7th Aug 2007 07:00
Thor Mining PLC07 August 2007 THOR MINING PLC MOLYHIL RESOURCE UPDATE Dated: 7 August 2007 Thor Mining PLC ("the Company" or "Thor"), AIM, ASX: "THR", the specialistmetals company focused on advancing tungsten-molybdenum and uranium projects inthe Northern Territory of Australia, announces today an updated JORC compliantresource estimate for its 100%-owned Molyhil Tungsten-Molybdenum Project in theNorthern Territory of Australia ("Molyhil") incorporating the results of theresource drilling programs completed in 2006 and 2007. Highlights • Updated resource completed with 55% increase in overall tonnage to 3.73 million tonnes; • Significant increase in measured and indicated categories to 530,000t at 0.42% WO3 and 0.27% MoS2 and 2,400,000t at 0.39% WO3 and 0.17% MoS2 respectively; • Metal content of resource model remains steady at 8.4 million pounds of molybdenum and 1.3 million mtu's of tungsten due to application of more conservative grade estimation parameters; and • Potential to upgrade lower grade portions of the resource at depth with diamond drilling. The updated resource represents a 55% increase in overall tonnage to 3.73million tonnes at 0.51% combined tungsten (WO3) and molybdenum (MoS2) comparedwith 2.4 million tonnes at combined grade of 0.8% WO3 and MoS2 previously, witha substantial tonnage upgraded to the measured and indicated categories -increasing the overall level of confidence in the resource. The revised resourcenow comprises: • Measured resource of 530,000 tonnes at 0.42% WO3 and 0.27% MoS2, a 43% tonnage increase over the previous resource; • Indicated resource of 2.4 million tonnes at 0.39% WO3 and 0.17% MoS2, a 37% increase over the previous resource; and • Inferred resource of 800,000 tonnes at 0.15% WO3 and 0.1% MoS2, more than three times higher than the previous resource. Final results from the recently completed resource drilling program at Molyhilwere received in July and incorporated into the new resource model, which wascompleted by independent geological consultants, Continental Resource ManagementPty Ltd ("CRM"). The resource model now contains 8.4 million pounds of molybdenum metal and1,276,200 mtu's of tungsten, representing a similar metal content to theprevious resource but at a higher JORC resource category and following theconversion of a significant tonnage from the indicated to measured category,reflecting increased overall confidence in the upper parts of the block model.This is a positive result which should translate to increased confidence in themining reserve. The significant increase in the overall resource tonnage is a direct result ofthe two recent drilling campaigns, which have improved the geological model andincreased confidence in the continuity of the mineralisation. The significant increase in the inferred category incorporates the results froma number of deeper holes completed in 2006. These deeper intersections requirefurther testing as the lodes are open at depth to the south east, albeit at alower grade. This volume of lower grade material has influenced the overallgrade of the current resource estimate, and the Company believes that the gradein this zone can be improved by using large diameter diamond drilling. Commenting on the updated resource estimate, Thor's Chief Executive Officer, MrJohn A. Young, said: "Once again, further drilling has validated our belief thatthe resource at Molyhil continues well below the existing drilling. This recentupdate of the resource has produced a more predictable and conservative model onwhich to progress our mining reserve, and pit optimisation studies are nowunderway with results due shortly. The overall improvement in the quality ofthis resource is expected to assist greatly in the off-take arrangements thatare currently being negotiated." 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)8 9327 0911 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 or Jos Simson 020 7429 6603 Nicholas + 61 (0) 8 9388 1474 Read Corporate Public Relations/Australia Read 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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