REG - Thor Explorations Ld - Q3 2024 OPERATING UPDATE

Thor ExplorationsAnnouncement

16/10/2024 07:00

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RNS Number : 3208I  Thor Explorations Ltd  16 October 2024

NEWS RELEASE

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR

DISTRIBUTION TO U.S. WIRE SERVICES

 

 

 October 16, 2024  TSXV/AIM: THX

 

This Announcement contains inside information as defined in Article 7 of the
Market Abuse Regulation No. 596/2014 ("MAR"). Upon the publication of this
Announcement, this inside information is now considered to be in the public
domain.

 

 

THOR EXPLORATIONS ANNOUNCES Q3 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, located in Nigeria ("Segilola"), and for the Company's mineral
exploration properties located in Nigeria and Senegal, for the three months to
September 30, 2024 (the "Quarter" or "Q3").

 

Segilola Q3 2024 Operational Highlights

·      Gold poured of 20,110 ounces ("oz")

·      Gold produced from 201,958 tonnes milled at an average grade of
3.22 grammes per tonne ("g/t") of gold ("Au")

·      Mine production of 355,515 tonnes at an average grade of 2.01g/t
of Au for 23,029 oz

·     Ore stockpile increased by 2,094 oz to 39,934 oz of Au at an
average grade of 0.94g/t of Au which includes a medium-grade stockpile of
52,947 tonnes at an average grade of 1.95g/t of Au for 3,316 oz

·      Release of a further 1,614 oz of Au in circuit ("GIC")

·      Payment of US$4.0 million towards the outstanding senior debt
facility with Africa Finance Corporation ("AFC") leaving a balance of $3.9
million scheduled to be fully repaid by the end of 2024

 

Exploration Q3 2024 Highlights

Nigeria

·   Initial positive drill results received from the first two holes
drilled out of an ongoing 12 hole drilling programme from the Segilola
Underground Exploration programme including 3.0 metres ("m") grading 11.24g/t
Au from 294m and 1.5m grading 3.22g/t Au from 269m

·     Additional drilling was carried out two kilometers ("km") north of
the Segilola Mine. This was carried out as a follow up for targets generated
from stream sediments sampling and geophysical surveying. A total of two holes
were drilled. No significant results were reported.

·     Geochemical sampling programmes continued over the Quarter,
focusing on the area to the South of the Segilola mine. A total of 2,525
geochemical samples were collected, with the objective of generating drilling
targets. Regional stream sediment sampling returned a total of 31 samples that
returned assays of >1g/tAu including nine samples that assayed
>3.0g/tAu.

 

Senegal

·     Geochemical exploration activities during the quarter were focused
on generating drill targets at the Douta West and Sofita projects.

·    Reverse circulation ("RC") drilling has focussed on increasing the
percentage of oxide resources at the Makosa East Prospect which runs parallel
to the main Makosa mineralisation and which is additional to the current
mineral resource. Additional infill drilling was also completed at the Makosa
North, Mansa and Maka prospects

·      Pre Feasibility Study ("PFS") workstreams are continuing, with a
target completion in Q4 2024.

 

Cote D'Ivoire

·     During the Quarter, the Company expanded its operations into Cote
d'Ivoire, a country that hosts over 30% of West Africa's greenstone belts and
is proving to be an emerging region for world class gold discoveries.

o  Signing of binding agreements to acquire the Guitry gold exploration
project from Endeavour Mining Corporation. The project is characterised by
numerous gold-in-soil geochemical anomalies that have only been partially
drill tested by the previous explorers. Some of the drill results include 12m
grading at 10.4g/tAu, 16m grading at 7.90g/tAu, 24m grading at 2.02g/tAu and
16m grading at 2.25g/tAu. The two major prospects, Krakouadiokro and
Gbaloukro, are yet to be fully tested with several additional targets yet to
be drilled.

o  The Company has entered into an earn-in agreement to earn up to an 80%
interest in the Boundiali Exploration Permit, an early-stage gold exploration
permit located in northwest Côte d'Ivoire. In the Quarter, the Company
undertook an initial geochemical exploration programme which identified
several continuous soil geochemical anomalies.

 

FY 2024 Outlook and Catalysts

·      FY 2024 production guidance reduced to 85,000 oz of Au as a
result of extreme rainfall, delays in mining certain high grade areas in the
pit and the late installation of the new SAG Mill liner

·    FY 2024 All-in Sustaining Cost ("AISC") guidance range reduced to
$800 to $900 as a result of the implementation of cost reductions and lower
mining volumes year-to-date and forecast to year-end

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

o  Segilola underground drilling programme - completion of existing 12 hole
programme

o  Nigeria - continuation of scout drilling programmes on identified targets

o  Senegal -  Douta licence, additional RC drilling targeting additional
oxide resources

o  Cote D'Ivoire - Guitry license, initial drill programme on identified
targets

·      Updated Mineral Resource Estimate and PFS at the Douta Project
scheduled for Q4 2024

 

Segun Lawson, President & CEO, stated:

"This has been a challenging Quarter for the Company. Operationally at
Segilola, we have been impacted by extreme weather conditions with a heavy and
prolonged rainy season and have also been disrupted by a fly-rock incident and
logistics delays early in the period.

