25th Oct 2006 07:01
Thor Mining PLC25 October 2006 THOR MINING PLC Exploration Update - Molyhil upgraded following completion of metallurgical test work Dated: 25 October 2006 Thor Mining PLC ("Thor") the specialist metals company currently focussed onadvancing tungsten-molybdenum and uranium projects in the Northern Territory ofAustralia, today announced completion of the key metallurgical test work phaseof the definitive feasibility study for its 100%-owned MolyhilTungsten-Molybdenum Project ("Molyhil") in the Northern Territory of Australia.The delivery of final concentrate specifications from this test work programwill enable it to progress negotiations for an off-take agreement and financingpackage for Molyhil. Highlights • Metallurgical test work program successfully completed as part of definitive feasibility study on the Molyhil Tungsten-Molybdenum Project; • Production estimates and concentrate specifications exceed initial scoping study, confirming potential production of approximately 100,000mtu of tungsten oxide per annum and 1,000,000 lbs of Mo per annum; and • Project water supply confirmed. Thor is well advanced with the definitive feasibility study, which is scheduledto be completed by mid-November 2006. The Company intends to acceleratedevelopment of Molyhil with a view to commencing production during 2007. The key metallurgical test work program carried out over the past 6 months hasbeen supervised by Thor and Proteus Engineering, with the involvement ofmetallurgical consultants, Independent Metallurgical Laboratories Pty Ltd, OrwayMineral Consultants and Nagrom & Co. The metallurgical recoveries used in the scoping study for WO3 and MoS2 werebased on pilot plant test work conducted by Nagrom in early 2005. The definitivemetallurgical results received this week have improved the scoping studyfigures, as reflected in the table below: Concentrates Scoping Study Definitive Feasibility Study Concentrate (Jan2006) (Oct2006) Production @ Recovery Concentrate Recovery Concentrate Grade 300,000 tpa GradeTungsten (WO3) 51% 68.6% 67.2% 69.3% 1,511 tonnesMolybdenum (MoS2) 78.1% 82.5% 77% 85% 905 tonnes This equates to planned production of approximately 100,000 mtu of tungstenoxide per annum and 1,000,000 lbs of Mo per annum. Current prices for TungstenOxide concentrates (min 65% WO3) are USD$220 per mtu and the price forMolybdenum concentrates (min 57% Mo) is USD$26 per lb. The most significant change arising from the metallurgical test work program isin the recovery of Tungsten to the gravity circuit. The initial flow sheet usedmagnetic separation prior to flotation and gravity recovery, however thisprocedure is now completed at the end of the processing circuit on the finerTungsten fractions, removing deleterious elements and improving overallrecovery. The concentrate grade specifications are within a marketable range,and improvements in the molybdenum specifications were made with the removal ofbetween 2 and 4% copper in concentrates, with copper levels now withinspecification. Recent results from investigative hydrogeological drilling has identified anadequate supply of excellent quality water for the project, with six out of theeight locations successful in identifying substantial aquifers. The Molyhil definitive feasibility study is progressing well with the processingplant, infrastructure and mine development capital estimates due within a fewweeks Thor's Chief Executive Officer, Mr John A. Young, said: "The completion of themetallurgical test work program is an important step in the progress of ouroff-take agreement, with a number of interested parties waiting for these finalconcentrate specifications. Marketing and negotiations can now begin with theaim of securing both a buyer and a finance package that will enable developmentof the Molyhil Project to be fast-tracked." 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, theChief Executive Officer of Thor, has sufficient experience which is relevant tothe style of mineralisation and type of deposit under consideration and to theactivity which he is undertaking to qualify as a Competent Person as defined inthe 2004 Edition of the "Australasian Code for Reporting of Exploration Results,Mineral Resources and Ore Reserves". John Young consents to the inclusion in this RNS announcement of the mattersbased on his information in the form 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 Nominated Adviser Limited Leesa Peters 020 7429 6600 Conduit PR Limited Public Relations/UK or Abigail Singleton 020 7429 6606 Nicolas Read + 61 (0) 8 9388 1474 Jan Hope & Partners 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:
Thor Energy