THOR ENERGY PLC

Regulatory Filings • Oct 19, 2016

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RNS Number : 9334M

Thor Mining PLC

19 October 2016

19 October 2016

THOR MINING PLC

MOLYHIL TUNGSTEN PROJECT - ASSAYS POINT TO NEW TUNGSTEN DEPOSITS

The Board of Thor Mining Plc ("Thor" or the "Company") (AIM, ASX: THR) is pleased to provide an update regarding positive exploration work conducted at the Company's wholly owned Tungsten-Molybdenum Molyhil Project ("Molyhil") situated in the Northern Territory of Australia.

Highlights

·        In January 2015 Thor produced an updated feasibility study in respect of Molyhil demonstrating a post tax NPV of A$67m (UK£42m) further details of which are provided on the Company's website;

·        Thor is now proactively building its knowledge of the Molyhil project with a view to further enhancing the quality of the existing resource/reserve, increasing the total amount confirmed Tungsten-Molybdenum mineralisation and further improving efficiency with regard to future planned mine activities;

·        One important element of this work has been to identify new areas of Tungsten mineralisation in and around the project, which is the subject of the positive findings in this market announcement;

·        Laboratory assay results have reinforced the prospectivity of several targets following the completion of the exploration drilling program to test for additional tungsten mineralisation satellite to the Company's existing Molyhil tungsten deposit;

·        Prospective host rocks (skarn & calc-silicate, with proximal granite) are confirmed to exist under shallow alluvial cover in each of three prospects tested (Cattle Track, Gap Track, and Think Big);

·        In addition the Company's work has identified elevated tungsten assays at Cattle Track and Gap Track prospects;

·        Finally, the exploration programme has confirmed elevated titanium assays at the Think Big prospect.

Mr Mick Billing, Executive Chairman, commented: 

"I am pleased to report further material progress in our campaign to further enhance the value and project economics of Molyhil. In today's challenging resource environment mineral development companies are ideally placed with advanced projects, and Molyhil falls into that category with a Definitive Feasibility Study already complete.

We are now going about the business of building our knowledge and the inherent value of Molyhil, and today's announcement marks some great progress in this regard. 

The fertility of the Cattle Track and Gap Track prospects has been enhanced.  Whilst the number of holes in each of these targets is, both limited and quite widely spaced, we have identified both geochemical signature and geology indicative of potential mineralisation.  Further drilling on each of these targets is warranted and will be scheduled and additional announcements will therefore follow.

In addition Thor will be providing further updates in the near term with regard to the Company's Pilot Mountain, Nevada project and specifically the efficient route we have identified to significantly increase the in-situ resource at that project.

Finally the Company remains highly proactive in the review of new opportunities.  We hope to provide a further update to market in this regard at the earliest opportunity."

Following the initial on site analyses using hand held XRF analyser, samples were sent for laboratory follow up assay. The laboratory assay process has a lower detection limit of 1 part per million ("ppm") compared with 10ppm for the hand held XRF, and also uses a larger sample size. Trends in tungsten distribution are now apparent in the laboratory assays that were not apparent in the earlier analyses.

The laboratory analyses show tungsten elevated at two to three times background levels in the vicinity of the Molyhil Pinnacle (Cattle track) and along the southern margin of the Gap Track prospect (refer to map). At Gap Track, where a broader spread of data points was collected, a trend of elevated tungsten is apparent which reflects the trend in elevated magnetic response. These are encouraging results albeit at subdued levels.

Due to its low chemical reactivity and high physical density, tungsten does not tend to disperse in the soil and weathered rock profile as much as more reactive metals such as copper.  As a result, any detection of tungsten is considered encouraging and worthy of follow up investigation.

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
Gerry Beaney/ David Hignell John Howes	+44 (0) 20 3861 6625	Northland Capital Partners Limited	Joint Broker
Nick Emerson / Andy Thacker	+44 (0) 1483 413 500	SI Capital	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.

Competent Person's Report

The information in this report that relates to exploration results is based on information compiled by Richard Bradey, who holds a BSc in applied geology and an MSc in natural resource management and 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.

About Thor Mining PLC

Thor Mining PLC 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 2015¹ suggested attractive returns.  Thor also holds 100% of the Pilot Mountain tungsten project in Nevada USA which has a JORC 2012 Indicated Resources Estimate² on 1 of the 4 known deposits. 

