REG - Thor Explorations Ld - SEGILOLA EXPLORATION UPDATE

Thor ExplorationsAnnouncement

27/02/2023 07:00

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RNS Number : 0665R  Thor Explorations Ltd  27 February 2023

NEWS RELEASE

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR

DISTRIBUTION TO U.S. WIRE SERVICES

 

FOR IMMEDIATE RELEASE
 
TSXV/AIM: THX

February 27,
2023

 

Vancouver, British Columbia

 

 

SEGILOLA EXPLORATION UPDATE

High grade intersects including 10 ounces of gold per ton at near-mine
exploration area 15km west of Segilola

 

Thor Explorations Ltd. (TSXV / AIM: THX) ("Thor" or the "Company") is pleased
to announce the initial drilling results from a reconnaissance drilling
program that is currently underway at the Company's Western Prospects that are
located approximately 15km to the west of the Company's wholly owned Segilola
Gold Mine in Nigeria.

Thor, is a West African focussed minerals exploration, development and mining
company. In Nigeria, the Company recently brought the Segilola Gold Mine into
operation, producing 98,008 ounces of gold in 2022, its first calendar year of
operation and is actively progressing gold exploration and assessing other
high-value mineral resource opportunities in the country. The Company is also
advancing the Douta Gold Project in Senegal which currently comprises an
Inferred Resource of 730,000 ounces of gold, grading at 1.53 grammes / ton
(g/t).

 

Highlights include:

·      Drillhole SGD238     2m at 227g/tAu from 80m

includes 1m at 310g/tAu (equivalent to 10 ounces Au/t)

·      Drillhole SGD235      3.1m at 14.32g/tAu from 28m

·      Drillhole SGD236      2m at 6.24g/tAu from 46.5m

 

Initial conclusions

·     High grade gold anomalism has been defined by exploratory
geochemical programs comprising soil/auger and rock chip sampling. The first
holes of the initial drilling program on the primary geochemical target have
returned high grade gold intersections from a sub-vertical narrow quartz vein
system.

·     Parts of this vein system contain grades of 1m at 310g/tAu which
equates to 10 ounces of gold per ton.

·     There are several additional targets in the area that require
drill testing.

·     There is potential for additional high-grade deposits in this
area.

·     With further exploration success, this area may provide an
important satellite source of high-grade material for the Segilola Gold Mine

 

Segun Lawson, President & CEO, stated

"I am thrilled to announce these drilling results that include an intersection
grading 227g/tAu over a length of 2m. Within this intersection is a 1m length
that carries ten ounces per ton. As you would expect, visible gold is
prevalent throughout the core from this and the other significant intervals.
These results are the culmination of systematic and persistent exploration
work leading to the discovery of this high-grade mineralisation. Importantly,
it demonstrates the significant exploration potential outside of the immediate
Segilola mine precinct. Our strategy is to develop the Western Prospects
together with other such opportunities located within a 25km radius of
Segilola, to provide a pipeline of high-grade material that will extend the
current 4 years of production at Segilola."

 

Background

 

The Western JV Prospects (the "Western Prospects") are located about 15km
directly west from the Segilola Gold Mine and cover mostly amphibolitic rocks
that contrast with the more gneissic terrain that is developed at Segilola
itself. The Western Prospects comprise several exploration permits that are
held under exercised option agreements. The area is easily accessed through a
series of sealed roads and gravel tracks.

 

To date, exploration has comprised grid-based soil geochemical sampling using
a hand-held auger drill and rock chip sampling of exposures located mostly
inside shallow, abandoned, artisanal diggings. In the central parts of the
Western Prospects, the sampling has defined an area measuring approximately
3km along strike and 1km wide that is oriented in a north-westerly direction
(Figure 1).

 

Figure 1: Western Prospects location map

Initial results from the soil geochemistry program returned values of 6.50
g/tAu and 10g/tAu towards the south east portion of this area. Close-spaced
soil sampling is continuing. These values are typically located towards the
base of a 1-2m thickness transported laterite profile. Rock chip sampling
returned some high-grade values including 65.1g/tAu in the central part of the
area and several sampling in excess of 30g/tAu located towards the north west
(Figure1). Based on these results an initial drill testing program comprising
both diamond core and reverse circulation ("RC") drilling was initiated in
January 2023.

 

The significant intersections from the Western Prospects are listed in Table
1.

