Quarterly Report

RNS Number : 9419U

Thor Mining PLC

25 October 2010

 

THOR MINING PLC

SEPTEMBER 2010 QUARTERLY REPORT

Dated: 25 October 2010

The Directors of Thor Mining PLC ("Thor" or the "Company") (AIM, ASX: THR) the resources company focused on gold and base metals projects and advancing tungsten-molybdenum projects in the Northern Territory of Australia releases its activities report for the quarter ended 30 September 2010.

EXPLORATION PROJECTS

GOLD EXPLORATION

Dundas Gold Project (WA) ("Dundas")

Final assays from the initial calcrete sampling survey identified clusters of elevated gold values and include five previously unknown areas of gold anomaly in addition to previously known targets.  The best of these contain the greatest concentration of high gold values encountered in the project to date.

A heritage clearance of the most preferred drilling locations was conducted in conjunction with Traditional Owners, in preparation for a drilling program during the December 2010 quarter.

During the quarter, the Company increased its equity interest in the Dundas project from 51% to 60%, via the issue of 45 million CDI's to the project vendors and their Agents.

That interest can be further increased to 80% and then 100% at Thor's option following successful exploration results.

The Dundas project tenements lie on the general strike-extension of the most prolific gold-bearing belt of the Yilgarn Province - the 700km Wiluna-Kalgoorlie-Norseman greenstone belt, in an area where the trend of the Albany-Fraser belt is displaced south-eastwards by about 50km.  The Albany-Fraser belt hosts a number of recent gold discoveries including the +5 million ounce Tropicana gold deposit, and other discoveries including Beachcomber, Socrates, Corvette, and Corona.

Geochemical Survey Results

Full survey assay results from a calcrete sampling program on EL 63/872 and EL 63/1102 completed during the previous quarter show clusters of elevated gold values which identify five previously unknown areas of gold anomaly in addition to the target area identified by previous exploration. Each of these warrants systematic follow-up sampling.

Drilling Program

Preparation for a RAB drilling program is proceeding, including in conjunction with Traditional Owners, a heritage clearance of the most preferred drilling location.

It is expected that initial drilling at Dundas will be conducted during the December 2010 quarter.

RARE EARTHS EXPLORATION

In recognition of increasing market prices of rare earth commodities, the Company has commenced a re-evaluation of its Daicos rare earth prospect in EL 24736 in the Harts Range area of the Northern Territory.

Previous reconnaissance sampling returned high uranium and rare earth element values from very radioactive samples, with a best assay of 19.37%U (Uranium), 26.52%Nb (Niobium), 6.25% Ta, (Tantalum) and 2.68%Y (Yttrium).

BASE METAL EXPLORATION

Harts Range Project (NT)

No exploration activities were conducted during the period.

TUNGSTEN AND MOLYBDENUM EXPLORATION

Hatches Creek Project (NT)

No exploration activities were conducted during the period.

DEVELOPMENT PROJECT

Molyhil tungsten-molybdenum development project ("Molyhil")

The selling price of Tungsten APT has continued to increase to between US$265/mtu and US$270/mtu, while the price of Molybdenum Roasted Concentrates has tracked sideways at around US$15.00/lb.

The improvement in the tungsten price is particularly encouraging and Directors continue to believe that the fundamental drivers of the project are sound and that prices will in time recover to economic levels leading to the development of Molyhil.  The recent strengthening of the Australian dollar has, however had a negative impact on project economics.

In anticipation of price recovery, the Company has identified operating and capital cost reductions for the development of the operation.  It is expected that these efforts will considerably enhance the project outcomes once development can proceed.

CORPORATE AND FINANCE

Issue of capital

During the quarter, the Company raised additional funds via the issue of 93,336,149 new ordinary shares by way of a placing and an open offer to Security Holders.  The issue raised AUD$1.143 million, before costs associated with the issue.

Subsequent to the end of the quarter, the Company has raised additional funds by way of a placing of 57 million new ordinary shares to sophisticated investors in Australia.  The issue raised AUD$912,000, before costs associated with the issue.

Competent Persons Statement

The information in this report that relates to exploration results, mineral resources or ore reserves is based on information compiled by Stuart Till, who is a Member of The Australasian Institute of Mining and Metallurgy. The services of Mr Till are engaged by Thor on a contractual basis.  Stuart Till has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'.  Stuart Till consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Enquiries:

Mick Billing	[phone]	Thor Mining PLC	Executive Chairman
Laurie Ackroyd	[phone]	Thor Mining PLC	CFO/Company Secretary
John Simpson	[phone]	Daniel Stewart & Co. plc	Nominated Adviser

Updates on the Company's activities are regularly posted on Thor's website www.thormining.com, which includes a facility to register to receive these updates by email.

 

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