Thor Mining PLC Thor Increases Interest in EnviroCopper (9535E)

TIDMTHR

RNS Number : 9535E

Thor Mining PLC

11 November 2020

11 November 2020

THOR MINING PLC

THOR INCREASES INTEREST IN ENVIROCOPPER TO 30%

The directors of Thor Mining Plc ("Thor" or the "Company") (AIM, ASX: THR) are pleased to advise that the Company has increased its equity interest in private Australian company EnviroCopper Limited ("ECL") to 30%.

Thor has paid the final tranche A$185,000 in completion of the A$400,000 additional earn-in agreement, and has provided notice to ECL to exercise its right to the increase its holding. Thor is to be issued additional shares in ECL to take the equity holding to 30%, with these additional shares expected to be issued by 16 November 2020.

Highlights

   --      Thor increases its equity in EnviroCopper Ltd to 30% 

-- EnviroCopper Limited has earned its initial farm-in interest in 50% of the Kapunda project, and has provided notice that it will now proceed to a 75% interest

-- A very active period of field activities including drilling at both Kapunda and Alford West, are scheduled over the next six months

Mick Billing, Executive Chairman of Thor Mining, commented:

"This additional investment in EnviroCopper represents outstanding value for Thor and Thor investors."

"Through EnviroCopper we hold interests in resources totalling 233,000 tonnes of copper insitu (Table A, & Table B) with substantial upside for copper and the potential to also extract gold."

"Global copper prices have improved strongly in recent weeks and, with the optimism that a COVID 19 vaccine may be available in 2021, this rebound shows signs of the acceleration which comes with economic recovery."

"EnviroCopper have scheduled a host of field activities at both Kapunda and Alford West during the next few months, expected to add considerable value to each project. While the additional investment by Thor will be utilised on some of this work, the bulk of the expenditure requirement through to mid-2021 is funded, particularly at Kapunda, by the previously reported Australian government grant."

EnviroCopper Limited has entered into an agreement to earn, in two stages, up to 75% of the rights over metals which may be recovered via in-situ recovery ("ISR") contained in the Kapunda deposit from Australian listed company, Terramin Australia Limited ("Terramin" ASX: "TZN"), and rights to 75% of the Alford West copper project comprising the northern portion of exploration licence EL5984, held by Andromeda Metals Limited (ASX:ADN).

Information about EnviroCopper Limited and its projects can be found on the EnviroCopper website:

https://www.envirocopper.com.au/

During 2018, the Australian Government Ministry for Science, Jobs and Innovation announced an offer to ECR for research funding of A$2,851,303 for the Kapunda In-Situ Copper and Gold Recovery Trial. Funds from this grant are now expected to cover the major portion of costs of the program scheduled to mid-2021.

Table A: Kapunda Resource Summary 2018 (Reported 12 February 2018)

 
                          Resource          Copper Metal (Cu) -            Copper Metal (Cu) - 
                                                    Gross                 Net Attributable (15%) 
--------------------  ---------------  ----------------------------  ------------------------------ 
  Mineralisation      Classification      MT     Grade    Contained     MT      Grade     Contained 
                                                   %        Cu (t)                 %        Cu (t) 
  Copper Oxide           Inferred        30.3    0.24        73,000     4.5     0.036        10,950 
  Secondary copper 
   sulphide              Inferred        17.1    0.27        46,000    2.565    0.0405        6,900 
-------------------  ----------------  ------  -------  -----------  -------  --------  ----------- 
                 Total                   47.4    0.25       119,000    7.11     0.0375       17,850 
 ----------------                      ------  -------  -----------  -------  --------  ----------- 
 
 

Notes:

-- EnviroCopper hold 50% in this resource and are earning a 75% interest, and Thor now holds 30% of EnviroCopper.

-- All figures are rounded to reflect appropriate levels of confidence. Apparent differences may occur due to rounding.

-- Cut-off grade used of 0.05% Cu.

-- The Company is not aware of any information or data which would materially affect this previously announced resource estimate, and all assumptions and technical parameters relevant to the estimate remain unchanged.

