logo-loader
viewThor Mining PLC

Thor Mining PLC - QUARTERLY REPORT OCTOBER TO DECEMBER 2019

RNS Number : 5475B
Thor Mining PLC
31 January 2020
 

31 January 2020

THOR MINING PLC

("THOR" OR THE "COMPANY")

QUARTERLY REPORT OCTOBER TO DECEMBER 2019

Highlights

Outlook for March Quarter 2020

COPPER

 

Kapunda, SA Australia

·   Field pump test drilling.

·  High tenor copper (preliminary) from pump test drilling.

 

TUNGSTEN & MULTI COMMODITIES

 

·   Confirmatory assays from field pump test drilling.

·   Continue field pump studies.

·   Preparation for field recovery trial.

 

Molyhil, NT Australia

·  Marketing activities around potential project finance and off-take agreements for both tungsten and molybdenum concentrates.

·  Significant upgrade Molyhil Mineral Resource Estimate.

·  Drilling success at Bonya results in maiden resource estimates.

 

 

· Discussions with Australian government agencies mandated to assist Australian critical minerals projects.

· Continued discussions with potential Molyhil project financiers and off-take partners.

· Tungsten price has strengthened by more than 25% since early September 2019.

 

Pilot Mountain, Nevada USA

·  Commenced discussions with various US parties aimed at securing specific investment to progress this project.

 

 

·    Continuing discussions with US parties to secure project investment.

 

 

GOLD & OTHER COMMODITIES


·  Ground reconnaissance survey over Pilbara tenements provided very encouraging gold, nickel & chromium results.

·  Execution of agreements with traditional owners of Hamersley licences

·  Secure grant of Hamersley tenements

·  Follow-up ground reconnaissance work over areas of gold, nickel, & chromium prospectivity.

 

 

CORPORATE & FINANCE

During the quarter, the Company advised of a two stage placing of capital, to raise, before expenses, UK£510,000 (approximately A$955,000).

The Company has had expressions of interest in acquiring the Spring Hill gold royalty entitlement, and will advise the market further with progress in due course.

The Company has, during and subsequent to the end of the quarter, sold potion of its shares in Hawkstone Mining Limited.

Mr Mick Billing, Executive Chairman, commented:

 "Challenging market conditions continue, however we continue to focus on adding to its value through resource upgrade at Molyhil, and also with the release of resource estimates at Bonya, potentially adding significantly to the life of the project, and also to the economic outcomes. We believe this will significantly improve the production profile and economics of the Molyhil project, and also increase the overall attractiveness of the project to strategic investors and offtake partners.  Discussions with these parties are ongoing."

"In addition, recent renewed interest by the Australian and US governments in critical minerals has resulted in increased support for projects of this nature, and we hope to be able to take advantage of this."

"Our ISR copper investments continue to show great promise with positive initial pump flow test results, and drill assays due shortly."

"Finally, the initial sampling program in our 100% owned Pilbara project produced some outstanding initial results, and we look forward to follow up work on these."

COPPER PROJECTS

KAPUNDA and MOONTA COPPER PROJECTS - SA

Thor holds a 25% equity interest in private Australian company, EnviroCopper Limited ("ECL"), along with rights to acquire a further 5% interest via investment of an additional A$0.4million.  In turn ECL has entered into an agreement to earn, in two stages, up to 75% of the rights over metals which may be recovered via in-situ recovery ("ISR") contained in the Kapunda deposit from Australian listed company, Terramin Australia Limited ("Terramin" ASX: "TZN"), and rights to 75% of Moonta copper project comprising the northern portion of exploration licence EL5984 held by Andromeda Metals Limited (ASX:ADN).

Information about EnviroCopper Limited and its projects can be found on the EnviroCopper website:

https://www.envirocopper.com.au/

Kapunda

During 2018, the Australian Government Ministry for Science, Jobs and Innovation announced an offer to ECR for research funding of A$2,851,303, over a 30 month period, for the Kapunda In-Situ Copper and Gold Recovery Trial.

During the June 2019 quarter the Company advised of successful gold recovery from Kapunda core, in addition to copper recovery, using a CSIRO developed thiosulphate product, instead of, the more normal, cyanide.

