Thor is to buy an interest in tenements hosting outcropping tungsten deposits in the Bonya Creek area - along with a high grade copper deposit - approximately 30 kilometres from Molyhil in
Thor will issue AUD550,000 worth of shares to Rox with which they will acquire: a 40% interest in the licence which hosts 13 outcropping tungsten deposits and one copper deposit; and 100% interest in a licence considered prospective for copper exploration.
Thor Mining holds 100% of the tungsten project in Molyhil,
It is also acquiring 60% interest in the copper development company Environmental Copper Recovery SA Proprietary Ltd, which holds rights to acquire up to a 75% interest in the mineral rights and claims over the portion of the historic Kapunda copper mine in
Thor has a material interest in US Lithium Pty Ltd, an Australian private company with a 100% interest in a Lithium project in
The Australian miner also holds a production royalty entitlement from the Spring Hill Gold project in
Mick Billing, Executive Chairman, said: "This is outstanding news for the Molyhil development. The potential to increase both the scale and the life of the proposed Molyhil operation makes this acquisition compelling. The proximity of the Bonya deposits to Molyhil should add significantly to the projected economic returns, dovetailing with our commercialisation strategy for Molyhil.
"Historic drilling and trenching has confirmed tungsten mineralisation on several deposits at Bonya, however there has been no tungsten focussed exploration on the tenement in over 35 years. Provided some of these known prospects mature, along with others which we expect to develop, it is more than likely that Molyhil production life and throughput volume should increase substantially.
"The potential for small but high grade copper deposits is also very attractive with the proposed processing plant at Molyhil highly likely to be also suitable for copper flotation".
Shares in Thor Mining were up 0.4% to
Thor Energy (THR)