Thor Explorations Ltd (TSX-V:THX, AIM:THX, OTC:THXPF) has told investors that the process plant at its flagship Segilola gold project in Nigeria is now running continuously at design capacity following supply chain issues that affected operations.
In an operational and production update, Thor confirmed the issues have been resolved, the laboratory has been fully commissioned and gold shipments have been made successfully. It noted that 61,128 tons of ore were processed in December 2021 with a head grade of 3.4 grammes per tonne (g/t).
On November 30, 2021, the company said the combination of a delay in commissioning of the project, late arrival of laboratory equipment, supply chain issues resulting in the supply of sub-standard reagents, and delays in its ability to export produced gold resulted in it having to restrict the plant feed grade to an average of 2 g/t.
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Thor said minor modifications have been made to further optimise the gravity circuit at the plant, which is now consistently outperforming design specifications with a December month recovery of over 61%. Overall plant recovery is continuing to improve, with an overall recovery of 92% being returned for December and the company is continuing to work with its engineering, procurement, and construction (EPC) contractor to achieve the overall recovery target of 97%, it added.
Gold production averaged just over 1,500 ounces (oz) per week in December with total gold production for the month of 6,119 oz. Near mine exploration drilling resumed following the commissioning of the lab and it completed the acquisition of prospective ground located within a 20 kilometre (km) radius of Segilola through joint ventures agreements.
“Following the challenges experienced post commercial production, we are very encouraged by our operational performance at the end of the year and going into 2022. The key supply chain issues experienced in 3Q and 4Q 2021 have been resolved,” Thor president and CEO Segun Lawson said in a statement.
“The mine laboratory has been commissioned which further optimized our processing ability. Most encouragingly, the process plant ran without any major issues, achieving its throughput rate throughout the month of December and we now enter 2022 very well positioned to process higher-grade ore,” he added.
Thor said it expects 1Q 2022 production of 20,000 to 22,000 oz and full-year production for 2022 of 80,000 to 100,000 oz.
At the Douta Gold Project in Senegal, the company said reverse circulation drilling will commence in February with the company aiming to complete a preliminary feasibility study in 4Q 2022.
In Nigeria, the near-mine exploration drilling program which had been put on hold whilst awaiting the completion of the lab will now resume and focus on completing the remainder of the 4,000-metre (m) program, of which 1,200m have been drilled. The drilling program will also test several satellite targets which have been further defined over the last three months, the company added.
Vancouver-based Thor has mineral properties in Nigeria, Senegal and Burkina Faso, including a 100% interest in the Segilola gold project located in Nigeria's Osun State and a 70% interest in Douta.
Contact the author at stephen.gunnion@proactiveinvestors.com