TIDMTHR
RNS Number : 7554R
Thor Mining PLC
31 October 2019
31 October 2019
THOR MINING PLC
("THOR" OR THE "COMPANY")
QUARTERLY REPORT JULY TO SEPTEMBER 2019
Highlights Outlook for December Quarter
2019
------------------------------------------------------------------- --------------------------------------------------------------
TUNGSTEN & MULTI COMMODITIES
Molyhil, NT Australia
* Marketing activities to lock in project finance and * Complete 2(nd) phase drilling at Bonya, and prepare
off-take agreements for both tungsten and molybdenum initial tungsten resource estimate
concentrates.
* Continued discussions with potential Molyhil project
* Significant upgrade Molyhil Mineral Resource financiers and off-take partners.
Estimate.
* Tungsten price has strengthened by more than 25%
* Drilling commences at Bonya. since early September.
Pilot Mountain, Nevada USA
* Commenced discussions with various US investors aimed * Continuing discussions with US investors to secure
at securing specific investment to progress this project investment.
project.
* Metallurgical process optimisation work.
COPPER
Kapunda, SA Australia
* Regulatory approval work for field pump testing at * Field pump testing at Kapunda.
Kapunda.
Moonta, SA Australia
* Mineral Resource Estimate (MRE) on three of the * Follow-up analysis to include additional drill-hole
Moonta copper deposits for 114,000 tonnes copper data in mineral resource estimate.
metal.
GOLD & OTHER COMMODITIES
* Negotiations with traditional owner groups to secure * Secure grant of additional tenements
grant of other tenements.
* Initial ground reconnaissance survey over Pilbara
* Preliminary field activity preparation tenements.
CORPORATE & FINANCE
During the quarter, the board of the Company was strengthened
with the appointment of Mr Mark Potter.
Subsequent to the end of the quarter, the Company advised of a
two stage placing of capital, to raise, before expenses,
UKGBP510,000 (approximately A$955,000).
Commenting, Mr Mick Billing, Executive Chairman of Thor Mining,
said:
"Despite challenging market conditions, particularly for
tungsten, we remain confident in the quality of the Molyhil
project, and continue to focus on adding to its value through
resource upgrades and exploration drilling at Bonya. We look
forward to the initial resource estimates at Bonya which we expect
late in the current quarter. We believe this will significantly
improve the production profile and economics of the Molyhil
project, and also increase the overall attractiveness of the
project to strategic investors and offtake partners. Discussions
with these parties continue."
"In addition, we are pleased to have recently commenced
discussions with a number of US investors for investment in the
Pilot Mountain project."
"Our ISR copper investments continue to show great promise and
have now advanced to initial drill and pump flow test program stage
which is expected to commence shortly."
"The directors and management have also initiated a program of
cutting non-essential project and corporate expenditure in order to
conserve cash resources whilst discussions with strategic and
financial investors for Molyhil and Pilot Mountain continue."
TUNGSTEN PROJECTS
Tungsten and Molybdenum Price Trends
Tungsten prices continued a downward slide until early
September, then improved rapidly, recovering some of the ground
lost in previous months. The price recovery is largely attributed
to the acquisition of the FANYA warehouse stocks in China, removing
much of the potential market overhang.
At the date of this report, the price of tungsten, per mtu of
APT (Ammonium Para Tungstate) was US$227.50/mtu, while the
molybdenum price sits at US$10.00/lb.
Industry discussion continues to forecast tight supply
conditions for tungsten concentrates and downstream products, with
dominant supplier, China, enforcing improved environmental
standards, and restricting the issue of new mine production
licences . This implies a recovery in tungsten pricing in the near
term. In addition, industry expectations are that molybdenum will
be subject to supply constraints for several years.
MOLYHIL TUNGSTEN PROJECT - NT (100% Thor)
During the quarter, Thor continued discussions with various
potential partners who have expressed interest, in either off-take,
joint venture or debt finance arrangements. It is hoped that, on
the back of improved tungsten prices, and successful drilling
outcomes at the nearby Bonya deposits, a favourable arrangement can
be finalised in the near term.
Adjacent to Molyhil, the Bonya tenements, in which Thor holds a
40% interest, host outcropping tungsten deposits, a copper resource
and a vanadium deposit.
