Last checked at 28 Apr 2017 07:00
28 April 2017
THOR MINING PLC
QUARTERLY REPORT JANUARY TO MARCH 2017
Highlights | Outlook for June Quarter 2017 | ||
TUNGSTEN & MOLYBDENUM | |||
Pilot Mountain, Nevada USA · Drill program confirms Garnet deposit & extends Desert Scheelite · Unexpected zinc mineralisation at Garnet
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· Initial mineral resource estimate for Garnet deposit
· Planning for follow up drill programme
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Molyhil NT Australia · Awaiting grant of application for adjoining exploration tenement |
· Upon tenement grant, re-process magnetic data from geophysical survey prior to establishing drill targets |
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GOLD Dundas WA · Detailed planning for drill program to test gold anomalies
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· Drill program scheduled to test attractive anomalies |
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FINANCE During February the Company received A$1.5 million as the 2nd tranche of proceeds from the sale of its Spring Hill Gold project.
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Commenting, Mr Mick Billing, Executive Chairman of Thor Mining, said:
"A very good period for the Company and its investors. The very positive results at Pilot Mountain demonstrate the significant and increasing value of this project and we are very keen to see the outcome of the maiden resource estimate, now commissioned, for the Garnet deposit. When added to the existing Desert Scheelite resource estimate we anticipate building a substantial resource inventory, with ample capacity for significant further growth.
"At Desert Scheelite we have extended the known mineralisation to the east, and have exciting targets for higher grade eastern extensions at depth along with potential for parallel zones immediately to the north."
TUNGSTEN PROJECTS
PILOT MOUNTAIN TUNGSTEN PROJECT - NEVADA USA (100% Thor)
Thor's Pilot Mountain Project, acquired in 2014, is located approximately 200 kilometres south of the city of Reno and 20 kilometres east of the town of Mina, located on US Highway 95. The Pilot Mountain Project is comprised of four tungsten deposits: Desert Scheelite, Gunmetal, Garnet and Good Hope. All of these deposits are in close proximity (~three kilometres) to each other and have been subjected to small-scale mining activities at various times during the 20th century. In December 2014, Thor outlined a proposed exploration and development plan with the objective of upgrading the knowledge and status of the mineralisation of these deposits where historical drilling outlined potentially economic mineralisation. A full background on the project is available on the Thor Mining website www.thormining.com/projects.
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During the March quarter the Company successfully completed a program to drill test both the Garnet prospect and the potential eastern extension of the Desert Scheelite deposit.
Highlights: · Strong correlation with historical tungsten assays at the Garnet deposit is likely to allow the preparation of a maiden resource estimate for Garnet. · Zinc mineralisation intersected at Garnet, not reported by previous explorers. · Confirmation of mineralised extension to the Desert Scheelite resource to the east, with higher grade targets at depth. Following these very positive results, particularly at the Garnet deposit, a review has been commissioned with the objective of producing a mineral resource estimate, expected in the June quarter.
Garnet deposit results (reported 21 April 2017) Six holes were drilled to validate historic drill data from Union Carbide Corp drilling, undertaken in the 1970's. Significant intercepts include: Hole 17GRRC01 3.8m @ 0.31%WO3 and 2.2%Zn from 4.6m 3.8m @ 0.72%WO3 and 1.6%Zn from 45.0m 5.3m @ 1.0%WO3 and 0.9%Zn from 83.1m Hole 17GRRC06 6.1m @ 0.24%WO3 from 16.5m 14.5m @ 0.31%WO3, 0.3%Zn from 25.9m
Drill intercepts from Garnet were generally consistent with the historic data, although zinc mineralisation, intersected in each hole, has not previously been reported. The mineralised intercepts at Garnet commenced at very shallow depths with each band of mineralisation substantially flat lying. A future mining scenario at Garnet is therefore likely to comprise a very low cost open pit start-up operation. Estimation of a maiden resource for the project will be undertaken by an independent consultant over the next few weeks.
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Desert Scheelite deposit results (reported 21 April 2017)
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Table 1: Desert Scheelite Resource Summary 2014, (JORC 2012), announced 10 June 2014.
Desert Scheelite | Resource | WO3 | Ag | Cu | |||
Tonnes | Grade % | Contained metal (t) | Grade g/t | Contained metal (t) | Grade % | Contained metal (t) | |
Indicated | 6,090,000 | 0.31 | 18,900 | 24.2 | 150 | 0.16 | 10,000 |
Inferred | 700,000 | 0.30 | 2,100 | 9.1 | 10 | 0.24 | 2,000 |
Total | 6,790,000 | 0.31 | 21,000 | 22.8 | 160 | 0.17 | 12,000 |
Notes
· Thor Mining PLC holds 100% equity interest in this resource.
· Minor rounding errors may occur in compiled totals.
Drilling at Desert Scheelite targeted potential up dip extensions of mineralisation from the high-grade intersection of DSDD015.
The geology of the area remains consistent with strong skarn development at the near vertical contact between the Luning Formation calcareous sediments and the younger intruded quartz monzonite.
