TIDMTHR

RNS Number : 7012Q

Thor Mining PLC

29 October 2021

29 October 2021

Thor Mining plc

("Thor" or the "Company")

Quarterly Activity Report

July to September 2021

 
                                                     Highlights                                                                        Outlook for December Quarter 
                                                                                                                                                   2021 
-------------------------------------------------------------------------------------------------------------------  --------------------------------------------------------------- 
 GOLD 
  Ragged Range, Pilbara region, 
  WA Australia 
 
    *    Maiden RC drilling program commenced (11 October                                                                  *    Completion of 3,000m RC drilling program at Sterling 
         2021),                                                                                                                 Prospect 
 
 
    *    Infill soils define eight continuous gold anomalies                                                               *    Initial assay results for RC drilling 
         supported by gold in streams 
 
                                                                                                                           *    Infill soil program, with regional mapping and strea 
                                                                                                                          m 
                                                                                                                                sediment sampling concurrent with drilling 
-------------------------------------------------------------------------------------------------------------------  --------------------------------------------------------------- 
  COPPER 
   Alford East, SA Australia 
    *    Broad high-grade copper-gold intercepts from                                                                     *    Assay results from diamond drilling program 
         completed diamond drilling program. 
 
                                                                                                                          *    Improved 3D geological model 
    *    72.7m @ 1% Cu and 0.19g/t Au from 6.3m (21AED005) 
 
                                                                                                                          *    Initial metallurgical-lixiviant test results 
    *    New 3D geological model with assay results, 
         highlighting zones of higher-grade copper 
         mineralisation associated with key controlling                                                                   *    Commence permitting for push/pull hydrogeological 
         structures.                                                                                                           pump testing 
 Kapunda, SA Australia (via 30% equity holding in EnviroCopper 
  Ltd) 
 
   *    MinEX CRC Coiled Tube drilling completed                                                                        *    Copper-Gold exploration assay results 
 
 
   *    Permitting for Kapunda Site Environmental Lixiviant                                                             *    Permitting approval of SELT drilling & copper/gold 
        Test (SELT) drilling & copper/gold recovery work.                                                                    recovery testing. 
-------------------------------------------------------------------------------------------------------------------  --------------------------------------------------------------- 
 TUNGSTEN & MULTI COMMODITIES 
  Molyhil, NT Australia 
   *    Permitting for drilling program to test high-quality                                                              *    Diamond drilling program to test new magnetic targets 
        magnetic targets adjacent to deposit.                                                                                  for potential mineralisation within magnetic W-Mo 
                                                                                                                               skarn 
 
 
                                                                                                                          *    Update Molyhil Feasibility Study 
  Pilot Mountain, USA 
   *    Thor have entered into a Sale Option Agreement with 
        Power Metal Resources PLC to divest project for an 
        agreed value of US1.8M                                                                                            *    Completion of Sale 
-------------------------------------------------------------------------------------------------------------------  --------------------------------------------------------------- 
  URANIUM & VANADIUM USA 
    *    Permitting continuing for initial drill testing of    *    Permitting to continue for the Colorado claims.         *    Permitting to continue for the Colorado claims. 
         the Colorado claims. 
 
                                                               *    Geological evaluation of the Utah claims 
                                                             ------------------------------------------------------ 
-------------------------------------------------------------------------------------------------------------------  --------------------------------------------------------------- 
 

CORPORATE & FINANCE

-- Private placement of UKGBP800,000 ( A$1,504,704) to progress key projects

-- Board and Management changes:

   --    Resignation of Mick Billing Executive Chair 
   --    Appointment of Mark Potter, Non-Executive Chair 
   --    Appointment of Paul Wittwer as Exploration Manager 

Nicole Galloway Warland, Managing Director of Thor Mining, commented:

"The September quarter has been a busy time, with Thor increasing its on-ground exploration activities to advance projects to drilling status.

At our Ragged Range Project, after a series of successful and systematic stream and soil programs, we are excited to have commenced our maiden RC drilling program at the Sterling Prospect. Drilling is targeting eight robust geochemical anomalies in the central portion of the Sterling Prospect, within the highly prospective 13km structurally controlled gold anomalous corridor defined by Thor, associated with the regional mafic-ultramafic thrust faulted contact within the Kelly Greenstone Belt.

During the quarter we completed our first phase of diamond drilling at the Alford East Copper-Gold Project, with results reporting significant intercepts and defining a new structurally controlled, broad zone of high copper and gold grades, from near surface. With the copper price at an all-time high makes this a very significant project in the Thor portfolio. The confirmed uplift in copper and gold grades along the controlling NNE structure continues to excite and exceed our expectations. For instance, drillhole 21AED005 reported the widest Cu intercept >1% Cu at Alford East (72.7m @ 1% Cu and 0.19g/t Au for only 6.3m). We look forward to testing this structure in areas open along strike, to the north and south.

Initial pump testing was also completed at Alford East in September, with preliminary results showing favourable water parameters and permeability for potential In Situ Recovery of copper and gold. This is positive news as we advance the project towards an In-Situ Recovery (ISR) assessment, and the development of a low cost, low carbon emission alternative to conventional open cut or underground mining.

We are very pleased to enter into a Sale Option Agreement with Power Metals for the 100% sale of the Pilot Mountain Project in Nevada, USA. This strategic divestment of this non-core asset is in line with our focus on the advancement of our copper and gold projects.

