Thor Energy Regulatory News (THR)

31 January 2020

THOR MINING PLC

("THOR" OR THE "COMPANY")

QUARTERLY REPORT OCTOBER TO DECEMBER 2019

CORPORATE & FINANCE

The Company has had expressions of interest in acquiring the Spring Hill gold royalty entitlement, and will advise the market further with progress in due course.

The Company has, during and subsequent to the end of the quarter, sold potion of its shares in Hawkstone Mining Limited.

Mr Mick Billing, Executive Chairman, commented:

 "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. We believe this will significantly improve the production profile and economics of the Molyhil project, and also increase the overall attractiveness of the project to strategic investors and offtake partners. Discussions with these parties are ongoing."

"In addition, recent renewed interest by the Australian and US governments in critical minerals has resulted in increased support for projects of this nature, and we hope to be able to take advantage of this."

"Our ISR copper investments continue to show great promise with positive initial pump flow test results, and drill assays due shortly."

"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."

COPPER PROJECTS

KAPUNDA and MOONTA COPPER PROJECTS - SA

Thor holds a 25% equity interest in private Australian company, EnviroCopper Limited ("ECL"), along with rights to acquire a further 5% interest via investment of an additional A$0.4million. In turn ECL has entered into an agreement to earn, in two stages, up to 75% of the rights over metals which may be recovered via in-situ recovery ("ISR") contained in the Kapunda deposit from Australian listed company, Terramin Australia Limited ("Terramin" ASX: "TZN"), and rights to 75% of Moonta copper project comprising the northern portion of exploration licence EL5984 held by Andromeda Metals Limited (ASX:ADN).

Information about EnviroCopper Limited and its projects can be found on the EnviroCopper website:

https://www.envirocopper.com.au/

Kapunda

During 2018, the Australian Government Ministry for Science, Jobs and Innovation announced an offer to ECR for research funding of A$2,851,303, over a 30 month period, for the Kapunda In-Situ Copper and Gold Recovery Trial.

During the June 2019 quarter the Company advised of successful gold recovery from Kapunda core, in addition to copper recovery, using a CSIRO developed thiosulphate product, instead of, the more normal, cyanide.

Field pump tests of the flow of fluids through the deposit for successful ISR activities were conducted during the quarter. The program involved drilling three holes, in the southern portion of the deposit, with tests to measure connectivity, porosity and permeability then conducted. These tests are continuing, however interim results show good potential connectivity, and good interim copper values via portable X-Ray Fluorescence (XRF) determination, with (to be confirmed by laboratory assay) values of:

·; KPFRT01 intersected 66 metres @ 0.27% Cu including 5m @ 0.72% Cu and 11 metres @ 0.54% Cu (Pilot Hole);

·; KPFRT02 intersected from 8m 23m @ 0.49% Cu to end of hole

·; KPFRT03 intersected from 22m, 6m @ 0.47% Cu to end of hole.

The geochemical analysis results may vary from those obtained from XRF, and these are expected shortly, to confirm copper values, and the presence of any measurable gold. The released results can be accessed via the following link:

https://www.thormining.com/sites/thormining/media/pdf/asx-announcements/20191127-preliminary-drilling-results-at-kapunda-project.pdf

Other near-term activities at Kapunda include continued community liaison in respect of project activities, testwork on historical drill core to determine the optimum extraction agent (lixiviant) most suited to the Kapunda deposit and establishing appropriate parameters for future field trials.

Moonta

During the September quarter the Company advised that Enviro Copper Limited, on behalf of Environmental Metals Recovery, had completed a Mineral Resource Estimate (MRE) on several of the deposits at Moonta, based on substantial historical drilling. The results of this study was an Inferred Resource estimate of 66.1 million tonnes (MT) grading 0.17% copper (Cu), containing 114,000 tonnes of contained copper, at a cutoff grade of 0.05%Cu.

