29th Sep 2005 07:00
Thor Mining PLC29 September 2005 THOR MINING PLC Exploration Update Dated: 29 September 2005 Thor Mining PLC ("Thor") the mineral exploration and development companyfocussed on advancing tungsten and molybdenum projects in the Northern Territoryof Australia announces an update on exploration and development activities atits portfolio of molybdenum and tungsten projects in the Northern Territory ofAustralia, including initial results from bulk sampling and the commencement ofa pre-feasibility study at its principle Molyhil Project. Highlights • Higher grades reported than in current JORC resource at Molyhil molybdenum-tungsten Project. • Extraction of bulk samples from second and third shafts continuing, with further results expected. • Key items of Molyhil pre-feasibility study already underway following excellent bulk sampling results. • Field exploration underway ahead of schedule at Thring Creek and Hatches Creek projects following successful negotiations with traditional owners. The Directors believe that the results obtained from this first shaft cross-cutare significant and confirm their view that current JORC resource estimateunderstates the true head grade of the deposit. The average combined grade over the 26.1 metres of the first cross cut is 1.01%,which is well in excess of the current combined JORC grade. The Molyhil Project currently has an indicated resource of 1,530,000 tonnes at0.32% WO3 and 0.19% MoS2 (combined grade 0.51%) and an inferred resource of500,000 tonnes at 0.25% WO3 and 0.15% MoS2 (combined grade 0.40%). The results from all three bulk samples will be used to update the JORCresource. This is expected to be completed in November 2005. Molyhil Molybdenum-Tungsten Project The Molyhil Molybdenum-Tungsten Project, which is located 220km north east ofAlice Springs within the prospective polymetallic province of the ProterozoicEastern Arunta Block of the Northern Territory in Australia. Thor commenced a programme of underground bulk sampling at the Molyhil Projectin July 2005 to evaluate the head grade and mineralogical characteristics of theMolyhil deposit. The exploration programme includes the sinking of three shafts and cross-cuts atthe base of each shaft to extract bulk samples from the ore body. The samplesfrom the cross-cut in the first shaft have now been assayed at AustralianLaboratory Services in Perth and results include: From (m) To (m) WO3 % MoS2 % Combined % 0 2 0.155 0.193 0.35 2 4 0.598 0.300 0.90 4 6 0.109 0.091 0.20 6 8 0.230 0.139 0.37 8 10 0.441 0.178 0.62 10 12 1.043 0.295 1.34 12 14 2.186 0.683 2.87 14 16 2.584 0.736 3.32 16 18 0.119 0.064 0.18 18 20 0.587 0.253 0.84 20 22 1.076 0.235 1.31 22 24 0.317 0.181 0.50 24 26.1 0.247 0.093 0.34Average 0 26.1 0.746 0.265 1.01 The average combined grade over the 26.1 metres of the cross cut is 1.01%, whichis well in excess of the current combined JORC grade. The Directors believe that the results obtained from this first shaft cross-cutare significant and confirm their view that current JORC resource estimateunderstates the true head grade of the deposit. Extraction of bulk samples from the second and third shafts is continuing. ShaftThree is currently at its full depth of 39 metres and the cross-cut extended toapproximately 34 metres. Crushing and sampling of bulk samples extracted fromthis shaft has commenced and results will be available in October 2005. Shaft Two is currently at a depth of 4 metres and will be sunk to a final depthof 31 metres, with the planned cross-cut to be developed for 37 metres. During October, activity on site will wind down with the focus of the Companyshifting to collation of all the bulk sampling results and expediting thepre-feasibility study on the Molyhil Project. As a result of the results obtained to date various aspects of thepre-feasibility study have already commenced including: 1. Metallurgical test work; 2. The issue of tender documents for sections of the study; and 3. Negotiations for an off-take agreement. During the last four months, Directors and other representatives of Thor havemet with the traditional land owners and representatives of the Central LandCouncil to keep them updated on site activities. Once the bulk sampling programis completed the site will be rehabilitated. Thring Creek Project Discussions with traditional land owners and the Central Land Council have nowbeen concluded in respect to the Thring Creek Project, which is locatedapproximately 24km east of the Molyhil deposit. As a result of these meetings, Thor has gained access to the Thring Creek siteand is currently completing a ground magnetic survey over the Thring Creekmagnetic anomalies prior to data interpretation and modelling for drill targetdefinition. This exploration activity is being carried out ahead of schedule, due to theprogress of the negotiations with the traditional owners and theirrepresentatives, the Central Land Council. An Exploration Agreement with the Central Land Council is currently beingexecuted by all parties which should facilitate the formal grant of title. Hatches Creek Project Currently all available data for the Hatches Creek project, which comprises agroup of three mineral tenements covering an area of 815km2 in the centralportion of the Northern Territory, is being digitised and updated maps prepared.Thor's consultants visited the project recently to undertake ground surveys andmeet with the traditional owners and their representatives, the Central LandCouncil. Permission was received to undertake low level airborne photographic and lowlevel magnetic surveys which have recently been completed. The interpretation ofthis data and a further field trip will enable the Company to submit a 2006exploration plan for the project. The exploration plan is the next step to enable native title arrangements to befinalised. JORC Compliance The information in this report that relates to Exploration Results, MineralResources or Ore Reserves is based on information compiled by Neil Biddle, whois a Member of The Australasian Institute of Mining and Metallurgy. Neil Biddleis a consultant of Thor. Neil Biddle has sufficient experience which is relevantto the style of mineralisation and type of deposit under consideration and tothe activity which he is undertaking to qualify as a Competent Person as definedin the 2004 Edition of the 'Australasian Code for Reporting of ExplorationResults, Mineral Resources and Ore Reserves'. Neil Biddle consents to the inclusion in this press release of the matters basedon his information in the form and context in which it appears. Enquiries: John W Barr +61 418 912 885 Thor Mining PLC Executive Chairman John Simpson 020 7512 0191 ARM Corporate Finance Ltd Nominated Adviser Amanda Harris 020 7618 8534 Conduit PR Public Relations This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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