REG - Thor Explorations Ld - Third Quarter 2024 Financial & Operating Results

Thor ExplorationsAnnouncement

11/11/2024 07:00

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RNS Number : 6269L  Thor Explorations Ltd  11 November 2024

NEWS RELEASE

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR

DISTRIBUTION TO U.S. WIRE SERVICES

 

 

 

 November 11, 2024  TSXV/AIM: THX

 

 

 

THOR EXPLORATIONS ANNOUNCES THIRD QUARTER 2024 FINANCIAL AND OPERATING
RESULTS, FOR THE THREE MONTHS ENDING SEPTEMBER 30, 2024

 

Thor Explorations Ltd. (TSXV / AIM: THX) ("Thor Explorations", "Thor" or the
"Company") is pleased to provide an operational and financial review for its
Segilola Gold mine, located in Nigeria ("Segilola"), and for the
Company's mineral exploration properties located in Nigeria, Senegal and Cote
D'Ivoire for the three months to September 30, 2024 (the "Quarter", the
"Period" or "Q3").

 

The Company's Unaudited Condensed Consolidated Financial Statements together
with the notes related thereto, as well as the Management's Discussion and
Analysis for the three months ended September 30, 2024 are available on Thor
Explorations' website at: https://thorexpl.com/investors/financials/
(https://thorexpl.com/investors/financials/) .

 

All figures are in US dollars ("US$") unless otherwise stated.

 

Q3 2024 Financial Highlights

 

·      18,167 ounces ("oz") of gold sold with an average gold price of
US$2,328 per oz.

·      Cash operating cost of US$585 per oz sold and all-in sustaining
cost ("AISC") of US$766 per oz sold.

·      Revenue of US$40.2 million (Q3 2023: US$36.6 million).

·      EBITDA of US$27.4 million (Q3 2023: US$10.5 million).

·      Net profit of US$17.5 million (Q3 2023: US$0.9 million).

·      Senior debt facility reduced to US$3.9 million as at September
30, 2024.

o  This debt is scheduled to be fully repaid by the end of Q4 2024

·      Transitioned from a net debt position of US$2.7 million as at
June 30, 2024 to a net cash position of US$2.7 million as at September 30,
2024.

 

 

Operational Highlights

 

Segilola Production

 

·      Gold ("Au") Poured for the Period totalled 20,110oz.

o  Mill feed grade was 3.22 grammes per tonne ("g/t") gold with recovery at
88.5%. The lower recovery was due to a delayed change in mill liner during the
period.

o  201,958 tonnes ("t") of ore were processed, an increase in productivity
levels by 16% compared to Q2, equivalent to a throughput rate of 2,195t per
day, with no significant downtime periods.

o  The process plant achieved a further reduction of the gold in circuit by
1,614oz of Au.

·      The stockpile balance increased by 13% to 1,329,007t of ore at an
average grade of 0.94g/t as this was mined during shortfalls resulting from
events that occurred during the Quarter.

o  The significant stockpile available (more than one year of process plant
supply) offers flexibility and low risk for future process plant production.

·      Mining rates were lower than Q2 2024 due to the previously
reported fly-rock incident. Improved controlled blasting practices are now in
place to avoid a recurrence.

·      Severe September weather period brought over 415 millimetres of
rain in 12 days, surpassing in-pit pumping capacity and contingency plans
which delayed high-grade ore access to Q4 2024. The Company has since
increased pit pumping capacity.

 

Segilola Exploration

 

·      The priority of the Company's exploration strategy is extending
the Segilola mine life through delineation of potential additional underground
resources at Segilola.

·      An initial 12 hole drilling programme continued during the period
with initial positive drill results received from the first two holes of 3.0
metres ("m") grading 11.24g/t Au from 294m and 1.5m grading 3.22g/t Au from
269m.

·      In addition to the Segilola Underground Drilling Programme,
additional geochemical sampling continued at near mine open pit targets.

 

Douta

 

·      RC drilling activities were completed during the period. The
programme was focussed on increasing the percentage of oxide resources at the
Makosa East Prospect, which runs parallel to the main Makosa mineralised trend
and is additional to the current mineral resource. Additional infill drilling
was completed at the Makosa North, Mansa and Maka prospects.

·      Remaining Pre-Feasibility Study ("PFS") and Mineral Resource
Estimate update workstreams are being completed, with a target completion in
Q4 2024.