The results from the holes drilled in 2017 have confirmed extensions to the known mineralisation, and that there is still a strong prospect of high grades to the east and down dip.
Reprocessing of data from the geophysical survey, conducted in 2013, indicates strong potential for the Desert Scheelite mineralisation to extend several hundred metres further eastward of the DSDD015 position. In addition, potential also exists for additional mineralisation to the hanging wall (north) of the known Desert Scheelite lode. This may present as parallel lodes of mineralisation as is known to exist at the Garnet and GunMetal deposits.
MOLYHIL TUNGSTEN PROJECT - NT (100% Thor)
In January 2015, Thor announced an updated feasibility study for its wholly-owned Molyhil tungsten project, with robust outcomes.
The project development cost for Molyhil is estimated at A$64 million, or US$48 million at current exchange rates. Of this, approximately US$10 million is for equipment, for which equipment or leasing finance could be secured, thus reducing the project finance requirement to below US$40 million.
Molyhil has a forecast 12 month construction schedule from development commencement to first production.
A full background on the project is available on the Thor Mining website www.thormining.com/projects.
During the December 2016 quarter, on the basis of highly encouraging 2016 results from the exploration drilling program to test for additional tungsten mineralisation satellite to the Company's existing Molyhil tungsten deposit in the Northern Territory, the Company applied for an additional Exploration Licence ("EL") area to secure prospective ground contiguous with the Gap Track prospect to the south of existing tenements.
If successfully granted, the new EL area will facilitate exploration access to a further 68 square kilometres of ground highly prospective for further Molyhil style skarn hosted tungsten deposits. Subject to the EL being granted, first steps will comprise reprocessing the latest aero-magnetic data to prioritise targets for drill testing.
DUNDAS GOLD PROJECT - WA (60% THOR)
The Dundas gold project is located approximately 100 kilometres east-south-east of Norseman in Western Australia. The tenements are in close proximity to the sealed arterial Eyre Highway, providing all-weather access to the project area. Within the tenements, access is provided by bulldozed tracks. It is also approximately 250 kilometres south of the major regional mining centre of Kalgoorlie.
A full background on the project is available on the Thor Mining website www.thormining.com/projects.
A significant calcrete gold geochemical anomaly identified from infill sampling over two areas, based on previous BHP calcrete sampling data, has been permitted for drilling, and an Air Core drilling program is scheduled for the June quarter of 2017.
CORPORATE AND FINANCE
During the quarter, a placement to raise UK£262,500 from sophisticated investors was announced.
In February Thor received A$1.5 million as the 2nd tranche of proceeds from the sale of its Spring Hill Gold project.
The sale transaction ¹ carries an ongoing residual royalty of:
· A$6 per ounce of gold produced from the Spring Hill tenements where the gold produced is sold for up to A$1,500 per ounce; and
· A$14 per ounce of gold produced from the Spring Hill tenements where the gold produced is sold for amounts over A$1,500 per ounce. Gold is currently trading for approximately A$1,690/oz, and has remained above A$1,500 per ounce for the last 15 months.
¹Refer to the AIM announcement of 26 February 2016
Enquiries:
Mick Billing | +61 (8) 7324 1935 | Thor Mining PLC | Executive Chairman |
Ray Ridge | +61 (8) 7324 1935
| Thor Mining PLC | CFO/Company Secretary |
Colin Aaronson/ Daniel Bush/ Richard Tonthat | +44 (0) 207 383 5100
| Grant Thornton UK LLP
| Nominated Adviser |
Elliot Hance | +44 (0) 207382 8300 | Beaufort Securities Limited | Joint Broker |
Nick Emerson / Andy Thacker | +44 (0) 1483 413 500 | SI Capital Ltd | Joint Broker |
Tim Blythe/ Camilla Horsfall | +44 (0) 207 138 3222 | Blytheweigh | 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, and on the Company's twitter page @ThorMining.
