14th Apr 2008 07:00
Thor Mining PLC14 April 2008 THOR MINING PLC QUARTERLY REPORT - MARCH 2008 Dated: 14 April 2008 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, today released its quarterly report for theperiod to 31 March 2008. HIGHLIGHTS MOLYHIL TUNGSTEN-MOLYBDENUM PROJECT ("Molyhil") • Life-of-Mine off-take agreement signed with CITIC Australia; and • Final development approvals for Molyhil expected during the second quarter of 2008. URANIUM PROJECTS • Assay results were received from soil and rock sampling program over Daicos prospect. The highest-grade rock chip sample returned a uranium grade of 7.7%; • Soil sampling has identified new anomalies which are potential drilling targets for 2008; and • Raw data received from Bundey EM survey confirms a number of large conductive horizons in palaeochanels. CORPORATE • Mark Smyth resigned as a Non-executive Director of the Company on 9 April 2008. MOLYHIL TUNGSTEN - MOLYBDENUM PROJECT Molyhil is a proposed open cut mine and processing facility to be constructed inthe Northern Territory. The main objective of the proposed facility is toproduce scheelite and molybdenite concentrate for sale. Thor through its wholly-owned Australian subsidiary Molyhil Mining Pty Ltd, owns100% of the Molyhil Project, which comprises two EL's 22349 and 24392, totalling829 km2 in area, and includes three Mining Lease Applications, 23825, 24429 and25712. The combined Mining Lease Applications cover an area of 247 ha. Off-take Agreement In March Thor signed an off-take agreement with CITIC Australia CommodityTrading Pty Ltd, a subsidiary of CITIC Australia Trading Limited ("CITIC") (ASX:CAL). The CITIC Group is one of China's largest state-owned companies withassets in excess of US$180 billion. The off-take agreement commits CITIC to take100% of the Molybdenum and Tungsten concentrates to be produced from Molyhil. The mining reserve contains a total of 4.8 million pounds of molybdenum metaland 700,000 mtu's of tungsten which will be produced over the expected 5.6 yearlife of the open pit design. The CITIC Group in Australia has assets and annual sales of over A$1.2 billion.Its operations include a 22.5% interest in the Portland Aluminium Smelter JointVenture in Victoria, a 17.66% shareholding in Macarthur Coal Limited, a 7%direct interest in the Coppabella/Moorvale Coal Joint Venture, a 76.35%shareholding in the ASX-listed CITIC Australia Trading Limited, and interests ina series of exploration projects. Project Development Development of Molyhil and in particular financing is now the key priority andalternatives are now being considered. We are looking at various ways to bringMolyhil into production offering the best value for shareholders, includingequity finance, debt finance or a debt/equity mix, joint ventures together withbuild own, operate and transfer ("BOOT") contracts. The current state of fluxin the international equity markets, particularly in Australia with the collapseof the stockbroker, Opes Prime is making the task difficult. The Molyhil mining development team are continuing to review operating costs bylooking at economies of scale and streamlining of practices within the proposedoperations, Further reductions in costs may occur and as a result there could beimprovements in the economic model. Thor has participated in a number of meetings regarding the formation of atraining support group in the Harts Range region. The Central Land Council willbe managing the training project which has the support of the Department ofEducation, Employment and Workplace relations ("DEEWR") and the Department ofEducation, Employment and Training ("DEET") as well as Tangentyere Job Shop inAlice Springs. Thor's participation in this group is part of our commitment tosupport the indigenous people to gain skills and employment skills that willhave long term benefits for communities located in the Eastern Arunta Region. Environmental and Notice of Intent ("NOI") Keith Lindbeck and Associates (KLA) completed the Mining Management Plan ("MMP")and this has been submitted to the Northern Territory mines department. Thisdocument and the granting of the mining leases are the final formal approvalsrequired. Molyhil exploration Oorabra Reefs Assay results from the Oorabra Reefs last quarter confirmed significant baritemineralization with assays up to 9.37% Ba. Others range between 3.5 to 4.5% Ba.Visually massive fluorite was noted in most samples. Further check assaying for F as CaF2 (fluorite or fluorspar), was also completedwith a further 58 samples collected from the northern part of the Oorabra Reefsarea