Subsequent to the end of the quarter, a reverse circulation (RC)
drilling program of approximately 2,000 metres commenced at Bonya
with the objective of generating sufficient assay information for a
mineral resource estimate on two of the known tungsten
deposits.
A full background on the project is available on the Thor Mining
website www.thormining.com/projects.
During the quarter also, the Company reported assays results
from the second of two large diameter diamond drill holes at
Molyhil, which were conducted to obtain sufficient material to
produce additional scheelite and molybdenum concentrates for
potential customers. Best assay results from the second of these
holes was 5 metres(m) @ 1.74% WO (tungsten trioxide), including 2m
@ 0.81% Mo (molybdenum) from 78m and 7m @ 1.58%WO(3) from 88m
including 4m @ 0.44%Mo from 88m.
Subsequent to the end of the quarter, the Company reported an
updated Mineral resource estimate for the Molyhil deposit
comprising Indicated and Inferred Mineral Resources of 4.7 million
tonnes at 0.28% WO (Tungsten trioxide), 0.14% Mo (Molybdenum),
0.05% Cu (Copper), and 18.0% Fe (Iron) above a cut-off grade of
0.12% WO(3) equivalent.
The revised resource estimate increases contained WO by 1.5% ,
and contained Mo by 9.3% compared with the previous estimate, and
includes copper, which had not previously been reported since
2006.
An update to the Open Cut Ore Reserve, and the Definitive
feasibility Study (DFS) has not been commissioned at this stage,
however the directors may elect to revisit these in the event that
mineral resource estimates for the nearby Bonya deposits, if and
when produced, suggest potential for a material upgrade.
Table A: Molyhil Summary JORC (2012) Mineral Resource Estimate -
Reported 10 October, 2019
Classification '000 WO(3) Mo Cu Fe
Tonnes
--------
Grade Tonnes Grade Tonnes Grade Tonnes Grade
% % % %
---------------- -------- ----- ------ ----- ------- ----- ------ ------
Indicated 3,780 0.29 11,000 0.14 5,400 0.05 1,800 18.7
Inferred 930 0.25 2,300 0.15 1,400 0.04 300 15.2
-------- ----- ------ ----- ------- ----- ------ ------
Total 4,710 0.28 13,300 0.14 6,800 0.05 2,200 18.0
-------- ----- ------ ----- ------- ----- ------ ------
Notes:
-- Thor Mining PLC holds 100% equity interest in this
project.
-- The Mineral Resource is reported at 0.12% WO(3) equivalent
cut-off and above 200mRL only on a dry, in-situ basis
-- The Company is not aware of any information or data which
would materially affect the Mineral Resource, and all assumptions
and key technical parameters relevant to the previous estimate
remain unchanged.
Details of the resource announcement may be accessed via the
following link:
https://www.asx.com.au/asxpdf/20191011/pdf/449d2szw7y7hzy.pdf
Bonya (Tungsten, Copper, Vanadium) (40% Thor)
During the June quarter an initial 2,184m reverse circulation
(RC) drilling program, funded by Thor (40%) and Arafura Resources
(60%) was conducted, producing encouraging tungsten and copper
assays from the White Violet and Sarmakand deposits.
Results from this program have been released and can be accessed
via the following links:
https://www.asx.com.au/asxpdf/20190624/pdf/44622kz8fk6rr8.pdf
https://www.asx.com.au/asxpdf/20190628/pdf/4466ghkhyhpznt.pdf
Subsequent to the end of the quarter, a follow up RC drilling
program of approximately 2,000 metres commenced, targeting an
estimation of Mineral Resources for the White Violet and Samarkand
deposits. The program is being funded by the JV participants in
proportion to their respective equity.
Vanadium
During the quarter, Thor and Arafura Resources, released details
of a study outlining the potential of the Jervois Vanadium Project,
along with a proposed development plan. The study details can be
accessed via the following link:
https://www.asx.com.au/asxpdf/20190703/pdf/446bv386tvk7fh.pdf
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.
The directors believe Pilot Mountain's resource is substantial
on a global scale, and has potential for significant growth, in
particular from the discovery in the August 2017 drilling program
of an additional parallel zone of scheelite mineralisation at the
Desert Scheelite deposit (Figure 6.).
The directors believe that the Desert Scheelite resource, which
outcrops at surface at the western end for more than 400 metres,
has potential to develop into a long term open pit mining operation
which, when supplemented by higher grade mineralisation from the
other deposits at Pilot Mountain, has the potential for a longer
term profitable operation.
