The Directors of Thor Mining Plc (“Thor”) (AIM, ASX: THR) are pleased to provide the following update on recent Company activities.
Molyhil Tungsten & Molybdenum Project, and Bonya Tungsten Joint Venture
An updated mineral resource estimate at Molyhil was announced on 10 October 2019, an increase of 1.5% and 9.3% to the tungsten and molybdenum resources compared with the previous estimates respectively. Thor owns 100% of Molyhil.
The 19 hole second drill program at Bonya has now completed with very encouraging preliminary XRF results. Laboratory assay results are expected mid-December and we look forward to those. Work on a maiden Mineral Resource Estimate for the first of the Bonya deposits will then commence and we expect this to be complete during January 2020. The Bonya resource is expected to add significant value to the Molyhil project through an improved production profile and increased mine life. Thor holds a 40% interest in the Bonya JV.
A resource of 66.1MT @ 0.17% Cu for 114,000 tonnes contained copper at Moonta was announced on 15 August, 2019. This adds a substantial Cu resource to the EnviroCopper inventory, in addition to the 47.4MT @ 0.25% Cu for 119,000 tonnes contained copper resource at Kapunda.
Field pump trials have recently been successfully conducted at Kapunda with 3 holes drilled and tested. The results to date indicate strong connectivity between holes essential for successful Insitu Recovery process. Preliminary portable XRF assays also suggest above resource grade copper values in these holes, however portable XRF testing is not suitable for gold sightings. We look forward to laboratory assay results for copper and gold, along with other metals in the next few weeks.
Thor has commenced discussions with a number of US investors to advance the Pilot Mountain project. Further updates will be provided to the market as appropriate.
As announced on 6 November 2019, visible gold was found in stream sediment samples. This first pass stream sediment and survey, was successful in locating visible gold in 13 sites, with several considered, by directors, to be potentially significant. Once laboratory analysis of the collected samples is complete, the next stage of work, likely to be infill work, and upstream sampling will be conducted, with a view of establishing drill targets.
During November, Thor sold 5,470,000 shares of Hawkstone Mining Limited realising gross proceeds of A$41,800. Thor now holds 9,764,375 shares of Hawkstone Mining Limited valued at approximately A$70,000 at current prices.
In addition, Thor holds a 95% interest in a production royalty entitlement from the Spring Hill Gold project in the Northern Territory of Australia. Directors expect this project to commence production in 2020. Thor will evaluate all options relating to this royalty investment which may include a sale of the royalty.
The Directors of Thor have taken steps to reduce Directors remuneration , with estimated annual savings approaching UK£100,000. These savings have been implemented from 1 November 2019.
In addition, the deferral of non-essential project expenditure has been implemented which will conserve cash during the March quarter of 2020.
Mr Mick Billing, Executive Chairman, commented:
“We continue to advance exploration activities at the Bonya joint venture to enhance the value of the Molyhil project. Drill results have so far been very pleasing with higher than expected grades at White Violet. We look forward to our initial resource estimate at Bonya scheduled for January2020. Our objective of increasing the resource inventory available for the proposed Molyhil processing plant will, we believe, significantly enhance the prospects for funding the Molyhil development.”
“Our copper investment, and our recent early stage success with Pilbara gold exploration are very exciting and we plan to build upon these while keeping outlays to a minimum. The Australian government grant funding for Kapunda for example, ensures ongoing development at this project, without requiring significant funding from Thor.”
“We have now implemented cost saving initiatives, including significant reductions in director remuneration and deferral of non-essential project expenditure which will conserve cash resources as we progress discussions with potential investors for Molyhil and Pilot Mountain.”
“We have also taken steps towards monetising several of our non-core assets, and will report on each of these as progress is made.”
“Our core assets, however, still hold significant value, and we firmly believe that these will, in due course, deliver substantial returns for our shareholders”.
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