REG - Thor Explorations Ld - UPDATED MINERAL RESOURCE ESTIMATE AT DOUTA

Thor ExplorationsAnnouncement

20/03/2023 07:00

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RNS Number : 4941T  Thor Explorations Ltd  20 March 2023

NEWS RELEASE

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR

DISTRIBUTION TO U.S. WIRE SERVICES

 

FOR IMMEDIATE RELEASE
 
TSXV / AIM: THX

March 20, 2023

 

Vancouver, British Columbia

 

 

THOR EXPLORATIONS ANNOUNCES UPDATED MINERAL RESOURCE ESTIMATE AT THE DOUTA
GOLD PROJECT, SENEGAL

 

Thor Explorations Ltd. (TSX VENTURE/AIM: THX) ("Thor" or the "Company") is
pleased to announce the results of an updated Mineral Resource Estimate (the
"Douta Resource" or "2023 MRE") prepared in accordance with National
Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101")
for the Douta Gold Project in Senegal.

Highlights

·      Total Douta Resource of approximately 1.78 million ounces ("Moz")
of gold ("Au"), an increase of 144% in total resource as compared with the
2022 maiden mineral resource estimate declared for Douta in November 2021.

·      Douta Resource constrained within optimised pit shells and
comprised of:

o  an initial Indicated Mineral Resource of 20.2 million tonnes ("Mt")
grading 1.3 grammes per tonne ("g/t") Au for 874,900 oz Au; and

o  Inferred Mineral Resource of 24.1 Mt grading 1.2 g/t Au for 909,400 oz Au

·      2023 MRE supported by a total of 64,567 metres of drilling

·      Updated Douta Resource encompasses the Makosa, Makosa Tail and
the recently discovered Sambara prospects, all of which remain open along
strike and down dip

·      Drilling is ongoing on the above prospects with a further 40,000
metre drilling program to be completed in 2023 consisting of diamond drilling
and reverse circulation drilling. Mineralisation remains open along strike
between the known prospects with further growth potential along 20 kilometres
of under-explored prospective strike length covered by the Douta exploration
permit

 

Segun Lawson, President & CEO, stated

"This is an excellent milestone in the progress of the Douta Project. The 2023
MRE has more than doubled the contained gold within the Douta permit to over
1.7 million ounces, with the indicated component of the resource alone
exceeding 870,000 ounces of gold compared to the maiden inferred resource of
730,000 ounces. In addition, there are a further 909,000 ounces of inferred
resources within the optimised pit shells that we intend to convert to
indicated classification with additional infill drilling which forms part of
our ongoing 40,000 metre program. This updated resource base provides for a
solid foundation for more advanced studies on the pathway to developing Thor's
second operating gold mine in West Africa.

"We are now focussing our exploration efforts 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,
Maka, Mansa and the newly discovered Sambara prospects.

 

Introduction

The Douta Gold Project is located within the Kéniéba inlier, in eastern
Senegal and comprises the northeast trending gold exploration permit, E02038
that covers an area of 58 square kilometres ("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.

 

Summary of the 2023 MRE

The 2023 MRE encompasses the Makosa, Makosa Tail and Sambara zones, which are
collectively named the Douta Resource.

 

The MRE has been estimated by an independent consultant and is reported at a
cut-off grade of 0.5 g/t Au within optimised shells using a gold price of
US$2,000.

 

 

 

 Classification  Tonnes  Grade              (g/t Au)               Contained Gold   (k ounces)    Thor Interest

                 (Mt)
 Indicated       21.2    1.3                                       875                            70%
 Inferred        24.1    1.2                                       909                            70%

Table 1: Douta Gold Project Total Classified Mineral Resource Estimate
Summary, March 2023 (reported at cut-off grade of 0.5 g/t Au)

 ·      Open Pit Mineral Resources are reported in situ at a cut-off
 grade of 0.50 g/t Au. An optimised Whittle shell (US$2,000) 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 0.50 g/t Au and
 within an optimised pit shell.

 ·      Cut-off grade varied from 0.45 g/t to 0.48 g/t in a pit shell
 based on mining costs, metallurgical recovery, milling costs and G&A
 costs.
 ·      Resource is reported as in-situ and no metallurgical or mining
 recovery factors have been 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.
 ·      The resource estimate was prepared by Mr Kevin Selingue,
 Principal Geologist of MineralMind, Australia in accordance with NI 43-101. Mr
 Selingue is an independent qualified person ("QP") as defined by NI 43-101.

