Thor Energy Share Discussion Threads

[richgold1971] 12/1/2015 10:54

I don't think will see much movement until the funding is in place (so long as this is favourable & not an share issue @ .005p!!!)

[bsg] 12/1/2015 10:39

Disappointing reaction to RNS.

[edgein] 12/1/2015 08:29

Those naughty mm's stuck it in auction pretty fast this morning, making sure that some cannot accumulate on the cheap it seems.

Regards,
Ed.

[edgein] 12/1/2015 08:18

LM,

The economics look impressive. To payback that $56m in that time you're talking $37m free cash flow pa, then leading to that large EBITDA. Very impressive for a microcap to have an asset that size and their gold assets look even better. The other asset in Nevada looks to have similar potential to Molyhil too. Just 25% of the offtake to secure now and then financing, but the economics look very very solid so its clear why the focus is clearly on Tungten rather than developing those gold assets at present.

Regards,
Ed.

[edgein] 12/1/2015 08:12

That's a very robust set of numbers out from THR on the DFS. Payback in just 18 months from a 6 year mine life. EBIDTA of $201m and generating that $56m of free cash flow in just 18 months. No wonder that broker put a 0.9p target on these. Very sound numbers in that revised DFS, Especially for a £2.8m company!

Regards,
Ed.

[liquid millionaire] 12/1/2015 08:10

"we believe these upgraded project economic outcomes are compelling"

[liquid millionaire] 12/1/2015 08:09

Mr Mick Billing, Executive Chairman of Thor Mining:

"The Molyhil project has taken a significant step forward with this enhanced feasibility study. The returns are very attractive, and cash flow available for debt servicing of 2.5 times project capital cost. Substantial work has been undertaken to improve costs and we believe that Molyhil has a very attractive cost structure and a low start-up capital expense. We do not underestimate the task in securing project finance, however we believe these upgraded project economic outcomes are compelling"

[lyceeuk] 12/1/2015 07:20

getting closer to pay day .

Thor Mining PLC UPGRADED MOLYHIL FEASIBILITY STUDY
Date : 12/01/2015 @ 07:00
Source : UK Regulatory (RNS & others)
Stock : Thor Mining (THR)
Quote : 0.095 0.0 (0.00%) @ 05:00
HOME » LSE » LSE » Thor Mining share price

Thor Mining PLC UPGRADED MOLYHIL FEASIBILITY STUDY
Print
Alert
TIDMTHR

RNS Number : 7770B

Thor Mining PLC

12 January 2015

12 January 2015

THOR MINING PLC

Thor Mining PLC ("Thor" or the "Company")

UPGRADED MOLYHIL FEASIBILITY STUDY

IMPROVES FINANCIAL RETURNS AND CONFIRMS EARLY CAPITAL PAYBACK

The Board of Thor Mining Plc ("Thor") (AIM, ASX: THR) is pleased to advise that a just completed upgraded Feasibility Study for the Company's wholly-owned Molyhil tungsten project in Australia's Northern Territory ("Molyhil") has confirmed that the project will deliver attractive financial returns as well as an early payback of the capital required for its development.

Study Highlights

-- Project payback period of 18 months after payment of royalties and taxation
-- All equity Net Present Value (NPV) of A$67 million with an Internal Rate of Return (IRR) of 44%, after taxation & royalty payments.

-- EBITDA of A$201 million
-- Cash production cost of US$112/mtu concentrate compared with revenue of US$358/mtu
-- Capital expenditure (CAPEX) of A$70 million (US$56 million)
-- Six year mine life
-- Simple open cut mining operation followed by standard mineral processing techniques
-- Operation substantially permitted
Next steps

-- Secure project development finance agreements
-- Detailed engineering studies
-- Complete permitting
Molyhil Feasibility Study

Following the publication in July 2014 of an updated JORC 2012 compliant open cut ore reserve statement for Molyhil, Thor has completed the necessary mining and production schedules and capital and operating costestimates, and incorporated these results into the feasibility model, along with previously published parameters (refer attachment "A"), to produce an upgraded and attractive feasibility study outcome with a mining and processing operation over a 6 year life.

