Final Results for the period

RNS Number : 1568T

Thor Mining PLC

23 September 2010

 

THOR MINING PLC

Final Results for the period ended 30 June 2010

Dated: 23 September 2010

Thor Mining PLC ("Thor" or the "Company") (AIM, ASX: THR) the resources company focused on gold projects in Western Australia, base metals projects and advancing tungsten-molybdenum projects in the Northern Territory of Australia, announces its final results for the period ended 30 June 2010.

Chairman's Statement

The 2010 financial year was another challenging period for your company, with market conditions for Molyhil commodities remaining, on balance, at levels below threshold for economic development.  At the time of writing this report, the ATP price of tungsten as quoted in  "Metal Pages" is sitting at US$258/mtu, close to the record highs of 2008, while molybdenum is priced at US$16/lb, less than 50% of the levels of 2 years ago.

In response to this market, the company was forced to take serious measures to conserve funds, including but not restricted to terminating the services of the Chief Executive Officer.  At the same time the Directors commenced a critical appraisal of the Company's projects, and concluded that while the fundamentals of the Company's flagship project, Molyhil, remain sound, the uranium exploration portfolio was struggling to deliver on the promise expected when acquired in 2006.  Your directors took a decision to add gold exploration to the portfolio and subsequently acquired an interest in the Dundas Gold project in Western Australia.

Early stage (calcrete sampling) exploration activities at Dundas have yielded very promising results and a follow up drilling program is scheduled as soon as the necessary approvals are secured.

Corporate activities

In July 2009 the Company raised approximately UK£450,000 before costs by way of a placement to sophisticated investors in the UK.  Following this, in January 2010 the Company raised approximately UK£140,000 before costs by way of a placement to sophisticated investors in Australia, followed in May 2010 by a placement of UK£90,000 to Western Desert Resources Limited, the Company's largest shareholder.  Subsequently the Company raised UK£630,000 before costs from an offer to sophisticated investors and to shareholders which concluded in July 2010.  All junior resource companies are required to replenish cash reserves on a regular basis until production revenues begin to flow, following the development of a project.  The Directors believe that further capital raisings will be necessary in the coming financial year.

During the year Mr Trevor Ireland joined the board of Thor Mining PLC.  Mr Ireland is a geologist with more than 40 years experience in minerals exploration and corporate management. His contribution to the company has been significant.

Personnel

The Directors and I gratefully acknowledge the efforts of our very small team including contractors and consultants who have assisted us during the past year and continue to assist as we explore our projects and move towards development of mining operations at Molyhil.

Michael Billing

Chairman and Chief Executive Officer

21 September 2010

Chief Executive Officer Review

REVIEW OF OPERATIONS - Thor Projects

MOLYHIL TUNGSTEN - MOLYBDENUM PROJECT (MOLYHIL)

The Molyhil Tungsten - Molybdenum Project occurs as scheelite and molybdenite mineralisation within a magnetite skarn.

Molyhil is a proposed open cut mine and processing facility which is planned to produce scheelite and molybdenite concentrates for sale with a potential by-product of fine high quality magnetite.

The project comprises an Exploration Licence (EL22349) and three granted Mining Leases (ML23825, ML24429 and ML25721) situated 310km by road north east of Alice Springs in central Australia.

Molyhil Resource estimate

The estimate of the resource at Molyhil is tabulated below.

Summary of Rounded Resource Estimates - 15.25% Fe₂O₃ Lower Cut

Classification	Resource     (t)	MoS2 (%)	WO3 (%)	Fe2O3 (%)
Measured	540,000	0.24	0.33	29.4
Indicated	2,300,000	0.18	0.38	27.9
Inferred	900,000	0.20	0.15	27
Total	3,750,000	0.19	0.32	28

Note: Totals may differ from sum of individual items due to rounding.

This table summarises a resource estimate published in detail in a release to the Australian Securities Exchange dated 17^th June 2009.

