Thor Mining
Thor Mining PLC, AIM, ASX: 'THR' is a minerals exploration and development company focused on exploring and developing specialty metals projects. The flagship project is the Molyhil Tungsten-Molybdenum Project. Since mid 2004 Molyhil has been the subject of systematic test work comprised of geophysical exploration, a diamond and RC drilling programme, surface and underground bulk sampling, metallurgical test work and a geotechnical study.
Subsequent to the completion of the updated resource statement, and the Scoping Study, Thor completed a Definitive Feasibility Study in November 2006 which confirmed that the project is technically and economically viable, with strong financial returns and rapid capital payback. Thor has also acquired a number of project areas in the Northern Territory of Australia with prospectivity for uranium mineralisation.
Another big step forward for Thor Mining and Molyhil
For a micro-cap stock on AIM with a project in Australia, Thor Mining has done a great job moving its lead project from conceptualisation towards production over the last 12 months. Most of the mining juniors that list on AIM with projects in far-flung parts come to very little. So Thor, which listed with a tungsten/molybdenum project in Australia, has done well to move its lead project towards production while, at the same time, radically changing the structure of the business and bringing additional investors on board.
In September Thor completed a dual listing on AIM and the Australian Stock Exchange (ASX) raising A$10 million to advance its molybdenum/tungsten Molyhil project through the next stage towards production. Since listing and fundraising, Thor has announced positive results of the definitive feasibility study for Molyhil and announced early exploration success at the company’s newly acquired uranium prospects in the Northern Territory.
The Definitive Feasibility study reaffirmed many of the assumptions laid out in an earlier Scoping Study, which enabled Thor to raise a useful amount of cash in Australia. With a NPV (Net Present Value) at a discount 8% of A$88 million, and an EBIT (Earnings Before Interest & Tax) of A$117 million over the first four years of the project, the mine is still envisaged to run a 300,000 tpa (tonnes per annum) mining and processing operation. This is based on a JORC compliant resource of 2.4 million tonnes of combined tungsten and molybdenum grading at 0.8%.
The plan still follows the original intention of capitalising on strong commodity prices and therefore will focus on an open pit operation with a four-year life. A two-stage pit design has been recommended with strip ratios of 8:1 and 7.4:1 using conventional truck and shovel operations, probably to be operated by contractors. Metallurgical test work showed recoveries of 77% for Molybdenum and 67.2% for Tungsten were feasible with recommendations made to increase recoveries by capturing more fine materials. All assumptions were based on a price of US$25/pound molybdenum and US$225 per mtu of tungsten less a 20% discount (mtu = metric tonne unit or 10kg).
Today’s robust prices for tungsten and molybdenum, combined with the low capital expenditure (A$44.5 million) required to build the Molyhil open pit operation creates the possibility of an exceptionally internal rate of return allowing payback in less than one year.
Thor have also elected to drill beyond the current known mineralisation to test the extension of the ore body to see if it would be viable to move towards an underground operation after the initial four years of open pit production. However because of the price volatility of metals like molybdenum, any IRR calculations and NPV (net present value) calculations for Molyhil are highly sensitive and the numbers would change dramatically if metal prices were to retreat – so it makes sense for Thor to fast track Molyhil towards open pit production rather than take years to ‘drill the deposit to death’. (E.G take years to develop a perfect model of the whole deposit only to be left commercially stranded by changes in the world economy or lower prices for molybdenum etc.)
Thor is now working to clear up any remaining hurdles left, including any State Government and Native Title issues and to finalise mine development financing and off take agreements. While investors wait for more news on these fronts there is also the prospect of plenty of news flow from further deep drilling at Molyhil and continued exploration results from the company’s uranium prospects north of Molyhil.
Other Thor Mining articles
-
12/08/08 Thor Mining - seven projects and on the prowl for more
-
29/11/07 Thor Mining: hammering out a tungsten-molybdenum mine
Other Thor Mining news
-
22/09/08 Another Thor Mining Director Acquires Shares in the Company
-
22/08/08 Thor Mining adds Chief Operating Officer
-
30/04/08 Western Desert takes a chunk of Thor Mining
-
13/03/08 Thor Mining secures off-take for Molyhil Project
-
06/03/08 Thor Mining receives encouraging results from uranium projects
-
01/02/08 Thor Mining in advanced off-take negotiations
Investors interested in Thor Mining recently viewed
-
Braemore Resources (AIM: BRR)
-
Churchill Mining (AIM: CHL)
-
Discovery Metals (AIM: DME)
-
Finders Resources (AIM, ASX: FND)
-
Forte Energy (ASX, AIM: FTE)
-
Gippsland Limited (AIM, ASX: GIP)
-
Moly Mines (ASX, TSX: ASX:MOL)
-
Red Rock Resources (AIM: RRR)
-
Rusina Mining (AIM, ASX: RMLA)
-
Western Desert Resources (ASX: ASX-WDR)