In February 2016, Thor announced the sale of its Spring Hill Gold project³ for A$3.5million, of which A$1.5 remains due for settlement in February 2017, plus a 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 gold⁴ 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 12 January 2015

·      ² Refer ASX and AIM announcement of 10 June 2014

·      ³ Refer ASX and AIM announcement of 29 February 2016

·      ⁴ At the date of this announcement gold is trading at approximately A$1,650/oz

Assay results

Hole Id	Easting GDA94	Northing GDA94	Sample depth-from (m)	Sample depth-to (m)	W (ppm)	Cu (ppm)	Mo (ppm)	Fe (ppm)	Ti (ppm)
16MAC001	577,893	7,483,253	1.5	2.8	3	30	2	20315	1350
16MAC002	577,897	7,483,300	0	1.5	<1	<10	<1	2795	220
16MAC003	577,900	7,483,348	1.5	3	3	20	1	11725	700
16MAC012	576,901	7,483,103	3	4.5	4	20	<1	23810	940
16MAC013	576,903	7,483,045	3	4.5	6	20	<1	30985	1660
16MAC014	576,899	7,482,999	1.5	3	4	20	<1	15140	1040
16MAC015	576,610	7,483,110	3	4.5	3	20	2	20760	1070
16MAC016	576,599	7,483,052	1.5	3	2	10	<1	61430	1430
16MAC017	576,589	7,482,996	1.5	3	3	50	1	34115	920
16MAC018	576,600	7,482,956	1.5	3	2	<10	<1	18285	1040
16MAC019	576,606	7,482,902	1.5	3	<1	<10	1	39530	1690
16MAC020	576,605	7,482,905	3	4.5	1	<10	4	42520	1870
16MAC021	576,298	7,482,888	6	7.5	5	10	6	26155	510
16MAC022	576,300	7,482,851	3	4.5	4	30	4	41445	1530
16MAC023	576,299	7,482,800	3	4.5	3	20	1	28625	1150
16MAC024	576,208	7,482,899	6	7.5	7	10	3	42175	2550
16MAC025	576,206	7,482,851	7.5	9	3	20	3	61045	2220
16MAC026	576,199	7,482,805	3	4.5	5	20	2	41810	1100
16MAC027	576,099	7,483,200	4.5	6	3	20	<1	38250	2520
16MAC028	576,103	7,483,248	3	4.5	3	40	<1	33075	2280
16MAC029	576,109	7,483,303	3	4.5	8	10	3	26635	2040
16MAC030	582,689	7,480,489	10.5	12	7	30	1	46590	4090
16MAC031	582,702	7,480,612	6	7.5	4	20	2	34205	1220
16MRAB032	583,400	7,480,298	7.5	9	1	30	<1	44750	5160
16MRAB033	583,398	7,480,400	6	7.5	3	10	<1	22735	1690
16MRAB034	583,398	7,480,493	4.5	6	3	10	<1	16545	2070
16MRAB035	583,204	7,480,601	3	4.5	3	20	3	19585	1510
16MRAB036	583,199	7,480,494	3	4.5	5	10	<1	18155	1550
16MRAB037	583,200	7,480,406	6	7.5	3	10	<1	22315	2130
16MRAB038	583,000	7,480,400	4.5	6	2	40	<1	54115	3080
16MRAB039	583,000	7,480,500	9	10.5	2	30	<1	35270	4100
16MRAB040	583,003	7,480,597	9	10.5	2	10	<1	22180	1840
16MRAB041	582,698	7,480,698	7.5	9	3	<10	<1	10855	710
16MRAB042	582,999	7,480,301	7.5	9	9	30	2	33460	1150
16MRAB043	583,202	7,480,301	6	7.5	7	30	2	27680	2000
16MRAB044	583,600	7,480,303	9	10.5	2	40	<1	38920	3160
16MRAB045	583,596	7,480,398	6	7.5	2	20	<1	39690	3250
16MRAB046	575,303	7,481,402	4.5	5	3	30	<1	49425	4970
16MRAB048	575,305	7,481,201	4.5	6	2	20	<1	47525	3900
16MRAB049	575,300	7,481,102	6	7.5	5	20	<1	18435	570
16MRAB050	574,898	7,480,908	4.5	6	3	30	<1	45895	3370
16MRAB051	574,899	7,481,003	3	4.5	2	20	<1	20920	790
16MRAB052	574,898	7,481,101	4.5	6	5	40	<1	31965	2800
16MRAB053	574,897	7,481,200	4.5	6	2	<10	<1	61125	3960
16MRAB054	574,895	7,481,295	4.5	6	1	30	<1	43950	4100
16MRAB055	574,856	7,481,393	7.5	9	2	20	<1	54035	2350
16MRAB056	574,895	7,481,497	1.5	3	<1	220	<1	86605	4200
16MRAB057	574,900	7,481,595	3	4.5	4	<10	<1	16870	2250
16MRAB058	575,305	7,481,504	4.5	6	4	<10	<1	16620	1470
16MRAB059	576,613	7,482,906	1.5	3	2	<10	<1	45370	1520
16MRAB060	576,602	7,482,899	3	4.5	2	<10	<1	37130	1600
16MRAB061	576,602	7,482,906	4.5	6	3	<10	<1	44060	2200
16MRAB062	577,897	7,483,301	1.5	3	3	<10	<1	54520	4900
16MRAB063	576,300	7,482,856	9	10.5	8	60	<1	27575	1760
16MRAB064	576,206	7,482,852	4.5	6	5	<10	1	51265	1810
16MRAB065	576,102	7,483,205	7.5	9	7	<10	<1	29245	1720