We look forward to providing further updates on our continued progress."

RAGGED RANGE GOLD PROJECT

The Ragged Range Project, located in the prospective Eastern Pilbara Craton, Western Australia (Figure 1) is 100% owned by Thor Mining - (E46/1190, E46/1262, E46/1355, E46/1340) with the recent additional tenure surrounding the gold anomalous and copper-gold zones, E46/1393 (application).

Since acquisition, Thor has conducted several programs of stream sediment and soil sampling to delineate drill targets. Thor has also flown an airborne magnetics survey over the tenement area to better define the structural features of the area.

Details of the projects may be found on the Thor website via this link: www.thormining.com/projects/ragged-range-pilbara-project .

A copy of the Ragged Range Project Map may be view via the following link:

www.thormining.com/sites/thormining/media/Maps/20-004-1a-ragged-range-location.jpg

A copy of the Regional Sterling prospect may be viewed by the following link:

www.thormining.com/sites/thormining/media/maps/21-004-1a-ragged-range-soilupdate-202106.jpg .

Sterling Prospect - Soil results

Thor completed a further 369 infill soil samples in July over two portions of the Sterling Prospect, Sterling Central and Sterling South, as a follow-up to a reconnaissance soil program (THR:ASX announcement 23/06/21) and high-grade gold stream results (up to 2.2g/t Au), reported from sampling in 2019 and 2020 (THR:ASX announcement 1/12/2020).

https://www.thormining.com/sites/thormining/media/pdf/asx-announcements/20210623-ragged-range-exploration-update.pdf

The infill soil samples were collected at a 25m x 100m spacing over priority areas with anomalous gold results from the initial reconnaissance program. At each site and consistent with the previous soil program, two samples were collected at each site, and both sieved to -2mm. The first sample of approximately 2kg was crushed at the Intertek lab in Perth and a sub-split assayed for Au by an aqua regia method AR25 and multi-element assaying by four-acid digest with MS25 finish. The second sample 1kg Bulk Leach Extractable Gold (BLEG) sample was assayed by method CN1000 for gold only.

The infill soil results returned BLEG soil values up to 348ppb and 153ppb Au (21RRS777 and 21RRS437 respectively), with over 61 samples reporting significantly above a background of approximately 5ppb Au (Figure 2). Five stream sediment samples were collected using a <2mm sieve and panned to check gold anomalism. Samples 21RRST016 (74.1g/t Au) and 21RRST017 (0.35g/t Au) were panned approximately 100m down slope, in a small creek from soil sample 21RRS777 (348ppb Au). Gold was observed in both samples. Two creeks (21RRST018 and 21RRST019) were also sampled, draining the major contact to the south of the Sterling South soil grid. No gold was observed in the pan. One pan sample was also collected from a high BLEG (111ppb Au) sample from previous stream sediment sampling. One speck of gold was panned with the sample 21RRST020 reporting 3.58g/t Au.

Only thin residual soils overlie the Euro Basalt extending westward over the ultramafic Dalton Suite, faulted contact and the tenor and consistency of the BLEG results is considered outstanding.

These latest soil results, combined with the initial soil program earlier in the year, have now identified several continuous anomalous gold zones, each warranting drill testing, with some zones extending over 1km long at both the Sterling Central and Sterling South areas. Soil anomalies remain open to the north and south, with follow up infill sampling planned to investigate these areas further.

The gold anomalism generally strikes slightly oblique to the Euro Basalt and Dalton Suite contact suggesting that gold mineralisation is controlled by minor faults and structures, associated with this major structure.

A map showing Sterling Prospect high-grade soil results; Sterling Central (Right) and Sterling South (Left) may be viewed via the following link:

https://www.thormining.com/sites/thormining/media/maps/sterling-sth-and-central-soil-anomalies.jpg

Nickel Gossan

Geological mapping of the nickel gossan which was previously sampled in mid-2020 (THR: ASX announcement 31 July 2020) confirmed that the gossan extends over 1km and sits at the base of the Dalton Suite (ultramafic units), adjacent to the older Felsic Volcanics of the Wyman Formation. This position of the gossan at the base of the ultramafic contact is significant from a geological nickel-sulphide model perspective.

Prior to drill testing beneath the gossan, a ground electromagnetic (EM) survey will be undertaken. Thor is currently finalising this program.

https://www.thormining.com/sites/thormining/media/pdf/asx-announcements/20200826-pilbara-goldfields-encouraging-nickel-assay-results.pdf

E46/1393- Kelly/Ryan Copper- Gold Prospects

A new tenement application E46/1393 in the northeast covers a recently surrendered mining lease M46/171 (Figure 1). This area covers several historic copper-gold and copper-base metals mines and prospects. The copper mineralisation is associated with the dacite Boolina porphyry, close to the margin of the Corunna batholith, and intrudes the Kelly greenstone belt.

At Kelly's Mine, historic production between 1955-1970, although small, was of very high-grade - 610t of ore averaging 19.47% Cu.(1)

Exploration to date has been sporadic, with no systematic approach over the area. Thor will be targeting areas of mineralisation, zones of alteration, shears/faults and zones of brecciation.

