Thor Explorations Ltd (TSX-V:THX, AIM:THX, OTC:THXPF, FRA:T2X) said it was on track for commercial production at its Segilola asset - Nigeria's first large scale gold mine - in the third quarter this year, as the company posted its second-quarter results.
In the three months to June 30 this year, several milestones were achieved, including the delivery of processing equipment, advanced work at Segilola's Tailings Management Facility and Water Storage Dam, along with the company starting trading on London's AIM market.
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First gold was poured at the Segilola mine, post period end, on July 30.
"This quarter was a particularly transformational period for the company as it saw us getting closer to commercial commissioning of our 100% owned Segilola Gold Project in Nigeria, which has been in construction since February 2020," said Segun Lawson, the company's CEO.
"The work doesn't stop there, as we press forward, onto commercial production and the eventual ramp up to a life of mine average annual production of approximately 90,000 oz of gold per year.
"Furthermore, the company is aiming, from its own internally generated financial resources, to comprehensively explore its extensive licence holdings in the Segilola region. During this current quarter, we increased our exploration activities, focusing on generating high quality drilling targets, with the objective of adding open pit ounces to the Segilola Plant to supplement production and extend the Segilola mine life."
Lawson said he looked forward to "updating the market in the coming months with progress at Segilola, as well as the activity at our Douta project in Senegal, where we recently reported outstanding drill results which demonstrated highly encouraging gold mineralisation".
The firm has now completed a 4,000-metre drill program at Segilola with results expected in the fourth quarter this year.
Thor, which does not have any operating revenue, posted a net loss in 2Q of C$6.8 million compares to net profit of C$1.1 million for the three months to June 30, 2020, largely due to an increase of foreign exchange losses of C$4.5 million from gains of $96,217 in 2020 to losses of C$4.45 million in 2021.
As at June 30, the company had cash of C$9.4 million, restricted cash of C$4.3million, and net working capital, excluding Gold Stream repayments and borrowings, of C$11.1 million.
Thor noted that the full year 2021 production guidance for the Segilola mine had now been adjusted to between 30,000 and 35,000 ounces, which reflects the first gold pour happening in July this year as opposed to the initial target of June.
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