Quarterly Activities Report to December 2015

RNS Number : 3800N

Thor Mining PLC

29 January 2016

 

AIM: THR

58 Galway Avenue

Marleston, SA, 5033

Australia

29 January 2016

Thor Mining PLC

Quarterly Report for the period ended 31 December 2015

The Directors of Thor Mining PLC ("Thor" or the "Company") (AIM, ASX: THR) the Australian tungsten and gold explorer and developer, today lodge the quarterly report for the period ended 31 December 2015.  It is 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")

·     Completion of the acquisition of the remaining 49% project interest for A$310,000, including cash of $210,000

·     Memorandum of Understanding ("MOU") to sell 100% of Spring Hill NT project for A$3.5 million cash plus royalty

TUNGSTEN AND MOLBDENUM

Molyhil, NT

·     Tungsten and molybdenum prices remain depressed

Pilot Mountain, Nevada USA

·     Exploration scheduled pending availability of funds

Outlook for March Quarter 2016

·     Completion of sale agreements and disposal of initial 60% interest in the Spring Hill Gold Project for A$2.0 million

·     Continued discussions to secure project finance for the Molyhil Tungsten-Molybdenum Project

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

·     Planning for exploration phase on deposits with previous multiple mineralised intersections at the Pilot Mountain Tungsten Project

Executive Chairman of Thor Mining commented:

"Capital markets for junior resource companies remain extremely tight and we are therefore very pleased with the agreement to sell the Spring Hill project on terms which will considerably strengthen our financial position.

"Thor is, at the core, a tungsten business, and while very low commodity prices make project finance for the Molyhil project challenging, the low capital and operating cost estimates stand Thor in good stead and the board are confident that finance will be secured in the medium term."

SPRING HILL GOLD PROJECT, NT

In October 2015, Thor completed the acquisition of the remaining 49% equity interest in Spring Hill from WDR Gold Pty Ltd, a subsidiary entity of Western Desert Resources Limited, which is presently in Liquidation.

The terms of the acquisition provided for a cash payment of A$210,000, plus the issue of Thor CDI's to a value of A$100,000

Subsequently, in December 2015, Thor announced the signing of an option agreement to sell 100% of the Spring Hill project to PC Gold Pty Ltd ("PC Gold"), 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

The Spring Hill gold project is located on pastoral leasehold land approximately 150 km south east of Darwin in Australia's Northern Territory.  The location is served by all-weather access and is in close proximity to the sealed arterial Stuart Highway, north-south rail, gas pipeline and trunk powerlines.

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

MOLYHIL TUNGSTEN-MOLYBDENUM PROJECT, NT (100% Thor)

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

Subsequently, the Company appointed advisors to introduce parties and lead discussions with a view to securing the project development finance for the Molyhil project.

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. However, while it is hoped that appropriate financing will be secured in the near-term, it is possible that a recovery in international tungsten prices may be required for project financing to proceed.

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

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.

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

DUNDAS GOLD PROJECT, WESTERN AUSTRALIA (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.

CORPORATE AND FINANCE

During the quarter Thor held its Annual General Meeting of shareholders in London with all resolutions passed without amendment.

In 2014, the Company entered into share subscription agreements and equity swap agreements with Lanstead Capital LP ("Lanstead").  These agreements expired in January 2016.

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. 

THOR MINING PLC

Registered Numbers:

United Kingdom 05 276 414

Australia 121 117 673

Registered Office:

58 Galway Avenue

MARLESTON, SA, 5033

Australia

Ph: [phone]

Fx: [phone]

Email:

[e-mail] 

Website:

www.thormining.com 

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

ASX Listings:
Shares: THR

AIM Listings:
Shares: THR

Directors:

Michael Billing

Michael Ashton

Gregory Durack

Trevor Ireland

David Thomas

 

END

 

 

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