This significant tungsten resource is strategically located in
the USA and tungsten has been confirmed by the US Department of the
Interior as a critical mineral in 2018.
Locked cycle testwork on material from the Desert Scheelite
deposit, was completed during the June quarter, resulting in
production of a high grade scheelite concentrate grading 68% WO
with recovery of 73.6%. Further work is in progress aimed at
improving this recovery.
Environmental study parameters are being established with
relevant agencies, and Infrastructure studies have also
commenced.
The metallurgical testwork on material from the Desert Scheelite
deposit announced during the June quarter also identified the
previously unexpected presence of gold in the sample. Subsequent
check assays for gold have, to date, not conclusively confirmed
economic gold mineralisation, and hence the Company requested,
despatch of some of this material from the laboratory in China, to
be re-assayed in an Australian laboratory facility.
Subsequent to the end of the quarter, two directors attended a
mining investment event in New York USA, partly aimed at inviting
investment interest in the Pilot Mountain project. A number of
contacts have been made & follow up discussions with several
are in progress.
KAPUNDA and MOONTA COPPER PROJECTS - SA
Thor holds a 25% equity interest in private Australian company,
EnviroCopper Limited ("ECL"), along with rights to acquire a
further 5% interest via investment of an additional A$0.4million.
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 (ASX: "TZN"),
and rights to 75% of Moonta 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:
https://www.envirocopper.com.au/
Kapunda
During 2018, the Australian Government Ministry for Science,
Jobs and Innovation announced an offer to ECR for research funding
of A$2,851,303, over a 30 month period, for the Kapunda In-Situ
Copper and Gold Recovery Trial.
During the June quarter the Company advised of successful gold
recovery from Kapunda core, in addition to copper recovery, using a
CSIRO developed thiosulphate product, instead of, the more normal,
cyanide.
Field pump tests of the flow of fluids through the deposit for
successful ISR activities have recently been approved by the South
Australian authorities, and this drilling program, and pumping
testwork, is expected to commence during November 2019.
Other near-term activities at Kapunda include continued
community liaison in respect of project activities, testwork on
historical drill core to determine the optimum extraction agent
(lixiviant) most suited to the Kapunda deposit and establishing
appropriate parameters for future field trials.
Moonta
During the quarter the Company advised that Enviro Copper
Limited, on behalf of Environmental Metals Recovery, had completed
a Mineral Resource Estimate (MRE) on several of the deposits at
Moonta, based on substantial historical drilling. The results of
this study was an Inferred Resource estimate of 66.1 million tonnes
(MT) grading 0.17% copper (Cu), containing 114,000 tonnes of
contained copper, at a cutoff grade of 0.05%Cu.
The full details of the resource announcement may be accessed
via the following link:
https://www.asx.com.au/asxpdf/20190815/pdf/447hw9dbbkg94b.pdf
GOLD PROJECTS
SPRING HILL GOLD PROJECT - NT (ROYALTY ENTITLEMENT)
In February 2017 Thor completed the A$3.5 million sale of its
Spring Hill Gold project(1). The sale transaction carries an
ongoing residual royalty of:
-- A$6 per ounce of gold produced from the Spring Hill tenements
where the gold produced is sold for up to A$1,500 per ounce;
and
-- A$14 per ounce of gold produced from the Spring Hill
tenements where the gold produced is sold for amounts over A$1,500
per ounce.
(1)Refer AIM announcement of 26 February 2016 and ASX
announcement of 29 February 2016
No royalties were received during the quarter, however the
owners of the Spring Hill project have advised that they are
progressing mine permitting, and also that the treatment plant for
toll processing the ore has been refurbished. They are hopeful of
commencement of operations in the near term.
OTHER PROJECTS
During the March quarter the Company advised of an agreement to
acquire two private Australian companies (Hamersley Metals Pty Ltd,
and Pilbara Gold Pty Ltd) with licences and applications in areas
prospective for gold and uranium in Western Australia and the
Northern Territory.
Subsequent to the end of the quarter, a field reconnaissance
program incorporating soil and stream sediment sampling commenced.
Details of the program, along with analysis and results will be
published shortly.
INVESTMENTS
Thor holds an investment in Hawkstone Mining Limited, an ASX
listed company (ASX: HWK) with a 100% Interest in a Lithium project
in Arizona, USA.
