Thor Mining (LON:THR, ASX:THRO) told investors that it has received the initial findings of the definitive feasibility study (DFS) on the Molyhil tungsten and molybdenum project in Australia.
It said that the early results underline the economic rationale for the development of Molyhil.
Based on a phase one pit of 1.4 million tonnes of ore the report highlighted potential cash operating margins of AU$98 per tonne of ore processed. Capex is estimated at AU$66million, while the mine would have annual throughput of 400,000 tonnes per year and operating costs of AU$79 for each tonne of ore mined and processed.
Thor said that a revised ore reserve and mining plan in progress and the DFS is expected to be completed next month.
"These are very positive early outcomes and provide us with a great deal of confidence in the results of the feasibility study. While much more work is required, these cost estimates, along with current metal prices, are key to the study outcome,” said chairman Mick Billing.
“The improving commodity price for tungsten, in particular, has added value to Molyhil, and the medium term prospects for tungsten are positive.”
Thor said that potential enhancements to the project include up to 100,000 tonnes per annum of high grade magnetite, which would be mined and extracted as part of the process of producing tungsten and molybdenum concentrates. And potential value of any contribution from this commodity is still being assessed.
The company explained that the next phase of the DFS involves re-estimating the ore reserve and the preparation of a new mining plan for Molyhil.
“The outcome of this work has some potential to vary both the total tonnage of ore to be mined from Pit Phase 1 and also the grade of that ore,” it said. “Following these steps the Molyhil financial model will be updated to reflect all the revisions to operating parameters.”