Thor Mining reiterates strong portfolio progress in H2 2018 update (THR)

Thor Mining (LSE:THR) was sitting at 1p on Friday morning after re-iterating the substantial progress made across its portfolio in H2 2018.

During the period, the firm completed an upgraded definitive feasibility study at its Molyhil tungsten and molybdenum project in Australia. This gave the site an NPV(5) of A$101m, an internal rate of return of 59pc, an EBITDA of A$239m and a payback period of around 18 months.

Last month, Thor said these attractive figures have already attracted the interest of various potential partners. It hopes to finalise an acceptable financing arrangement for the project with the help of Argent Partners over the near term.

Elsewhere, H2 2018 saw Thor complete its acquisition of an interest in the Bonya tenements, which are located near Molyhil. These contain 13 outcropping tungsten deposits, plus the small Bonya copper resource, providing significant potential to extend the profitable life of the proposed Molyhil operation. Thor has previously said that it expects to get drilling approval at Bonya over the coming quarter.

Meanwhile, the period covered by the results also saw Thor release a scoping study for its Pilot Mountain tungsten project in the US. This indicated the potential for a profitable 12-year mine life, while a revised mineral resource estimate boosted tungsten resources, and included zinc for the first time. Thor now plans to carry out the second stage of metallurgical test work and environmental and infrastructure studies at the site.

Finally, the business plans to prepare the Kapunda copper project in Australia for field pump testing in the current quarter. This comes after it demonstrated proof of concept for in situ recovery at the site last year.

Elsewhere in Thursday’s results, Thor revealed a bullish outlook for metal prices. It said that, although tungsten pricing fell by around 20pc early in H2 2018 to settle at between $260/mtu and $270mtu, Molyhil remains ‘very well positioned’ thanks to production costs of just 490/mtu. This places the project in the first quartile of global production costs.

Speaking to MiningMaven last month, Thor’s executive chairman Mick Billing said industry dynamics could see Tungsten prices rise from their current level:

‘China, the dominant global supplier, has withdrawn production licences from a number of producers for environmental reasons, and reports suggest that they have issued no new production licences for a couple of years. While a number of projects elsewhere are in development and hopeful producers, like Thor, are poised to commence development, it is unlikely that these new developments will meet the expected growth in demand.’

Meanwhile, Thor said that molybdenum pricing has maintained gains made in early 2018 and continues to sit in the $11-12/lb range.

Finally, the business revealed a cash balance of £1.11m as of 31 December. It said this figure was bolstered by the exercise of 52,699,789 warrants and options, at various exercise prices, raising £625,623 at an average conversion price of 1.19 pence.

In Thor’s update for Q4 2018, issued last month, Billing said: ‘A positive quarter with progress on all core projects, and a strengthened cash position. The appointment of corporate advisors to support and guide our efforts towards off-take & financing for Molyhil is a strategy we believe will improve our prospects of securing the best arrangement possible for our shareholders. A number of potential scenarios are possible with various interested parties, and we hope to be in a position to advise progress shortly. Additionally, the potential of nearby Bonya tenements, hosting tungsten, copper, and vanadium, provides potential upside for Molyhil, and also for other stand-alone development opportunities.’

Author: Daniel Flynn

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

The Author has not been paid to produce this piece by the company or companies mentioned above.

 

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

Catalyst Information Services Ltd, the owner of MiningMaven.com, has not been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and Catalyst Information Services Ltd are not responsible for its content or accuracy. 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 confirms tungsten mineralisation at first of many expected Bonya deposits (THR)

Thor Mining (LSE:THR) rose 3.9pc to 1.4p on Monday morning after revealing strong sampling results at what it expects to be the first of a series of satellite tungsten and copper deposits in Australia.

The first stage of exploration at Samarkand, one of thirteen known tungsten deposits within Thor’s Bonya project, revealed extensive tungsten mineralisation including high-grade zones. The business collected samples via a systematic sampling program carried out in December last year. This focused on trenches excavated across the deposit more than four decades ago.

Among the strongest intercepts were seven metres at 0.667pc tungsten oxide and three metres at 0.307pc tungsten oxide within trench one on the deposit. Meanwhile, trench two contained a three-metre intercept at 0.271pc tungsten oxide, and trench three offered a three-metre intercept holding 0.203pc of the compound. Thor added that the deposit outcrops at the surface for more than 500m and is open-ended.

