Positive drill results from Spring Hill

RNS Number : 2548U

Thor Mining PLC

20 December 2011

 

THOR MINING PLC

Positive drilling results from Spring Hill Gold Project

Northern Territory Australia

Dated: 20 December 2011

The Directors of Thor Mining PLC ("Thor" or the "Company") (AIM, ASX: THR, THRO), the exploration company focussed on gold and base metal projects and advancing tungsten-molybdenum projects in Australia are pleased to announce positive results of the 2011 diamond drilling program at the Spring Hill gold project in Australia's Northern Territory("Spring Hill").

Highlights

·      Potentially economic mineralisation extends up to 100 metres below historical resource drilling.

·      Good correlation between diamond drill holes & historical reverse circulation gold intersections in the upper levels.

·      Notable intersections include

·      SHDD001 3.6m @ 0.7 grams/tonne (g/t) gold (Au) from 191 metres,

·                   including: 0.6m @3.9g/t from 194 metres    

·      SHDD004 3.4m @9.7 g/t Au from 24.6 metres

·                   Including: 1.0m @31.4g/t from 25 metres,

·      SHDD005 4.7m @5.7g/t Au from 28.6 metres

·                   including: 0.7m @36.2g/t from 30.8 metres,

·                   5.0m @ 2.1g/t Au from 106 metres

·                   including: 0.1m @78.5g/t from 109.2 metres

·      SHDD007 20.0m @1.6g/t Au from 100 metres

·                   including: 3.1m @5.1g/t from 115 metres

Next Steps at Spring Hill

The 2012 program at Spring Hill includes:

·      Continue to drill test extensions to the existing resource.

·      Drill test known mineralisation nearby.

·      Scoping studies to assess the potential for accelerated mine development.

·      Drill test deeper "Callie style" target.

The Spring Hill gold deposit has not been drill-tested at depth greater than 150 metres; in places drilling extends only to 100 metres.  Mineralisation remains open at depth on almost all drilling sections.  The historic drilling is predominantly reverse circulation.

The 2011 diamond drilling program was designed both to confirm in drill core the mineralisation intersected at relatively shallow depths and contained within the historical resource estimate outline, and also to demonstrate the existence of extensions to greater depths.

The program originally designed to be 10 holes was shortened due to adverse drilling conditions and the early onset of the annual wet season which rendered continuation impractical. Six diamond holes were completed for a total of 1,574 metres

The results showed a good correlation with historical reverse circulation drilling intersections, supporting an increased level of confidence in the historical resource estimate and its potential for early development as a profitable mining operation without resource extension.

Additionally intersections of mineralisation below the historical estimated resource confirm the potential identified by the Company for extension of the resource at depth.

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

"These results provide confidence in the potential for early development of an open pit gold mining operation at Spring Hill, and also reinforces our belief that the resource may be substantially larger than initially estimated. More drilling is scheduled for 2012 along with studies to assess the potential for early commencement of mining operations."

About Spring Hill

In August 2011, Thor acquired a 25% interest in Spring Hill from Western Desert Resources Limited.  Thor holds rights to increase that equity to an 80% interest.

Spring Hill is situated approximately 150 kilometres south of Darwin in the Northern Territory.  A resource estimate (compliant with the 1999 JORC code) of 3.6 million tonnes @ 2.34g/t gold, containing 274,000oz gold was published in June 2003, and is tabled below.

Resource Estimate (Reported to ASX on28 April 2011)

(3.6 million tonnes @2.34g/t gold. Cutoff grade 1.0 g/t)

	Measured		Indicated		Inferred		Total
	Tonnes (Mt)	Grade g/t Au	Tonnes (Mt)	Grade g/t Au	Tonnes (Mt)	Grade  g/t Au	Tonnes (Mt)	Grade g/t Au	Contained oz Gold (K' oz)
Zone of Oxidation	-	-	1.32	2.16	-	-	1.32	2.16	92
Transition Zone	-	-	0.50	2.37	-	-	0.50	2.37	38
Unweathered Zone	-	-	1.82	2.47	-	-	1.82	2.47	144
Total	-	-	3.64	2.34	-	-	3.64	2.34	274

Estimate: McDonald Speijers, June 2003, Compliant with JORC Code September 1999

In additional to the reported resource estimate, a number of historical drill intersections (eg 16 metres @ 4.0g/t Au in SHRC181) approximately 1 kilometre north of the boundary of the resource warrant follow up drilling, scheduled for 2012.

