Quarterly Report - September 2011
THOR MINING PLC
QUARTERLY ACTIVITIES REPORT
PERIOD ENDING 30 SEPTEMBER 2011
Dated: 27 October 2011
The Directors of Thor Mining PLC ("Thor" or the "Company") (AIM, ASX: THR) the Australian gold, tungsten and molybdenum explorer and developer, today lodged the following September 2011 quarterly report with the Australian Securities Exchange (ASX) as required by the listing rules of ASX.
QUARTERLY REPORT JULY TO SEPTEMBER 2011
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Highlights |
Outlook for December 2011 Quarter |
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TUNGSTEN & MOLYBDENUM Molyhil NT · Definitive feasibility study ("DFS") update commenced; · Capital & operating cost estimates suggest profitable operation; · Reverse Circulation ("RC") & diamond drilling programs undertaken; and · RC assays indicate high grade extension to known mineralisation. |
· Completion of Molyhil DFS; · Marketing & financing activities; · Assays from diamond drilling program; and · Resource extension estimate. |
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GOLD Spring Hill NT · Commencement of resource extension drilling program.
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· Complete 1st drilling program to confirm and extend open pit-able resource; · Evaluation of potential for profitable production; and · Preparation for drilling deep ("Callie model") and additional near surface targets. |
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Dundas WA · Preparation of flora & fauna reports to support drilling applications. |
· Further geochemical (calcrete) sampling; and · Preparation for follow up air core and RC drilling. |
MOLYHIL TUNGSTEN-MOLYBDENUM PROJECT (NT) (100% THOR) ("MOLYHIL")
The selling price of tungsten APT is currently US$460/mtu (briefly touching US$500/mtu), while the price of molybdenum roasted concentrates has declined slightly to approximately US$13.00/lb.
In the light of the improved tungsten price, Thor has commissioned an update to the 2007 DFS, focussing on all aspects of the project. It is expected that the results of this study will be available in November 2011.
Molyhil DFS
Progress to date has resulted in the estimate by Proteus EPCM Engineers of both capital and operating costs of the proposed mining and processing operation at Molyhil.
Key outcomes of the Costs Estimates include:
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· Capital costs |
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A$66 million including contingency |
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· Operating costs |
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A$79/tonne of ore mined and processed |
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· Annual throughput of ore |
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400,000 tonnes per annum |
Revenue assumptions:
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· Revenue |
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A$177/tonne of ore mined and processed |
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· Cash operating margin |
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A$98/tonne |
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· Tonnes of ore mined & processed |
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1.4 million tonnes ("Pit Phase 1") |
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· Tungsten grade (WO3) |
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0.60% |
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· Tungsten price (APT) |
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US$460/mtu - discounted by 23% |
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· Molybdenum grade (Mo) |
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0.13% |
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· Molybdenum price |
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US$15.00/lb - discounted by 12% |
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· Exchange rate |
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A$1:00 = US$0:95 |
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Based upon these estimates, the operating costs of the proposed Molyhil operation are approximately US$130/mtu after deduction of bi-product credits from the sale of molybdenum as compared to the current market price of US$460/mtu as disclosed above.
Drilling programs
During the quarter, a six hole RC drilling program was conducted to test for additional down plunge resource followed by a seven hole diamond drilling program designed to enhance confidence in the near surface resource.
While the results of the diamond drilling program are still expected, assays from the RC program confirmed the intersection of new mineralisation (including some high grade intercepts) outside of the existing resource.
Highlights
· TMRC060 - 16m at 0.81% WO3, and 0.44% MoS2 from 189m (easterly extension to resource)
· TMRC063 - 13m at 0.38% WO3, and 0.13% MoS2 from 290m (down plunge extension)
· TMRC061 - 21m at 0.07% WO3, 0.19% MoS2 and 28.5% Fe from 50m (additional near surface resource)
2011 December Quarter activity schedule
Results from the DFS are scheduled to be available during the quarter, along with an updated resource estimate and ore reserve. Commencement of mining plan will follow finalisation of ore reserve.
GOLD EXPLORATION
SPRING HILL PROJECT - NT (THR acquiring earn-in rights to up to 80% equity)
A ten hole diamond drilling program has commenced with the objective of both confirming and extending the existing Spring Hill resource which was previously "ruled off" approximately 100 - 130 metres below surface (1989-92 Ross Mining/Billiton JV). Under Thor, the extent of the resource will be driven by contemporary optimisation practice and this is expected to be considerably deeper at current gold prices.
Additional drilling is planned to follow up high grade intercepts from Ross Mining/Billiton JV drilling undertaken in 1989-92.
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SHRC181 |
26m @2.56g/t from 59m - (0.1g/t cut-off) |
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including: |
16m @ 4.0g/t from 63m - (0.5g/t cut-off) |
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SHRC182 |
6m @ 0.26g/t from 0m - (0.1g/t cut-off) |
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and: |
13m @ 0.77g/t from 26m - (0.1g/t cut-off) |
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including: |
7m @ 1.13 g/t from 29m - (0.5g/t cut-off) |
Historic drill intercepts
Drill testing these targets is scheduled for the beginning of the 2012 dry season.
In addition the Company has commenced preparations for a deeper drilling program to test for a much larger scale "Callie style" deposit. This drilling is now also scheduled to commence in 2012 when the Northern Territory's "wet season" concludes.
2011 December Quarter activity schedule
Completion of the current diamond drill program and compilation of the data will take most of the December quarter. Re-estimate of the resource, scoping studies and metallurgical test-work will follow.
DUNDAS PROJECT - WA (60% THR)
Due to persistent wet weather, work has focussed on progressing permitting for the planned drill testing of the Algron, Bifrost, and Asgard prospects.
The detailed flora and fauna study covering was submitted to the WA Department of the Environment in support of proposals for the scheduled drilling programs.
Approval for this program remains pending.
2011 December Quarter Exploration schedule
Calcrete (geochemical) sampling will resume and provide broad reconnaissance information along with some infill work around previously identified areas of gold anomalism.
Approval and commencement of the proposed drill program is anticipated during the December quarter.
CORPORATE AND FINANCE
During the quarter Non-Executive director Mr Norm Gardner resigned from the Board of Thor. Mr Gardner's contribution to the Company since 2008 has been invaluable.
During the quarter the Company raised further additional funds through the issue of just under 30.6 million ordinary shares, in a placing to sophisticated investors in the UK. This issue raised AUD$612,000, before costs associated with the issue.
Competent Persons Statement
The information in this report that relates to exploration results is based on information compiled by Richard Bradey, who holds a BSc in applied geology and an MSc in natural resource management and who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Bradey is an employee of Thor Mining PLC. He has at least five years 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' and under the AIM Rules. Richard Bradey consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
Enquiries:
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Mick Billing |
+ 61 (8)7324 1935
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Thor Mining PLC |
Executive Chairman |
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Allan Burchard
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+61 (8)7234 1935
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Thor Mining PLC |
CFO/Company Secretary |
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John Simpson |
+ 44 (0)20 7776 6550
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Daniel Stewart & Co. Plc |
Nominated Adviser |
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Nick Emerson/ Renato Rufus
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+44 (+44 (0) 1483 413500 |
Simple Investments |
Broker |
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Alex Walters |
+44 (0) 7771 713608 |
Cadogan PR |
Financial PR |
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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