The full details of the resource announcement may be accessed via the following link:

https://www.asx.com.au/asxpdf/20190815/pdf/447hw9dbbkg94b.pdf

TUNGSTEN PROJECTS

Tungsten and Molybdenum Price Trends

Tungsten prices recovered during the early part of the December quarter and have held those gains into January 2020. There is an expectation of a further upward movement in the March 2020 quarter, after the traditional Chinese New Year slowdown, and any downward pressure from the Chinese Coronavirus had not translated into negative price movements to date. 

At the date of this report, the price of tungsten, per mtu of APT (Ammonium Para Tungstate) sits between US$230/mtu and US$240/mtu, while the molybdenum price sits at US$10.30/lb. 

Industry discussion continues to forecast tight supply conditions for tungsten concentrates and downstream products, with dominant supplier, China, enforcing improved environmental standards, and restricting the issue of new mine production licences. This implies a recovery in tungsten pricing in the near term. In addition, industry expectations are that molybdenum will be subject to supply constraints for several years.

MOLYHIL TUNGSTEN PROJECT - NT (100% Thor)

During the quarter, Thor continued discussions with various potential partners who have expressed interest, in either off-take, joint venture or debt finance arrangements. It is hoped that, on the back of improved tungsten prices, and the release of resource estimates at the nearby Bonya deposits, a favourable arrangement can be finalised in the near term.

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 (RC) drilling program was conducted at Bonya, generating sufficient assay information for maiden mineral resource estimates on the White Violet and Samarkand tungsten deposits.

A full background on the project is available on the Thor Mining website www.thormining.com/projects.

During the quarter, on 10 October 2019, the Company reported an updated Mineral resource estimate for the Molyhil deposit comprising Indicated and Inferred Mineral Resources of 4.7 million tonnes at 0.28% WO₃ (Tungsten trioxide), 0.14% Mo (Molybdenum), 0.05% Cu (Copper), and 18.0% Fe (Iron) above a cut-off grade of 0.12% WO3 equivalent.

The revised resource estimate increased contained WO₃ by 1.5% , and contained Mo by 9.3% compared with the previous estimate, and includes copper, which had not previously been reported since 2006.

An update to the Open Cut Ore Reserve, and the Definitive feasibility Study (DFS) has not been commissioned at this stage, however the directors may elect to revisit these with any improvement in the Bonya deposits resources classification beyond Inferred status.

Table A: Molyhil Summary JORC (2012) Mineral Resource Estimate - Reported 10 October, 2019

Notes:

·; Thor Mining PLC holds 100% equity interest in this project.

·; The Mineral Resource is reported at 0.12% WO3 equivalent cut-off and above 200mRL only on a dry, in-situ basis

·; The Company is not aware of any information or data which would materially affect the Mineral Resource, and all assumptions and key technical parameters relevant to the previous estimate remain unchanged.

Details of the resource announcement may be accessed via the following link:

https://www.asx.com.au/asxpdf/20191011/pdf/449d2szw7y7hzy.pdf 

While the Molyhil project is still largely a tungsten asset, it is increasingly developing as a polymetallic project, with projected revenues from Molyhil molybdenum production providing an additional approximately 50% to tungsten revenue, at current market pricing, and with now the likelihood of, quite valuable, additional credits from sale of copper concentrates from both Molyhil and also from the nearby Bonya deposits.

The Company has approaches in with several Australian Commonwealth government agencies each of which are mandated to assist companies with projects to develop and produce critical minerals, which includes tungsten. These agencies include; Export Finance Australia, Defence Export Facility, Critical Minerals Facilitation Office and the North Australian Infrastructure Facility. Further announcements will be made as appropriate.

Bonya (Tungsten, Copper, Vanadium) (40% Thor)

During the quarter, a follow up RC drilling program targeting an estimation of Mineral Resources for the White Violet and Samarkand deposits was carried out successfully intersecting high grade tungsten mineralisation along with some very useful copper grades. The program was funded by the JV participants in proportion to their respective equity. 