The results of the study show:

-- EBIT returns provide for 18 month payback period
-- All equity Net Present Value (NPV) of A$67 million at a discount rate of 8% (A$53million @ 12% or A$80 million @ 5%) after tax and royalty payments

-- All equity Internal Rate of Return (IRR) of 44% after tax and royalty payments
-- Production cost of US$112/mtu concentrate (after deduction of molybdenum bi-product credits) compared with revenue of US$354/mtu

-- Mine life of 6 years, derived from the updated open cut ore reserve statement published in July 2014

-- Capital expense of A$70 million (US$56 million)
-- EBITDA of A$201million.
The feasibility study has been prepared by Thor Mining PLC using data and information supplied by third party consultants and suppliers for key components, including:

-- Resource estimates and open cut ore reserve statement;
-- Mine planning;
-- Capital and operating costs;
-- Metallurgical processes and outcomes;
-- Commodity prices and exchange rates;
-- Environmental studies.
Mining

Mining is planned using conventional open cut mining methods; contract drill & blast, followed by owner operated excavation and haulage.

An average pit slope of 48˚ currently provides for a waste to ore ratio of 5.2:1. There may be an opportunity to improve this ratio during operations and via targeted geo-technical drilling.

The resource estimate extends below the level of the open cut ore reserve used in this study providing potential to extend the project life either by deepening the open pit, or via underground mining methods depending upon subsequent costs and metal prices.

Processing

Mineral processing involves:

-- Two stage crushing to -55mm:
-- X-Ray (XRT) ore sorting at two sizes -55mm to +25mm, and -25mm to +10mm
-- Tertiary crushing
-- Two stage grinding using a rod mill followed by a ball mill
-- Three stage flotation circuit
o Molybdenum flotation
o Sulphide flotation
o Scheelite flotation
-- Concentrate dressing
The revised process flowsheet involves replacing the previous scheelite gravity recovery method with flotation which has achieved substantial improvements in economic recovery and also in reducing levels of some deleterious elements in final concentrate compared with the original circuit. The scheelite concentrate dressing process which follows the flotation step has been tested but is not yet optimised. It is expected that this optimisation process will be completed during the detailed design phase.

Project Infrastructure

Molyhil is located 220 kilometres north-east of Alice Springs in Australia's Northern Territory. Access is via the Plenty Highway a partially sealed road off the Stuart Highway which connects Alice Springs and Darwin.

The project will operate as a fly-in fly-out operation with provision for camp and electricity generation facilities provided in the cost estimates.

The project has ample water from underground aquifers nearby.

Product Off-take sale agreements

In October 2013 Thor received a Letter of Intent from US based Global Tungsten & Powders (GTP) in respect of 70% to 75% of total tungsten concentrate production for the life of the proposed Molyhil operation. The Directors of Thor are working towards sales agreements for the balance of those concentrates and also for the molybdenum by-product concentrates.

Next steps

The next steps for the Molyhil project involve securing the balance of concentrate sales (off-take) agreements and finance for the project development, after which it is planned to commence detailed engineering studies, along with completion of the Mine Management Plan and onsite civil works in preparation for mine and process plant construction and development.

Table 1. Molyhil Key Features


Project NPV post A$67 million
tax & Royalties
Project IRR after 44% All Equity
tax & royalties Case
Project Capex A$70 million All Equity
Case
Life of Mine C1 US$112/mtu
Cash Cost
Life of Mine EBITDA A$201 million
Payback from 1(st) 18 months
production
Project Life 6 years
Average feed grade 0.31% WO 0.41% WO after ore
sorting
0.12% Mo 0.12% Mo after ore
sorting
Operating throughput
Crushing & Sorting 500,000
Milling/Flotation tpa After ore sorting
etc 400,000
tpa
Annual Production 130,000 Approximately 1.3%
Average mtu * of global market
* 1mtu = 10Kg of
contained WO
--------------------- -------------- ----------------------

Mr Mick Billing, Executive Chairman of Thor Mining:

"The Molyhil project has taken a significant step forward with this enhanced feasibility study. The returns are very attractive, and cash flow available for debt servicing of 2.5 times project capital cost. Substantial work has been undertaken to improve costs and we believe that Molyhil has a very attractive cost structure and a low start-up capital expense. We do not underestimate the task in securing project finance, however we believe these upgraded project economic outcomes are compelling"

Enquiries:


Mick Billing +61 (8) 7324 Thor Mining Executive
1935 PLC Chairman
Ray Ridge +61 (8) 7324 Thor Mining CFO/Company
1935 PLC Secretary
Colin Aaronson/ +44 (0) 207 Grant Thornton Nominated
Jamie Barklem 383 5100 UK LLP Adviser
Andrew Monk/ +44 (0) 20 VSA Capital Broker
Bhavesh Patel 3005 5000 Ltd
Alex Walters +44 (0) 7771 Cadogan PR Financial
713608 PR
+44 (0) 207
839 9260

Updates on the Company's activities are regularly posted on Thor's website www.thormining.com, which includes a facility to register to receive these updates by email.

Attachment A: Molyhil Feasibility Study Input Parameters

1. Mineral Resource estimate of 4.7 million tonnes averaging 0.28% WO(3) & 0.13% Mo in Indicated and Inferred categories

2. Open Cut Ore Reserve for the Molyhil deposit of 3.0 million tonnes averaging 0.31% WO(3) & 0.12% Mo categorised as Probable

3. Revenue factors:
-- Revenue / mtu scheelite concentrate = US$354/mtu after concentrate discount
-- Revenue / pound molybdenum concentrate = US$10.56
-- A$1.00 = US$0.77 over life of mine

APT Tungsten 2015 2016 2017 2018+
Price Forecast
*
------ ----- ----- ------
US$/mtu 471 481 446 466
* Source: Tungsten Market Research Ltd
January 2014

4. Metallurgical recovery (post ore sorting)
-- Tungsten = 85%
-- Molybdenum = 77.8%
5. Capital cost = A$70 million
6. Operating Factors
-- Mining waste to ore ratio = 5.2 : 1
-- Mining costs = A$19.35 / tonne ore milled
-- Processing & admin costs = A$65 / tonne ore milled
-- Ore Sort reject = 25% of ore crushed
The Molyhil Mineral Resource is summarised in Table 2 Below:

Table 2: Summary of Molyhil Mineral Resource Estimate: (Reported on 30 January 2014)


Classification Resource WO(3) Mo Fe
Tonnes Grade Tonnes Grade Tonnes Grade
% % %
---------------- --------- ----- ------ ----- ------- ------
Indicated 3,820,000 0.29 10,900 0.13 4,970 18.8
Inferred 890,000 0.25 2,200 0.14 1,250 15.2
---------------- --------- ----- ------ ----- ------- ------
Total 4,710,000 0.28 13,100 0.13 6,220 18.1
---------------- --------- ----- ------ ----- ------- ------

Notes

-- Compliant with JORC 2012
-- Thor Mining PLC holds 100% equity interest in this reserve.
-- Mineral Resource reported at 0.1% combined Mo + WO(3) Cut-off and above 200mRL only.
-- Minor rounding errors may occur in compiled totals.
The Molyhil Open Cut Ore Reserve Statement is summarised in Table 3 below

Table 3: Molyhil Open Cut Ore Reserve Statement (Reported on 29 July 2014)


Classification Reserve WO(3) Mo
'000 Tonnes Grade Tonnes Grade Tonnes
% %
---------------- ------------ -------- --------- -------- -------
Probable 3,000 0.31 9,200 0.12 3,600
Total 3,000 0.31 9,200 0.12 3,600
---------------- ------------ -------- --------- -------- -------

Notes:

-- Compliant with JORC 2012
-- Thor Mining PLC holds 100% equity interest in this reserve.
-- Estimate has been rounded to reflect accuracy.
-- All estimates are on a dry tonne basis.
-- The reserve estimate extends to a maximum depth below surface of 150 metres.
This information is provided by RNS

The company news service from the London Stock Exchange

END

MSCEAEFNESSSEFF

[bsg] 31/12/2014 20:53

Probably another placing coming @ under .11p.