"Corporately, we are continuing our engagement with the relevant Federal
Ministries, including the Ministry of Solid Minerals Development (the "Federal
Ministry of Mines") to resolve the unfounded accusations, demands and
disruptive actions instigated against us by the Osun State government and look
forward to a full resolution by the end of the year.

"Despite our challenges, which have ultimately resulted in a lower guidance
for the year, we are pleased to have poured over 20,000 ounces of gold in the
period whilst further reducing our AISC guidance for the year."

 

Segilola Operations

Late in the Quarter, the Company experienced a period of severe weather where
more than 415 millimetres of rain fell over a 12-day period in September. This
extreme level of rainfall over a short period exceeded the in-pit pumping
capacity and affected access to planned mining areas of high grade ore.

The Company has since added more pumping capacity and have made good progress
in dewatering the pit, which, is complete as at today's date.

During the Quarter the company became concerned regarding blasting at the
southern end of the pit, close to Iperindo, and delayed mining operations in
this area until a new blasting strategy was developed and adopted.

Additionally, a delay in delivering the SAG mill liner led to lower mill
throughput and recovery. This was due to operating under less-than-ideal
milling conditions while managing the worn SAG mill liner and protecting the
mill shell. The SAG mill re-relining was successfully completed in the final
week of the Quarter.

Corporate

In September several claims and allegations against Thor's wholly owned
subsidiary, Segilola Resources Operating Limited ("SROL") were reported in the
Nigerian press, by Special Advisers of the Osun State Government, Nigeria. The
allegations relate to tax evasion, environmental violations and questionable
business practices related to employment and shareholding structures. The Osun
State Government has not presented any evidence to support its claims, and the
Company has fully rejected the allegations in their entirety.

After the Osun State Government sought to impede operations at the mine, the
Company initiated legal proceedings in the Federal High Court in Abuja, which
has issued an interim injunction and restraining order preventing the Osun
State Government and its officials from interfering with the Company's
activities. The Company will continue to pursue legal action against the Osun
State Government and its officers until such time as the dispute is resolved.

Further, the Company has engaged with the Federal Ministry of Mines in its
capacity as the sector regulator and the Federal Ministry of Mines has
deployed a senior committee to hear and assess evidence on each side of the
matter. Thor welcomes this intervention and hopes that it will result in a
prompt and amicable resolution of the dispute.

Thus far, operations have remained unaffected by the dispute, and the Company
is diligently working to reassure its employees at the mine, local
communities, and other stakeholders.

The Company firmly believes that it has acted in accordance with all laws and
regulations, that there is no validity to the claims made by the Osun State
Government and that the Company have sufficient evidence to refute the claims
that have been made.

Douta Project

Work on the Updated Resource and PFS is continuing and focussing on finalising
metallurgical testwork and process design for the PFS on an updated resource.
This is scheduled to be completed during Q4 2024.

In parallel, the Company is also continuing with its strategy, of adding oxide
material to the resource inventory and will also be conducting a further
drilling programme over the November-December period.

Financing

The Company is pleased to have made further progress towards fully repaying
its senior debt facility by the end of the year with a balance of $3.9 million
remaining outstanding and also continuing to make repayments towards its
payables, whilst continuing to strengthen its balance sheet.

 

 

PRODUCTION SUMMARY

 

 

                 Units   Q3 2024    Q2 2024    Q1 2024    Q4 2023    Q3 2023

 Mining
 Total Mined     Tonnes  4,024,002  4,710,220  4,939,647  5,483,291  5,673,193
 Waste Mined     Tonnes  3,668,487  4,171,122  4,473,752  5,031,932  5,370,279
 Ore Mined       Tonnes  355,515    491,935    465,895    451,360    302,915
 Grade           g/t Au  2.01       1.78       2.07       1.93       2.44

 Processing
 Ore Processed   Tonnes  201,958    174,000    235,933    262,439    261,671
 Grade           g/t Au  3.22       3.42       2.85       2.77       2.46
 Recovery        %       88.5       94.6       90.7       93.4       92.3
 Gold Recovered  oz      18,496     18,090     19,589     21,798     19,104
 Gold Poured     oz      20,110     21,742     18,543     16,361     16,579

 

                     Table 1: Production Summary

 

 

 

 

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)

James Asensio / Henry Fitzgerald-O'Connor / 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 / Zara McKinlay

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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