   Table B: Alford West Copper Mineral Resource Estimate   (Reported 15 August 2019) 
 
                        Volume   Tonnes   Cu (%)   Contained   Au (g/t)   Au (kOz) 
                         (Mm3)    (Mt)               Cu (t) 
 Inferred    Wombat     20.91     46.5      0.17    80,000 
            ---------  -------  -------  -------  ----------  ---------  --------- 
  Bruce                  5.51     11.8      0.19    22,000 
 --------------------  -------  -------  -------  ----------  ---------  --------- 
  Larwood                3.48     7.8       0.15    12,000       0.04        10 
 --------------------  -------  -------  -------  ----------  ---------  --------- 
        Total            29.9     66.1      0.17    114,000 
                       -------  -------  -------  ----------  ---------  --------- 
 

Notes:

-- Figures are reported gross and there is no net attributable to Thor. EnviroCopper are earning a 75% interest in this resource, and Thor holds 30% of EnviroCopper.

-- Figures are rounded to reflect appropriate levels of confidence. Apparent differences may occur due to rounding.

   --    Cut-off grade used of 0.05% Cu. 

-- The Company is not aware of any information or data which would materially affect this previously announced resource estimate, and all assumptions and technical parameters relevant to the estimate remain unchanged.

Scheduled Project Activities

During the next three to six months Thor expects a particularly active period of field activities by ECL on these projects, with results being reported from:

Kapunda

   --   Additional borehole hydrogeological testing, in follow up of 2019 hydrogeological work 
   --   Gold testing drilling 
   --   Site Environmental Lixiviant Test (SELT) commencement. 

Alford West

-- Initial borehole hydrogeological testing to measure flow & connectivity characteristics within the deposit.

FURTHER INFORMATION ON ENVIROCOPPER LIMITED

Thor has paid the final tranche A$185,000 in completion of the A$400,000 additional funding requirement. As per the agreement with ECL, Thor's advance is being converted into new shares in ECL, increasing Thor's interest by 5% to a total of 30% of ECL.

For the year to 30 June 2020, ECL reported an unaudited net profit of approximately A$557k (approximately GBP308k) and net assets of A$1,295k (approximately GBP716k).

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

Enquiries:

 
Mick Billing             +61 (8) 7324  Thor Mining PLC  Executive Chairman 
                           1935 
 Ray Ridge                +61 (8) 7324  Thor Mining PLC  CFO/Company Secretary 
                           1935 
 Samantha Harrison/Niall  +44 (0) 207   Grant Thornton   Nominated Adviser 
  McDonald                 383 5100      UK LLP 
 Nick Emerson             +44 (0) 1483  SI Capital Ltd   Broker 
                           413 500 
 

Competent Persons Report

The information in this report that relates to exploration results is based on information compiled by Nicole Galloway Warland, who holds a BSc in applied geology (Hons) and who is a Member of The Australian Institute of Geoscientists. Ms Galloway Warland is an employee of Thor Mining PLC. She has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which she 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'. Nicole Galloway Warland consents to the inclusion in the report of the matters based on her information in the form and context in which it appears.

About Thor Mining PLC

Thor Mining PLC (AIM, ASX: THR) is a resources company quoted on the AIM Market of the London Stock Exchange and on ASX in Australia.

Thor holds 100% of the advanced Molyhil tungsten project in the Northern Territory of Australia, for which an updated feasibility study in August 2018(1) suggested attractive returns.

Adjacent Molyhil, at Bonya, Thor holds a 40% interest in deposits of tungsten, copper, and vanadium, including Inferred resource estimates for the Bonya copper deposit, and the White Violet and Samarkand tungsten deposits(2).

Thor is also acquiring up to a 30% interest in Australian copper development company EnviroCopper Limited, which in turn holds rights to earn up to a 75% interest in the mineral rights and claims over the resource on the portion of the historic Kapunda copper mine in South Australia recoverable by way of in situ recovery . Thor also holds rights to earn a 75% interest in portion of the Alford West copper project also in South Australia, and is also considered amenable to recovery by way of in situ recovery .

Thor holds 100% of the Pilot Mountain tungsten project in Nevada USA which has a JORC 2012 Indicated and Inferred Resources Estimate(3) on 2 of the 4 known deposits.

At the 100% owned Ragged Range Project in the Pilbara region of Western Australia, Thor has exciting early stage results for which gold and nickel drilling is planned."

"Thor holds mineral claims in the US states of Colorado and Utah with historical high grade uranium and vanadium drilling and production results."

Notes

(1) Refer ASX and AIM announcement of 23 August 2018

(2) Refer ASX and AIM announcement of 26 November 2018, and 29 January 2020

(3) Refer AIM announcement of 13 December 2018 and ASX announcement of 14 December 2018

Refer AIM announcement of 10 February 2016 and ASX announcement of 12 February 2018

Refer ASX and AIM announcement of 15 August 2019

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November 11, 2020 02:00 ET (07:00 GMT)