31st Oct 2014 10:09
LONDON (Alliance News) - Thor Mining PLC Friday said it is trying to secure funds to develop both its Molyhil project in Australia and its newly acquired Pilot Mountain programme in the US.
Thor shares were down 8.1% to 0.110 pence per share Friday morning.
On October 24, Thor announced shareholders had approved its proposed acquisition of the Pilot Mountain tungsten project in the US, which has now been finalised. Following the acquisition, Thor has inherited an indicated and inferred resource of 6.8 million tonnes at 0.31% tungsten, with copper and silver mineralisation. It has also identified further exploration opportunities at the site, targeting a further 4 million tonnes from the Garnet field and Gunmetal deposits, said Thor.
It is expecting the first drilling programme on its newly acquired project to begin in early 2015, subject to securing the necessary finance for it, added Thor.
"The acquisition, now completed, of the Pilot Mountain project in the USA adds significant tungsten resources to the Thor portfolio. Thor directors and management are becoming increasingly excited about the potential to add to the resource estimate at Pilot Mountain, where we have a number of 'walk up' drill targets," said Executive Chairman Mick Billing.
During the upcoming quarter ending December 31, Thor Mining has said it will revise its definitive feasibility study for the Molyhil tungsten and molybdenum mine in Australia, to reflect its recently upgraded ore reserve at the project.
The upgraded ore reserve at the Molyhil mine, announced in July, extended the mine life to six years. The probable JORC reserve stands at 3.0 million tonnes averaging 0.31% tungsten and 0.12% molybdenum. The company is finalising the capital and operating cost estimates for the project.
"The upgraded Molyhil open pit ore reserve statement should contribute significantly to the project bottom line," said Billing.
The company is also continuing talks regarding off-take agreements for concentrate production for the project and is also working to secure finance for the project, it said in a statement.
No work was conducted on its Spring Hill and Dundas gold projects, also in Australia, during the quarter.
By Joshua Warner; [email protected]; @JoshAlliance
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