The Molyhil Tungsten - Molybdenum Project:

100% Thor Mining PLC

PROJECT TENEMENTS

LOCATION & ACCESS

Molyhil is located 220 kilometres north-east of Alice Springs (320km by road) within the prospective polymetallic province of the Proterozoic Eastern Arunta Block in the Northern Territory. 

RESOURCES & RESERVES

Summary of Molyhil Mineral Resource Estimate (Reported on 30 January 2014)

Mineral Resource reported at 0.1% combined Mo + WO3 Cut-off and above 200mRL only. Minor rounding errors may occur in compiled totals.

Thor Mining PLC holds 100% equity interest in this reserve. The Company confirms that it is not aware of any new information or data that materially affects the information included in the market announcement dated January 2015 and that all material assumptions and technical parameters underpinning those estimates continue to apply and have not materially changed.

The statement of reserves is derived from the Indicated portion of the resource estimate only, and the Inferred portion is excluded from the calculations. The long-term prices used were US$408/mtu for WO3 concentrate and US$12.76/lb for Mo concentrate at an exchange rate of US$0.83 to A$1.00. The WO3 and Mo Processing Recovery post ore sorting used was 85% and 77.8% respectively.

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 The Pilot Mountain Tungsten Project

100% Thor Mining PLC

The Pilot Mountain tungsten project is situated 200km southeast of Reno in Nevada USA.

RESOURCE ESTIMATE

The Desert Scheelite Indicated and Inferred Resource comprises 9.9 million tonnes @ 0.26% WO3, 0.14% Copper, and 19.4g/t (grams/tonne) Silver.

The Garnet Inferred Resource estimate comprises 1.83 million tonnes @ 0.36% WO3. 

Both resource estimates were announced on 22 May 2017.

Table 1​

EXPLORATION POTENTIAL

In addition to the 2014 Desert Scheelite resource, the Pilot Mountain project has significant exploration potential comprising Exploration Targets* totalling 11.0 – 22.6 Million Tonnes at 0.3 to 0.5% WO3 summarised in table 2.

* Exploration Targets are conceptual in nature and there has been insufficient exploration to define a Mineral Resource under the 2012 JORC Code. It is uncertain if further exploration will result in the determination of a Mineral Resource.

Table 2

The potential of the multiple Pilot Mountain exploration prospects is provided as Exploration Target values summarised in table 3. Prospects have been classified as either Tier 1 or 2 reflecting the level of confidence in the prospect.

  • Tier 1 prospects are based on any one or a combination of; historic drill data, historic mining activity or surface outcropping target geology (Figure 1).
  • Tier 2 prospects are under-explored areas with either the appropriate target geology or are under cover and adjacent to known mineralisation (Figure 2).
Table 3
Tier 1 Targets                                                                                                  Tier 2 TargetsTier 2 Targets

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Australian Office
Thor Mining Plc
58 Galway Avenue
MARLESTON SA 5033
AUSTRALIA
Postal Address
Thor Mining Plc
PO Box 458
MARLESTON SA 5033
AUSTRALIA
Fax +61 8 8351 5169
London Office
Thor Mining Plc
3rd Floor
55 Gower Street
London WC1E 6HQ
UNITED KINGDOM

Telephone +61 8 7324 1935

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DEFINITIVE FEASIBILITY STUDY

In January 2015 Thor announced an updated feasibility study for Molyhil with robust outcomes.

MARKETING

In 2013, Thor received a Letter of Intent (LOI) from Global Tungsten and Powders, of Pennsylvania USA, undertaking to purchase 70% to 75% of tungsten concentrates produced from Molyhil over the life of the mine.

METALLURGY AND PROCESSING

The Definitive Feasibility Study (DFS) included results from substantial metallurgical testwork by independent consultants, and the resultant process flow sheet was incorporated into the technical and economic assessment. The testwork demonstrated the production of a Primary Tungsten Concentrate assaying 72.9% WO₃, with a recovery of 67%, and a Primary Molybdenum Concentrate assaying 51.4% Mo, with a recovery of 77.8%.Subsequently the Company has identified the opportunity to enhance the recovery of tungsten via a further process step comprising flotation and electromagnetic separation of tailings. The outcome from this has been validated by independent testwork and demonstrated to improve tungsten recovery to 85%.

ENVIRONMENTAL APPROVALS

Thor has completed the Public Environmental Report for the Molyhil Tungsten and Molybdenum Project. This report has been accepted by the Department of Regional Development, Primary Industry, Fisheries and Resources in the Northern Territory
This report was approved on the 15th July 2007 by the DRDPIFR (NT), who also confirmed in December 2011 that the approval remains current.  The report is available on request.

