Thor Energy Share News (THR)

(Alliance News) - Thor Mining PLC on Friday said it is progressing on the development of its Australian projects despite "challenging" market conditions.

The AIM-listed exploration and development company said in the three months to the end of 2019 it has conducted field pump tests at the Kapunda deposit, located in south Australia.

The programme involved drilling three holes, in the southern portion of the deposit, with tests to measure connectivity, porosity and permeability then conducted, Thor said. These tests are continuing, however, interim results show good potential connectivity, and good interim copper values via portable x-ray fluorescence determination.

Thor holds a 25% equity interest in EnviroCopper Ltd, which has entered into an agreement with Terramin Australia Ltd to earn, in two stages, up to 75% of the rights over metals which may be recovered from the Kapunda deposit. In addition, EnviroCopper has rights to 75% of Moonta copper project located on the licence EL5984 - also in south Australia - held by Andromeda Metals Ltd.

Looking ahead, Thor said it plans continued community liaison in respect of project activities, testwork on historical drill core and establishing appropriate parameters for future field trials.

Turing to the Moonta project, the company said it was advised by EnviroCopper during the quarter that the mineral resource estimate was completed on several deposits. The study of the results showed an inferred resource estimate of 66.1 million tonnes grading 0.17% copper.

Elsewhere, Thor said it has continued discussions with potential partners who have expressed interest, in either off-take, joint venture or debt finance arrangements on the company's wholly owned Molyhil tungsten project in Australia.

Thor said it believes that "a favourable arrangement can be finalised in the near term" amid improved tungsten prices, and the release of resource estimates at the nearby Bonya deposits.

Adjacent to Molyhil, the Bonya tenements, in which Thor holds a 40% interest, host outcropping tungsten deposits, a copper resource and a vanadium deposit.

During the quarter, a reverse circulation drilling program was conducted at Bonya, Thor said, generating assay information for maiden mineral resource estimates on the White Violet and Samarkand tungsten deposits.

Finally, a field reconnaissance program incorporating soil and stream sediment sampling was conducted on the Pilbara gold licence, with "very positive" outcomes. The results showed mineralisation in 17 of the 44 sites sampled. Of the mineralised samples, 15 contained gold, and two encountered nickel and chromium.

This follows Thor's agreement to acquire two companies, Hamersley Metals Pty Ltd, and Pilbara Gold Pty Ltd, which hold licences in Western Australia and the Northern Territory.

"Challenging market conditions continue, however we continue to focus on adding to its value through resource upgrade at Molyhil, and also with the release of resource estimates at Bonya, potentially adding significantly to the life of the project, and also to the economic outcomes," said Executive Chair Mick Billing.

He added: "Finally, the initial sampling program in our 100% owned Pilbara project produced some outstanding initial results, and we look forward to follow up work on these."

Thor shares were trading 1.5% higher in London on Monday at 0.32 pence a share.

By Evelina Grecenko; evelinagrecenko@alliancenews.com

Copyright 2020 Alliance News Limited. All Rights Reserved.