 

 

Mineral Resource Estimate

The MRE, as detailed in Table 2, has been estimated by an independent
consultant and is reported at a cut-off grade of 0.5 g/t Au within optimised
shells using a gold price of US$2,000.

 

 Area         Classification  Tonnes                        Grade   (g/t Au)    Contained Gold (ounces)  Thor Interest
 Makosa       Indicated             15,210,000              1.22                598,000                  70%
 Makosa       Inferred              18,490,000              1.10                654,600                  70%
 Makosa Tail  Indicated               4,610,000             1.73                256,800                  70%
 Makosa Tail  Inferred                3,170,000             1.68                171,300                  70%
 Sambara      Indicated                  360,000            1.75                20,100                   70%
 Sambara      Inferred                2,427,000             1.07                83,500                   70%
 Total        Indicated             20,180,000              1.34                874,900                  70%
 Total        Inferred              24,090,000              1.17                909,400                  70%

 

Table 2: Douta Gold Project Mineral Resource Estimate by Area, March 2023

(reported at cut-off grade of 0.5 g/t Au)

 

 ·      Open Pit Mineral Resources are reported in situ at a cut-off
 grade of 0.50 g/t Au. An optimised Whittle shell (US$2,000) 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 0.50 g/t Au and
 within an optimised pit shell.

 ·      Cut-off grade varied from 0.45 g/t to 0.48 g/t in a pit shell
 based on mining costs, metallurgical recovery, milling costs and G&A costs
 ·      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.
 ·      The resource estimate was prepared by Mr Kevin Selingue,
 Principal Geologist of MineralMind, Australia in accordance with NI 43-101. Mr
 Selingue is an independent qualified person ("QP") as defined by NI 43-101.

 

 

Drilling

 

The MRE is based on data obtained from a total of 64,567m of drilling
consisting of 1,937m of diamond drilling and 62,630m of Reverse Circulation
("RC") drilling which have been used to generate the updated MRE. RC drilling
was carried out by Sengold (2020-2023), while historic diamond drilling was
carried out by International Drilling Company (2017), Sendrill Consulting
(2018) and 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 kilograms ("kg") to 3.5kg, with an average
of 2.3kg were collected for analysis. After the sample preparation 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.

 

Figure 1: Douta Project Location Map

Estimation Parameters

 

A four-pass Inverse Distance grade estimation was carried out within hard
geological boundaries defined by a numerical models based on a nominal
modelling grade cut off of 0.65 g/t Au. Ordinary Kriging has been used to
validate the Inverse Distance estimation results.

 

Separate numerical models, using a 0.65 g/t Au cut off were generated for
Makosa Tail, Makosa North and East and Sambara.

 

A weathering model was developed so bulk densities could be assigned according
to weathering state.

 

The tonnage factor in the block models was based on 188 bulk density
measurements and determined by assigning the averaged bulk densities to the
following material types:

·      2.76 t/m3 for Fresh (FRS),

·      2.70 t/m3 for weakly oxidized (WOX),

·      2.60 t/m3 for moderately oxidized (MOX), and

·      2.50 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 4,594 composites were included in the database for top
capping analysis. At Makosa Main, nine (9) composite gold values that exceeded
15 g/t were reduced to 15 g/t. At Makosa Tail, eleven (11) composite gold
values that exceeded 15 g/t were reduced to 15g /t. At Sambara, two (2)
composite gold values that exceeded 15 g/t were reduced to 15 g/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 1.29 g/t Au to
1.23 g/t Au.  At Makosa Tail, the top capping reduced the average mean grade
from 1.69 g/t Au to 1.57 g/t Au. At Sambara, the top capping reduced the
average mean grade from 1.9 g/t Au to 1.81 g/t Au.

 

 

 Domain       No of Composites              Maximum Au (g/t)  Mean Au (g/t)  Top Cut Au (g/t)  Capped Mean Au (g/t)  No of Composites affected  % Metal
 Makosa                 3,346               54.5              1.29           15                1.23                  9                          -5%
 Makosa Tail            1,079               36.18             1.69           15                1.57                  11                         -7%
 Sambara                   169              21.12             1.90           15                1.81                  2                          -5%
 Total                  4,594               54.5              1.74                             1.62                  22                         -5%

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 Inverse Distance (ID). Due to
the difference in orientation between Makosa Tail, Makosa/Makosa North and
Sambara three separate block models were created to better align blocks with
the orientation of the lode systems.

 

Block estimation used a five-pass strategy with the number of required samples
with 1 to 5 for pass 1, 2 to 10 for pass 2, 2 to 20 for pass 3, 4 and 5, and
search distance increased for each estimation pass.