   (1)   https://www.mindat.org/loc-122951.html 

Photos of the historic copper working at Kelly's prospect may be viewed on following link:

www.thormining.com/sites/thormining/media/maps/historic-workings-kelly-prospect.jpg

Next Steps

A 3,000m RC drilling program commenced in October to test eight priority gold in soil and stream anomalous targets (THR:ASX 12 October 2021).

Thor Mining was awarded A$160,000 from the Western Australia Government under the EIS Co-funded grants program to drill test gold anomalies at the Sterling Prospect.

Concurrent with the drilling program, infill soil sampling covering anomalous zones open at Sterling Central and Sterling South will be completed. In addition, regional gold targets, including to the northwest and southeast of Sterling prospect, the granitoid contact in the north, plus the copper-gold area in the northeast (Kelly/Ryan Prospects), will be followed up with reconnaissance stream and soil geochemistry programs. Government and Company geophysics are being used in conjunction with the geochemical data, to assist with structural and lithological targeting.

COPPER PROJECTS

Thor holds direct and indirect interests in over 400,000 tonnes of Inferred copper resources in South Australia, via its 80% farm-in interest in the Alford East copper project and its 30% interest in EnviroCopper Ltd.

Each of these projects are considered by Thor directors to have significant growth potential, and each are being advanced towards development via low cost, environmentally friendly In Situ Recovery (ISR) techniques.

A copy of the Tenement and Prospect Location Plan may be viewed via the following link:

http://www.thormining.com/sites/thormining/media/maps/21-001-4-ae-mre-%E2%80%93-location.jpg

ALFORD EAST COPPER-GOLD PROJECT - SA

The Alford East Copper-Gold Project is located on EL6529, where Thor is earning up to 80% interest from unlisted Australian explorer Spencer Metals Pty Ltd, covering portions of EL6255 and EL6529 (THR:ASX 23 November 2020).

The Project covers the northern extension of the Alford Copper Belt, located on the Yorke Peninsula, SA. The Alford Copper Belt is a semi coherent zone of copper-gold oxide mineralisation, within a structurally controlled, north-south corridor consisting of deeply kaolinised and oxidised troughs within metamorphic units on the edge of the Tickera Granite, Gawler Craton, SA.

Utilising historic drill hole information, Thor completed an inferred Mineral Resource Estimate (MRE), with summaries in Table B (THR:ASX 27 January 2021), consisting of:

-- 125.6Mt @ 0.14% Cu containing 177,000t of contained copper

-- 71, 500oz of contained gold

www.thormining.com/sites/thormining/media/pdf/asx-announcements/20210127-maiden-copper.gold-estimate-alford-east-sa.pdf

Table B: Alford East Mineral Resource Estimate by JORC (2012) classification reported 27 January 2021

 
    Domain      Tonnes (Mt)   Cu %   Au g/t   Contained Cu   Contained Au (oz) 
                                                   (t) 
     AE_1          24.6       0.12   0.021       30,000           16,000 
               ------------  -----  -------  -------------  ------------------ 
     AE_2           6.8       0.13   0.004       9,000             1,000 
               ------------  -----  -------  -------------  ------------------ 
     AE_3          34.9       0.09   0.022       33,000           25,000 
               ------------  -----  -------  -------------  ------------------ 
     AE_4           8.0       0.11   0.016       8,000             4,000 
               ------------  -----  -------  -------------  ------------------ 
     AE_5          11.0       0.22   0.030       24,000           11,000 
               ------------  -----  -------  -------------  ------------------ 
  AE-8 (NP)        31.3       0.19   0.008       61,000            8,000 
               ------------  -----  -------  -------------  ------------------ 
 AE-7 (LW_E)        7.7       0.14   0.025       10,000            6,000 
               ------------  -----  -------  -------------  ------------------ 
 AE-6 (LW_W)        1.3       0.13   0.011       2,000              500 
               ------------  -----  -------  -------------  ------------------ 
    Total          125.6      0.14   0.018      177,000           71,500 
               ------------  -----  -------  -------------  ------------------ 
 

Note:

-- Figures are rounded to reflect appropriate level of confidence. Apparent differences may occur due to rounding.

-- Cut-off of 0.05% Cu

-- Thor earning up to 80% interest in Alford East Copper-Gold Project

-- The Company is not aware of any information or data which would materially affect this previously announced resource estimate, and all assumptions and technical parameters relevant to the estimate remain unchanged

Diamond Drilling Program

Nine diamond drillholes totalling 878m were completed as part of Thor's initial diamond drilling program, with assays received for three drillholes - 21AED001, 21AED002 and 21AED005. This initial program for Thor, focussed only on the northern portion of the Alford East copper-gold deposit around the AE-5 mineralised domain, with drilling targeting areas open at depth and along strike, whilst validating interpreted controlling mineralised structures. AE-5 domain is one of eight mineralised domains.

Drillhole assay results with significant copper and gold intercepts include (THR:ASX Announcement 31 August 2021):

   --    21AED001 :     108.2m @ 0.17% Cu and 0.1g/t Au from 6.2m, including 

25.3m @ 0.11% Cu from 6.2m

32.9m @ 0.4% Cu and 0.31g/t Au from 81.5 m, and

5m @ 0.5% Cu and 1.02g/t Au from 102m

   -- 21AED002 :      59.9m @ 0.31% Cu from 21.9m 
   -- 21AED005        72.7m @ 1.0% Cu and 0.19g/t Au from 6.3m, including 

18.2m @ 2.0% Cu and 0.34g/t Au from 15.8m

Note for In Situ Recovery, Thor is targeting broad copper-gold oxide intervals above the MRE cut-off grade of 0.05% copper.

