QUARTERLY REPORT - 31 MARCH 2011
THOR MINING PLC
QUARTERLY ACTIVITIES REPORT
PERIOD ENDING 31 MARCH 2011
Dated: 28 April 2011
The Directors of Thor Mining PLC ("Thor" or the "Company") (AIM, ASX: THR, THRO), the exploration company focussed on gold and base metal projects and advancing tungsten-molybdenum projects in the Northern Territory of Australia, lodge the following March 2011 quarterly report to the Australian Securities Exchange (ASX) as required by the listing rules of ASX.
QUARTERLY REPORT JANUARY TO MARCH 2011
|
Highlights |
Outlook for June 2011 Quarter |
|
GOLD |
|
|
Dundas WA · Air-core / RAB drilling program assays showed elevated copper and gold. · Further geochemical (calcrete) sampling. |
· Preparation for follow up air core and RC drilling. |
|
Spring Hill NT · Agreed variation to terms for the staged acquisition of the 274,000oz Spring Hill Gold project. · Prepared documents for shareholder approval of the transaction. |
· Shareholder meeting to approve project acquisition. · Evaluation of early production potential. · Preparation for drilling at depth. |
|
TUNGSTEN & MOLYBDENUM |
|
|
Molyhil NT · Tungsten price continued its strong increase, currently at US$415/mtu. · Molybdenum price steady at US$17/lb. |
· Drill program to test deeper extensions of the Molyhil deposit. · Project Feasibility Study review. |
GOLD EXPLORATION
Dundas Gold Project - WA (60% Thor)
Activities for the quarter.
A 66 hole air-core and RAB drilling program was carried out in portion of a 6km² anomaly identified from the 2010 surface calcrete sampling in EL 63/872. The program was designed to evaluate the weathered profile underlying calcrete anomalies and sample fresh bedrock.
Strongly anomalous copper values (>250ppm) are reported from 20 holes. Most of these define and lie within a 100-200 metre wide zone trending north-south through the area tested, coincident with the axis of the geochemical anomaly.
Anomalous gold values (>10 ppb) occur in 16 of the 66 holes, mostly coincident with the axis of the geochemical anomaly. More importantly, peak values of 174, 75 and 62 ppb are considered to indicate the occurrence of gold mineralisation.
Further rounds of geochemical (calcrete) sampling to identify drill targets continued, and are ongoing.
June quarter exploration schedule.
During the June quarter the Company will continue to identify targets for ongoing air-core and/or RAB drilling and assess the maturity of these targets for deeper RC drilling.
Spring Hill gold project - NT (Thor acquiring earn-in rights to up to 80% equity)
Activities for the quarter.
In January 2011, the Company announced it had agreed terms for the staged acquisition from Western Desert Resources Limited ("WDR") of up to an 80% interest in the 274,000oz Spring Hill Gold Project in the Northern Territory.
The Spring Hill Gold Project is located approximately 150 km south of Darwin in Australia's Northern Territory. Importantly, the location is served by all-weather access and is in close proximity to the sealed arterial Stuart Highway, north-south rail, gas pipeline and trunk powerlines.
Spring Hill hosts an Indicated Resource of 274,000oz gold within 3.64Mt @ 2.34 grams per tonne (g/t) gold. However, Directors believe significant potential exists for exploration upside, both for increments to the resource accessible for open pit mining, and at depth for a major resource using the "Callie" model.
Resource Estimate (Reported to ASX on 22 January 2011)
(3.6 million tonnes @2.34g/t gold. Cutoff grade 1.0 g/t)
|
|
Measured |
Indicated |
Inferred |
Total |
|||||
|
|
Tonnes (Mt) |
Grade g/t Au |
Tonnes (Mt) |
Grade g/t Au |
Tonnes (Mt) |
Grade g/t Au |
Tonnes (Mt) |
Grade g/t Au |
Contained ounces Gold (K oz) |
|
Zone of Oxidation |
- |
- |
1.32 |
2.16 |
- |
- |
1.23 |
2.16 |
92 |
|
Transition Zone |
- |
- |
0.50 |
2.37 |
- |
- |
0.50 |
2.37 |
38 |
|
Unweathered Zone |
- |
- |
1.82 |
2.47 |
- |
- |
1.82 |
2.47 |
144 |
|
Total |
- |
- |
3.64 |
2.34 |
- |
- |
3.64 |
2.34 |
274 |
Estimate: McDonald Speijers, June 2003, Compliant with JORC Code September 1999
Gold at Spring Hill occurs mainly in quartz veins concentrated in fracture zones and the axial zones of anticlinal fold structures. Much of the gold is relatively coarse-grained, in the visible range, imparting significant 'nugget effect' to drill samples.