The geological information in this report which relates to Exploration Results and Mineral Resources is based upon information compiled by Mr. J.J.G. Doepel, B.Sc (Hons), Grad Dip For Sc, Dip Teach, Principal Geologist of Continental Resource Management Pty Ltd.  Mr. Doepel is a member of the Australasian Institute of Mining and Metallurgy and has sufficient expertise and experience which is relevant to the style of mineralisation and to the type of deposit under consideration to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves".  Mr. Doepel consents to the inclusion in the report of the matters based on his information in the form and context in which they appear.

The magnetite content of a range of samples from the mineralised skarns was determined by Amdel.CRM estimated that the skarns contain an Inferred Resource of 500,000t of magnetite (3.8Mt @ 13% Fe₃O₄).

Preliminary marketing and metallurgical testing, as completed by the Australian Coal Institute Research Laboratories (ACIRL), has shown the magnetite to be of premium quality for use in the coal washing markets in Australia.

International pricing of the projects principal commodities, tungsten and molybdenum have recovered during the year, however further improvement will be required prior to commitment to project development.

DUNDAS GOLD PROJECT (WA)

The Thor Dundas Project is comprised of 3 tenements EL 63/872, EL 63/1101, and EL 63/1102 and is situated in Western Australia within the Albany-Fraser Province.  The project tenements lie on the general strike-extension of the most prolific gold-bearing belt of the Yilgarn Province - the 700km Wiluna-Kalgoorlie-Norseman greenstone belt, in an area where the trend of the Albany-Fraser belt is displaced south eastwards by about 50km.  The Albany-Fraser belt hosts a number of recent gold discoveries including the +5 million ounce Tropicana gold deposit, and other discoveries including Beachcomber, Socrates, Corvette, and Corona.

Results from Thor's initial calcrete survey at the Dundas project show clusters of elevated gold values which have identified five previously unknown areas of gold anomaly in addition to the target area identified by previous exploration  Each of these warrants systematic follow-up sampling.

A further calcrete sampling program will commence as soon as practicable, both to broaden the coverage and to add detail around newly identified anomalies.  Concurrently, Thor is preparing permitting for an initial rotary air blast drilling program, also to be scheduled as soon as practicable.

OORABRA REEFS - BARITE - FLOURITE PROJECT (NT)

Previous sampling has confirmed significant barite mineralisation with assays up to 9.37% Ba returned. Significant fluorite mineralisation is also evident in the area and historically values range from 5.7% CaF₂ to 85% CaF₂ (Central Pacific Minerals). The ten ML's are surrounded by the Molyhil EL22349.

The proximity to the proposed infrastructure at Molyhil will allow the Oorabra Reefs mineralisation to be explored thoroughly and developed in the future.

HATCHES CREEK PROJECT

The Hatches Creek Project is comprised of two contiguous Exploration Licences, EL22912 and EL23463 which are located south east of Tennant Creek  in the central portion of the Northern Territory.

Previous sampling from old workings and abandoned stockpiles associated with historic mining covering the "Hatches Creek Wolfram Field" have returned significant tungsten and copper assays. Mining in the area occurred between 1913 and 1957 over multiple parallel quartz reefs within 16 distinct mineralised areas.

HARTS RANGE PROJECT

The Harts Range Project is comprised of four separate Exploration Licences, EL24734, EL24735, EL24736 and EL24765, which are located in the central part of the Northern Territory, south of the Plenty Highway.

During the year a helicopter-borne Airborne Electromagnetic Survey ("AEM") was conducted over the Harts Range exploration licence EL24735.  The survey consisted of 49 flight line traverses flown in a north south direction for a total of 314 line kilometres.

At least seven Electro-magnetic ("EM") anomalies with potential for future drilling have been identified (Figure 8). Modelling and interpretation of the data has resulted in one

priority 1 anomaly and six priority 2 anomalies sourced by potential bedrock conductors.

The conductors are detected at depth of less than 100m below surface.  The cluster of anomalies at the western end of the EL and in particular the priority 1 anomaly are associated with layered amphibolitic rocks and are considered prospective for nickel, copper, gold and platinum group element mineralisation.

