Quarterly Update

RNS Number : 1344P

Thor Mining PLC

12 July 2010

 



THOR MINING PLC

JUNE 2010 QUARTERLY REPORT

Dated: 12 July 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 June 2010.

HIGHLIGHTS

EXPLORATION PROJECTS

GOLD PROJECTS

The Dundas Gold Project (WA) ("Dundas")

·      During the quarter, the Company finalised the agreement to acquire the Dundas Gold Project in the Albany-Fraser Orogen at the margin of Western Australia's gold-rich Archaean Yilgarn Craton.

·      Initial calcrete sampling assay results include clusters of elevated gold values which have identified 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.

BASE METAL PROSPECTS:

Harts Range (NT)

·      Interpretation of results from a 314 line kilometre AEM survey has identified potential drill targets.

DEVELOPMENT PROJECTS

Molyhil tungsten-molybdenum development project ("Molyhil")

·    The selling price of Tungsten APT has continued to increase to between US$237/mtu and US$240/mtu, however the price of Molybdenum Roasted Concentrates has eased back to 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 the Molyhil project.

CORPORATE AND FINANCE

Issue of capital:

·    During the quarter the Company raised additional funds via a placement of 10,000,000 voting CDI's to Western Desert Resources Limited raising an additional AUD$150,000, before costs associated with the issue.

·    The Company has issued a Circular to Shareholders seeking approval from Shareholders at a General Meeting, scheduled for 22 July, for the issue of Shares both to raise additional capital and to increase its equity interest in Dundas to 60%.

Additionally the Circular invites Shareholders to subscribe for up to 200 million New Shares with one attaching Warrant (known as options in Australia and New Zealand) for each two New Shares subscribed and seeks approval for a placement of an additional 200 million Shares under the same terms and conditions.

GOLD EXPLORATION

Dundas

During the quarter, the Company executed the agreement to acquire the Dundas Gold Project in the Albany-Fraser Orogen within Western Australia's gold-rich Archaean Yilgarn Craton.

For a cash payment of A$100,000 the Company acquired a 51% interest in the project which comprises exploration licences E63/872, E63/1101, & E63/1102.  Thor is entitled to increase that interest to 60% by the issue of 45 million CDI's by July 2010.  Shareholders will be asked to vote upon the issue of these securities at a General Meeting scheduled for 22 July 2010.  That interest can be increased to 80% and then 100% via through the issue to the vendors of CDI's, to the value of A$2million in each tranche, envisaged following successful exploration results.

The Dundas 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 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.

In particular a new area of significant anomalism over an area of approximately 6 sq.km, including one sample returning a gold value of 26 ppb, has been identified in the south-eastern area of the tenements.  This anomaly contains the greatest concentration of high values encountered in the project to date.  This area remains open to the north and to the south, and it is proposed that this area should be drill tested as soon as the necessary permitting process is complete.

BASE METALS EXPLORATION

Harts range project (NT)

An Airborne Electromagnetic Survey ("AEM") was conducted over the Harts range exploration tenement EL24735 in the Northern Territory during the March quarter.  The survey consisted of 49 flight line traverses flown in a north south direction for a total of 314 line kilometres.

Modelling and interpretation of the survey data during the June quarter has identified one "Priority 1" anomaly and six "Priority 2" anomalies sourced by potential bedrock conductors and detected at depth of less than 100m below surface.  The cluster of anomalies at the western end of the EL and in particular the Priority 1 anomaly indicated by the red star, are associated with layered amphibolitic rocks and are considered prospective for nickel, copper, gold and platinum group element mineralisation.

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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