Field pump tests of the flow of fluids through the deposit for successful ISR activities were conducted during the quarter.  The program involved drilling three holes, in the southern portion of the deposit, with tests to measure connectivity, porosity and permeability then conducted.  These tests are continuing, however interim results show good potential connectivity, and good interim copper values via portable X-Ray Fluorescence (XRF) determination, with (to be confirmed by laboratory assay) values of:

· KPFRT01 intersected 66 metres @ 0.27% Cu including 5m @ 0.72% Cu and 11 metres @ 0.54% Cu (Pilot Hole);

· KPFRT02 intersected from 8m 23m @ 0.49% Cu to end of hole

· KPFRT03 intersected from 22m, 6m @ 0.47% Cu to end of hole.

The geochemical analysis results may vary from those obtained from XRF, and these are expected shortly, to confirm copper values, and the presence of any measurable gold.  The released results can be accessed via the following link:

https://www.thormining.com/sites/thormining/media/pdf/asx-announcements/20191127-preliminary-drilling-results-at-kapunda-project.pdf  

Other near-term activities at Kapunda include continued community liaison in respect of project activities, testwork on historical drill core to determine the optimum extraction agent (lixiviant) most suited to the Kapunda deposit and establishing appropriate parameters for future field trials.

Moonta

During  the September quarter the Company advised that Enviro Copper Limited, on behalf of Environmental Metals Recovery, had completed a Mineral Resource Estimate (MRE) on several of the deposits at Moonta, based on substantial historical drilling.  The results of this study was an Inferred Resource estimate of 66.1 million tonnes (MT) grading 0.17% copper (Cu), containing 114,000 tonnes of contained copper, at a cutoff grade of 0.05%Cu.

The full details of the resource announcement may be accessed via the following link:

https://www.asx.com.au/asxpdf/20190815/pdf/447hw9dbbkg94b.pdf 



 

TUNGSTEN PROJECTS

Tungsten and Molybdenum Price Trends

Tungsten prices recovered during the early part of the December quarter and have held those gains into January 2020. There is an expectation of a further upward movement in the March 2020 quarter, after the traditional Chinese New Year slowdown, and any downward pressure from the Chinese Coronavirus had not translated into negative price movements to date. 

At the date of this report, the price of tungsten, per mtu of APT (Ammonium Para Tungstate) sits between US$230/mtu and US$240/mtu, while the molybdenum price sits at US$10.30/lb. 

Industry discussion continues to forecast tight supply conditions for tungsten concentrates and downstream products, with dominant supplier, China, enforcing improved environmental standards, and restricting the issue of new mine production licences.  This implies a recovery in tungsten pricing in the near term.  In addition, industry expectations are that molybdenum will be subject to supply constraints for several years.

MOLYHIL TUNGSTEN PROJECT - NT (100% Thor)

During the quarter, Thor continued discussions with various potential partners who have expressed interest, in either off-take, joint venture or debt finance arrangements.  It is hoped that, on the back of improved tungsten prices, and the release of resource estimates at the nearby Bonya deposits, a favourable arrangement can be finalised in the near term.

Adjacent to Molyhil, the Bonya tenements, in which Thor holds a 40% interest, host outcropping tungsten deposits, a copper resource and a vanadium deposit.

During the quarter, a reverse circulation (RC) drilling program was conducted at Bonya, generating sufficient assay information for maiden mineral resource estimates on the White Violet and Samarkand tungsten deposits.

A full background on the project is available on the Thor Mining website www.thormining.com/projects.

During the quarter, on 10 October 2019, the Company reported an updated Mineral resource estimate for the Molyhil deposit comprising Indicated and Inferred Mineral Resources of 4.7 million tonnes at 0.28% WO₃ (Tungsten trioxide), 0.14% Mo (Molybdenum), 0.05% Cu (Copper), and 18.0% Fe (Iron) above a cut-off grade of 0.12% WO equivalent.

The revised resource estimate increased contained WO₃ by 1.5% , and contained Mo by 9.3% compared with the previous estimate, and includes copper, which had not previously been reported since 2006.<

Quick facts: Thor Mining PLC

Price: 0.53

Market: AIM
Market Cap: £6.8 m
Follow

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Thor Mining's Mick Billing reports on visible gold at Pilbara Goldfield...

Thor Mining PLC's (LON:THR) (ASX:THR) Mick Billing speaks to Proactive's Polly Middlehurst after announcing visible gold from sample panning during the second phase of geochemical sampling at its Pilbara Goldfield tenements. 17 of the 32 stream sediment samples had visible gold in panning....

2 weeks, 1 day ago