JORC Code, 2012 Edition - Table 1 report

Section 1 Sampling Techniques and Data

Criteria	JORC Code explanation	Commentary
Sampling techniques	·    Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. ·    Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. ·    Aspects of the determination of mineralisation that are Material to the Public Report. ·    In cases where 'industry standard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.	Aircore and RAB drilling was used (as per hole id designation) to obtain 1.5 metre interval samples. 2kg subsamples were taken for logging, portable XRF analysis and follow up laboratory analysis where appropriate. Chip tray samples were collected and photographed.
Drilling techniques	·    Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).	Initially aircore drilling was used but reverted to RAB as a result of difficulty penetrating large rocks within transported cover.
Drill sample recovery	·    Method of recording and assessing core and chip sample recoveries and results assessed. ·    Measures taken to maximise sample recovery and ensure representative nature of the samples. ·    Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.	Little to no sample recovery was generally achieved in the top 1.5 metres of RAB holes. Reasonable sample recovery was obtained thereafter. Sample recovery was not measured.
Logging	·    Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. ·    Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. ·    The total length and percentage of the relevant intersections logged.	Hole cuttings were logged geologically and photographed.
Sub-sampling techniques and sample preparation	·    If core, whether cut or sawn and whether quarter, half or all core taken. ·    If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. ·    For all sample types, the nature, quality and appropriateness of the sample preparation technique. ·    Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. ·    Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. ·    Whether sample sizes are appropriate to the grain size of the material being sampled.	Subsamples were taken by hand scoop cutting across the entire volume of sample. This is not considered representative but adequate for reconnaissance geochemistry.
Quality of assay data and laboratory tests	·    The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. ·    For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. ·    Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.	Assay process comprised four acid digest followed by ICP-MS for Mo and W and ICP-OES for Cu, Fe and Ti. The assay process is not considered to be total for W and Mo and may result in a low bias for these elements. No external QAQC reference materials were included in the assay process. Third party assay will be undertaken on a selection of samples.
Verification of sampling and assaying	·    The verification of significant intersections by either independent or alternative company personnel. ·    The use of twinned holes. ·    Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. ·    Discuss any adjustment to assay data.	No significant intersections reported
Location of data points	·    Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. ·    Specification of the grid system used. ·    Quality and adequacy of topographic control.	Hand held GPS
Data spacing and distribution	·    Data spacing for reporting of Exploration Results. ·    Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. ·    Whether sample compositing has been applied.	Holes were spaced between 50 and 100 metres apart in lines crossing anomalies at 100, 200 or 400 metres apart. No compositing of samples was undertaken.
Orientation of data in relation to geological structure	·    Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. ·    If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	All holes were vertical which is appropriate for reconnaissance geochemistry.
Sample security	·    The measures taken to ensure sample security.	None
Audits or reviews	·    The results of any audits or reviews of sampling techniques and data.	None

Section 2 Reporting of Exploration Results

Criteria	JORC Code explanation	Commentary
Mineral tenement and land tenure status	·    Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. ·    The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	EL22349 100% Thor Mining plc No known impediments to licence an operation.
Exploration done by other parties	·    Acknowledgment and appraisal of exploration by other parties.	No historic data other than the regional aeromagnetic data
Geology	·    Deposit type, geological setting and style of mineralisation.	Contact metamorphic skarn hosted tungsten.
Drill hole Information	·    A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: o easting and northing of the drill hole collar o elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar o dip and azimuth of the hole o down hole length and interception depth o hole length. ·    If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.	Drill hole summary table provided above. The vertical holes were all located on an essentially level plain thus the collar rl has not been included. Sample depth varied as a function of cover depth and depth of drill refusal.
Data aggregation methods	·    In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated. ·    Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. ·    The assumptions used for any reporting of metal equivalent values should be clearly stated.	None undertaken.
Relationship between mineralisation widths and intercept lengths	·    These relationships are particularly important in the reporting of Exploration Results. ·    If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. ·    If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg 'down hole length, true width not known').	Not applicable
Diagrams	·    Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.	Refer to figure 1
Balanced reporting	·    Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	All results provided
Other substantive exploration data	·    Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	No other data
Further work	·    The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling). ·    Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.	The results provided warrant follow up investigation which will most likely comprise further RAB drill geochemistry on a reduced spacing targeting the two area of elevated tungsten so far.

This information is provided by RNS

The company news service from the London Stock Exchange

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