 HOLE ID  Easting   Northing  Length (m)  Azimuth  Dip  From    (m)     To       (m)        Downhole Interval (m)  Average Grade (Aug/t)  True Width (m)
 SGD235   683308    838018    50          230.0    -60  27.9            31.00               3.1                    14.32                  1.2
 SGD236   683310    838020    90          222.0    -65  10.0            13.00               3.0                    1.25                   0.9
 SGD236                                                 15.5            17.00               1.5                    0.99                   0.5
 SGD236                                                 46.5            48.50               2.0                    6.24                   0.6
 SGD236                                                 50.2            54.40               4.2                    0.52                   1.3
 SGD236                                                 55.4            56.40               1.0                    0.30                   0.3
 SGD237   623325    838042    140         221.0    -60  81.2            82.65               1.5                    0.38                   0.5
 SGD238   683265    837997    80          90.0     -60  80.0            82.00               2.0                    226.88                 1.0
          includes                                      81.0            82.00               1.0                    310.00                 0.5
 SGD239   683236    837999    140         90.0     -60                  assays pending
 SGRC146  683352    837981    50          230.0    -60                  assays pending
 SGRC147  683374    388009    100         230.0    -60                  assays pending
 SGRC148  683255    838042    100         90.0     -60                  assays pending

 

Table 1: Segilola Exploration Significant Results

(0.3g/tAu lower cut off; maximum 0.5m internal dilution)

 

 

The mineralised zones are confirmed prior to analysis by counts of visible
gold in the core.  Quarter core drill samples were analysed at the accredited
Segilola Mine Laboratory using the 50g charge fire assay with atomic
absorption (AA) finish. Repeat assays showed little variation from the
original assays (Appendix 1). Coarse rejects from the mine laboratory are also
panned for further confirmation. Corresponding half core samples have been
sent to MSA Laboratories for Metallic Screen Fire Assay and multi-element ICP
analysis.

 

Drilling Results

The results from four drillholes have been received (Table 1). These holes
targeted the depth extensions of a mineralised quartz vein that had been
exposed at surface and produced rock chip results of over 30g/tAu.
Mineralisation is developed within a narrow, sub-vertical quartz vein that
occupies a highly deformed zone that is characterised by weakly disseminated
pyrite and intense silica-carbonate-sericite alteration.

Consistent high-grade intersections have been obtained to a vertical distance
of 75m from surface (Figure 2). In hole SGD236, a parallel mineralised zone
has been intersected about 10m to the east of the main vein. This suggests
that additional mineral potential in the footwall and hangingwall rocks to the
main vein. Ongoing drilling will test both the strike length and depth
potential of this system.

 

Figure 2: Cross-section showing high grade intersections

 

Western Prospects - Joint Venture Arrangement

The Western Prospects are held under a joint venture agreement ("Thor-Esteedan
JV") between Thor's wholly owned subsidiary Segilola Gold Limited ("SGL") and
a local mineral exploration company, Esteedan Limited ("Esteedan") which was
entered into in August 2021.

Thor currently has a 51% interest in the Thor-Esteedan JV. Under the terms of
the Thor-Esteedan JV, Thor will increase its interest to 70% following a
Decision to Mine Notice being by written by SGL to Esteedan at any time (the
"Decision to Mine").

After the Decision to Mine notice has been issued, both parties of the
Thor-Esteedan JV enter into a contribute or dilute period where Esteedan can
choose voluntarily not to contribute to any Additional Equity requirement and
its shareholding shall dilute pro-rata to its equity contribution requirement
above the Additional Equity, subject to Esteedan always retaining a minimum
15% shareholding in the Joint Venture.

 

Once mining operations commence, all profits will be shared on an open book
basis until SGL recovers the equivalent of 1.1x its exploration and
development expenditure on the Project at a ratio of:

 

- SGL: 1-A

- Esteedan: A

 

Where A = Esteedan' shareholding multiply by 0.4.

 

Thereafter, all profits will be shared on an open book basis in proportion to
the parties' shareholding.

 

 

 

Qualified Person
The above information 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.

 

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. Mining and production commenced
at Segilola in 2021. Thor holds a 70% economic interest in the Douta Gold
Project located in south-eastern Senegal. Thor trades on AIM and on the TSX
Venture Exchange under the symbol "THX".

 Deposit   Classification  Tonnage (xMt)  Grade (g/t Au)  Contained Metal    (koz Au)     Thor Interest  Attributable Ounces  Source
 Segilola  Indicated*      4.06           4.66            608                             100%           608                  1
 Segilola  Inferred*       0.443          4.78            68                              100%           68                   1
 Makosa    Inferred        15.3           1.53            730                             70%            511                  2

*not depleted for mining

Source

1    Sedar Filing March 21 2019: Technical Report On The Segilola Gold
Project Feasibility Study, Osun State, Nigeria

2    Sedar Filing Jan 4 2022: Independent Technical Report: Mineral
Resource Estimate, Douta Gold Project, Senegal

THOR EXPLORATIONS LTD.

Segun Lawson

President & CEO

 

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)

 

BlytheRay (Financial
PR)

Tim Blythe / Megan Ray / Said Izagaren

Tel: +44 207 138 3203

 

 

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

 

QAQC on SGD238 high grade interval

 

 

 Sample ID  PWE-100   FAS-121  FAS-121  Hole ID  From (m)  To (m)
            Rec. Wt.  Au       AuR
            Kg        ppm      ppm
            0.01      0.005    0.005
 SX107895   1.17      143.92   152.86   SGD238   80        81
 SX107896   1.16      309.84   297.44   SGD238   81        82
 SX107897   1.08      0.30     0.30     SGD238   82        83

 

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