Quarterly Report

RNS Number : 7764W

Thor Mining PLC

29 April 2016

 

AIM: THR

58 Galway Avenue

Marleston, SA, 5033

Australia

29 April 2016

Quarterly Report for the period ended 31 March 2016

The Directors of Thor Mining PLC ("Thor" or the "Company") (AIM, ASX: THR) the Australian tungsten and gold explorer and developer, today announce the quarterly report for the period ended 31 March 2016.  It has also been released today with the Australian Securities Exchange (ASX) as required by the listing rules of ASX.

Highlights

GOLD

Spring Hill, Northern Territory ("NT")

·      Agreement to sell 100% of Spring Hill project for A$3.5 million plus royalty

·      A$2.0 million has been received for initial 60% interest

TUNGSTEN & MOLYBDENUM - Core projects now free of debt

Molyhil NT

·      Tungsten prices have increased by 20% from the preceding quarter

Pilot Mountain, Nevada USA

·      Final payment of outstanding loans which were secured against this project

·      Exploration scheduled pending availability of funds

Outlook for June Quarter 2016

·      Discussions to bring forward the receipt of  A$1.5 million consideration for the remaining 40% interest in Spring Hill

·      Continuing discussions to secure project finance for the Molyhil project

·      Ongoing discussions for balance of concentrate production off-take at Molyhil

·      At Pilot Mountain, planning has begun for exploration phase on deposits with previous multiple mineralised intersections

Commenting, Mr Mick Billing, Executive Chairman of Thor Mining, said:

"The initial 60% sale of our Spring Hill Gold project has allowed us to repay the debt secured against our core tungsten projects and as well as against Spring Hill and we are very pleased that our core tungsten projects are now free of debt.  Capital is still very tight however as two-thirds of the net proceeds were applied to discharge those loans.  We are in active discussion with a number of parties aiming to agree terms to bring forward the payment of the residual Spring Hill consideration of A$1.5 million.

"The improvement in the tungsten price is a welcome development and we note recent analyst comments expecting continued improvement, which bodes well, as we look to advance financing for Molyhil".

SPRING HILL GOLD PROJECT - NT

In February 2016, Thor executed an agreement to sell 100% of the Spring Hill project to private company, PC Gold Pty Ltd, subject to due diligence and financing, for:

·        A$2.0 million payable in cash, for a 60% interest, and 100% management control; and

·        A$1.5 million payable in cash, within 12 months for the remaining 40% interest.

 

In addition, following completion of the acquisition of the 100% stake, PC Gold will pay Thor a royalty of:

·      A$6.00 per ounce of gold produced from the Spring Hill tenements where the gold produced is sold for up to A$1,500 per ounce; and

·      A$14 per ounce of gold produced from the Spring Hill tenements where the gold produced is sold for amounts over A$1,500 per ounce.

TUNGSTEN PROJECTS

Tungsten & Molybdenum Price Trends

Tungsten spot trade pricing has improved by approximately 20% since a low point in mid-January in a welcome change from the previous trend.  Industry sources are predicting further price gains in the medium term.

MOLYHIL TUNGSTEN PROJECT - NT (100% Thor)

In January 2015, Thor announced an updated feasibility study for its wholly-owned Molyhil tungsten project, with robust outcomes.

The Company subsequently appointed advisors to introduce parties and lead discussions with a view to securing project development finance.

The project development cost for Molyhil is estimated at A$64 million, or US$45 million at current exchange rates.

Several entities are currently reviewing the project. A continued recovery in international tungsten prices should assist with the project financing.

Subject to securing the necessary project finance, the Molyhil project has a 12 month construction schedule.

Following the receipt of the first tranche of proceeds from the sale of the Spring Hill project, the loan secured, in part, against Molyhil has been discharged and the project is now unencumbered.

A full background on the project is available on the Thor Mining website.

PILOT MOUNTAIN TUNGSTEN PROJECT - NEVADA USA (100% Thor

Thor's Pilot Mountain Project, acquired in 2014, is located approximately 200 kilometres south of the city of Reno and 20 kilometres east of the town of Mina located on US Highway 95.

The Pilot Mountain Project is comprised of four tungsten deposits: Desert Scheelite, Gunmetal, Garnet and Good Hope.  All are in close proximity (~3 kilometres) of each other and have been subjected to small-scale mining activities at various times during the 20th century.

In December 2014, Thor outlined a proposed exploration development plan with the objective of upgrading the knowledge and status of the mineralisation of these deposits where historical drilling outlined potentially economic mineralisation.

Following the receipt of the first tranche of proceeds from the sale of the Spring Hill project, the residual loans secured against Pilot Mountain have been discharged and the project is now unencumbered.

A full background on the project is available on the Thor Mining website.

DUNDAS GOLD PROJECT - WA (60% THOR)

The Dundas gold project is located approximately 100 kilometres east-south-east of Norseman in Western Australia.  The tenements are in close proximity to the sealed arterial Eyre Highway, providing all-weather access to the project area.  Within the tenements, access is provided by bulldozed tracks. It is also approximately 250 kilometres south of the major regional mining centre of Kalgoorlie.

Targets for drilling at Dundas have been identified. However, prioritising expenditure on other projects has prevented progress on further exploration activities.

A full background on the project is available on the Thor Mining website.

Yours faithfully,

THOR MINING PLC

Mick Billing

Executive Chairman

Competent Person's Report

The information in this report that relates to exploration results is based on information compiled by Richard Bradey, who holds a BSc in applied geology and an MSc in natural resource management and who is a Member of The Australasian Institute of Mining and Metallurgy.  Mr Bradey is an employee of Thor Mining PLC.  He 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'.  Richard Bradey consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. 

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
Gerry Beaney/ David Hignell/ John Howes	[phone]	Northland Capital Partners Limited	Broker
Tim Blythe/  Camilla Horsfall	[phone]	Blytheweigh	Financial PR

 

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