[edgein] 31/12/2014 09:14

Rich,

You could be correct on that. Perhaps they'll refocus efforts on the gold assets until the price of Tungsten increases again. What do you or others make of the unusually large buy trades reported late yesterday, 4 of them for over 78m each. I guess some of them are to be cancelled but two have different times one L and one O 4:43 and 5:27. Perhaps someone stakebuilding on the cheap.

Regards,
Ed.

[richgold1971] 17/12/2014 21:40

Ed, to be honest I think they are delaying the DFS due to the low tungsten prices

[edgein] 17/12/2014 11:54

Rich,

I guess they're going for all in one RNS, final offtake, financing and revised DFS. Revised DFS was due around the end of September but then this is AIM and delays are part of the game.

Regards,
Ed.

[bsg] 12/12/2014 14:10

New low .08 - .09 ?

[richgold1971] 09/12/2014 09:21

Still no DFS, if I missed my deadlines by this much, I would not have a job, it's as if they do not want to mine, they would rather build up the resource and keep diluting the shares

[bsg] 02/12/2014 08:33

Placing time, soon, again then.

[liquid millionaire] 01/12/2014 18:15

From S P Angel Stockbrokers



Thor Mining (THOR LN) 0.1 pence, Mkt Cap £3.2m – Work plan for Pilot Mountain tungsten project

Thor Mining has announced its work plan for the recently acquired Pilot Mountain tungsten project in south-west Nevada.
The project has a JORC compliant indicated and inferred resource of 6.79mt at an average grade of 0.31% WO3 and 160 g/t solver plus copper (0.17%) at the Desert Scheelite property. The company is looking to expand this resource to 7.5-13.5mt at 0.2-0.4% WO3 through confirmatory and infill drilling of additional targets including the Gunmetal and Garnet prospects.
Thor Mining is also looking to investigate “Tier 2” targets where it is aspiring to identify 3.5-9m tonnes of additional resources at similar grades.
Following completion of the resource drilling and preparation of reserve estimates, Thor Mining intends to move to a definitive feasibility study and permitting, however the company acknowledges that “there is much to do, including follow up work on very promising metallurgical test work as well as other environmental and other technical studies.”
Conclusion: At this stage, the company has not disclosed its budget estimates for the follow up work at Pilot Mountain, however as an historic tungsten mining area with existing resources we do not expect a lengthy target generation process so provided funds are available, the company should be in a position to fast track its resource assessment work.

[liquid millionaire] 01/12/2014 07:35

Mr Mick Billing, Executive Chairman of Thor Mining:

"The potential for the Pilot Mountain project to be ranked as one of the larger, non-Chinese, tungsten deposits should not be discounted. Previous exploration was halted due to market forces, rather than lack of targets. At Pilot Mountain, Thor has a number of "walk up" drill targets along with very interesting longer-term exploration opportunities. There is much to do, including follow up work on very promising metallurgical testwork as well as other environmental and other technical studies, however this has potential to become a project of considerable substance."

[liquid millionaire] 01/12/2014 07:33

1 December 2014

THOR MINING PLC

Thor Mining PLC ("Thor" or the "Company")

Development Plan

Pilot Mountain Tungsten Project - Nevada USA

The Directors of Thor Mining PLC' ("Thor") (AIM, ASX: THR) are pleased to announce the Development Plan for the Company's recently acquired Pilot Mountain tungsten project, in the US state of Nevada.

The three stage development plan has been designed to optimise, develop and permit the existing Desert Scheelite resource and project Exploration Targets* through to project development ready status.

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

The Desert Scheelite Indicated + Inferred Resource comprises 6.8 million tonnes @ 0.31% WO(3) , 0.17% Copper, and 22.8g/t (grams/tonne) Silver, announced on 10 June 2014.

Table 1: Pilot Mountain Exploration Target summary


Tonnage % WO(3) Comment
(Mt)
------------------------ ------------------ -------- -------------------------------
Tier 1 Targets* 7.5 - 0.3 Based on historic
13.5 - 0.5 drill intersections
------------------------ ------------------ -------- -------------------------------
Tier 2 Targets* 3.5 - 0.3 Based on favourable
9.1 - 0.5 geology and proximity
to known mineralisation.
------------------------ ------------------ -------- -------------------------------
Total Exploration 11.0 - 0.3 Combined Tier 1 &
Target* 23.0 - 0.5 2
------------------------ ------------------ -------- -------------------------------
These targets are in addition to the Indicated
and Inferred Resource Estimate at Desert Scheelite,
below.