For ISR purposes, drilling was limited to the deeply weathered lithological profile, testing the extent of the oxide zone and the depth boundary of the Top of Fresh Rock (TOFR). The copper-gold oxide mineralisation is hosted within deeply kaolinised (clay) and metasomatic altered units on the contact between the Olympic Domain Wallaroo Group metasediments and the Hiltaba Suite, Tickera Granite. Copper oxide mineralogy is dominated by malachite and chalcocite.

Drillholes 21AED001, 21AED003 and 21AED005 (Section A-A' 6,256,360mN), were drilled through the central portion of AE-5 MRE Domain, designed to validate the geological model and test areas, open at depth. The high-grade copper and gold intercepts in both 21AED001 and 21AED005 are, significantly above the MRE cut-off and open up the potential for oxide mineralisation at depth. Drillhole 21AED005 highlights the significant grade uplift along the interpreted north-south controlling structure. Copper (predominately malachite) and gold mineralisation in 21AED005 is hosted within residual friable clays.

Assay results from 21AED001, 21AED002 and 21AED005 confirm significant copper and gold grade uplift along the north-south trending controlling structure, validating the new geological model and structural controls on mineralisation. Validation and confidence in the geological model are critically important for future drill targeting, as well as resource modelling.

The continuation of the visual copper mineralisation 100m north of the MRE AE-5 domain envelope, (21AED002, 21AED006 and 21AED007), confirms oxide copper mineralisation remains opens along strike and potentially links AE-5 to the AE-8 domain.

Remaining drill core is currently being prepared for sample submission to the laboratory, with all assay results anticipated in the December quarter.

Pump testing for initial hydrogeological baseline work forming part of the 'proof of concept' for ISR, including water characteristics, porosity, and permeability testing was completed in September, with results confirming positive water parameters and permeability for potential ISR at Alford East Project (THR:ASX 18 October 2021). Preliminary hydrometallurgical studies by Mining and Process Solutions (MPS) on potential lixiviants for copper and gold recovery is in progress. This work is co-funded by the SA Government Accelerated Discovery Grant (ADI) of A$300,000.

In conjunction with the technical assessment, Thor will continue ongoing stakeholder and community engagement, and regulatory activities.

Based on the nature of the oxide mineralisation, the deposit is considered amenable to In Situ Recovery (ISR) techniques. For further information on ISR please refer to Thor's website via this link for an informative video: www.youtube.com/watch?v=eG_1ZGD0WIw

A plan view showing the Alford East Project's eight mineralised domains and an a drillhole location plan of AE-5, may be viewed via the following link:

https://www.thormining.com/sites/thormining/media/Maps/mre_ae_5-drilling.jpg

https://www.thormining.com/sites/thormining/media/Maps/ae-5-location-plan.jpg

Cross section 6256360m N showing 21AED001, 21AED003 and 21AED005 may be viewed via the following link:

https://www.thormining.com/sites/thormining/media/Maps/xs-6256360mn..jpg

Cross section 6256600 N showing 21AED002 and 21AED007 may be viewed via the following link:

https://www.thormining.com/sites/thormining/media/Maps/2021.08.23-ae5-section-6256600mn-incl-21aed002-assays-and-xrf---assays-shown-as-bar-graph.jpg

A Photo Plate of 21AED005 may be viewed via the following link:

https://www.thormining.com/sites/thormining/media/Maps/21aed005_core-photo.jpg

KAPUNDA and ALFORD WEST COPPER PROJECTS - SA

Thor holds a 30% equity interest in private Australian company, EnviroCopper Limited ("ECL"). In turn, ECL has entered into an agreement to earn, in two stages, up to 75% of the rights over metals which may be recovered via In-Situ Recovery ("ISR") contained in the Kapunda deposit from Australian listed company, Terramin Australia Limited ("Terramin" ASX: "TZN"), and rights to 75% of the Alford West copper project comprising the northern portion of exploration licence EL5984 held by Andromeda Metals Limited (ASX:ADN).

Information about EnviroCopper Limited and its projects can be found on the EnviroCopper website:

www.envirocopper.com.au

KAPUNDA

ECL, in collaboration with MinEx CRC, completed an innovative Coiled Tube ("CT") drilling program at Kapunda during the quarter. MinEx CRC is the world's largest mineral exploration collaboration, bringing together the mining industry (including drilling companies), government and research organisations. The drilling program was designed to trial technological advancements using a safer, environmentally friendly mining technology with a low footprint.

Drilling targeted copper-gold mineralisation approximately 30m from the planned in-situ recovery ("ISR") push/pull test site to the south of Kapunda township.

URANIUM AND VANADIUM PROJECTS

Thor holds a 100% interest in two US companies with mineral claims in Colorado and Utah, USA. The claims host uranium and vanadium mineralisation in an area known as the Uravan Mineral Belt, which has a history of high-grade uranium and vanadium production.