 

Classification

 

Drill hole density ranges from 50m to 200m spaced sections with spacing
between holes on-section typically 30m (Figure 2).

The sample population within the 0.2 g/t grade shell indicates a good grade
continuity, superior to most orogenic gold deposits.

Classification is based on parameters extracted from the sample variograms.

The classification as 49% indicated and 51% inferred is considered appropriate
for the current level of understanding and development of the Mineral
Resource.

 

 

 

Mineral Resource Constraints

 

To test the reasonable prospects for eventual economic extraction, the 2023
MRE 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
 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                     $2,000  US$/oz
 Sell Price                                                                                         $64.30  gram
 Discount Rate                                                                                      8       %
 Mill Limit                                                                                         2.5     Mill Mt/pa

Table 4: Open Pit Optimisation Parameters

 

 

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.

 

Figure 2: Drillhole Location Plan

Figure 3: Cross Section through Makosa Tail

 

 

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.

 

Initial environmental baseline information within the Douta exploration
licence has included both dry and wet season ecology surveys that were carried
out in May 2021 and November 2022 by Senegal-based Synergie Afrique. Further
ground and surface water quality monitoring has commenced within the
exploration permit in November 2022 and will continue with quarterly
monitoring. The surveys will form part of the overall Environment and Social
Impact Assessment ("ESIA") which is expected to be completed within 12 months.

 

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.   Infill and resource definition drilling to convert inferred to
indicated classification.

2.   Continued drilling to increase the overall resource base through
extensional drilling along the prospective corridor.

 

 

 

 

 

About Thor

Thor Explorations Ltd. is a Canadian, West African focussed mineral gold
producer listed on both the TSX Venture Exchange (TSX-V:THX) and AIM Market of
the London Stock Exchange (AIM:THX). Thor produced 98,000 ounces from its 100%
owned Segilola Gold Mine 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 Kevin Selingue, Principal Geologist of MineralMind, Australia in accordance
with NI 43-101, and is responsible for this MRE. Mr Selingue is an independent
qualified person ("QP") as defined by NI 43-101 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)

 

BlytheRay(Financial
PR)

Tim Blythe / Megan Ray / Said Izagaren

Tel: +44 207 138 3203

 

 

 Unit   Definition
 g      Grammes
 g/t    Grammes per tonne
 km     Kilometre (1,000 m)
 km(2)  Square kilometres
 koz    Kilo ounces (1,000 oz)
 kt     Kilotonnes (1,000 t)
 m      Metre
 m(2)   Square metres
 m(3)   Cubic metres
 Moz    Million ounces (1,000,000 oz)
 Mt     Million tonnes (1,000,000 t)
 Mtpa   Million tonnes per annum
 oz     Troy Ounces
 t      Tonne
 t/m³   Tonnes per cubic meter

 

 

 

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.

Glossary of Technical Terms:

 

 

"Au" the chemical symbol for gold;

 

"cut-off grade" The lowest grade, or quality, of mineralised material that
qualifies as economically mineable and available in a given deposit. May be
defined on the basis of economic evaluation, or on physical or chemical
attributes that define an acceptable product specification;

 

"g/t" grams per tonne;

 

"Indicated resource" a part of a mineral resource for which tonnage,
densities, shape, physical characteristics, grade and mineral content can be
estimated with a reasonable level of confidence. It is based on exploration,
sampling and testing information gathered through appropriate techniques from
locations such as outcrops, trenches, pits, workings and drill holes. The
locations are too widely or inappropriately spaced to confirm geological
and/or grade continuity but are spaced closely enough for continuity to be
assumed;

 

"Inferred resource" a part of a mineral resource for which tonnage, grade and
mineral content can be estimated with a low level of confidence. It is
inferred from geological evidence and has assumed, but not verified,
geological and/or grade continuity. It is based on information gathered
through appropriate techniques from locations such as outcrops, trenches,
pits, workings and drill holes that may be limited or of uncertain quality and
reliability;

 

"Inverse Distance Squared" a conventional mathematical method used to
calculate mineral resources.  Near sample points provide a greater weighting
than samples further away for any given resource block;

 

 

"m" Metres;

 

 

"oz" Ounces;

 

"t" Tonnes;

 

"optimised pit shell"; Is generated by computer software that uses the
Lerch-Grossman algorithm, which is a 3-D algorithm that can be applied to the
optimisation of open-pit mine designs.  The purpose of optimisation is to
produce the most cost effective and most profitable open-pit design from a
resource block model.

 

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