DEVELOPMENT ASSESSMENT PLAN-KAPUNDA COPPER PROJECT

RNS Number : 6519Q

Thor Mining PLC

13 September 2017

 

13 September 2017

THOR MINING PLC

DEVELOPMENT ASSESSMENT PLAN

KAPUNDA COPPER PROJECT - SOUTH AUSTRALIA

The Board of Thor Mining Plc ("Thor" or the "Company") (AIM, ASX: THR), is pleased to provide a progress update in respect of the Kapunda Copper Project (the "Project") in South Australia.

Following the announcement on 1 August 2017, the Company's review of the Project has advanced and a development plan has been prepared as outlined below.

Highlights:

•     Copper is naturally leaching into groundwater around the deposit, a very positive indication, and water testing from local existing bores, to determine metal content, will be an early focus;

•     Project process is proposed via in-situ recovery, and other early activities will be directed at confirming the current understanding that the geology of the deposit is favourable for this method;

•     Applications to be submitted to secure Australian government research funding to assist with costs of the proposed work program;

•     No requirement identified for additional exploration drilling thus reducing the cost of development.

The staged development plan is designed to progressively confirm that the known copper mineralisation at the historic Kapunda mine can be extracted profitably, but also safely, and without adverse environmental outcomes.

Mr Mick Billing, Executive Chairman of Thor:  

"We are very excited about this copper opportunity at Kapunda.  We are fortunate that there is no requirement for exploration drilling in the hope of finding economic mineralisation - that work has been done, and the mineralisation is well known.

"The global copper environment has improved considerably in recent months and there is an understandable expectation that with the increasing demand for copper, the forward market pricing dynamics remain favourable."

"We note from investor feedback that there is a real desire by the market for new and exciting copper investment opportunities, and with Kapunda Copper, Thor now has a project interest that falls squarely into copper space, alongside our extensive tungsten portfolio.

"A project of this nature cannot proceed without community support, and consultation with the local community forms a key part of our strategy".

"We will ensure that we continue to inform and update investors as we look to advance this opportunity."

On 1^st August 2017 Thor announced that it had signed a binding term sheet to invest in the Kapunda Copper Project via a newly incorporated private Australian company, Environmental Copper Recovery SA Pty Ltd ("ECR"), initially by way of the staged subscription for convertible loan notes of up to A$1.8 million, which are convertible into ECR equity at Thor's discretion, and which will be used to fund field test work and feasibility activities at Kapunda over the next 3 years.  In turn, ECR has entered into a binding term sheet to earn, in two stages, up to 75% of the rights over the mineral rights and claims 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").

Investors wishing to learn more about this investment should review the announcement detailing the Company's agreement to invest in this copper interest, released to the market on 1 August 2017.

Staged Approach

The Company and ECR propose that evaluation and testwork at Kapunda is expected to proceed in stages, with decision milestones between each stage and increasing levels of confidence in ultimate outcomes.

As each stage advances, and in preparation for successive stages, a proactive program of public consultation will be a critical component of the assessment.

Stage 1 activities

·      Finalisation and publication of a JORC compliant resource estimate

·      Stakeholder and regulatory approvals for subsequent "onsite" activities

·      Testing of water from local boreholes for content of copper and other minerals "naturally leached"

·      Bench scale testing of historical core samples to establish

·     Potential flow rates of the mineralised zones

·     Verification of copper and potentially other metal recovery using a variety of "lixiviants"

·      Seek to secure agreements for cooperative research and other Australian government funding, where possible, to bring in additional financial support and 3^rd party technical expertise without dilution of project interest.

Stage 2 activities

·      Field pump testwork using several boreholes to confirm that the deposit is likely to allow transmissivity of lixiviants and copper bearing fluids through the mineralised sections.

·      Hydrological evaluation of the field pump testwork

Stage 3 activity

·      Field Recovery Trial - a limited selection of boreholes configured as a small-scale production test, designed to test the potential economic return of copper recovery (figure 3)

Stage 4 activity

·      Feasibility study activity along with environmental, community, and regulatory approval processes to secure development approval.

July - Dec 2017				Jan - Jun 2018		Sep 2018-Sep 2019
Resource Est'	Secure Gov't Grants	Water Sampling Core Testing		Pump Testing Hydro Evaluation		Field Recovery Trial			Feasibility & Development Approval
COMMUNITY CONSULTATION

Enquiries:

Mick Billing	[phone]	Thor Mining PLC	Executive Chairman
Ray Ridge	[phone]	Thor Mining PLC	CFO/Company Secretary
Colin Aaronson/ Daniel Bush/ Richard Tonthat	[phone]	Grant Thornton UK LLP	Nominated Adviser
Elliot Hance	[phone]	Beaufort Securities Limited	Joint Broker
Nick Emerson / Andy Thacker	[phone]	SI Capital Ltd	Joint Broker
Tim Blythe/ Camilla Horsfall	[phone]	Blytheweigh	Financial PR

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 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 2015¹ suggested attractive returns.  Thor also holds 100% of the Pilot Mountain tungsten project in Nevada USA which has a JORC 2012 Indicated Resources Estimate² on 2 of the 4 known deposits. 

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 right and claims over the portion of the historic Kapunda copper mine in South Australia recoverable by way of ISR.

Notes

·     ¹ Refer ASX and AIM announcement of 12 January 2015

·     ² Refer AIM announcement of 22 May 2017 and ASX announcement of 23 May 2017

 

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