Within probable economic transport distance is a processing plant (Energy Fuels White Mesa Mill), which may be a low hurdle processing option for any production from these projects.

Details of the projects may be found on the Thor website via this link: www.thormining.com/projects/us-uranium-and-vanadium .

Thor is currently working through the Colorado state and County permitting processes, with Federal (BLM), environmental including Raptor surveys completed. In conjunction, a geological evaluation of the Utah claims is underway.

TUNGSTEN PROJECTS

MOLYHIL TUNGSTEN / MOLYBDENUM PROJECT - NT (100% Thor)

 
          The Molyhil tungsten-molybdenum-copper deposit is 100% owned by Thor 
          Mining and is located 220 kilometres north-east of Alice Springs (320 
       km by road) within the prospective polymetallic province of the Proterozoic 
                     Eastern Arunta Block in the Northern Territory. 
           A copy of the Tenement and Prospect Location Plan may be viewed via 
                                   the following link: 
  https://www.thormining.com/sites/thormining/media/Maps/12-002-1b-molyhil-location.jpg 
        The deposit consists of two adjacent outcropping iron-rich skarn bodies, 
           the northern 'Yacht Club' lode and the 'Southern' lode. Both lodes 
            are marginal to a granite intrusion; both lodes contain scheelite 
         (CaWO(4) ) and molybdenite (MoS(2) ) mineralisation. Both the outlines 
           of the lodes and the banding within the lodes strike approximately 
                           north and dip steeply to the east. 
 
        A full background on the project is available on the Thor Mining website 
                              www.thormining.com/projects . 
 

Following the reporting of the Mineral Resource Estimate (ASX:THR 8 April 2021), 3D geological modelling identified two prominent structures - the Yacht Club fault and South Offset fault. Based on the geological timing of these faults they may have a significant impact on the location of tungsten and molybdenum mineralization, hence creating targets for potential extensions or offsets of the ore body.

Modelling of the 3D magnetics and the position of the South Offset Fault, strongly implies an offset of the magnetic material (magnetite skarn), host to the tungsten-molybdenum mineralisation. This potential off set of mineralisation. Although there are a few drillholes to the south of the South Offset Fault, these have not intersected the magnetic body making it an untested target.

An image showing the magnetic drill target may be viewed via the following link:

http://www.thormining.com/sites/thormining/media/maps/21_molyhil_magnetic-target.jpg

Thor Mining was awarded A$110,000 from the Northern Territory Government as part of the Resourcing the Territory, Geophysics and Drilling Collaborations (GDC) program for this drilling program.

NEXT STEPS

To enhance the Project economics for Molyhil the following activities were undertaken:

   1.   Ore sorting review : 

X-Ray (XRT) ore sorting was completed using two size fractions, initially set at -55 mm to +25 mm, and -25 mm to +10 mm; XRT technology has significantly improved since the Thor Feasibility Study into Molyhil, allowing improved sorting precision and also allowing the sorting of finer particles, warranting further testing. Any improvement in ore sorting outcomes will reduce both capital and operating costs of the proposed Molyhil operation.

   2.   Depth Potential - MRE Classification: 

The Measured, Indicated and inferred Mineral Resource Estimate is currently based only on mineralisation above the 200m RL; drilling at depth in conjunction with pit design and optimisation has the potential to grow the mineral resource estimate at depth.

Based on a Feasibility Study completed in 2018, the mineralised areas below the 200m RL (about 140m below surface) appear economic for mechanised underground mining techniques however requires further geotechnical work to determine economic grade cut-offs below this level.

https://www.thormining.com/sites/thormining/media/pdf/asx-announcements/20172018/20180115-asx-mh-ore-reserve-clarification.pdf

   3.   Drilling Targets: 

Drill test the modelled magnetic anomaly below the South Offset Fault to test for mineralised magnetite skarn.

   4.   Revise Feasibility Study based on the outcomes of the activities listed above. 

Since the publication of the Feasibility Study in 2018 the price of tungsten has recovered and risen from US$290/mtu to US$313.5/mtu; whilst molybdenum has risen from US$11.85/lb to US$19.85/lb (Sourced from Argus Media Group ). This will significantly impact the economics of the Molyhil Project. (ASX: THR 23 August 2018).

A graph showing the Tungsten and Molybdenum prices (August 2018 - September 2021) may be viewed via the following link:

https://www.thormining.com/sites/thormining/media/maps/graph-w--mo-sept21.jpg

The Company is in discussion with several Australian Commonwealth government agencies, each of which are mandated to assist companies with projects to develop and produce critical minerals, which includes tungsten. These agencies include Export Finance Australia, Defence Export Facility, Critical Minerals Facilitation Office and the North Australian Infrastructure Facility. Further announcements will be made as appropriate.

Bonya (Tungsten, Copper) and Jervois Vanadium Projects (40% Thor)

The Bonya tungsten, copper and vanadium deposits are located approximately 30km to the north-east of Molyhil. Thor, in joint venture with Arafura, holds a 40% equity interest in the resources.

A full background on the project is available on the Thor Mining website: www.thormining.com/projects .

An image showing Bonya and Jervois Projects may be viewed via the following link:

https://cms.thormining.com/sites/thormining/media/Maps/15-001-1d-bonya-resources.jpg

PILOT MOUNTAIN TUNGSTEN PROJECT - NEVADA USA (100% Thor)

Thor's Pilot Mountain Project, acquired in 2014, is located approximately 200 kilometres south of the city of Reno and 20 kilometres east of the town of Mina, located on US Highway 95.

