UPGRADED ORE RESERVE AND EXTENDED MINELIFE
MOLYHIL TUNGSTEN PROJECT
The Board of Thor Mining Plc (“Thor” or the “Company”) (AIM, ASX: THR), is pleased to provide a positive progress update on the Company’s wholly owned proposed Molyhil tungsten/molybdenum mine in Australia’s Northern Territory (“Molyhil”).
In October 2017 the Company announced it had commissioned a revised Ore Reserve study to draw together the technical data from various positive work completed since the last report prepared in 2014. This report containing an Open Cut Ore Reserve Statement has now been successfully completed with positive findings increasing the overall Ore Reserve and extending the Molyhil mine life. Significantly also, a new and potentially profitable additional underground mining option has been identified, in addition to the original plan for Open Pit mining.
Highlights
· Open Cut Ore Reserve Statement, classified as probable, of 3.5 million tonnes @ 0.29%WO₃ & 0.12% Mo;
· Molyhil Open Cut mine life extended by 17% to 7 years;
· Additionally, significant blocks of the resource, in indicated and inferred resources category, outside and below the pit shell have been assessed and, subject to further drilling and other technical reviews, appear to warrant a subsequent underground mining operation after Open Pit mining has concluded;
· The Company is updating capital and operating cost estimates with an objective of further cost reductions and positively impacting mining and processing economics;
· Work undertaken confirms increased project viability and supports the completion of an upgraded Definitive Feasibility Study (DFS) expected in the current quarter.
Mick Billing, Executive Chairman, commented:
“The successful completion of the Ore Reserve Study is a very welcome development for the Molyhil project and the Company. Extending the life of the project, along with evidence that additional blocks have the potential for subsequent underground mining, is a major step forward in the commercialisation potential of Molyhil”
“Discussions with third parties expressing interest in the Molyhil opportunity confirmed that an extension of mine life was a key precursor to more proactive engagement and with the findings announced today we have moved solidly down that pathway. The fact that this progress has been achieved in an environment when there is an industry desire to secure reliable supplies of tungsten concentrates makes the outcomes announced today all the more timely.”
“After a long development road, the board are delighted with the progress achieved of late and are focused on achieving the best commercial outcome for shareholders. As with any project on the commercialisation pathway, shareholders should note that there is no guarantee of a successful outcome.”
Molyhil Open Cut Ore Reserve Statement
Based upon the Resources Estimate reported to the ASX & AIM on 30 January 2014, and following a re-estimate of costs and metallurgical recovery factors, mining consultancy, AVCS Pty Ltd has issued a statement of Open Cut Ore Reserve for the Molyhil deposit of 3.5 million tonnes averaging 0.29% WO3 & 0.12% Mo, classified as Probable. See Table 1 and Attachment 1.
The improved outcome is largely driven by cost savings and upgraded test results of pre-concentration of ore using ore sorting technology, reported on 30 October 2017.
Table 1: Molyhil Open Cut Ore Reserve Statement
· Thor Mining PLC holds 100% equity interest in this reserve.
· Estimate has been rounded to reflect accuracy.
· All estimates are on a dry tonne basis.
· The reserve estimate extends to a maximum depth below surface of 185 metres.
· The statement is derived from the Indicated portion of the resource estimate only, and the Inferred portion is excluded from the calculations.
· The long-term prices used were US$300/mtu for 65% WO3 concentrate and US$7.92/lb for Mo concentrate at an exchange rate of US$0.75 to A$1.00.
· The WO3 and Mo ore sort losses used was 1.0% and 6.0% respectively and the ore sort rock mass rejection rate on average is 39.3%
· The WO3 and Mo Processing Recovery post ore sorting used was 84.5% and 72.1% respectively.
Using this Statement of Open Cut Ore Reserve, AVCS has prepared a 3 stage mining plan to provide Thor with a detailed schedule for the current estimated life of the proposed open pit operation, including tonnes of ore and waste removed and the grade of material mined and sorted. This will be incorporated into a financial model along with revised operating cost estimates, and revised capital cost estimates both currently under review.
It is expected that this process will be completed during the March quarter of 2018.
Potential for Underground Mining at Molyhil
The study also identified portions of the Indicated and Inferred resource estimate, remaining outside the revised pit shell, which appear economic for mechanised underground mining techniques. Whilst the work required to include this material in any mine schedule is yet to be done, this represents a significant opportunity for the project and will be the subject of further investigation.
