(Alliance News) - Thor Mining PLC said that it has begun drilling at the Wedding Bell and Radium Mountain projects in the Uravan Mineral Belt in south-west Colorado, US.
Thor Mining shares were down 16% at 0.50 pence on Monday in London.
The Australia-focused exploration and development company announced the start of a 2,000-metre drilling program targeting the prospective 'Salt Wash' horizon of sandstone-hosted uranium and vanadium mineralisation at shallow depths.
The drilling is designed to test extensions to high-grade uranium and vanadium mineralisation.
Managing Director Nicole Galloway Warland said that the commencement of the project was a "significant milestone" for Thor. In the context of increasing demand for nuclear energy, Galloway argued that "as Uranium prices rise and the US looks to secure domestic uranium supply, Thor is in an excellent position to advance this promising US asset".
The company explained that by the standards of historical mining in the Uravan District, the vanadium layer in question is relatively low in uranium content and usually ignored by miners.
It said that proposed drilling will test for any lateral continuation of mineralisation to the south, with holes extending down through the stratigraphy "to test for potential stacked mineralisation" in the Salt Wash Sandstone.
By Holly Beveridge; hollybeveridge@alliancenews.com
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Thor Energy (THR)