The Desert Scheelite Indicated + Inferred Resource
comprises 6.8 million tonnes @ 0.31% WO3, 0.17%
Copper, and 22.8g/t (grams/tonne) Silver, announced
on 10 June 2014.
Table 2: Desert Scheelite Resource Estimate
- Compliant with JORC 2012
---------------------------------------------------------------------------------------
Desert Resource WO(3) Ag Cu
Scheelite
------------ ---------- ------------------ -------------------- -------------------
Tonnes Grade Contained Grade Contained Grade Contained
% metal g/t metal % metal (t)
(t) (t)
------------ ---------- ------ ---------- -------- ---------- ------ -----------
Indicated 6,090,000 0.31 18,900 24.2 150 0.16 10,000
------------ ---------- ------ ---------- -------- ---------- ------ -----------
Inferred 700,000 0.30 2,100 9.1 10 0.24 2,000
------------ ---------- ------ ---------- -------- ---------- ------ -----------
Total 6,790,000 0.31 21,000 22.8 160 0.17 12,000
------------ ---------- ------ ---------- -------- ---------- ------ -----------


Note: Resource 100% owned by Thor Mining PLC

Pilot Mountain situated in south-western Nevada comprises the Desert Scheelite, Gunmetal, Garnet and Good Hope deposits, all within a 3 kilometre range of each other. A review of geological data including recently unearthed archive data has been undertaken to determine the project's development potential summarised in Table 1.



Figure 1: Pilot Mountain Exploration Target Plan

Tier 1 targets have demonstrated tungsten mineralisation based upon existing historic drill data generated largely by the Union Carbide Corporation in the 1970s. This data, however, is not adequate to support a resource estimate. Exploration Target values quoted above for Tier 1 areas have been derived from extrapolation of existing drill data.

Tier 2 targets do not have demonstrated tungsten mineralisation but are deemed prospective as a function of favourable geology and proximity to areas of known mineralisation. Exploration Target values quoted above for Tier 2 areas have been derived by comparison with similar Tier 1 target areas and factored for relative size. Testing of Tier 2 targets will comprise part of the second stage of the development plan.

The three stage development plan will comprise;

1. Confirmatory drilling of Tier 1 targets, enabling updated resource estimate including Garnet and Gunmetal deposits, initial scoping studies, and advancement of project permitting.

2. Expansion and infill of Tier 1 resource drilling and testing of Tier 2 targets. Upgrade of resource estimates to enable initial assessment of reserves. Continue project permitting, feasibility and associated studies.

3. Completion of resource drilling and studies for reserve estimate. Definitive feasibility study and project permitting.

Individual Exploration Targets and their derivation are provided below.

Mr Mick Billing, Executive Chairman of Thor Mining:

"The potential for the Pilot Mountain project to be ranked as one of the larger, non-Chinese, tungsten deposits should not be discounted. Previous exploration was halted due to market forces, rather than lack of targets. At Pilot Mountain, Thor has a number of "walk up" drill targets along with very interesting longer-term exploration opportunities. There is much to do, including follow up work on very promising metallurgical testwork as well as other environmental and other technical studies, however this has potential to become a project of considerable substance."

[richgold1971] 26/11/2014 13:40

All I want for Xmas is a DFS, c'mon Santa sort it out, this dilution is killing me !

[edgein] 17/11/2014 12:09

15m at 0.168 someone is keen to get in before the DFS it seems. That's a hefty premium.

Regards,
Ed.

[tubest] 14/11/2014 12:31

Delays on DFS acknowledged,discussions advancing with parties re finance,on publication of DFS these expected to accelerate;Pilot Mountain,JV anticipated.

[bsg] 14/11/2014 11:03

First time offer under last placing price.

[edgein] 14/11/2014 10:34

Regards,
Ed.