Thor Mining Plc reports positive progress update on its wholly owned proposed Molyhil tungsten/molybdenum mine in Australia’s Northern Territory. In October 2017 the company commissioned a revised Ore Reserve study to draw together the technical data from various positive work completed since the last report prepared in 2014. This report containing an Open Cut Ore Reserve Statement has now been successfully completed with positive findings increasing the overall Ore Reserve and extending the Molyhil mine life. Significantly also, a new and potentially profitable additional underground mining option has been identified, in addition to the original plan for Open Pit mining.
- Open Cut Ore Reserve Statement, classified as probable, of 3.5 Mt @ 0.29%WO₃ & 0.12% Mo
- Molyhil Open Cut mine life extended by 17% to seven years
- Additionally, significant blocks of the resource, in indicated and inferred resources category, outside and below the pit shell have been assessed and, subject to further drilling and other technical reviews, appear to warrant a subsequent underground mining operation after Open Pit mining has concluded
- The company is updating capital and operating cost estimates with an objective of further cost reductions and positively impacting mining and processing economics
- Work undertaken confirms increased project viability and supports the completion of an upgraded DFS expected in the current quarter.
Mick Billing, Executive Chairman, commented: “The successful completion of the Ore Reserve Study is a very welcome development for the Molyhil project. Extending the life of the project, along with evidence that additional blocks have the potential for subsequent underground mining, is a major step forward in the commercialisation potential of Molyhil.
“Discussions with third parties expressing interest in the Molyhil opportunity confirmed that an extension of mine life was a key precursor to more proactive engagement and with the findings announced today we have moved solidly down that pathway. The fact that this progress has been achieved in an environment when there is an industry desire to secure reliable supplies of tungsten concentrates makes the outcomes announced today all the more timely.
“After a long development road, the board are delighted with the progress achieved of late and are focused on achieving the best commercial outcome for shareholders. As with any project on the commercialisation pathway, shareholders should note that there is no guarantee of a successful outcome.”
The improved outcome is largely driven by cost savings and upgraded test results of pre-concentration of ore using ore sorting technology, reported on 30 October 2017.