Thor Mining to re-examine Molyhill tungsten, molybdenum resource after drill results

Thor Mining (ASX: THR) plans to re-estimate the Resource at the Molyhil Tungsten and Molybdenum Project in the Northern Territory before the end of the year, following good diamond drilling results.

The drill program undertaken in July and August 2011, comprised reverse circulation drilling to test for additional down plunge resource and diamond drilling to enhance confidence in the near-surface resource.

Diamond drilling results have been released, with one hole intercepting 16.4 metres at 0.84% tungsten and 0.56% molybdenum from 43.6 metres, including 2.6 metres at 0.94% tungsten and 0.83% molybdenum and 4 metres at 2.12% tungsten and 0.33% molybdenum.

Other assays from the program include:

- 9 metres at 1.48% tungsten and 0.1% molybdenum from 48 metres, including 4 metres at 2.93% tungsten;
- 1 metre at 3.7% tungsten and 0.36% molybdenum from 19 metres; and
- 0.5 metres at 24.28% tungsten and 0.77% molybdenum from 31.7 metres.

These results compare favourably with the historical Resource grade of 0.32% tungsten and 0.19% molybdenum, and show potential to add to the project’s current Resource of 3.75 million tonnes at 0.32% tungsten, 0.19% molybdenum and 28% iron.

Results from reverse circulation drilling at Molyhil were released in October, showing intersections of mineralisation outside the current Resource.

Thor chairman Mick Billing said: “These are very positive results and provide confidence that the value of the proposed Molyhil mining operation has potential to be enhanced. The assay grades from some of these intersections are substantially higher than the average grade of the resource.”

“While a revised resources estimate has yet to be produced, and this is in process, we look forward to the outcome with keen anticipation.”

Assessment of the drill assay results is underway with mineral resource consultancy Runge.

Meanwhile, last month capital and operating cost estimates for the first phase of production have been announced as part of a Definitive Feasibility Study (DFS) commissioned in June.

Capital costs have been estimated at $66 million, while operating costs are expected to be $79 per tonne. The DFS is expected to be completed by the end of the year.

Cash

Earlier this month Thor announced it had successfully raised £270,000, or A$419,871, through a UK share placement.

The company placed 27 million shares to UK sophisticated clients of Simple Investments at £0.01 per share.

Completion of the placement and receipt of funds is expected to be finalised by 29 November 2011.

Funds raised will be used to help fund the aggressive exploration and evaluation programs in progress at the Dundas (Western Australia) and Spring Hill (Northern Territory) gold projects, and to further fund the Molyhil Tungsten/Molybdenum feasibility study.

At the end of the September quarter, Thor had $1.61 million in cash.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/22629/thor-mining-to-re-examine-molyhill-tungsten-molybdenum-resource-after-drill-results-22629.html