72 7.0
DTRC346 200 and 29 31 2 0.53 1.8
DTRC347 181393 1443404 200 90 120 -50 48 53 5 1.75 4.5
DTRC348 181587 1443507 200 66 120 -50 NSR
DTRC349 181563 1443527 200 84 120 -50 44 51 7 0.88 6.4
DTRC350 181752 1443629 200 70 120 -50 NSR
DTRC351 181721 1443655 200 68 120 -50 NSR
DTRC352 181687 1443686 200 88 120 -50 NSR
DTRC353 181829 1443824 200 75 120 -50 NSR
DTRC354 181798 1443855 200 81 120 -50 39 41 2 1.58 1.8
DTRC355 181764 1443878 200 66 120 -50 NSR
DTRC356 181898 1444026 200 70 120 -50 NSR
DTRC357 181876 1444040 200 90 120 -50 NSR
DTRC358 183007 1444236 200 66 130 -50 NSR
DTRC359 182989 1444251 200 114 130 -50 NSR
DTRC360 182690 1444186 200 60 130 -50 NSR
DTRC361 182664 1444209 200 66 130 -50 NSR
DTRC362 182635 1444234 200 102 130 -50 NSR
DTRC363 182618 1443983 200 70 130 -50 55 59 4 3.11 3.6
DTRC364 182584 1444008 200 66 130 -50 NSR
DTRC365 182555 1444034 200 72 130 -50 NSR
DTRC366 182524 1444058 200 78 130 -50 NSR
DTRC367 182495 1444082 200 66 130 -50 NSR
DTRC368 182466 1444106 200 66 130 -50 NSR
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