Last checked at 12 Oct 2011 10:43
THOR MINING PLC
Positive Progress with the feasibility study on the Molyhil Tungsten and Molybdenum Project in the NT
Dated: 12 October 2011
The Directors of Thor Mining PLC ("Thor" or the "Company") (AIM, ASX: THR, THRO) the Australian gold, tungsten and molybdenum explorer and developer, are pleased to announce that they have received the initial findings of the definitive feasibility study ("DFS") on the Molyhil tungsten and molybdenum project in Australia's Northern Territory ("Molyhil") and that these underline the economic rationale for the development of Molyhil.
Highlights
·; Estimate based on Pit Phase 1 of 1.4 million tonnes of ore;
·; Potential cash operating margins of A$98/tonne of ore processed;
·; Capital expenditure estimate of A$66million;
·; Revised ore reserve and mining plan in progress; and
·; DFS now estimated to be completed during November 2011.
Commenting on the publishing of the initial findings of the DFS, the Chairman of Thor, Mr Mick Billing, said today:
"These are very positive early outcomes and provide us with a great deal of confidence in the results of the feasibility study. While much more work is required, these cost estimates, along with current metal prices, are key to the study outcome.
The improving commodity price for tungsten, in particular, has added value to Molyhil, and the medium term prospects for tungsten are positive.
The DFS has been undertaken by the leading Australasian engineering firm, Proteus EPCM Engineers ("Proteus"), which has completed an estimate of capital & operating costs for the proposed mining and processing operation at Molyhil.
Key outcomes of the costs estimates include:
·; Capital costs ·; | A$66 million including contingency |
·; Operating costs ·; | A$79/tonne of ore mined and processed |
·; Annual throughput of ore ·; | 400,000 tonnes per annum |
Revenue assumptions
·; Revenue | A$177/tonne of ore mined and processed
|
·; Tonnes of ore mined and processed | 1.4 million tonnes ("Pit Phase 1")
|
·; Tungsten grade (WO3) | 0.60%
|
·; Tungsten price (APT) | US$460/mtu - discounted by 23%
|
·; Molybdenum grade (MoS2) | 0.13%
|
·; Molybdenum price | US$15.00/lb - discounted by 12%
|
·; Exchange rate | A$1:00 = US$0:95
|
Other potential enhancements to the project include up to 100,000 tonnes per annum of high grade magnetite which will be mined and extracted as part of the process of producing tungsten and molybdenum concentrates. The value of any contribution from this commodity is still being assessed.
Next Steps
The next phase of this DFS involves re-estimating the ore reserve, including use of the above calculated parameters and preparation of a new mining plan for Molyhil. The outcome of this work has some potential to vary both the total tonnage of ore to be mined from Pit Phase 1 and also the grade of that ore.
Following these steps the Molyhil financial model will be updated to reflect all the revisions to operating parameters.
The final results of this DFS are now expected to be completed in November 2011.
Enquiries:
Mick Billing | +61 (8) 7324 1935
| Thor Mining PLC | Chairman and CEO |
Allan Burchard | +61 (8) 7324 1935
| Thor Mining PLC | CFO/Company Secretary |
John Simpson | +44 (0)20 7776 6550
| Daniel Stewart & Co. Plc | Nominated Adviser |
Nick Emerson/ Renato Rufus | +44 (0) 1483 413500 | Simple Investments | Broker |
Alex Walters/ Emma Wigan | +44 (0) 7771713608 +44 (0) 207839 9260 | Cadogan PR | Financial PR |
Updates on the Company's activities are regularly posted on Thor's website www.thormining.com, which includes a facility to register to receive these updates by email.
About Molyhil
Molyhil lies in the centre of Australia, 220 kilometres North East of Alice Springs. The geology consists of a well-defined lode which is a magnetite skarn in granite. The mineralogy is fairly simple with scheelite and molybdenite. The lodes dip steeply east and the body of mineralisation is open down plunge to the south. The results of a definitive feasibility study unveiled in 2007 confirmed the viability of a 400,000 tonnes per annum mining and processing operation with attractive financial outcomes.
Summary of rounded resource estimates - 15.25% Fe2O3 Lower Cut
Classification | Resource (t) | MoS2 (%) | WO3 (%) | Fe2O3 (%) |
Measured | 540,000 | 0.24 | 0.33 | 29.4 |
Indicated | 2,300,000 | 0.18 | 0.38 | 27.9 |
Inferred | 900,000 | 0.20 | 0.15 | 27.0 |
Total | 3,750,000 | 0.19 | 0.32 | 28.0 |
The geological information in this report which relates to Exploration Results and Mineral Resources is based upon information compiled by Mr. J.J.G. Doepel, B.Sc. (Hons), Grad Dip For Sc, Dip Teach, Principal Geologist of Continental Resource Management Pty Ltd. Mr. Doepel is a member of the Australasian Institute of Mining and Metallurgy and has sufficient expertise and experience which is relevant to the style of mineralisation and to the type of deposit under consideration 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". Mr. Doepel consents to the inclusion in the report of the matters based on his information in the form and context in which they appear.