 

Cote D'Ivoire

 

·      During the Quarter Thor expanded its operations into Cote
d'Ivoire following the signing of a binding agreement with Endeavour Mining
Corporation to acquire a 100% interest in the Guitry Gold Project for
US$100,000 in cash and a 2% Net Smelter Royalty.

·      Earlier in 2024 the Company entered into an option agreement with
Goldridge Resources SARL to acquire an 80% interest in the Boundiali
Exploration permit, an early stage gold exploration project located in north
west Cote d'Ivoire.

 

Lithium

 

·      Exploration activities during the quarter comprised of geological
mapping that focused on generating targets within Newstar-owned exploration
permits.

 

 

Environment, Social and Governance

 

.

·      Q3 projects under the Community Development Agreements included
awarding 26 school scholarships, quarterly elderly palliative deliveries, and
initiating tenders for road and school improvements.

·      ESG data, aligned with Global Reporting Initiative standards, is
being compiled for 2023-2024 and uploaded to the Onyen ESG system. This will
improve annual comparisons for energy, water, and waste intensity per oz Au.

·      One Lost Time Injury (LTI) occurred due to a workshop incident,
leading to targeted training on hand injuries.

·      In Senegal, information is being compiled for the baseline of an
EIA for the Douta project and included consultations with local village elders
and government bodies to align with regional economic development plans.

 

 

Outlook

 

·      Production guidance of 85,000oz for 2024 with an AISC guidance of
US$$800 - US$900 per oz.

·      Advance exploration programmes across the portfolio, including
near mine, underground and regional projects at Segilola, extension and infill
programmes at Douta, assessment of regional potential targets in Nigeria and
joint venture options on potential targets.

·      Continue to advance the Douta project towards an updated Mineral
Resource Estimate and PFS.

 

 

Segun Lawson, President & CEO, stated:

 

"Firstly, it is important to provide an update on the ongoing Osun State tax
dispute. The Minister of Mines in Nigeria commissioned a fact-finding
committee (the "Committee") to investigate the claims made by the Osun State
Government, with the findings to be reported within seven days. The Committee
provided Osun State with an extension to submit evidence of its claims by
8(th) November and the Company expects the Minister to disclose its findings
in the near future. We look forward to the findings of the Committee and
remain confident regarding our position on all the allegations made by Osun
State.

 

"We are pleased to have profitably navigated through a challenging quarter,
during which a fly-rock incident and severe weather disruptions at Segilola
impeded operations. We produced just over 20,000 ounces and sold 18,167 ounces
of gold achieving an average gold price of US$2,328 per ounce at a cash
operating cost of US$585 per ounce sold, and an AISC of US$766 per ounce sold.
We have reduced our senior debt facility to US$3.9 million, which is on track
for full repayment in Q4 and notably, we have transitioned from a net debt
position to a net cash position.

 

"On the exploration front, we have had a positive start to our Segilola
Underground Exploration programme, which is ongoing with a planned 12-hole
drilling programme. We look forward to receiving the remaining results.

 

"At Douta, we have now completed our fieldwork and received all the required
drilling results for an updated resource and PFS. We are at the final stages
of completing the remaining workstreams for the PFS with completion targeted
for Q4 2024.

 

"The Quarter also marked our strategic entry into Cote d'Ivoire, with the
acquisition of the Guitry and Boundiali projects, which will further diversify
and strengthen our portfolio in West Africa as we look to unlock value at
these projects.

 

"We look forward to completing the year with another profitable quarter whilst
delivering further value through exploration upside in Nigeria and through
advancing the Douta Project to its next milestone."

 

About Thor Explorations

 

Thor Explorations Ltd. is a mineral exploration company engaged in the
acquisition, exploration, development, and production of mineral properties
located in Nigeria, Senegal, and Burkina Faso. Thor Explorations holds a 100%
interest in the Segilola Gold Project located in Osun State, Nigeria and has a
70% economic interest in the Douta Gold Project located in south-eastern
Senegal. Thor Explorations trades on AIM and the TSX Venture Exchange under
the symbol "THX".

 

THOR EXPLORATIONS LTD.

Segun Lawson

President & CEO

 

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

 

BlytheRay (Financial PR)

Tim Blythe / Megan Ray / Said Izagaren

Tel: +44 207 138 3203

 

Yellow Jersey PR (Financial
PR)

Charles Goodwin / Shivantha Thambirajah / Soraya Jackson

Tel:  +44 (0) 20 3004 9512

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