During the quarter Hawkstone, announced an Indicated and
Inferred Mineral Resource Estimate of 32.5 Million Tonnes grading
1,850 parts per million (ppm) Li, or 320,800 tonnes Lithium
Carbonate Equivalent, reported above an 800ppm Li cut-off.
Subsequent to the end of the quarter Hawkstone announced the
issue of additional vendor shares which results in the issue to
Thor of additional equity in Hawkstone, with Thor now holding
15,234,375 ordinary shares in Hawkstone representing approximately
1.87% of the issued capital of Hawkstone.
At the time of writing Hawkstone shares were trading @
A$0.012/share
Information about Hawkstone and its Big Sandy project can be
found at Hawkstone's website, http://hawkstonemining.com.au/.
CORPORATE AND FINANCE
During the quarter, the board of Thor was strengthened with the
appointment of Mr Mark Potter. Mr Potter is also a director of
Metal Tiger PLC, the Company's largest shareholder. We welcome the
contribution of Mark to the team.
Subsequent to the end of the quarter, the Company advised of a
two stage placing of capital to raise, before expenses,
UKGBP510,000 (approximately A$955,000). The first tranche of the
placing is the issue of 113,333,333 ordinary shares in the company,
with the second tranche issuing, conditional on shareholder
approval at the forthcoming Annual General meeting of shareholders,
a further 141,666,667 ordinary shares.
Competent Person's Report
The information in this report that relates to exploration
results, and exploration targets, is based on information compiled
by Richard Bradey, who is a Member of The Australasian Institute of
Mining and Metallurgy. Mr Bradey is an employee of Thor Mining PLC.
He has sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to the
activity which he 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'. Richard Bradey consents to the inclusion in the report
of the matters based on his information in the form and context in
which it appears.
Enquiries:
Mick Billing +61 (8) 7324 1935 Thor Mining PLC Executive Chairman
Ray Ridge +61 (8) 7324 1935 Thor Mining PLC CFO/Company Secretary
Colin Aaronson/ +44 (0) 207 383 Grant Thornton UK Nominated Adviser
Richard Tonthat/ 5100 LLP
Ben Roberts
Nick Emerson +44 (0) 1483 413 SI Capital Ltd Joint Broker
Claire Louise 500 Hybridan LLP Joint Broker
Noyce / +44 (0) 203 764
John Beresford-Peirse 2341
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) is a resources company quoted on
the AIM Market of the London Stock Exchange and on ASX in
Australia.
Thor holds 100% of the advanced Molyhil tungsten project in the
Northern Territory of Australia, for which an updated feasibility
study in August 2018(1) suggested attractive returns.
Adjacent Molyhil, at Bonya, Thor holds a 40% interest in
deposits of tungsten, copper, and vanadium, including an Inferred
resource for the Bonya copper deposit(2).
Thor also holds 100% of the Pilot Mountain tungsten project in
Nevada USA which has a JORC 2012 Indicated and Inferred Resources
Estimate(3) on 2 of the 4 known deposits. The US Department of the
Interior has confirmed that tungsten, the primary resource mineral
at Pilot Mountain, has been included in the final list of Critical
Minerals 2018.
Thor is also acquiring up to a 60% interest Australian copper
development company Environmental Copper Recovery SA Pty Ltd, 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 in South Australia recoverable by way of in
situ recovery.
Thor has an interest in Hawkstone Mining Limited, an Australian
ASX listed company with a 100% Interest in a Lithium project in
Arizona, USA.
Finally, Thor also holds a production royalty entitlement from
the Spring Hill Gold project of:
-- A$6 per ounce of gold produced from the Spring Hill tenements
where the gold produced is sold for up to A$1,500 per ounce;
and
-- A$14 per ounce of gold produced from the Spring Hill
tenements where the gold produced is sold for amounts over A$1,500
per ounce.
Notes
(1) Refer ASX and AIM announcement of 23 August 2018
(2) Refer ASX and AIM announcement of 26 November 2018
(3) Refer AIM announcement of 13 December 2018 and ASX
announcement of 14 December 2018
Refer AIM announcement of 10 February 2016 and ASX announcement
of 12 February 2018
Refer AIM announcement of 26 February 2016 and ASX announcement
of 29 February 2016
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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