TRADITIONAL OWNER APPROVALS

THOR Mining PLC has also obtained all the required agreements between the Traditional Owners of the land, and THOR Mining PLC, to enable the Molyhil Operations to proceed with the recognition and support of the Traditional Owners.

The Tripartite Deed records the terms of the Agreement between the parties in accordance with the Native Title Act and is between the Arrapere People, the Central Land Council and Thor Mining PLC.

THE LONGER TERM FUTURE FOR MOLYHIL

The feasibility study mining plan largely reflects the open cut ore reserve statement, and therefore the life of the proposed operation in the Definitive Feasibility Study (DFS) is of the order of 4 years. Pit optimisation studies, however, reveal that a relatively modest 7% improvement in economic factors have the potential to increase the reserve and mining life by over 50%. By contrast, a 20% deterioration in economic factors shows a much more modest 13% reduction in mining life and reserve.

The potential beyond that estimated life may include:

Extending the open cut operation and/or underground mining to extract some of the 65% of the resource, laterally and at depth, which is not included in the ore reserve.

Potential production exploration targets including some recently identified within several kilometres of Molyhil.

BUSINESS DEVELOPMENT PLAN

Upon completion of the updated DFS, Thor is planning to secure off-take agreements for the balance of tungsten and molybdenum concentrates, and finance to support the development of mining and processing operations at Molyhil. It is anticipated that the first production of concentrates will commence during 2018.

COMPETENT PERSONS STATEMENTS

The information in this report that relates to exploration results is based on information compiled by Richard Bradey, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Bradey is an employee of Thor Mining PLC. He has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Richard Bradey consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in this report that relates to the Molyhil Mineral Resource is based on information compiled by Mr Trevor Stevenson. Mr Stevenson is a Fellow of the Australasian Institute of Mining and Metallurgy, a member of MICA and a CP, and a full time employee of RPM. Mr Stevenson has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he has undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves’. 

Mr Stevenson is not aware of any new information or data that materially affects the information included in the RUL 2012 report on which this current report is based. Mr Stevenson has no economic, financial or pecuniary interest in Thor Mining PLC and there is no issue that could be perceived as a conflict of interest. 

The information in this report that relates to the Ore Reserves is prepared by Andrew Vidale who is a Member of The Australasian Institute of Mining and Metallurgy. Andrew Vidale is a full time employee of AVCS and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (“The JORC Code 2012 Edition”). Andrew Vidale consents to the inclusion of material within this report by Thor.
Updated March 2015
 
 
 
 
 

Garnet

Close spaced historic drilling was undertaken by Union Carbide Corporation in the 1970s covering an area of 70 hectares in the vicinity of the abandoned historic Garnet mine. Many of the holes are short, only penetrating only the upper one or two of the shallow dipping tungsten mineralised horizons. Seven holes across the area define a total tungsten mineralised thickness of 10 to 13 metres comprising three separate horizons within a 30 to 40 metre sequence of calcareous meta-sediment host rock.

The Garnet Exploration Target value; 2-3 million tonnes @ 0.3 - 0.4% WO3 is derived from the mineralised thickness, the target area, an estimated bulk density of 2.8 and a conservative factor of 0.1 to allow for the improbability of the whole of a target area being mineralised.

Figure 3: Cross section through upper Garnet mineralised horizon.

Gunmetal South

The 1981 Kaiser Engineering resource estimate for the Gunmetal South comprises 2-3 million tonnes at 0.3 to 0.5% WO3. The estimate was based on 80 to 150 metre spaced grid of drilling undertaken by Union Carbide Corporation (Figure 4). This resource estimate does not comply with current resource reporting standards and is thus presented as an Exploration Target.

The Exploration Target tonnage correlates with the geometric estimate based on area (500x250m), 7 metre total thickness and an average bulk density of 2.8 tonnes per cubic metre.

Figure 4: The Gunmetal deposit with Gunmetal South highlighted red.

Desert Scheelite

The Desert Scheelite resource detailed in the Golder report 2012 is not included as an exploration target. The deposit remains open to E, W & at depth along its whole strike length. Extensions to mineralisation in each of these three directions are treated as individual targets and described separately below.

Desert Scheelite East

The most easterly hole into DS mineralisation (DSDD 15) intersected exceptionally strong mineralisation of 13.9m averaging 0.89% WO3, 1.75% Cu at 180m below ground level and 130 metres below base of unmineralised cover. There are currently no apparent reasons why this mineralisation should not continue.