Results from this program have been released and can be accessed via the following link:

https://www.thormining.com/sites/thormining/media/pdf/asx-announcements/20200109-bonya---high-grade-tungsten--copper-assays.pdf 

This program generated additional supporting information, and extension, to the results of the first drill Bonya drill program (announced 24 June 2019) and allowed the preparation of a maiden resource estimate for the White Violet and Samarkand deposits on 29 January 2020.

https://www.thormining.com/sites/thormining/media/pdf/asx-announcements/20200129-mineral-resource-estimates---bonya-tungsten--copper.pdf 

The updated Mineral Resource Inventory for Bonya licence to date is shown in Table B and Table C below:

Table B: Bonya Tungsten Mineral Resources (announced 29 January 2020)

Notes:

·; 0.05% WO3 cut-off grade.

·; Totals may differ from the addition of columns due to rounding.

·; Thor Mining PLC holds 40% equity interest in this project.

·; The Company is not aware of any information or data which would materially affect this previously announced resource estimate, and all assumptions and technical parameters relevant to the estimate remain unchanged.

Table C: Bonya Copper Mineral Resources (announced 26 November 2018)

Notes:

·; 0.2% Cu cut-off grade.

·; Totals may differ from the addition of columns due to rounding.

·; Thor Mining PLC holds 40% equity interest in this project 

·; The Company is not aware of any information or data which would materially affect this previously announced resource estimate, and all assumptions and technical parameters relevant to the estimate remain unchanged.

Vanadium

During the quarter, Thor and Arafura Resources, released details of a study outlining the potential of the Jervois Vanadium Project, along with a proposed development plan. The study details can be accessed via the following link:

https://www.asx.com.au/asxpdf/20190703/pdf/446bv386tvk7fh.pdf

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.

A full background on the project is available on the Thor Mining website www.thormining.com/projects. 

The directors believe Pilot Mountain's resource is substantial on a global scale, and has potential for significant growth, in particular from the discovery in the August 2017 drilling program of an additional parallel zone of scheelite mineralisation at the Desert Scheelite deposit (Figure 6.).

The directors believe that the Desert Scheelite resource, which outcrops at surface at the western end for more than 400 metres, has potential to develop into a long term open pit mining operation which, when supplemented by higher grade mineralisation from the other deposits at Pilot Mountain, has the potential for a longer term profitable operation.

This significant tungsten resource is strategically located in the USA and tungsten has been confirmed by the US Department of the Interior as a critical mineral in 2018.

Locked cycle testwork on material from the Desert Scheelite deposit, was completed during the June quarter, resulting in production of a high grade scheelite concentrate grading 68% WO₃ with recovery of 73.6%. 

Environmental study parameters are being established with relevant agencies, and Infrastructure studies have also commenced.

During the quarter, two directors attended a mining investment event in New York USA, partly aimed at inviting investment interest in the Pilot Mountain project. A number of contacts have been made & follow up discussions with several are in progress.

OTHER PROJECTS

During the March 2019 quarter the Company advised of an agreement to acquire two private Australian companies (Hamersley Metals Pty Ltd, and Pilbara Gold Pty Ltd) with licences and applications in areas prospective for gold and uranium in Western Australia and the Northern Territory.

During the quarter, a field reconnaissance program incorporating soil and stream sediment sampling was conducted, on the Pilbara Gold licences, with very positive outcomes announced on 16 January 2020.

