Molyhill

Thor Mining is focused on the development of its flagship Molyhil and Spring Hill projects in the Northern Territory.

Thor Mining

Molyhil Project

Molyhil Project factsheet %asset_summary_ PDF (1.4 MB)

Thor Mining is an international resources company, publicly listed on both the Australian stock exchange and the Alternative Investment Market (AIM) in London. The company is focussed on the development of its flagship Molyhil and Spring Hill projects in Australia’s Northern Territory.

ASX Code: THR

Market Capitalisation: A$8.58 million at 14 February 2018
Number of Shares: 140,790,387 at 14 February 2018

Website: www.thormining.com

Commodity

Tungsten and Molybdenum

Contact details

Thor Mining PLC
Mr Mick Billing
Chairman and Chief Executive Officer
T: +61 8 7324 1935
E: mbilling@thormining.com

To find out more about Investment Attraction in the Northern Territory contact the:

Investment Attraction
Minerals and Upstream Energy Investment
Australia’s Northern Territory Government
Department of Trade, Business and Innovation 
T: +61 8 8999 1385
E: resources.investment@nt.gov.au

The production-ready Molyhil project, located 220 kilometres north-east of Alice Springs in Australia’s Northern Territory, has indicated resources sufficient to justify the immediate development of an open-pit mine with significant potential to upgrade its tungsten resources close to the mine and in ground held to the east. The project includes existing mining leases covering 2.43km2 owing to historical mining activity in the area plus 292km2 of exploration licenses. Scheelite (CaWO4) was first discovered at Molyhil in 1973, and mining activities were conducted by Petrocarb NL from 1978 to 1982 to a depth of 25m. Thor Mining acquired the project in 2005 and has since conducted extensive exploration, evaluation, environmental and social studies.

Molyhil is a skarn-related scheelite-molybdenite-magnetite deposit within the Arunta Region with a JORC Indicated and Inferred Resource of 4.71 Mt at 0.28% WO3, 0.22% MoS2 and 18.1% Fe, most of which is in the Indicated category. An updated feasibility study released in January 2015 projected a 44% IRR, A$67m NPV and a 1.5 year payback period, based on a six year open pit mining operation.

In January 2018 Thor Mining announced a significantly upgraded open cut JORC probable ore reserve of 3.5 Mt at 0.29% WO3 and 0.12% Mo, and an extension of the planned open pit mine life from six years to seven years. Importantly, a new additional underground mining option has also been identified, in addition to the original plan for open pit mining, which could further extend the project’s life. An updated Definitive Feasibility Study is expected in 2018.

An updated feasibility study released in August 2018 projected a 59% IRR, A$101m NPV and a 1.5 year payback period, based on this 7 year open pit mining operation.

The Molyhil deposit consists of two adjacent outcropping iron rich skam bodies enclosed in granite, which contain scheelite and molybdenite mineralisation. Both the outlines of, and the banding within the bodies strike approximately north south and dip steeply to the east. The bodies are arranged in an en-echelon manner, the northeast body being named the Yacht Club and the southwest body the Southern.

Since mid-2004 the Molyhil deposit was the subject of systematic geophysical exploration, diamond and reverse circulation drilling programs, surface and underground bulk sampling, metallurgical test work and a geotechnical study. The prospects for increasing reserves at depth by further exploration remain strong and will be further tested once mining is in progress, as will the regional potential for additional tungsten and molybdenum deposits.

In June 2017 Thor Mining was granted an additional 66km2 exploration license adjoining the existing project area, considered highly prospective for further Molyhil-style skarn-hosted tungsten deposits.

In March 2018, Thor Mining announced the acquisition of a 40% interest in a nearby tenement, Bonya, approximately 30 kilometres to the east of Molyhil. Bonya hosts 10 known outcropping tungsten deposits however no tungsten exploration work has been conducted since the 1970s. The deposits are considered to be well within economic trucking distance of Molyhil, and drilling programs on these deposits will be conducted once permitting has been secured.

The project is located 220 kilometres north-east of Alice Springs (320km by road) within the and within 25km of the Plenty Highway, a partially sealed road off the Stuart Highway which connects Alice Springs and Darwin. The project has ample water from nearby underground aquifers. Molyhil will operate as a fly-in, fly-out operation with provision for camp and electricity generation facilities provided for within the cost estimates of the current feasibility study.

  • An updated feasibility study for Molyhil was announced in January 2015, reflecting an adjustment to previous modelling to incorporate the project’s July 2014 updated JORC Ore Reserve. The updated feasibility study projected a 44% IRR, A$67m NPV and a 1.5 year payback period based on a A$70m capital cost and a 6 year mine life with average annual production of 130,000 mtu (1 mtu = 10kg contained WO3).
  • Thor Mining is updating capital and operating cost estimates with the aim of further cost reductions and improved mining and processing economics. An updated Definitive Feasibility Study is expected in 2018.
  • 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.
  • Environmental and traditional owner approvals are in place.
  • Next steps - 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.
  • Two month construction schedule forecasted from development commencement to first production.

The company is seeking equity investment in the company and/or joint venture participation, along with product off-take agreements to progress the development of the Molyhil project.

The indicated and inferred mineral resource reported on 30 January 2014 at a 0.1% Mo + WO3 cut-off (and above 200mRL only) comprises:

Classification Resource (Tonnes) MoS
Grade % Tonnes
WO
Grade % Tonnes
Fe
Grade %
Indicated 3,820,000 0.22 8,200 0.29 10,990 18.8
Inferred 890,000 0.25 2,200 0.25 2,200 15.2
TOTAL 4,710,000 0.22 10,400 0.28 13,100 18.1

Disclaimer

This document includes information provided by third parties. The information is general in nature and is for information purposes only. The Northern Territory Government makes no representation about the veracity or accuracy of information provided by third parties. You must rely on your own due diligence before proceeding. You should consider seeking independent professional advice.
© Northern Territory Government, October 2018.