The Pilot Mountain Project is comprised of four tungsten deposits: Desert Scheelite, Gunmetal, Garnet and Good Hope. All of these deposits are in close proximity (three kilometres) to each other and have been subjected to small-scale mining activities at various times during the 20th century.

A full background on the project is available on the Thor Mining website: www.thormining.com/projects .

In September, Thor advised that they have entered into an Option Agreement with Power Metal Resources Plc ("Power Metal") (AIM: POW) to divest the Pilot Mountain Tungsten Project ("Pilot Mountain") in Nevada, USA for an agreed value of US$1.8 million (THR:ASX 1 September 2021).

Under the terms of the Option Agreement Golden Metal may acquire a 100% interest in Pilot Mountain, from Thor Mining plc ("Thor Mining" or the "Vendor").

Option Period

Under this Agreement, Golden Metal will have a 60 calendar day Option Period (ending 5pm GMT on Friday 29.10.21, the "Option Expiry Date") during which it may conduct due diligence with regard to Pilot Mountain.

Power Metal will pay US$25,000 in cash to Thor Mining and issue to Thor Mining 500,000 new Power Metal Ordinary shares of 0.1p ("Ordinary Shares") at an issue price of 2.5p (GBP12,500 of Ordinary Shares).

Option Exercise

Subject to written confirmation of the Option Exercise by the Option Expiry Date, Golden Metal may acquire Pilot Mountain on the following terms:

Power Metal will pay US$115,000 in cash to Thor Mining and US$1,650,000 payable through issue to the THR of 48,118,920 Ordinary Shares" at an issue price of 2.5 pence per share ("Initial Consideration Shares").

Thor Mining will hold the Initial Consideration Shares in full for a minimum of 6 months after the Option Exercise date, and thereafter the Initial Consideration Shares will become freely tradable in 25% instalments (25% tradable 6 months after Option Exercise date, 50% after 9 months, 75% after 12 months and 100% after 15 months.) This trading restriction period may be varied by both parties with written agreement.

In addition, Power Metal will issue to Thor Mining 12.5 million warrants to subscribe for Ordinary Shares with an exercise price of 4p per Ordinary Share and life to expiry of 3 years from the Option Exercise date ("Initial Consideration Warrants"). Should the volume weighted average price ("VWAP") of Power Metal shares meet or exceed 10.0 (ten) pence for 5 consecutive trading days Power Metal may serve notice on Thor Mining providing 14 calendar days to exercise and pay for the Initial Consideration Warrants or the Initial Consideration Warrants would be cancelled.

Should Thor Mining exercise the Initial Consideration Warrants above within 12 months from the Option Exercise date, Thor Mining will receive one for one replacement warrants to subscribe for Ordinary Shares at a fixed price of 8p per Ordinary Share, and life to expiry ending 3 years from the date of Option Exercise ("Super Warrants"). Should the Power Metal volume weighted average share price meet or exceed 20p for five consecutive trading days Power Metal may at any time issue Thor Mining with a written notice providing 14 days to exercise and pay for the Super Warrants or the Super Warrant would be cancelled.

Tail Benefit

POW will issue Thor Mining with a further US$500,000 of Ordinary Shares, if Golden Metal publishes a JORC or 43-101 compliant resource at Pilot Mountain which increases against current declared levels by 25% across total indicated and inferred categories within two years after the Agreement date. The number of Ordinary Shares to be issued will be calculated based on the volume weighted average Power Metal share price in the ten trading days immediately preceding the announcement by Golden Metal of the JORC or 43-101 compliant increase.

 
 
 

CORPORATE, FINANCE, and CASH MOVEMENTS

During the September Quarter Mick Billing, Executive Chair resigned from the Board with immediate effect (ASX:THR 3 September 2021), with Mark Potter appointed Non-Executive Chair (ASX:THR 13 September 2021).

A private placement financing of UKGBP800,000 (approximately A$1,504,704), was completed during the quarter, with funds raised to be utilised for exploration activities at Ragged Range gold and nickel prospects in the Pilbara, Western Australia (THR:ASX 12 August 2021), plus the Molyhil diamond drilling program.

For the Quarter, the Company had:

-- Net cash outflows from Operating and Investing activities for the quarter of $1,369,000, with the majority of this being directly related to exploration activities ($1,021,000);

   --    Net cash from Financing activities for the quarter $1,559,000; 
   --    Providing an ending cash balance of $1,648,000. 

Cashflows for the Quarter include related party payments of $282,000 to Directors, comprising the Managing Director's salary, fees paid to the Executive Chairman and Non-Executive Directors' fees. For this Quarter, the amount included $143,000 paid to the Executive Chairman, to settle past fees outstanding, upon his retirement in September 2021.

