29th Jul 2014 10:37
LONDON (Alliance News) - Thor Mining PLC Tuesday said an updated ore reserve statement for its Molyhil Tungsten mine in Australia is likely to have increased its mine life by two years.
The gold focused developer said the reserve statement showed 3.0 million tonnes of ore at 0.31% tungsten tri-oxide and 0.12% molybdenum, classified as probable. Increasing the company's reserves due to successful test results of pre-concentration of ore using ore sorting technology.
The company said the new reserve represents in increase in mineable reserves of contained tungsten by 33.3% to 9,200 tonnes and contained molybdenum by 63.6% to 3,600 tonnes.
As a result, Thor Mining said it expects to be able to run a six-year mine life at Molyhill, which represents a two-year extension from the previous study in May, 2012.
"This is a major step forward for the Molyhil project. The Open Cut Ore Reserve Statement provides for significant additional production from Molyhil, whilst the process improvements demonstrate that production costs will be very low, particularly in the initial couple of years," Executive Chairman Mick Billing said in a statement.
The next step in the development of Molyhill is to update its bankable feasibility study with the new figures, which should be completed before the end of the third quarter enabled financing of the project to be concluded, it said.
"The Directors believe that the enhanced project economics shown by this updated Reserve statement will significantly boost the prospects of securing project finance," Billing added.
Thor Mining shares were up 6.7% to 0.112 pence on Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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