on the Jinka Plains. As stated in previous reports, the most significant mineralisation in the areais related to the numerous barite (BaSO4) and fluorite (CaF2) veins. Assaysreceived late march from check sampling, covering the northern Oorabra reefsarea, have returned assays up to 89.36% BaSO4 and 85.48% CaF2. The area in general seems to be under explored and has potential for Rare EarthElements (2REE's"), barite, fluorite, gold, silver and base metals. Given therecent price increases of Barite and Fluorite and the proximity to potentialinfrastructure at Molyhil the area is worthy of further investigation. Therecent phase of work has completed coverage of significant veins in the area. Atotal of 52 samples were collected including other mineral occurrences and "prospects" on EL 22349. URANIUM EXPLORATION Harts Range Project The Harts Range project area lies on the eastern margin of the Entia Dome. TheEntia Gneiss forms the core of the Entia Dome, which is located on the westernpart of the Exploration License area. During the quarter results were receivedfrom the Diacos, Haddock and Indiana prospects. These samples were taken in thelast quarter of 2007 at Daicos prospect, a total of 374 -80 mesh soil sampleswere collected over a 100m x 50m grid spacing. A total of 99 additionalreconnaissance rock chip samples were collected in October-November 2007 overthe Daicos, Haddock and Indiana prospects. These areas had previously returneda best assay of 19.37% U from highly radioactive samples with visible uraniniteand columbite. Daicos Prospect Results from reconnaissance rock chip samples and soil samples were receivedthis quarter. Uranium is also noted in soil anomalies corresponding with the interpolatedextension of a number of the pegmatites. Further reconnaissance rock chip sampling has confirmed earlier high gradeassays with a best of 7.7% U, 13.8% Ta and 8.54% Nb. Other anomalous elementsincluded Dy, Er, Gd, Hf, Ho, Nd, Tb, Th, Y and Zr. Vegetation sampling over the Daicos pegmatite was also conducted in conjunctionwith Genalysis Laboratory Services in Perth as part of a study to check theviability of REE geochemical sampling via vegetation in the area. Fifteenvegetation samples were collected from the area in December 2007. The mostabundant species in the area is known as Kurara bush. REE response was high intwo samples, the leaves giving a higher response than the twigs. The highestassay values came from sample A105767 which returned 416ppm Dy, 407ppm Gd and1327ppm Nd. The anomalous rock chip sample assays returned from the Haddock prospect wereadditional reconnaissance sampling over the base of the hill in epidote alteredmetamorphosed sediments. A best result of 904.5ppm U was returned from thesampling. Further reconnaissance sampling at Indiana prospect has confirmed that anomalousuranium mineralisation associated with outcropping pegmatite in a shear zoneextends in excess of 600 metres in strike length. Anomalous rock chip assayswere returned up to 781.3 ppm U. Bundey River The airborne EM survey ("SkyTEM") was completed during the quarter. Initialheight corrected field data indicates the presence of conductors within thepalaeo-drainage system on the eastern side of the tenement. Final processeddata has now been received. Interpretation and modelling of data is expected tobegin shortly. Modelling of basement conductors for base metal mineralisation for the BundeyRiver survey and previous data collected from the Hale River EL24809 and PlentyHighway EL24810 tenements will also be undertaken. Other projects No work was completed this quarter at the Hatches Creek, Curtis Pound and HaleRiver Projects. CORPORATE The quarter closed with $3.3M in cash. Mark Smyth resigned as a Non-executive Director of the Company on 9 April 2008. The Directors were informed by Mr Salvatore Algeri, Receiver and Manager, onbehalf of the Opes Prime Group that 6,389,869 ordinary shares and 2,551,877Warrants in the Company were the subject of agreement(s) between the Opes PrimeGroup and its customer(s). This represents 4.5% of the Company's issued ordinary shares and 3.9% of theWarrants. The company confirms that no directors hold shares or warrants in the companythrough an account with the Opes Prime Group. Tenements No changes during the quarter 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 Blomfield Corporate Nominated Adviser Finance Ltd Leesa Peters 020 7429 6600 Conduit PR Limited Public Relations or Jos Simson 020 7429 6603 Nicholas 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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