Thor Mining pushes forward on strong tungsten intercepts at Bonya (THR)

Thor Mining (LSE:THR) rose 7.7pc to hit its highest level this month on Monday morning after announcing a series of strong tungsten grades from the White Violet deposit at its Bonya project. A second drilling round at the asset, which is adjacent to Thor’s flagship Molyhil project in Australia’s Northern Territory, intersected 20m at 0.24pc tungsten trioxide from 2m, including 8m at 0.38pc copper from 3m. Other highlights included 8m at 0.24pc tungsten trioxide, 14m at 0.23pc tungsten trioxide, and 2pc at 0.71pc tungsten trioxide from 11m.

The work, which was managed and 40pc funded by Thor alongside 60pc project owner Arafura Resources, has extended tungsten-bearing mineralisation at White Violet by 40m to both the east and the west. Total strike length now comes in at 120m, while vertical depth now hits 110m. Mick Billing, executive chairman of Thor, which was trading at 0.28p as at writing, said it was ‘very exciting’ to confirm both consistencies of mineralisation and extensions to strike at White Violet, adding:

‘Tungsten grades continue to be positive, and it is also pleasing to see further evidence of copper mineralisation. The key Thor driver for drilling at Bonya is to add to the Molyhil area mining inventory with an objective of a minimum of ten years total open pit mining and processing.  These results, subject to assay and follow up resource work, should, we expect, go quite some way towards meeting that objective.

The rig used to drill the holes has now moved on to another Bonya deposit called Samarkand for the second part of the Thor/Arafura JV’s current drilling programme. This work aims to test the extent of the two deposits to help create create reportable mineral resource estimates.

Bonya hosts 13 outcropping tungsten deposits that currently carry an exploration target of 3-4.9MMts at 0.3-05pc tungsten trioxide. The area also hosts an inferred copper resources of 230,000ts for 4,600ts of copper.  Thor plans to extract and process this copper at Molyhil for a ‘minimal additional cost’. Despite the licence area being part of a known tungsten province, no tungsten drilling had taken place since the 1970s. Until now.

Thor and Arafura completed an initial 2,500m reverse circulation drilling programme across Bonya earlier this year. The work confirmed strong tungsten and copper mineralisation across several deposits, with particularly strong results coming from two areas called White Violet and Samarkand. Highlights from White Violet included 27m at 0.29pc tungsten trioxide from 35m, 12m at 0.67pc tungsten trioxide from 46m and 29m at 0.7pc tungsten trioxide from 81m, including 13m at 1.13pc tungsten trioxide.   Meanwhile, top copper intersections at Samarkand included 5m at 0.36pc copper, 12m at 0.77pc copper, and 7m at 1.23pc copper.

Thor hopes that Bonya could add ‘considerably’ to Molyhil’s life, scale, and economic outcomes. To recap, Molyhil is a tungsten and molybdenum asset located around 320km east of Alice Springs. The project is formed from two adjacent magnetite skarn bodies that contain economic amounts of scheelite, molybdenite and magnetite mineralisation.

Before Thor’s involvement, little work had taken place at Molyhil bar a brief period of mining at its southern ore body during the late 1970s and early 1980s. Thor has built upon these efforts considerably, completing resource extension drilling and metallurgical test work. It has also made a great deal of permitting progress, carrying out technical, environmental and social studies as well as securing environmental approvals and land agreements with traditional owners.

Thanks to Thor’s work, Molyhil is now one of the higher-grade open-pit tungsten in the western world. A mineral resource estimate in 2014 gave it a complete resource of 4.71Mt for 13,100ts of tungsten trioxide and 6,220ts of molybdenum. To build on this potential, the firm completed a feasibility study in August last year. The work gave Molyhil a post-tax NPV of $101m, an IRR of 59pc, and a seven-year open pit mine life delivering annual production of 120,000mtu tungsten trioxide and 450t of molybdenum – both in concentrate.  Meanwhile, opex came in at just $90/mtu.