The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
Competent Person's Report
The information in this report that relates to exploration results, and exploration targets, is based on information compiled by Richard Bradey, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Bradey is an employee of Thor Mining PLC. He has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Richard Bradey consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
+Rule 5.5
Appendix 5B
Mining exploration entity and oil and gas exploration entity quarterly report
Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13, 01/09/16
Name of entity | ||
THOR MINING PLC | ||
ABN | Quarter ended ("current quarter") | |
121 117 673 | 31 March 2017 | |
Consolidated statement of cash flows | Current quarter $A'000 | Year to date (9 months)$A'000 | ||
1. | Cash flows from operating activities | - | - | |
1.1 | Receipts from customers | |||
1.2 | Payments for | (186) | (584) | |
(a) exploration & evaluation | ||||
(b) development | - | - | ||
(c) production | - | - | ||
(d) staff costs | (43) | (55) | ||
(e) administration and corporate costs | (374) | (862) | ||
1.3 | Dividends received (see note 3) | - | - | |
1.4 | Interest received | - | - | |
1.5 | Interest and other costs of finance paid | - | - | |
1.6 | Income taxes paid | - | - | |
1.7 | Research and development refunds | - | - | |
1.8 | Other (provide details if material) | - | - | |
1.9 | Net cash from / (used in) operating activities | (603) | (1,501) | |
2. | Cash flows from investing activities | - | (4) | |
2.1 | Payments to acquire: | |||
(a) property, plant and equipment | ||||
(b) tenements (see item 10) | - | - | ||
(c) investments | - | - | ||
(d) other non-current assets | - | - | ||
2.2 | Proceeds from the disposal of: | - | - | |
(a) property, plant and equipment | ||||
(b) tenements (see item 10) | 1,450 | 1,450 | ||
(c) investments | - | - | ||
(d) other non-current assets | - | 7 | ||
2.3 | Cash flows from loans to other entities | - | - | |
2.4 | Dividends received (see note 3) | - | - | |
2.5 | Other (provide details if material) | - | - | |
2.6 | Net cash from / (used in) investing activities | 1,450 | 1,453 | |
3. | Cash flows from financing activities | 477 | 1,087 | |
3.1 | Proceeds from issues of shares | |||
3.2 | Proceeds from issue of convertible notes | |||
3.3 | Proceeds from exercise of share options | |||
3.4 | Transaction costs related to issues of shares, convertible notes or options | |||
3.5 | Proceeds from borrowings | - | 30 | |
3.6 | Repayment of borrowings | (72) | (83) | |
3.7 | Transaction costs related to loans and borrowings | |||
3.8 | Dividends paid | |||
3.9 | Other (provide details if material) | |||
3.10 | Net cash from / (used in) financing activities | 405 | 1,034 | |
4. | Net increase / (decrease) in cash and cash equivalents for the period | 23 | 307 | |
4.1 | Cash and cash equivalents at beginning of period | |||
4.2 | Net cash from / (used in) operating activities (item 1.9 above) | (603) | (1,501) | |
4.3 | Net cash from / (used in) investing activities (item 2.6 above) | 1,450 | 1,453 | |
4.4 | Net cash from / (used in) financing activities (item 3.10 above) | 405 | 1,034 | |
4.5 | Effect of movement in exchange rates on cash held | (9) | (27) | |
4.6 | Cash and cash equivalents at end of period | 1,266 | 1,266 | |
5. | Reconciliation of cash and cash equivalentsat the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts | Current quarter$A'000 | Previous quarter$A'000 |
5.1 | Bank balances | 1,266 | 23 |
5.2 | Call deposits | ||
5.3 | Bank overdrafts | ||
5.4 | Other (provide details) | ||
5.5 | Cash and cash equivalents at end of quarter (should equal item 4.6 above) | 1,266 | 23 |
6. | Payments to directors of the entity and their associates | Current quarter$A'000 |
6.1 | Aggregate amount of payments to these parties included in item 1.2 | 73 |
6.2 | Aggregate amount of cash flow from loans to these parties included in item 2.3 | - |
6.3 | Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2 | |
7. | Payments to related entities of the entity and their associates | Current quarter$A'000 |
7.1 | Aggregate amount of payments to these parties included in item 1.2 | - |
7.2 | Aggregate amount of cash flow from loans to these parties included in item 2.3 | - |
7.3 | Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2 | |
8. | Financing facilities availableAdd notes as necessary for an understanding of the position | Total facility amount at quarter end$A'000 | Amount drawn at quarter end$A'000 | |
8.1 | Loan facilities | |||
8.2 | Credit standby arrangements | |||
8.3 | Other (please specify) | 50 | 50 | |
8.4 | Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well. | |||
Directors, and former Directors, had advanced funds to the Company on an unsecured and interest free basis. During the quarter ended 31 March 2017, $72,400 was repaid by the Company, leaving $50,000 outstanding. | ||||
9. | Estimated cash outflows for next quarter | $A'000 | ||
9.1 | Exploration and evaluation | (407) | ||
9.2 | Development | - | ||
9.3 | Production | - | ||
9.4 | Staff costs | (10) | ||
9.5 | Administration and corporate costs | (271) | ||
9.6 | Other (provide details if material) | - | ||
9.7 | Total estimated cash outflows | (688) | ||
10. | Changes in tenements(items 2.1(b) and 2.2(b) above) | Tenement reference and location | Nature of interest | Interest at beginning of quarter | Interest at end of quarter |
10.1 | Interests in mining tenements and petroleum tenements lapsed, relinquished or reduced | The proceeds of sale noted at 2.2(b) was the final instalment for the Sale of Spring Hill sold in 2016. The tenements had previously been transferred to the purchaser. | |||
10.2 | Interests in mining tenements and petroleum tenements acquired or increased |
Compliance statement
1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.
2 This statement gives a true and fair view of the matters disclosed.
Sign here: ........ .................................................... Date: .......28 April 2017............
(Company secretary)
Print name: ..Ray Ridge.........................................
Notes
1. The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.
2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.
3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.