Thor also believe that the Spring Hill gold deposit could be an indicator of much more substantial "Callie style" mineralisation at depth.  Consequently the Company is targeting a sheeted vein system deeper in the anticline, below the known Spring Hill mineralisation and which it believes has substantial potential. The concept is also scheduled for drill testing by Thor in 2012.

About "Callie"

The giant Callie gold mine whose production + resources total more than 5 million ounces of gold with a grade between 5 and 6g/t gold was discovered by a team led by Thor Non-Executive Director Trevor Ireland and is in the Tanami Inlier which lies a few hundred kilometres from Spring Hill to the south west.  The geological characteristic of the Tanami Inlier and the geological setting of the Callie gold deposit are closely comparable in many respects with those of the Pine Creek Inlier and the Spring Hill gold deposit, respectively.

Table 1: Summary of significant gold intercepts

Hole id	North Local/ GDA	East Local/ GDA	RL Local/ GDA	Azimuth	Dip	Hole Depth (m)	From (m	Interval (m)	True Width	Au g/t
SHDD001	9925.1	9886.9	1246.1	265	-62	276	191.0	3.6	2.7	0.70
	8480800.4	790091.8	259.2	including			194.0	0.6	0.4	3.91
							233.5	11.2	8.7	0.46
							251.5	4.3	3.3	0.56
SHDD002	9873	9874	1243.7	265	-74	264.1	0	7.0	6.1	0.36
	8494165.0	794138.0	267.0				11.0	7.1	6.2	0.32
							26.0	15.0	10.0	0.57
					including		38.0	1.0	0.7	2.11
							45.4	4.6	3.1	0.65
					including		45.4	0.6	0.4	2.49
							62.0	4.0	3.1	0.63
							111.6	3.4	2.5	1.87
					including		111.6	0.8	0.6	4.56
							204.3	1.5	0.8	1.97
SHDD003	9901.6	9890	1246.6	264	-63	276	100.0	2.0	1.1	0.58
	8480800.4	790091.8	259.7				128.0	1.7	0.9	1.35
							154.4	2.6	1.4	1.07
							247.0	6.0	5.2	0.66
SHDD004	9873	9874	1243.7	265	-60	204	0	8.0	7.2	0.51
	8494165.0	794138.0	267.0				12.0	6.0	5.4	0.64
							24.6	3.4	3.0	9.66
					including		25.0	1.0	0.8	31.37
							91.0	5.0	4.1	0.48
							184.0	3.0	2.8	0.74
SHDD005	9750	9878	1235	265	-68	301	28.6	4.7	2.5	5.74
	8494058.0	794199.0	258.0	including			30.8	0.7	0.4	36.2
							66.6	4.4	2.3	0.44
							89.0	1.0	0.5	5.22
					including		89.0	0.2	0.1	24.77
							106.0	5.0	2.6	2.06
					including		109.2	0.1	0.05	78.5
							125.0	3.0	1.6	0.79
							141.8	1.2	0.7	3.28
							154.6	1.4	0.8	0.50
							209.0	18.0	11.5	0.19
							259.0	2.0	1.2	0.44
							264.0	7.0	4.5	0.47
SHDD007	9518	9677	1185	266	-85	222	88.0	2.0	1.0	1.42
	8493760.0	794131.0	207.0	including			89.0	1.0	0.5	2.35
							100.0	20.0	9.4	1.58
					including		115.0	3.15	1.5	5.08
							122.7	5.9	2.6	1.00
							151.0	4.0	1.6	0.63
							161.0	4.0	1.6	0.50
							178.3	14.7	5.7	0.69
							201.0	7.0	2.7	0.89

Intersection selection criteria:

·     Intersections are calculated using 0.2 g/t gold cut-off with a minimum interval of 2 metres and maximum of 2 metres internal dilution.

·     High grade intersections (shown in bold) are calculated using 2 g/t gold cut-off with a maximum of 2 metres internal dilution.

·     'Interval' refers to the down-hole length of intersection.

·     'True width' is estimated from the outline of mineralisation interpreted on the relevant cross section.

Competent Persons Statement

The information in this report that relates to exploration results is based on information compiled by Trevor Ireland, who is a Member of The Australasian Institute of Mining and Metallurgy.  Mr Ireland is a director of Thor Mining PLC.  He has sufficient experience (at least five years) 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' and under AIM Rules.  Trevor Ireland 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
Allan Burchard	[phone]	Thor Mining PLC	CFO/Company Secretary
John Simpson	[phone]	Daniel Stewart & Co. plc	Nominated Adviser
Nick Emerson/ Renato Rufus	[phone]	Simple Investments	Broker
Alex Walters/ Emma Wigan	[phone] [phone]	Cadogan PR	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.

 

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