The results showed mineralisation in 17 of the 44 sites sampled. Of the mineralised samples, 15 contained gold, and two encountered nickel and chromium. The released results can be accessed via the following link:

https://www.thormining.com/sites/thormining/media/pdf/asx-announcements/20200117-asx-pilbara-gold-reconn-assays.pdf 

The principle focus of the stream sediment survey was the preliminary evaluation of the gold potential, and this appears to have been very successful. The encouraging nickel and chrome results achieved in the western part of E46/1262 were not expected. A subsequent literature search specific to the nickel potential on the tenement has highlighted the presence of a north south trending gossan with anomalous nickel (1018 ppm) previously mapped by the WA geological survey over a 1km strike length. The gossan occurs approximately 2km south east and in the same ultramafic unit as the recent positive stream sediment results. Because the gossan was not identified before the recent stream sediment survey, that gossan will not have been tested.

The Company now has a strong nickel target, as well as several very promising gold targets, for follow up field evaluation during the course of 2020.

During the quarter the Company also executed agreements with traditional owners in respect of several of the Hamersley Metals licence applications, thus enabling the grant of those licences - expected shortly.

GOLD PROJECTS

SPRING HILL GOLD PROJECT - NT (ROYALTY ENTITLEMENT)

In February 2017 Thor completed the A$3.5 million sale of its Spring Hill Gold project¹. The sale transaction 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.

¹Refer AIM announcement of 26 February 2016 and ASX announcement of 29 February 2016

No royalties were received during the quarter, however the owners of the Spring Hill project have advised that they are progressing mine permitting, and also that the treatment plant for toll processing the ore has been refurbished. They are hopeful of commencement of operations in the near term.

The Company has engaged with several royalty companies who have expressed interest in acquiring this royalty entitlement from Thor. Due diligence is in progress, and we been advised by one party that an indicative offer for the royalty will be made shortly.

INVESTMENTS

Thor holds an investment in Hawkstone Mining Limited, an ASX listed company (ASX: HWK) with a 100% Interest in the Big Sandy Lithium project in Arizona, USA.

During, and subsequent to the end of, the quarter the Company has sold portion of this interest on market. 

At the time of writing, Thor held just over 5.1 million Hawkstone shares which were trading, prior to entering into a trading halt on ASX, @ A$0.008/share.

Information about Hawkstone and its Big Sandy project can be found at Hawkstone's website, http://hawkstonemining.com.au/.

CORPORATE AND FINANCE

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.

Enquiries:

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.

About Thor Mining PLC

Thor Mining PLC (AIM, ASX: THR) is a resources company quoted on the AIM Market of the London Stock Exchange and on ASX in Australia.

Thor holds 100% of the advanced Molyhil tungsten project in the Northern Territory of Australia, for which an updated feasibility study in August 2018¹ suggested attractive returns.

Adjacent Molyhil, at Bonya, Thor holds a 40% interest in deposits of tungsten, copper, and vanadium, including an Inferred resource for the Bonya copper deposit².

Thor also holds 100% of the Pilot Mountain tungsten project in Nevada USA which has a JORC 2012 Indicated and Inferred Resources Estimate³ on 2 of the 4 known deposits. The US Department of the Interior has confirmed that tungsten, the primary resource mineral at Pilot Mountain, has been included in the final list of Critical Minerals 2018.

Thor is also acquiring up to a 60% interest Australian copper development company Environmental Copper Recovery SA Pty Ltd, which in turn holds rights to earn up to a 75% interest in the mineral rights and claims over the resource⁴ on the portion of the historic Kapunda copper mine in South Australia recoverable by way of in situ recovery.

Thor has an interest in Hawkstone Mining Limited, an Australian ASX listed company with a 100% Interest in a Lithium project in Arizona, USA.

Finally, Thor also holds a production royalty entitlement from the Spring Hill Gold project⁵ 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.

Notes

¹ Refer ASX and AIM announcement of 23 August 2018

² Refer ASX and AIM announcement of 26 November 2018

³ Refer AIM announcement of 13 December 2018 and ASX announcement of 14 December 2018

⁴ Refer AIM announcement of 10 February 2016 and ASX announcement of 12 February 2018

⁵ Refer AIM announcement of 26 February 2016 and ASX announcement of 29 February 2016