Thor is 40pc owner and operator at Bonya alongside Australian resource firm Arafura Resources (ASX:ARU). A maiden resource estimate in Q4 last year gave Bonya a deposit of 230,000 tonnes containing 4,600 tonnes of copper. In Monday’s update, executive chairman Mick Billing said Samarkand the business now has ‘confirmed tangible evidence’ of additional extensive surface outcropping tungsten mineralisation at the project.

‘These initial results demonstrate proof of surface outcropping tungsten mineralisation extending in excess of 500 metres strike length at the Samarkand deposit,’ he added. ‘Current indications are that Bonya tungsten mineralisation is coarse grained and may be amenable to low cost pre-concentration by x-ray ore sorting and treatment at the Molyhil processing plant.’

Bonya is found within trucking distance of Thor’s flagship Molyhil mine project in the Northern Territory of Australia. With this in mind, Billing said the case for developing Molyhil would become ‘even more compelling’ if the success at Samarkand is replicated at Bonya’s numerous additional prospects.

Thor is currently completing traditional owner and regulatory clearance for a drill program at Bonya and hopes to be licenced to begin work by the end of this month.  It believes this will enhance its knowledge of the extent of mineralisation in the area.

Finally, Billing said Thor is continuing to carry out discussions and negotiations with potential offtake and investment partners at Molyhil. Molyhil is now substantially permitted and ready for construction as a result of Thor’s significant drilling and metallurgical testing work.

As it stands, the site contains a probable reserve of 3.5MMts at 0.29pc tungsten (10,200ts) and 0.12pc molybdenum (4,300ts). Last August, an updated definitive feasibility study for the site gave it an NPV(5) of A$101m, an internal rate of return of 59pc, an EBITDA of A$239m and a payback period of around 18 months.

In an update last week, Thor said these enhanced figures had attracted the interest of various potential partners. It hopes to finalise an acceptable arrangement over the near term.

Author: Daniel Flynn

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

The Author has not been paid to produce this piece by the company or companies mentioned above.

Catalyst Information Services Ltd, the owner of MiningMaven.com, has not been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and Catalyst Information Services 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 establishes proof of concept for In-situ Recovery of copper at Kapunda project (THR)

Thor Mining (LSE:THR) announced today that proof of concept has been established for In-situ Recovery of copper at the Kapunda Copper Project. The company has the right to earn-in to a 45% effective interest in the project which is located 90km north of Adelaide in South Australia. In February, Thor announced a maiden resource estimate in partnership with Environmental Copper Recovery SA Pty Ltd and Terramin Pty Ltd (ASX: TZN), suggesting the site has an inferred JORC compliant resource of 119,000 tonnes of copper amenable to In-situ Recovery techniques.

In-situ Recovery (ISR) or solution mining has a lower environmental footprint than conventional mining with little visual impact and minimal infrastructure required.

The process accelerates what is naturally happening within the bedrock and water table and until recent advances in technology, had limited applications in mineral extraction. It’s now possible to apply the ISR method of extraction to copper and gold resources that were previously un-minable. During the process, a benign solution is pumped into bores drilled into the ore body to dissolve the copper. The copper containing solution is then pumped to a recovery plant to extract the metal from the liquid.

The In-situ Recovery (ISR) process

source: www.envirocopper.com.au

Kapunda is suitable for ISR since it is a shallow resource and the area has a high water table. Thor says it has completed water sampling and the initial hydrogeological assessment is positive. Computer modelling suggests that flow through the ore body is possible and the geology is amenable for ISR. 

As reported in July, The Australian Government Ministry for Science, Jobs and Innovation has offered Environmental Copper Recovery SA Pty Ltd research funding of A$2,851,303, over a 30 month period to demonstrate the In-Situ Recovery (ISR) process at Kapunda.

 Mick Billing, Executive Chairman, commented:

"The proof of concept stage has been successful in demonstrating that, from both a technical and social viewpoint, we should proceed to the next stage of work. This next stage (stage 2) will include: relevant approval processes, pump and environmental testing, and will incorporate a field recovery trial to generate solution and test a variety of metal recovery options."  

"The successful completion of these stages was complemented by the receipt of a (CRC-P) Commonwealth Research Program Grant for A$2.85 million for the Kapunda Copper ISR project, further supporting this exciting initiative of an economically and environmentally sustainable mining future technique."

"We look forward to providing further information on this exciting project, and each of our other projects at Molyhil (including Bonya), and Pilot Mountain in the coming weeks."

Author: Stuart Langelaan

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.
The Author has not been paid to produce this piece by the company or companies mentioned above.
Catalyst Information Services Ltd, the owner of MiningMaven.com, has not been paid for the production of this piece by the company or companies mentioned above.
MiningMaven.com and Catalyst Information Services 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