30th Oct 2013 08:31
LONDON (Alliance News) - Thor Mining PLC Wednesday said drill programme results show that the gold potential at its Spring Hill project south of Darwin in Australia is better than previously thought.
It said 11 drill holes of the 19 hole program intersected mineralisation within 50 metres of the surface at grades consistent with what the company has come to expect from Spring Hill, suggesting that the planned near-term oxide mining inventory, announced in June 2013, may be extended.
"Not only do the new assay results have the potential to enhance the Spring Hill mining inventory but they also demonstrate the potential for further growth," Thor Chairman Mick Billing said in a statement. "The Spring Hill mineralising system is not straight forward, however, its potential is growing, and Thor continues to identify additional mineralisation outside previously known boundaries."
Thor Mining holds a 51% interest in Spring Hill and is exercising options with Western Desert Resources Ltd to grow the stake to 80%. It hopes to commence mining at the site within 12 months.
It said it wasn't able to test other targets in the lease area during the latest drilling, but says this remains a priority because it has identified surface exposure of "robust sheeting veining" in previous preliminary drilling.
Thor Mining shares were up 9.7% at 0.34 pence early Wednesday, one of the top gainers on AIM.
By Steve McGrath; [email protected]; @SteveMcGrath1
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