Thor Mining (ASX: THR) has received further assays from its 2012 drilling program at Spring Hill in the Northern Territory indicating a depth extension in the order of 100 metres to the gold mineralising system for the Hong Kong lode.
Resource estimation modelling will follow final assays to determine the grade distribution within the lode. Thor will also move to a 51% interest after completing the required expenditure at Spring Hill.
Highlight intersections from drilling were:
- 8.4 metres at 1.47 grams per tonne (g/t) gold from 189.5 metres, including 0.5 metres at 5.45g/t gold from 189.5 metres and 0.25 metres at 22.73g/t gold from 193 metres;
- 3 metres at 4.7g/t gold from 217.8 metres, including 0.6 metres at 22.1g/t gold from 219 metres
- 39.7 metres at 0.49g/t gold from 326.2 metres;
- 2.34g/t gold from 385 metres, including 1 metres at 12.73g/t gold from 387 metres;
- 21 metres at 1.02g/t gold from 397 metres, including 3 metres at 4.08g/t gold from 404 metres and 1 metres at 2.12g/t gold from 417 metres.
Mick Billing, executive chairman, commented: “This is an encouraging extension to the known mineralisation at Spring Hill.
“While we do not have all the assays from the program and therefore cannot speculate on any possible resource extensions, it is encouraging to confirm the extensions to the mineralised system.”
Drilling of the initial six holes is now complete and all samples have been dispatched for assay. Final assays including the remaining assays for holes nine through 12 are not expected until late September.
Satellite targets
A high resolution helicopter based magnetic (helimag) survey was conducted over Thor’s tenements in July 2012.
This data, which has now been received and processed, will be used to finalise targeting of drilling to test satellite resources once permitting has been finalised.
Project Equity – Thor to increase to 51%
Thor has now exceeded the expenditure required at Spring Hill to exercise its option to increase its equity to 51%.
The company has now notified joint venture partner Western Desert Resources, which has begun a verification review of the expenditure.
Share value propelled higher
Thor’s share price jumped 67% to an intra-day high of A$0.02 on 13 September, prior to entering a trading halt, up from a low of $0.012 a week earlier.
Spring Hill has a JORC Resource of 3.6 million tonnes at 2.3g/t for a contained 274,000 ounces of gold, and has not been tested to more than 150 metres in depth.
There is significant potential to increase the open pit Resource by drilling beyond 150 metres depth.
Analysis
Spring Hill is adding in stature from a brownfields discovery to extension of mineralisation.
The project already has a JORC Resource of 3.6 million tonnes at 2.3g/t for a contained 274,000 ounces of gold, and has not been tested to more than 150 metres in depth.
There is significant potential to increase the open pit Resource by drilling beyond 150 metres depth.
These latest results reinforce that potential with substantial depth extensions of up to 22.73g/t gold from 193 metres.
Investors are already sitting up and taking notice with the recent share price increase, but there is still plenty more upside potential for Thor at Spring Hill.
Add to this, the company has now also completed the required expenditure at Spring Hill to increase its stake to 51%, providing the company with a majority interest and greater control over the project.
As Thor continues to prove up the potential of its Spring Hill project, this could potentially act as a catalyst for re-rating of the company, which has a current market cap. of $8 million and enterprise value of just over $7 million.
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