An exploration target of 2 – 3 million tonnes at 0.3 to 0.5% WO3 has been proposed based on an easterly extension equivalent to one third of the existing Desert Scheelite resource. Thor Mining holds tenements over the immediate potential extensions of this mineralisation.

Good Hope

Historic Good Hope drill hole (RDH2) intersected 36m @ 0.41% WO3 from 3 metres depth indicating significant potential. Surface outcrop and historic small scale mine workings indicate Good Hope mineralisation may comprise multiple sub vertical lodes which are yet to be effectively drill tested.

The geological setting is similar to Desert Scheelite including; outcropping skarn and quartz monzonite within marble host rock. Strong potential exists for economic quantities of tungsten mineralisation to occur at Good Hope. The Good Hope Exploration Target of 0.5 – 1.5 million tonnes at 0.4 – 0.5% WO3 is based on one sixth of the Desert Scheelite resource.

Gunmetal Historic

Gunmetal Historic (green zone Figure 4) zone surrounds the historic mining area. Geological mapping indicates extensive skarn and quartz monzonite outcropping within marble. Historic mining records and drill intersections in this area indicate robust tungsten mineralisation. Historic drill hole GM11 intersected the following four zones;

  • 4.2m @0.61% WOfrom 83m
  • 8.1m @0.62% WOfrom 88m
  • 6.1m @0.51% WOfrom 111m
  • 2.8m @0.5% WOfrom 121m

An Exploration Target of 0.5 - 1.0 million tonnes at 0.4 – 0.5% WO3 is proposed. Historic drill data and the potential of near surface and opencut mining make this a Tier 1 target.

Tier 2 Exploration Targets

Greasewood Spring

Greasewood Spring lies to the east of the Gunmetal mine and has comparable geology. Kilometre spaced historic drilling intersected tungsten at depth confirming the prospectivity of this area.

The prospective geology including hornfels and skarn in addition to the alluvial cover in the order of 60% give this target area a reasonable level of prospectivity. The ET value is derived from Gunmetal Historic scaled up to allow for the larger area of Greaswood Spring.

Good Hope Zone

The Good Hope Zone is an area entirely under volcanic and alluvial cover extending from mineralisation at Desert Scheelite in the south the mineralisation at Good Hope prospect in the north.

The zone comprises 247 hectares and has had no exploration since three kilometre spaced holes drilled in the 1970’s

The ET for this area is set at 1 – 2 million tonnes at 0.2 – 0.3% WO3.

Desert Scheelite Depth Extension

The Desert Scheelite Depth Extension is a relatively low risk target located down dip of the currently deepest drilling at less than 100 metres. By nature of its depth the target will be high cost to drill and unlikely to be drilled before commencement of mining of the current Desert Scheelite resource.

The ET is based on one sixth of the current DS resource.

Remaining Tier 2 Targets

The remaining Tier 2 Exploration Targets all have target values of less than 1 million tonnes. They are considered prospective as a result of their geology and proximity to known mineralisation.

METALLURGY AND PROCESSING

First phase testwork has been undertaken by Guanzhou Research Institute of Non Ferrous Metals on a sample of Pilot Mountain ore. The results of the testwork have shown that the ore can be treated by flotation or by flotation and WHIMS to produce a saleable concentrate.  Further testwork is required to determine optimum recovery and to establish a process flowsheet. 

COMPETENT PERSONS STATEMENTS

The information in this report that relates to exploration results is based on information compiled by Richard Bradey, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Bradey is an employee of Thor Mining PLC. He has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Richard Bradey consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

BUSINESS DEVELOPMENT PLAN

PROJECT EQUITY

Thor Mining PLC holds 60% of the Dundas Gold Project along with rights to increase that equity to 100% in two stages.

The first stage is an option to acquire an additional 20% (to 80%) interest in the tenements for consideration of Thor shares to the value of A$2.0 million, exercisable following expenditure by Thor of A$1.0 million in exploration and development expenditure by end September 2012.  By 31 December 2011, Thor has spent A$0.55 million in earning that option;

The second stage is an option to acquire a further 20% (to 100%) interest in the tenements for consideration of  further Thor shares to the value of A$2.0 million, exercisable following the expenditure by Thor of a further A$1.0 million in exploration and development expenditure by end September 2014.

In the event that Thor elects not to exercise its rights to acquire additional equity in the project according to the above terms, then a joint venture shall be formed with Thor and the vendor parties contributing according to their respective equity, with normal dilution provisions applying.

COMPETENT PERSONS STATEMENTS

The information in this report that relates to exploration results, mineral resources or ore reserves is based on information compiled by Richard Bradey, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Bradey is an employee of Thor Mining PLC.  Richard Bradey has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the which activity he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’.  Richard Bradey consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.