Further work

It is proposed that a follow up ground EM survey be undertaken to better characterise and delineate the selected anomalies thus enabling the design of a drilling program in early 2011 to optimally target their sources.

The information in this report that relates to exploration results, mineral resources or ore reserves is based on information compiled by Stuart Till, who is a Member of The Australasian Institute of Mining and Metallurgy. The services of Mr Till are engaged by Thor Mining PLC on a contractual basis.  Stuart Till 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 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'.  Stuart Till consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The consolidated entity holds an interest in the following tenements:

Project	Tenement	Area kms2	Area ha.	Registered Holder	Company Interest
Bundey River	EL25378	313.75		Hale Energy Limited	100%
Curtis Pound	EL24823	361.90		Hale Energy Limited	100%
Hale River	EL24809	180.00		Hale Energy Limited	100%
Harts Range	EL24734	56.12		Hale Energy Limited	100%
Harts Range	EL24735	37.80		Hale Energy Limited	100%
Harts Range	EL24736	59.17		Hale Energy Limited	100%
Harts Range	EL24765	53.55		Hale Energy Limited	100%
Hatches Creek	EL22912	54.05		Hatches Creek Pty Ltd	100%
Hatches Creek	EL23463	9.36		Hatches Creek Pty Ltd	100%
Molyhil	EL22349	374.00		Molyhil Mining Pty Ltd	100%
Molyhil	EL24392	50.70		Molyhil Mining Pty Ltd	100%
Molyhil	ML23825		95.92	Molyhil Mining Pty Ltd	100%
Molyhil	ML24429		91.12	Molyhil Mining Pty Ltd	100%
Molyhil	ML25721		56.20	Molyhil Mining Pty Ltd	100%
Molyhil	MLS77		16.18	Molyhil Mining Pty Ltd	100%
Molyhil	MLS78		16.18	Molyhil Mining Pty Ltd	100%
Molyhil	MLS79		8.09	Molyhil Mining Pty Ltd	100%
Molyhil	MLS80		16.18	Molyhil Mining Pty Ltd	100%
Molyhil	MLS81		16.18	Molyhil Mining Pty Ltd	100%
Molyhil	MLS82		8.09	Molyhil Mining Pty Ltd	100%
Molyhil	MLS83		16.18	Molyhil Mining Pty Ltd	100%
Molyhil	MLS84		16.18	Molyhil Mining Pty Ltd	100%
Molyhil	MLS85		16.18	Molyhil Mining Pty Ltd	100%
Molyhil	MLS86		8.05	Molyhil Mining Pty Ltd	100%
Plenty Highway	EL24810	363.30		Hale Energy Limited	100%
Dundas Gold	EL63/872	41 blocks		TM Gold Pty Ltd	51%
Dundas Gold	EL63/1101	12 blocks		TM Gold Pty Ltd	51%
Dundas Gold	EL63/1102	51 blocks		TM Gold Pty Ltd	51%

Statement of Comprehensive Income
For the year ended 30 June 2010

		Group		Company
	Note	£'000	£'000	£'000	£'000
		2010	2009	2010	2009
Administrative expenses		(164)	(449)	-	(313)
Corporate expenses		(446)	(532)	(352)	(443)
Other expenses		0	(51)	-	-
Loss on disposal of exploration assets		(86)	-	-	-
Impairment of exploration assets		(1,016)	(254)	-	-
Operating Loss		(1,712)	(1,286)	(352)	(756)
Interest receivable		5	27	-	5
Other income		29	29	-	13
Currency losses		(84)	-	-	(1)
Loss before Taxation		(1,762)	(1,230)	(352)	(739)
Taxation		-	-	-	-
Loss for the period		(1,762)	(1,230)	(352)	(739)
Other comprehensive income:
Share based payment expense		-	10	-	10
Exchange differences on translating foreign operations		1,174	41	-	-
Other comprehensive income for the period, net of income tax		1,174	51	0	10
Total comprehensive income for the period		(588)	(1,179)	(352)	(729)
Basic loss per share	7	(0.79)p	(0.77)p

