Thor Mining (LSE:THR) took a significant step forward at its Bonya project in the Northern Territory of Australia on Thursday, establishing maiden mineral resource estimates for two of its deposits.

The firm, which is Bonya’s manager and 40% owner, said the White Violet deposit is thought to contain 495,000 tonnes of inferred resources holding 1,090 tonnes of tungsten trioxide and 300 tonnes of copper. Meanwhile, the Samarkand deposit has been ascribed 245,000 tonnes of inferred resource containing 465 tonnes of tungsten trioxide and 320 tonnes of copper.

These resources add to the previously announced inferred resource estimate for the entirety of Bonya – which came in at 230,000 tonnes containing 4,600 tonnes of copper.

Looking ahead, both of the deposits demonstrate the potential for further upside, remaining open at depth and boasting outcropping mineralisation. Samarkand, in particular, shows promise for strike extension on its copper mineralisation, said Thor.

Elsewhere, the organisation highlighted Bonya’s proximity to its flagship Molyhil tungsten and molybdenum project – which is currently awaiting financing. Thor and its Bonya joint venture partner Arafura plan to truck ore from the project to Molyhil, where it can be processed using existing facilities.

Thor’s executive chairman Mick Billing described Wednesday’s maiden resources as “very significant” when considered in the context of the total Molyhil/Bonya development. Alongside Arafura, the company will now have to carry out further work to convert its new inferred resources at White Violet and Samarkand into the more advanced indicated category.

“The Bonya project hosts additional known tungsten and copper deposits, and some high tenor copper strike extension at Samarkand,” added Billing. “These will be tested in due course, and we expect that they will further contribute to the life and value of the greater Molyhil project."

With tungsten prices thriving in the December quarter thanks to growing demand, the addition of significant ounces of the metal to Thor’s overall resource inventory is particularly exciting. If the company can continue to advance the metal towards the production stage, then it could become a great source of value for investors. With this in mind, a drop in Thor’s share price from nearly 1.4p to its current 0.385p over the past year could present an interesting entry point.

As at writing, the company’s share price had risen 8.45% to well above its five-day EMA (0.374p), with volume spiking considerably on the news from Bonya. Should this momentum continue – supported by regular updates from Thor – then the firm’s current £3.8 million market cap could soon look very small.

Author: Daniel Flynn

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