Thor also believes that Molyhil could deliver a great deal of upside, through both operational enhancements and the opportunity to pursue satellite resources and underground production. Indeed, the firm has demonstrated that high molybdenum and tungsten trioxide continue below the pit floor. To read more about Molyhil and Bonya, including details on ongoing funding talks, please see our recent project update here.

Author: Daniel Flynn

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, has been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and MiningMaven Ltd are not responsible for its content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance.

Thor Mining: is EnviroCopper closing in on more than half a million tonnes of copper at Moonta? (THR)

EnviroCopper is a privately run mining company, which is seeking to develop the Kapunda and Moonta copper projects using an extraction method call “in situ- recovery” (“ISR”). Thor Mining Plc (LSE:THR) has the right to purchase a 30pc stake in EnviroCopper, which is pioneering the application of ISR in copper mining operations in Australia. ISR is a highly cost effective and environmentally more friendly extraction method compared to traditional mining.

EnviroCopper is earning into 75pc of two ISR projects in Australia, at Kapunda and Moonta. Across these two projects EnviroCopper now has a managed resourced inventory of 233,000 tonnes of copper; 119,000 tonnes at Kapunda and now, following August’s maiden resource estimate, 114,000 tonnes at Moonta.

In this special MiningMaven Wire we provide analysis of the maiden copper resource estimate at Moonta and provide some more contextual background about other global ISR copper projects that could provide indicators as to how EnviroCopper might develop.

 

The latest Moonta report can be read by accessing the download page HERE.

 

This MiningMaven Wire also provides an update to the main EnviroCopper report published in June 2019, following release of the initial mineral resource estimate at Moonta in August 2019. The full report can be read HERE.

  1. EnviroCopper – Harnessing the vast opportunity presented by low-cost copper production
  2. ‘There is a lot of upside to be had here’: Mick Billing on Thor Mining’s recent trip to Bonya and ongoing Molyhil deal discussions (THR)
  3. Thor Mining reveals further copper prospectivity at Molyhil (THR)
  4. Where next for Thor Mining’s Molyhil and Bonya projects as CEO Mick Billing heads out on site visit?
  5. Thor Mining reveals stable financial position and exciting progress plans in quarterly results (THR)
  6. Thor Mining jumps as it reveals plans to progress Australian vanadium project (THR)
  7. Thor Mining updates on positive progress at Big Sandy lithium project (THR)
  8. Thor Mining confirms high grade tungsten at Bonya with ‘very good’ assay results (THR)
  9. MiningMaven report: Thor Mining’s Mick Billing on how his firm’s exposure to new copper vehicle EnviroCopper could represent a ‘fascinating opportunity’ for investors (THR)
  10. Thor Mining reveals substantial metallurgical testwork progress at Pilot Mountain (THR)
  11. Thor Mining confirms extensive high-grade scheelite mineralisation at Molyhil (THR)
  12. Could a copper resource at Molyhil help Thor Mining push project forward? (THR)
  13. Thor Mining releases ‘very exciting’ interim drill results from Bonya (THR)
  14. Thor Mining rises as Enviro Copper commissions resource estimate at Moonta (THR)
  15. Thor Mining announces gold recovery at Kapunda in ‘unexpected bonus’ for project (THR)
  16. Thor Mining reiterates strong portfolio progress in H2 2018 update (THR)
  17. Thor confirms tungsten mineralisation at first of many expected Bonya deposits (THR)
  18. Thor establishes proof of concept for In-situ Recovery of copper at Kapunda project (THR)
  19. Thor Mining ups mineral resource estimate at Pilot Mountain tungsten project (THR)
  20. Thor Mining’s Mick Billing on Molyhil’s ‘extremely attractive’ potential as project construction looms
  21. Thor Mining: Thor Lengthens Stride in Pursuit of Producer Status
  22. Thor Mining: Mining Maven Q&A
  23. Thor Mining: Update Q&A with Chairman Mick Billing
  24. Thor Mining: The road to value, February update Q&A
  25. Thor Mining: The road to value, interview
  26. Thor Mining: A Molyhill Q&A with Mick Billing
  27. Thor Mining: Q&A with chairman Mick Billing
  28. Thor Mining: The courage to continue!