Thor Explorations Ltd (TSX-V:THX, AIM:THX, OTC:THXPF) has stuck to its full-year production guidance after making good progress at its Segilola Gold mine in Nigeria despite encountering difficult operating conditions.
The West Africa-focused gold miner reported gold production of 20,629 ounces (oz) for the three months to March 31, 2023, while the average grade of the gold produced was 2.95 grams per tonne (g/t). It noted that an increase in mining rates and the mining of higher-grade ore zones is expected in 2Q.
For the period, it sold 21,553 oz of gold at an average gold price of $1,902/oz. Revenue rose 62% to $40.3 million and it incurred cash operating costs of $899/oz and all-in sustaining costs (AISC) of $1,346/oz. Net profit increased by 23% to $4.3 million.
The company ended March with cash and cash equivalents of $4.5 million and net debt of $25 million.
"This was envisaged to be a difficult quarter with a lower mined grade, difficult mining conditions in the Segilola Pit west wall and a higher utilization of heavy equipment,” president and CEO Segun Lawson said in the company's results statement.
“The company's performance during the period demonstrates the amount of progress we have made at Segilola. The main operating units continue to perform better than expected and operate above capacity, so our production at the mine totaled 20,629 ounces.
“Our costs were at the higher end of our guidance, however, we expect our costs to reduce materially in the second half of the year as we complete our mining in the current difficult areas.”
Operationally, the company said it also identified a high high-grade quartz vein system within 15 kilometers of Segilola, with multiple high-grade intercepts including one meter at 310 g/t gold.
“We look forward to updating the market with drill results from this program and an additional two ongoing exploration drilling programs in Nigeria,” Lawson added.
Meanwhile, the resource estimate at the Douta project was upgraded to 1.78 million ounces of gold, as total drilling on the project reached 64,567 meters.
"When compared to the same operating period last year, we have significantly improved our numbers across the board, which is a testament to the hard work and efficiencies created in the company,” Lawson concluded.
"Our production guidance remains between 85,000 and 95,000 oz for 2023, one that is weighted towards the second half of the year, where we foresee less difficult operating conditions and correspondingly, a more efficient six months operationally.”
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