REG - Thor Explorations Ld - Q1 2024 OPERATING UPDATE

Thor ExplorationsAnnouncement

18/04/2024 07:00

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RNS Number : 0501L  Thor Explorations Ltd  18 April 2024

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 April 18, 2024  TSXV/AIM: THX

 

 

 

THOR EXPLORATIONS ANNOUNCES Q1 2024 OPERATING UPDATE

 

Thor Explorations Ltd. (TSXV / AIM: THX) ("Thor Explorations" or the
"Company") is pleased to provide an operational update for the Segilola Gold
mine, ("Segilola"), located in Nigeria, and for the Company's mineral
exploration properties located in Nigeria and Senegal, for the three months to
March 31, 2024 (the "Quarter" or "Q1").

 

Segilola Q1 2024 Operational Highlights

·      Gold production of 19,589 ounces ("oz")

·      Gold produced from 235,900 tonnes milled at an improved average
grade of 2.85 grammes per tonne ("g/t") of gold ("Au")

·      Mine production of 465,895 tonnes at an improved average grade of
2.07g/t of Au for 30,997oz

·      Ore stockpile increased by 9,543oz to 29,265oz of Au at a grade
of 1.05g/t of Au which includes a high-grade stockpile of 6,116oz of Au at a
grade of 4.10g/t of Au

·      Successfully upgraded and commissioned three additional CIL tanks
in the process plant with drawdown of excess gold in circuit successfully
commenced in March 2024

·      Additional near mine drilling targets delineated with drilling
having commenced in April 2024

·      Payment of US$8.2 million towards the outstanding senior debt
facility

 

Exploration Q1 2024 Highlights

·      In Nigeria, the Company continues to expand its portfolio through
the acquisition of new licences and also entering into agreements with
existing licence holders

·      Exploration activities were carried out on all the Company's
licences, focusing on delineating drilling targets through geochemical stream
sediment sampling, auger drilling and soil sampling. Reverse Circulation
("RC") drilling of the initial targets commenced late in the Quarter and will
continue through Q2 2024

·      In Senegal, the Company's Douta Project encompasses a mineral
resource of 1.78 million ounces ("Moz") of Au. Work streams in support of a
Preliminary Feasibility Study ("PFS") commenced during the Quarter together
with further exploration in the northern parts of the licence

·      The Company acquired additional licences in Senegal, which
included the contiguous Douta-West licence and commenced exploration
activities. Initial results have delineated anomalies which will be drilled in
Q2 2024 as part of the Company's Douta exploration plan.

·      Exploration on the Company's lithium licences in Nigeria
continued during Q1 2024 and was successful in generating a number of drill
targets. The Company will commence a 4,000m drilling programme in May 2024

 

 

FY 2024 Outlook and Catalysts

·      FY 2024 production guidance range maintained at 95,000 to
100,000oz of Au

·      FY 2024 All-in Sustaining Cost ("AISC") guidance range maintained
at $1,100 to $1,200

·      Drilling programmes across all the Company's exploration
portfolio:

o  Segilola near mine drill targets

o  Segilola underground drilling programme

o  Senegal - Douta and Douta West licences

o  Nigeria lithium portfolio

·      Updated Mineral Resource Estimate and PFS at the Douta Project
rescheduled for H2, following completion of metallurgical testwork programme
in China

·      Continued acquisition of prospective lithium tenure in Nigeria

 

Segun Lawson, President & CEO, stated:

"In January and February 2024 the Segilola mine production was lower than
expected as a result of lower recoveries from the processing plant which has
been subject to implementation of final plant upgrades. In March, over 8,200
ounces of gold was produced which included the start of the drawdown of the
gold in circuit. We look forward to maintaining an increased level of
production for the remainder of the year in parallel with continued drawdown
of the gold in circuit.

"Operating conditions in the Segilola pit also improved further over the
Quarter and mining operations are continuing in-line with expectation.

"We are pleased to have made a significant payment of US$8.2 million towards
our outstanding senior debt facility, leaving a balance of US$15 million. We
remain on track to fully repay the facility this year.

"With a healthy stockpile and a rapidly deleveraging balance sheet, we are
strongly positioned during these periods of high gold prices for a financially
robust Q2. We expect a stronger level of production during the remainder of
the year and are tracking to meet this year's guidance of 95,000 to 100,000
ounces at an AISC of $1,100 to $1,200 per ounce.

"We are encouraged by our exploration activities on both our gold and lithium
licences in Nigeria. We have identified several new anomalies for follow-up
drilling in Q2 and we look forward to updating the market as we progress these
programmes.

"In Senegal, the acquisition of the prospective Douta-West license, which lies
contiguous to the Douta Gold Project offers significant potential opportunity
to further expand the scale of our Douta Gold Project. Our drilling programme
which commences in Q2 will be prioritising adding oxide resources to the
existing Douta resource over the next three to six months."

