The Molyhil Tungsten - Molybdenum Project:
100% Thor Mining PLC
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.
Molyhil Open Cut Ore Reserve (Reported 8 January 2018)
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$300/mtu for WO3 concentrate and US$7.92/lb for Mo concentrate at an exchange rate of US$0.75 to A$1.00. The WO3 and Mo Processing Recovery post ore sorting used was 85% and 77.8% respectively.
Additional Deposits Nearby
Approximately 30 kms east of Molyhil are 13 known outcropping tungsten deposits at Bonya. It is expected that these may add further to the resource inventory and extend the operational life of Molyhil.
Bonya Copper Inferred Resource Estimate (Reported 26 November 2018)
Thor Mining PLC holds a 40% equity interest in this resource
The Pilot Mountain Tungsten Project
100% Thor Mining PLC
The Pilot Mountain tungsten project is situated 200km southeast of Reno in Nevada USA.
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.
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.
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).
Tier 1 Targets Tier 2 Targets
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MOLYHIL DEFINITIVE FEASIBILITY STUDY
Following the release of an upgraded Open Pit Ore Reserve in January 2018, an updated Definitive Feasibility Study (DFS) was completed in August 2018 with robust outcomes including a payback period of less than 18 months from first production, and very low operating costs. The Company is now focussed on the task of securing project finance to bring the project into production.
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 65% WO₃, with a recovery of 85%, and a Primary Molybdenum Concentrate assaying 51.4% Mo, with a recovery of 77.8%.
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 7 years. Beyond this period, the Company has identified portions of the resource, below the pit shell, whch appear to allow profitable underground mining thus extending this life.
In addition, the Bonya deposits, approximately 30kms east of Molyhil, have the potential to extend the operational life of Molyhil for several additional years. The Company plans to drill several of these deposits as soon as it is able to secure approval.
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. With a 12 month construction period, it is anticipated that the first production of concentrates could commence during 2019.
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 2012 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.