26th Apr 2007 07:00
Thor Mining PLC26 April 2007 THOR MINING PLC Molyhil Update Dated: 26 April 2007 Thor Mining PLC (the "Company" or "Thor"; AIM/ASX: THR) the specialist metalscompany focused on advancing tungsten-molybdenum and uranium projects in theNorthern Territory of Australia announce that it has received positive initialresults from the resource extension drilling program completed at its 100% ownedMolyhil Tungsten-Molybdenum Project ("Molyhil") in March 2007. Highlights • Initial results from resource extension drilling confirm continuity and grade of the current Molyhil reserve. • Three holes return combined tungsten-molybdenum grades in excess of 1%, significantly above the current indicated resource grade. • Drilling confirms high-grade depth extensions of the Yacht Club ore-body. The reverse circulation ("RC") drilling program comprising 25 holes drilled for2,586m, has identified extensions of the mineralisation outside of the currentmining reserve and is expected to lay the foundations for an increase in theresource and reserve inventory at Molyhil. The Definitive Feasibility Study onthe Molyhil Project was based on a JORC compliant resource of 2.4 million tonnesgrading 0.8% combined tungsten WO3 and molybdenum MoS2. Initial results received from the program of infill RC drilling have confirmedthe continuity and grade of the current reserve with results from three of theeight RC holes received to date returning combined MoS2 + WO3 grades in excessof 1%. Drill hole 07MHRC022 which was designed to test southern zone extensions hasreturned combined assays of MoS2 and WO3 in excess of 1%, which is substantiallyhigher than the indicated resource grades. These results have again highlightedthe difficulty in determining average head grades for Molyhil due to theirregular distribution of mineralisation Holes 07MHRC013 and 07MHRC014 were drilled beneath the Yacht Club ore zone,below the current ore reserve and base of the proposed open pit. The resultsindicate that the extensions of the Yacht Club ore-body are of high grade andlie to the east of the current block model, therefore requiring are-interpretation of the Yacht Club ore-body model. Results from these threeholes are shown below: MoS2 + Hole ID Width(m) From To MoS2 WO3 WO3 Ore Zone 07MHRC013 10 117 127 0.43 0.52 0.97 Yacht Club07MHRC022 7 114 121 0.69 0.48 1.17 Southern 2 138 140 0.43 0.66 1.09 Southern07MHRC014 1 108 109 0.73 1.19 1.92 Yacht Club 10 111 121 0.61 1.04 1.65 Yacht Club The results received to date were prioritised in order to expedite the assayprocess. Based on current indications, the Company does not expect to receivethe remaining assay results from the resource drilling program for a furtherthree weeks. The Directors believe the completion of a revised JORC resource iscritical in establishing more accurate project valuations which will ultimatelyhave an effect on commercial negotiations regarding financing and off-taketerms. The full set of assay results are expected to be received during May 2007 andthe Company expects the new resource estimates to be completed by the end ofJune. Thor's Chief Executive Officer, Mr John A. Young, said the initial results fromthe resource extension drilling program were very encouraging, with the highercombined tungsten-molybdenum grades returned to date reinforcing the potentialfor the new drilling to underpin an upgrade to the existing resource. "The results will be fed into a revised block model interpretation and resourceestimation, which will in turn be passed on to Australian Mining Consultants forcompletion of a new pit optimisation," Mr Young said. "We expect this process tobe completed by mid-year." JORC Compliance The information in this report that relates to exploration results, mineralresources or ore reserves is based on information compiled by John Young, who isa Member of The Australasian Institute of Mining and Metallurgy. John Young is adirector of Thor Mining PLC. John Young has sufficient experience which isrelevant to the style of mineralisation and type of deposit under considerationand to the activity which he is undertaking to qualify as a Competent Person asdefined in the 2004 Edition of the "Australasian Code for Reporting ofExploration Results, Mineral Resources and Ore Reserves". John Young consentsto the inclusion in the report of the matters based on his information in theform and context in which it appears. Enquiries: John Young + 61 (0)419 954 020 Thor Mining PLC Chief Executive Officer John Simpson 020 7512 0191 ARM Corporate Finance Ltd Nominated Adviser Leesa Peters 020 7429 6600 Conduit PR Limited Public Relations orJos Simson 020 7429 6603 Nicolas Read + 61 (0) 8 9388 1474 Read Corporate Public Relations/ Australia Updates on the Company's activities are regularly posted on Thor's websitewww.thormining.com, which includes a facility to register to receive theseupdates by email. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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