Balance Sheet at 30 June 2010

	Note	Consolidated		Company
		£'000	£'000	£'000	£'000
		2010	2009	2010	2009
ASSETS
Non-current assets
Intangible assets - deferred exploration costs	8	5,735	5,453	-	-
Investments in subsidiaries	9	-	-	1,977	1,977
Loans to subsidiaries	10	-	-	5,064	4,660
Mine development costs	11	1,251	1,299	-	-
Plant and equipment	12	28	77	-	-
Total non-current assets		7,014	6,829	7,041	6,637
Current assets
Cash and cash equivalents	22	35	198	4	144
Trade & other receivables	13	28	26	-	-
Prepayments		34	5	-	-
Total current assets		97	229	4	144
Total assets		7,111	7,058	7,045	6,781
LIABILITIES
Current liabilities
Trade and other payables	14	(162)	(96)	-	(14)
Provisions	15	-	(8)	-	-
Interest bearing liabilities	16	(7)	(16)	-	-
Total current liabilities		(169)	(120)	0	(14)
Non-current liabilities
Interest bearing liabilities	16	(13)	(51)	-	-
Total non-current liabilities		(13)	(51)	0	-
Total liabilities		(182)	(171)	0	(14)
Net assets		6,929	6,887	7,045	6,767
Equity
Issued share capital	17	729	514	729	514
Share premium		7,275	6,860	7,275	6,860
Foreign exchange reserve		2,658	1,484	-	-
Merger reserve		1,634	1,634	1,634	1,634
Option revaluation reserve	18	10	10	10	10
Retained losses		(5,377)	(3,615)	(2,603)	(2,251)
Total equity		6,929	6,887	7,045	6,767

These Financial Statements were approved by the Board of Directors on 21 September 2010 and were signed on its behalf by:

Michael Billing                                                                  Laurie Ackroyd

Executive Chairman                                                          Chief Financial Officer

Cash Flow Statement for the year ended 30 June 2010

	Group		Company
	£'000	£'000	£'000	£'000
	2010	2009	2010	2009
Cash flows from operating activities
Operating Loss	(1,712)	(1,286)	(352)	(757)
Decrease/(increase) in trade and other receivables	27	12	-	15
Increase/(decrease) in trade and other payables	(25)	(22)	(14)	(32)
Depreciation	26	28	-	1
Exploration expenditure written off	1,016	254	-	-
Loss on disposal of development equipment	86	-	-	-
Share options expensed	-	10	-	10
Unrealised exchange gain	-	(3)	-	-
Sundry income	29	29	-	13
Profit/(loss) on sale of fixed assets	(6)	(2)	-	-
Net cash outflow from operating activities	(559)	(980)	(366)	(750)
Cash flows from investing activities
Interest received	5	27	-	5
Refund of R & D grant relating to development	42	-	-	-
Proceeds on disposal of development assets	176	-	-	-
Proceeds from sale of fixed assets	41	16	-	-
Purchase of property, plant and equipment	-	(6)	-	-
Payments for mine development expenditure	(48)	(114)	-	-
Payments for exploration expenditure	(392)	(254)	-	-
Loans to controlled entities	-	-	(404)	(79)
Net cash outflow from investing activities	(176)	(331)	(404)	(74)
Cash flows from financing activities
Repayment of borrowings	(58)	(32)	-	-
Net issue of ordinary share capital	630	220	630	220
Net cash inflow from financing activities	572	188	630	220
Net decrease/(increase) in cash and cash equivalents	(163)	(1,123)	(140)	(604)
Cash and cash equivalents at beginning of period	198	1,321	144	748
Cash and cash equivalents at end of period	35	198	4	144