 

 

 

PRODUCTION SUMMARY

 

 

                 Units   Q1 2024    Q4 2023    Q3 2023    Q2 2023    Q1 2023

 Mining
 Total Mined     Tonnes  4,939,647  5,483,291  5,673,193  5,633,688  4,194,689
 Waste Mined     Tonnes  4,473,752  5,031,932  5,370,279  5,355,105  3,996,264
 Ore Mined       Tonnes  465,895    451,360    302,915    278,583    198,425
 Grade           g/t Au  2.07       1.93       2.44       2.43       2.85

 Processing
 Ore Processed   Tonnes  235,933    262,439    261,671    255,231    231,001

 Grade           g/t Au  2.85       2.77       2.46       2.99       2.95
 Recovery        %       90.71      93.4       92.3       94.0       94.1
 Gold Recovered  oz      19,589     21,798     19,104     23,078     20,629

 

                     Table 1: Production Summary

 

 

EXPLORATION - NIGERIA

 

Introduction

 

The high grade Segilola gold deposit is located on the major regional shear
zone that extends for several hundred kilometres through the gold-bearing
Ilesha schist belt (structural corridor) of Nigeria.

 

The key objective of the exploration strategy is to extend the life of mine
("LOM") at Segilola and as such, a significant amount of the Company's
Nigerian exploration effort is concentrated within a 25km radius from the
Segilola operation such that potential gold-bearing material can be easily
trucked to the existing plant. In areas that are further from the mine
generative exploration is targeting potential new stand-alone operations.

 

Thor's gold exploration tenure currently comprises 16 wholly owned exploration
licenses and nine joint venture partnership exploration licenses. Together
with the mining lease over the Segilola Gold Deposit, Thor's total gold
exploration tenure amounts to 1,542 square kilometres ("km²"). Thor's
exploration strategy includes further expansion of its Nigerian land package
as and when attractive new licenses become available.

 

EXPLORATION - NEWSTAR LITHIUM

 

Thor has secured over 600km² of granted tenure in Nigeria that form Oyo
State, Kwara State and Ekiti State Lithium Project Areas. The Oyo State
Project Area encompasses what Thor considers to be Nigeria's most significant
lithium pegmatite occurrence which is currently being exploited by small-scale
lithium mining.

 

Exploration activities during the Quarter, comprising geological mapping,
stream sediment sampling, and detailed auger soil sampling, focused on
generating targets within Newstar-owned exploration permits.

 

A total of 2,856 geochemical samples were collected and analysed by MSA
Laboratories, Vancouver, Canada.

 

Coincident geochemical anomalies within a structural corridor established from
field mapping work were identified in Q1 for follow-up and drilling. This
included a geochemical anomaly of approximately 1.2km.

 

EXPLORATION - SENEGAL

 

Introduction

 

The Company's PFS work at Douta has been extended due to further metallurgical
testwork being carried out in China. Unfortunately, the main shipment of test
material was incorrectly routed, resulting in a two month shipping delay.

 

During the Quarter, the Company announced the acquisition of interests in two
licences in southeast Senegal where it is currently advancing the Douta
Project to PFS stage. The Company has acquired an initial 70% interest in the
strategically located Douta-West Licence which lies contiguous to the Douta
Gold Project and a 90% interest in the Sofita Licence located approximately
20km south of the Douta Project.

 

The Company's strategy at Douta and Douta-West is to carry out drilling
programmes across various geochemical targets. The aim is to increase the
oxide resource within the overall project where high recoveries are
metallurgically straightforward.

Douta West Project

 

The Douta West Project, comprising exploration permit E03709, covers an area
of 93km² and is contiguous with Thor's Douta Project, E02038 (Figure 1).
Douta West encompasses several historic gold-in-soil geochemical anomalies
that extend south from the southern end of the Makosa Tail prospect and that
also run parallel and to the north of the known Makosa trend in a corridor
that occupies the ground between Makosa and Endeavour Mining's Masawa gold
mine. In addition, the drill-testing of these anomalies and regional
geochemical surveys have commenced to test the southern unexplored parts of
the Douta West permit.

 

Figure 1: Douta Project Location Map

 

Sofita Project

 

The Sofita Project is located 10km south of the town of Koudougou and about
45km south west of the Douta Project and comprises a single exploration
licence that cover an area of 56.5 km² (Figure 1). The licence covers rocks
belonging to the Diale-Dalema Supergroup of the eastern part of the
Kedougou-Kenieba Inlier and is essentially composed of Paleoproterozoic rock
formations. These rocks are similar to those that host the gold resources of
the Douta Project.

 

Thor intends to undertake initial surface geochemical surveys with the view to
generating exploration targets that will be followed by drilling.

 

 

Exploration

 

Exploration activities during the Quarter were focused on generating drill
targets at Douta West with the objective of extending the Makosa resource
towards the southwest. The initial programme comprises an extensive termite
mound sampling and mapping survey.

 

 

THOR EXPLORATIONS LTD.

Segun Lawson

President & CEO

 

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% interest in the Douta Gold Project
located in south-eastern Senegal. Thor trades on the TSX Venture Exchange
under the symbol "THX".

 

For further information please contact:

 

Thor Explorations Ltd

Email: info@thorexpl.com

 

Canaccord Genuity (Nominated Adviser & Broker)

Henry Fitzgerald-O'Connor / James Asensio / Harry Rees

 

Tel: +44 (0) 20 7523 8000

 

Hannam & Partners (Broker)

Andrew Chubb / Matt Hasson / Jay Ashfield / Franck Nganou

 

Tel: +44 (0) 20 7907 8500

 

 

Yellow Jersey PR (Financial
PR)

Charles Goodwin / Shivantha Thambirajah

Tel:  +44 (0) 20 3004 9512

 

BlytheRay (Financial
PR)

Tim Blythe / Megan Ray / Said Izagaren

Tel: +44 207 138 3203

 

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.

 

 

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