Ore sorting testwork at the Molyhil tungsten and molybdenum project in Australia is likely to demonstrate improved economics for Thor Mining PLC (LON:THR)(ASX:THR), according to chairman Mick Billing. "Thor is taking steps towards accelerated commercialisation of its key projects, including Molyhil," he said.
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"The impact of the ore sorting work undertaken, all other assumptions unchanged, is potentially to increase that portion of the mineral resource estimate which converts to the ore reserve, and therefore to increase the potential mine life of Molyhil." Ore sorting testwork has been progressively undertaken with the objective of increasing the portion of the Molyhil known mineralisation that could be economically extracted to produce tungsten and molybdenum concentrates.
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"Increased conversion to ore reserve and an extended mine life, if applied to Molyhil, could materially enhance the value proposition of this project, at a time when there is increasing vibrancy in the tungsten sector, particularly with the rising tungsten commodity price in 2017," said Billing. Thor has previously published a definitive feasibility study that attributed a net present value of A$67mln to Molyhil. Today's news helped Thor's shares to gain 11.4%, or 0.13p at 1.23p.
In a note to clients, analysts at Beaufort commented: “Results in the ore sorting testwork are encouraging as this the potential in increase the portion of the Molyhil resource estimate which is economic to recover and ultimately increase the potential life of mine.
“We look forward to further enhancements and potential cost reduction estimates to improve the already robust economics at Molyhil. In the meantime, we maintain a Speculative Buy rating on the stock.”
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