Yours faithfully,

THOR MINING PLC

Nicole Galloway Warland

Managing Director

- Ends -

For further information on the Company, please visit www.thormining.com or contact the following:

 
  Thor Mining PLC 
  Nicole Galloway Warland, Managing Director    Tel: +61 (8) 7324 1935 
   Ray Ridge, CFO / Company Secretary            Tel: +61 (8) 7324 1935 
 
  WH Ireland Limited (Nominated Adviser         Tel: +44 (0) 207 220 1666 
   and Joint Broker) 
  Jessica Cave / Darshan Patel / Megan 
   Liddell 
   Jasper Berry (Corporate Broking) 
 
  SI Capital Limited (Joint Broker)             Tel: +44 (0) 1483 413 
                                                 500 
  Nick Emerson 
 
  Yellow Jersey (Financial PR)                  thor@yellowjerseypr.com 
  Sarah Hollins / Henry Wilkinson               Tel: +44 (0) 20 3004 9512 
 

Competent Person's Report

The information in this report that relates to exploration results is based on information compiled by Nicole Galloway Warland, who holds a BSc Applied geology (HONS) and who is a Member of The Australian Institute of Geoscientists. Ms Galloway Warland is an employee of Thor Mining PLC. She has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which she is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Nicole Galloway Warland consents to the inclusion in the report of the matters based on her information in the form and context in which it appears.

Updates on the Company's activities are regularly posted on Thor's website www.thormining.com , which includes a facility to register to receive these updates by email, and on the Company's twitter page @ThorMining .

About Thor Mining PLC

Thor Mining PLC (AIM, ASX: THR; OTCQB: THORF) is a diversified resource company quoted on the AIM Market of the London Stock Exchange, ASX in Australia and OTCQB Market in the United States.

The Company is advancing its diversified portfolio of precious, base, energy and strategic metal projects across USA and Australia. Its focus is on progressing its copper, gold, uranium and vanadium projects, while seeking investment/JV opportunities to develop its tungsten assets.

Thor owns 100% of the Ragged Range Project, comprising 92 km(2) of exploration licences with highly encouraging early stage gold and nickel results in the Pilbara region of Western Australia, for which drilling is planned in the second half of 2021.

At Alford East in South Australia, Thor is earning an 80% interest in copper deposits considered amenable to extraction via In Situ Recovery techniques (ISR). In January 2021, Thor announced an Inferred Mineral Resource Estimate of 177,000 tonnes contained copper & 71,000 oz gold(1).

Thor also holds a 30% interest in Australian copper development company EnviroCopper Limited, which in turn holds rights to earn up to a 75% interest in the mineral rights and claims over the resource on the portion of the historic Kapunda copper mine and the Alford West copper project, both situated in South Australia, and both considered amenable to recovery by way of ISR.(2)(3)

Thor holds 100% interest in two private companies with mineral claims in the US states of Colorado and Utah with historical high-grade uranium and vanadium drilling and production results.

Thor holds 100% of the advanced Molyhil tungsten project, including measured, indicated and inferred resources , in the Northern Territory of Australia, which was awarded Major Project Status by the Northern Territory government in July 2020.

Adjacent to Molyhil, at Bonya, Thor holds a 40% interest in deposits of tungsten, copper, and vanadium, including Inferred resource estimates for the Bonya copper deposit, and the White Violet and Samarkand tungsten deposits.

Thor holds 100% of the Pilot Mountain tungsten project in Nevada, USA which is subject to a sale option agreement.(6)

Notes

(1) www.thormining.com/sites/thormining/media/pdf/asx-announcements/20210127-maiden-copper.gold-estimate-alford-east-sa.pdf

(2) www.thormining.com/sites/thormining/media/pdf/asx-announcements/20172018/20180222-clarification-kapunda-copper-resource-estimate.pdf

(3) www.thormining.com/sites/thormining/media/aim-report/20190815-initial-copper-resource-estimate---moonta-project---rns---london-stock-exchange.pdf

(4) www.thormining.com/sites/thormining/media/pdf/asx-announcements/20210408-molyhil-mineral-resource-estimate-updated.pdf

(5) www.thormining.com/sites/thormining/media/pdf/asx-announcements/20200129-mineral-resource-estimates---bonya-tungsten--copper.pdf www.thormining.com/sites/thormining/media/pdf/asx-announcements/20210901-pilot-mountain-project-us1.8m-sale-option.pdf

T ENEMENT SCHEDULE

At 30 September 2021 , the consolidated entity holds an interest in the following Australian tenements:

 
                                                                             Company 
     Project        Tenement   Area kms(2)  Area ha.        Holders          Interest 
                                                        Molyhil Mining Pty 
      Molyhil        EL22349        228.10                      Ltd              100% 
                   ----------  -----------  --------  --------------------  --------- 
                                                        Molyhil Mining Pty 
      Molyhil        EL31130          9.51                      Ltd              100% 
                   ----------  -----------  --------  --------------------  --------- 
                                                        Molyhil Mining Pty 
      Molyhil        ML23825                   95.92            Ltd              100% 
                   ----------  -----------  --------  --------------------  --------- 
                                                        Molyhil Mining Pty 
      Molyhil        ML24429                   91.12            Ltd              100% 
                   ----------  -----------  --------  --------------------  --------- 
                                                        Molyhil Mining Pty 
      Molyhil        ML25721                    56.2            Ltd              100% 
                   ----------  -----------  --------  --------------------  --------- 
                                                        Molyhil Mining Pty 
      Molyhil        AA29732                    38.6            Ltd              100% 
                   ----------  -----------  --------  --------------------  --------- 
                                                        Molyhil Mining Pty 
      Molyhil         MLS77                    16.18            Ltd              100% 
                   ----------  -----------  --------  --------------------  --------- 
                                                        Molyhil Mining Pty 
      Molyhil         MLS78                    16.18            Ltd              100% 
                   ----------  -----------  --------  --------------------  --------- 
                                                        Molyhil Mining Pty 
      Molyhil         MLS79                     8.09            Ltd              100% 
                   ----------  -----------  --------  --------------------  --------- 
                                                        Molyhil Mining Pty 
      Molyhil         MLS80                    16.18            Ltd              100% 
                   ----------  -----------  --------  --------------------  --------- 
                                                        Molyhil Mining Pty 
      Molyhil         MLS81                    16.18            Ltd              100% 
                   ----------  -----------  --------  --------------------  --------- 
                                                        Molyhil Mining Pty 
      Molyhil         MLS82                     8.09            Ltd              100% 
                   ----------  -----------  --------  --------------------  --------- 
                                                        Molyhil Mining Pty 
      Molyhil         MLS83                    16.18            Ltd              100% 
                   ----------  -----------  --------  --------------------  --------- 
                                                        Molyhil Mining Pty 
      Molyhil         MLS84                    16.18            Ltd              100% 
                   ----------  -----------  --------  --------------------  --------- 
                                                        Molyhil Mining Pty 
      Molyhil         MLS85                    16.18            Ltd              100% 
                   ----------  -----------  --------  --------------------  --------- 
                                                        Molyhil Mining Pty 
      Molyhil         MLS86                     8.05            Ltd              100% 
                   ----------  -----------  --------  --------------------  --------- 
                                                        Molyhil Mining Pty 
       Bonya         EL29701         204.5                      Ltd               40% 
                   ----------  -----------  --------  --------------------  --------- 
                                                        Molyhil Mining Pty 
       Bonya         EL32167         74.54                      Ltd               40% 
                   ----------  -----------  --------  --------------------  --------- 
                                                        Pilbara Goldfields 
      Panorama      E46/1190         35.03                    Pty Ltd            100% 
                   ----------  -----------  --------  --------------------  --------- 
                                                        Pilbara Goldfields 
    Ragged Range    E46/1262          57.3                    Pty Ltd            100% 
                   ----------  -----------  --------  --------------------  --------- 
                                                        Pilbara Goldfields 
   Corunna Downs    E46/1340            48                    Pty Ltd            100% 
                   ----------  -----------  --------  --------------------  --------- 
                                                        Pilbara Goldfields 
    Bonney Downs    E46/1355            38                    Pty Ltd            100% 
                   ----------  -----------  --------  --------------------  --------- 
 

At 30 September 2021 , the consolidated entity holds an interest in the following tenements in the US State of Nevada:

 
Claim Group       Prospect          Claim Name             Area              Holders       Company 
                                                                                           Interest 
                                                             45 blocks (611ha 
  Platoro     Desert Scheelite     NT #55 - 64                or 1,510 acres)               100% 
------------  -----------------  ----------------  -------------------------------------  --------- 
                   Garnet           NT #9 - 18 
                                                                           Pilot Metals 
                                                                                Inc 
------------  -----------------  ----------------  --------------------                   --------- 
                  Gunmetal         NT #19 - 22, 
                                       6, 7 
              -----------------  ---------------- 
                  Good Hope         NT #1 - 5, 
                                      41 - 54 
------------  -----------------  ----------------  --------------------  ---------------  --------- 
                 Black Fire                        109 blocks (1,481ha    BFM Resources 
   BFM 1            Claims        BFM1 - BFM109       or 3,660 acres)          Inc          100% 
              -----------------  ----------------  --------------------  ---------------  --------- 
                 Des Scheel                          22blocks (299ha      BFM Resources 
   BFM 2             East        BFM109 - BFM131        or 739Acre)            Inc          100% 
              -----------------  ----------------  --------------------  ---------------  --------- 
                                                                          BFM Resources 
Dunham Mill      Dunham Mill        MS1 - MS4            4 blocks              Inc          100% 
              -----------------  ----------------  --------------------  ---------------  --------- 
 

On 30 September 2021, the consolidated entity holds 100% interest in a Uranium and Vanadium projects in US States of Colorado and Utah as follows:

 
  Claim Group     Serial Number       Claim Name             Area              Holders         Company 
                                                                                               Interest 
    Vanadium       UMC445103 to                       100 blocks (2,066     Cisco Minerals 
   King (Utah)       UMC445202     VK-001 to VK-100         acres)                Inc           100% 
----------------  --------------  ------------------  ------------------  ------------------  --------- 
Radium Mountain    CMC292259 to       Radium-001       99 blocks (2,045   Standard Minerals 
   (Colorado)        CMC292357       to Radium-099          acres)                Inc           100% 
                  --------------  ------------------  ------------------  ------------------  --------- 
   Groundhog       CMC292159 to     Groundhog-001     100 blocks (2,066   Standard Minerals 
   (Colorado)        CMC292258     to Groundhog-100         acres)                Inc           100% 
                  --------------  ------------------  ------------------  ------------------  --------- 
 

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END

MSCFELSIUEFSEIS

(END) Dow Jones Newswires

October 29, 2021 02:02 ET (06:02 GMT)

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