The Board of Thor Mining reports the results of a scoping study for the Pilot Mountain tungsten project in Nevada, USA. Highlights:
- Desert Scheelite operational life of 12 years with open pit mining over 11 years and one additional year to complete processing
- Total Desert Scheelite forecast open pit production of 7.5 Mt
- Annual throughput of 650,000 t from the Desert Scheelite open pit, producing scheelite concentrates and copper silver concentrates, plus zinc silver concentrates
- Preliminary analysis also suggests some potential for economic mining and processing from the higher grade Garnet deposit (inferred resource), supplementing production from Desert Scheelite
- Pre-tax profit expectations from initial open pit operations ranging from $125 million base case from Desert Scheelite, up to $317 million, which includes improved scheelite recovery, reduced mining costs at greater throughput volumes and the potential inclusion of Garnet mine production
- Study outcomes support a decision to commence a more detailed PFS to progress the project along the development pathway
- No current primary tungsten production in USA where tungsten is classified as a “Critical Mineral”.
Mick Billing, Executive Chairman of Thor Mining, commented: “I am delighted to release the results of the scoping study for the Pilot Mountain project showing potential for at least a medium term life on one, and potentially two, of the four tungsten deposits at 100% owned Pilot Mountain.”
“Closed circuit metallurgical test work on Desert Scheelite ore has commenced which will, hopefully, upgrade the results of open circuit work previously conducted, which achieved 72% recovery of scheelite and saleable quality concentrates. The impact of any improvement is outlined below in this report.
“The Pilot Mountain project hosts four known deposits, and it is anticipated that each of these has potential to contribute further as we continue to explore their potential.
“With no US domestic production, and tungsten classified by the US Department of the Interior as a Critical Mineral, our objective is to re-start Unites States commercial mining and tungsten concentrate production after a significant break.
“We look forward to providing regular updates on this project as material developments occur.”
In late 2017, Thor commissioned Andrew Vidale Consulting Services (AVCS) to prepare a scoping study for the Pilot Mountain tungsten project to gain an understanding of the potential viability of the project to sustain mining and processing. The study terms of reference for AVCS were subsequently refined to cover the Desert Scheelite deposit only.
An assessment by US based consultants Practical Mining LLC has indicated possible additional open cut and underground potential from the Garnet deposit nearby.
The results of these studies show:
Desert Scheelite
• A 12 year life of processing ore from open pit operations at Desert Scheelite
• Contract mining over 11 years to deliver forecast mine production to the proposed processing plant
• Annual forecast throughput of 650,000 t from Desert Scheelite, generating approximately 1,000 t/y of scheelite in concentrate
• Capital Expenditure range of $30 to $35 million
• Project payback of 36 months on the base case, reducing to less than 18 if metallurgical test work, currently under way, is successful in improving recovery to 85% or above.
Garnet (based on Inferred resources)
• Initial open pit transitioning to small scale underground
• Supplementary ore feed averaging 120,000 t/y
• Reduction in project payback to less than 18 months.
