Thor Mining's projects could lead to gold and tungsten mineralisation Fri, 29th Jul 2016 13:53 (ShareCast News) - Australia's Thor Mining plans to drill near its Molyhil mine in the Northern Territory, which could lead to tungsten mineralisation, in one of many new projects for the AIM-listed company.
The company plans to drill adjacent to the Molyhil mine in the Northern Territory in Australia to test for tungsten at a cost of about $48,m. About $10m will be used for equipment, which equipment or leasing finance could be secured. This will reduce the cost to below $40m.
The company said there are ongoing discussions to secure finance and for balance of concentrate production off-take for the Molyhil project.
Executive chairman Mick Billing said: "Scheduling a drilling program to test magnetic anomalies very close to Molyhil may, if successful, eventually lead to the delineation of additions to the Molyhil mining inventory.
"The objective is to extend the operating life of the project, but also to provide the opportunity to reduce operating costs via increased production.
"The initial drill programme is designed to, at a modest cost, drill just below the alluvial cover, into bedrock and test material for tungsten mineralisation. If successful, further deeper drilling into that mineralisation will be required."
Seasonal factory shutdowns, in the northern hemisphere this summer resulted in commodity prices losing part of their recent gains, as demand contracted temporarily. Industry commentators predicted that price will strengthen, particularly for tungsten, in the medium term.
The company's other tungsten mine in Pilot Mountain in Nevada, US, is pending funds for exploration. Planning began for the exploration phase on deposits with previous multiple mineralised intersections.
The Dundas gold mine project in Western Australia had exploration targets identified but other projects which were prioritised prevented progress in exploration activities.
Thor Mining, during the first quarter ended 30 June, also raised £300,000 from investors.
Shares in Thor Mining were up 8.99% to 0.0327% at 1449 BST.
TUNGSTEN & MOLYBDENUM - Core projects now free of debt
· Assessment of drill targets adjacent to Molyhil
Pilot Mountain, Nevada USA
· Exploration scheduled pending availability of funds
Outlook for September Quarter 2016
· Proposal to drill test tungsten targets adjacent to Molyhil
· 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
The Company has during much of 2016 conducted assessments of new project opportunities. The review process has identified several which have potential for near term development with attractive capital and operating cost structures, and these are being investigated and evaluated further.
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