Four main zones of gold mineralisation cover an area of approximately 1,000 x 400 metres (Figure 5). They have been outlined during the early 1990s and mid 2000s by drilling conducted by previous owners of the project around historic workings. These zones have not been drill tested below 150 metres. Additionally, several subordinate occurrences have been identified in adjoining areas, but are little tested.
Additionally, the Company believes that the Spring Hill gold deposit may be just the indicator of much more substantial mineralisation at depth. Figure 6 (based on a publication of the Northern Territory Geological Survey) indicates the conceptual setting of gold throughout the Pine Creek Inlier. The Northern Territory's Tanami Region shares a near-identical geological history and gold endowment. Importantly, in the Tanami, the Callie deposit (resources + production >5 million ounces at 5-6 g/t gold) occupies a structural-stratigraphic setting comparable to that of Cosmo Howley (resources + production >1 million ounces at 3-4 g/t) in Figure 6. Consequently, the Company is targeting a sheeted vein system deeper in the anticline, below the known Spring Hill mineralisation and which it believes has substantial Company-making potential.
The targeted stratigraphy is exposed, within EL22957, and is believed to exist in the subsurface below the Spring Hill deposit at depths which are reasonable to test by drilling. The target deposit is more than an extension of the exposed mineralisation; it is a separate deposit in a separate but related setting. The sheeted vein characteristic of much of the Hong Kong Lode at Spring hill provides evidence of favourable structural settings, while the magnitude of the Spring Hill system gives promise of additional gold concentrations in chemically more favourable environments at depth. This concept is proposed to be tested at Spring Hill during the 2011 dry season (March to November).
During the quarter the Company prepared a Circular, including independent reports, for submission to Shareholders. The Circular sets out the terms and conditions for the staged acquisition from a wholly owned subsidiary of Western Desert Resources Limited of up to an 80% interest in the 274,000oz Spring Hill Gold Project in the Northern Territory and has attached to it a Notice of a General Meeting of Shareholders to be held at 9am BST on Wednesday, 18 May 2011, at which Shareholder approval to, among other things, the transaction is being sought.. In addition, an application was submitted to the Australian Foreign Investment Review Board for consent to the acquisition, such consent subsequently received.
June quarter exploration schedule.
The Company is planning to drill test for depth extensions to the existing resource at Spring Hill during the June 2011 quarter, along with preparatory work to drill test the deeper target later in the year.
RARE EARTHS EXPLORATION
Harts Range Project (NT)
No exploration activities were conducted during the period.
BASE METAL EXPLORATION
Harts Range Project (NT)
No exploration activities were conducted during the period.
TUNGSTEN EXPLORATION
Hatches Creek Project (NT)
No exploration activities were conducted during the period.
TUNGSTEN / MOLYBDENUM DEVELOPMENT
Molyhil Tungsten-Molybdenum Project (NT) ("Molyhil")
The selling price of Tungsten APT has increased strongly to US$415/mtu, while the price of Molybdenum Roasted Concentrates remains steady at US$17.00/lb.
While these price improvements are partially offset by the strength of the Australian dollar, the Directors continue to believe that the fundamental drivers of Molyhil are sound and that prices will in time recover to economic levels leading to the development of the Molyhil project.
June quarter activities.
Preparations have commenced for a deep drill program at Molyhil to further test the potential for significant increase in the size of the resource at depth.
The drilling program proposed is likely to be conducted during the June 2011 quarter.
In addition the Directors have commenced a re-evaluation of the former definitive pre-feasibility study, published in 2007. The scope of the re-evaluation will include updating estimates of capital and operating costs for the project, along with the updated metal prices and exchange rates.
CORPORATE AND FINANCE
During the quarter the Company raised further additional funds through the issue of just under 50 million ordinary shares in a placement to sophisticated investors in the UK and Australia. This issue raised AUD$1,760,000, before costs associated with the issue.
A General Meeting of shareholders has been scheduled for 18th May 2011 in London, to secure shareholder approval for the staged acquisition of the Spring Hill Gold Project, and also to ratify recent capital raisings.
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 Mining PLC 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 which activity 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.
The information in this report that relates to mineral resources or ore reserves of the Spring Hill gold deposit is based on information compiled by Diederik Speijers who is a Fellow of The Australasian Institute of Mining and Metallurgy. Mr Speijers is the principal of consulting firm McDonald Speijers. He 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'. Diederik Speijers 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 |
+61 (8) 7324 1935
|
Thor Mining PLC |
Executive Chairman |
|
Allan Burchard |
+61 (8) 7324 1935
|
Thor Mining PLC |
CFO/Company Secretary |
|
John Simpson |
+44 (0)20 7776 6550
|
Daniel Stewart & Co. plc |
Nominated Adviser |
|
Nick Emerson/ Renato Rufus |
+44 (0) 1483 413500 |
Simple Investments |
Broker |
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.
This information is provided by RNS
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