Statement of Changes in Equity

For the year ended 30 June 2010

	Issued share capital	Share premium	Retained earnings	Foreign Currency Translation Reserve	Merger Reserve	Share Based Payment Reserve	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Group
Balance at 1 July 2008	448	6,706	(3,247)	1,443	1,634	862	7,846
Loss for the period	-	-	(1,230)	-	-	-	(1,230)
Foreign currency translation reserve	-	-	-	41	-	-	41
Total comprehensive income / (loss) for the period	-	-	(1,230)	41	-	-	(1,189)
Transactions with owners in their capacity as owners
Share options expense/Options expired	-	-	862	-	-	(852)	10
Shares issued	66	173	-	-	-	-	239
Cost of shares issued		(19)	-	-	-	-	(19)
At 30 June 2009	514	6,860	(3,615)	1,484	1,634	10	6,887
At 1 July 2009	514	6,860	(3,615)	1,484	1,634	10	6,887
Loss for the period	-	-	(1,762)	-	-	-	(1,762)
Foreign currency translation reserve	-	-	-	1,174	-	-	1,174
Total comprehensive income / (loss) for the period	-	-	(1,762)	1,174	-	-	(588)
Transactions with owners in their capacity as owners
Shares issued	215	465	-	-	-	-	680
Cost of shares issued		(50)	-	-	-	-	(50)
At 30 JUNE 2010	729	7,275	(5,377)	2,658	1,634	10	6,929
COMPANY
Balance at 1 July 2008	448	6,706	(2,374)	-	1,634	862	7,276
Loss for the period	-	-	(739)	-	-	-	(739)
Total comprehensive loss for the period	-	-	(739)	-	-	-	(739)
Transactions with owners in their capacity as owners
Share options expense/Options expired	-	-	862	-	-	(852)	10
Shares issued	66	173	-	-	-	-	239
Cost of shares issued		(19)	-	-	-	-	(19)
At 30 June 2009	514	6,860	(2,251)	-	1,634	10	6,767
At 1 July 2009	514	6,860	(2,251)	-	1,634	10	6,767
Loss for the period	-	-	(352)	-	-	-	(352)
Total comprehensive loss for the period	-	-	(352)	-	-	-	(352)
Transactions with owners in their capacity as owners
Shares issued	215	465	-	-	-	-	680
Cost of shares issued		(50)	-	-	-	-	(50)
At 30 JUNE 2010	729	7,275	(2,603)	-	1,634	10	7,045

Notes to the Financial Statements for the period year to 30 June 2010

1.  The Directors are not recommending the payment of an ordinary share dividend.

2.  Loss per share on the net basis is calculated on a loss on ordinary activities after taxation of £1,762,000 (2009:£1,077,000) and on 222,694,602 (2009: 159,236,518) ordinary shares being the weighted average number of shares in issue and ranking for dividend during the period. No diluted loss per share is presented as the effect of exercise of outstanding options is to decrease the loss per share.

3.  The financial information set out in the final results announcement have been prepared in accordance with the requirements of the Companies Act 2006 and Article 4 of the IAS Regulation.

Results for the period ended 30 June 2010 are abridged from the 2010 Annual Report and Accounts, which received an unqualified auditor's report and will be filed with the Registrar of Companies following the Annual General Meeting on 25 November 2010.

4.  The Annual Report is expected to be posted to shareholders on or about 28 October 2010. Pursuant to the AIM Rules the Annual Report and Accounts will be available on the Company's web site, www.thormining.com, from 24 September 2010. Further copies will be available from the Company's registered office: 3^rd Floor, 55 Gower Street, London WC1E 6HQ.

5.  The Annual General Meeting of the Company will be held at 36 Old Jewry, London, EC2R 8DD England, on Thursday 25 November 2010 at 10.00 a.m.

Enquiries:

Mick Billing	[phone]	Thor Mining PLC	Chairman
Laurie Ackroyd	[phone]	Thor Mining PLC	CFO/Company Secretary
John Simpson	020 7776 6550	Daniel Stewart & Co plc	Nominated Adviser

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.

 

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