TIDMTHX
RNS Number : 4941T
Thor Explorations Ltd
20 March 2023
NEWS RELEASE
NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR
DISTRIBUTION TO U.S. WIRE SERVICES
FOR IMMEDIATE RELEASE TSXV / AIM: THX
March 20, 2023
Vancouver, British Columbia
THOR EXPLORATIONS ANNOUNCES UPDATED MINERAL RESOURCE ESTIMATE AT
THE DOUTA GOLD PROJECT, SENEGAL
Thor Explorations Ltd. (TSX VENTURE/AIM: THX) (" Thor " or the "
Company ") is pleased to announce the results of an updated Mineral
Resource Estimate (the "Douta Resource" or "2023 MRE") prepared in
accordance with National Instrument 43-101 Standards of Disclosure
for Mineral Projects ("NI 43-101") for the Douta Gold Project in
Senegal.
Highlights
-- Total Douta Resource of approximately 1.78 million ounces
("Moz") of gold ("Au"), an increase of 144% in total resource as
compared with the 2022 maiden mineral resource estimate declared
for Douta in November 2021.
-- Douta Resource constrained within optimised pit shells and comprised of:
o an initial Indicated Mineral Resource of 20.2 million tonnes
(" Mt ") grading 1.3 grammes per tonne ("g/t") Au for 874,900 oz
Au; and
o Inferred Mineral Resource of 24.1 Mt grading 1.2 g/t Au for
909,400 oz Au
-- 2023 MRE supported by a total of 64,567 metres of drilling
-- Updated Douta Resource encompasses the Makosa, Makosa Tail
and the recently discovered Sambara prospects, all of which remain
open along strike and down dip
-- Drilling is ongoing on the above prospects with a further
40,000 metre drilling program to be completed in 2023 consisting of
diamond drilling and reverse circulation drilling. Mineralisation
remains open along strike between the known prospects with further
growth potential along 20 kilometres of under-explored prospective
strike length covered by the Douta exploration permit
Segun Lawson, President & CEO, stated
"This is an excellent milestone in the progress of the Douta
Project. The 2023 MRE has more than doubled the contained gold
within the Douta permit to over 1.7 million ounces, with the
indicated component of the resource alone exceeding 870,000 ounces
of gold compared to the maiden inferred resource of 730,000 ounces.
In addition, there are a further 909,000 ounces of inferred
resources within the optimised pit shells that we intend to convert
to indicated classification with additional infill drilling which
forms part of our ongoing 40,000 metre program. This updated
resource base provides for a solid foundation for more advanced
studies on the pathway to developing Thor's second operating gold
mine in West Africa.
"We are now focussing our exploration efforts towards expanding
the resource along the prospective corridor that runs along the
full 30km length of our exploration licence. Priority will be given
to extensional drilling at Makosa, Maka, Mansa and the newly
discovered Sambara prospects.
Introduction
The Douta Gold Project is located within the Kéniéba inlier, in
eastern Senegal and comprises the northeast trending gold
exploration permit, E02038 that covers an area of 58 square
kilometres (" km(2) "). Thor, through its wholly owned subsidiary
African Star Resources Incorporated (" African Star "), has a 70%
economic interest in partnership with the permit holder
International Mining Company SARL (" IMC "). IMC has a 30% free
carried interest in its development until the announcement by Thor
of a Probable Reserve.
The Douta licence is strategically positioned 4km east of the
deposits Massawa North and Massawa Central deposits which form part
of the world class Sabadola-Massawa Project that is owned by
Endeavour Mining (Figure 1). The Makabingui deposit, belonging to
Bassari Resources Ltd, is located immediately to the east of the
northern portion of E02038.
Summary of the 2023 MRE
The 2023 MRE encompasses the Makosa, Makosa Tail and Sambara
zones, which are collectively named the Douta Resource.
The MRE has been estimated by an independent consultant and is
reported at a cut-off grade of 0.5 g/t Au within optimised shells
using a gold price of US$2,000.
Classification Tonnes Grade (g/t Contained Thor Interest
(Mt) Au) Gold (k ounces)
Indicated 21.2 1.3 875 70%
------- ----------- ----------------- --------------
Inferred 24.1 1.2 909 70%
------- ----------- ----------------- --------------
Table 1: Douta Gold Project Total Classified Mineral Resource
Estimate Summary, March 2023 (reported at cut-off grade of 0.5 g/t
Au)
* Open Pit Mineral Resources are reported in situ at a
cut-off grade of 0.50 g/t Au. An optimised Whittle
shell (US$2,000) was used to constrain the resources.
* The Mineral Resource is considered to have reasonable
prospects for economic extraction by open pit mining
methods above a 0.50 g/t Au and within an optimised
pit shell.
* Cut-off grade varied from 0.45 g/t to 0.48 g/t in a
pit shell based on mining costs, metallurgical
recovery, milling costs and G&A costs.
* Resource is reported as in-situ and no metallurgical
or mining recovery factors have been applied.
* Mineral Resources are not Mineral Reserves and do not
have demonstrated economic viability.
* Totals may not add exactly due to rounding.
* The statement used the terminology, definitions and
guidelines given in the CIM Standards on Mineral
resources and Mineral Reserves (May 2014) as required
by NI 43-101.
* Bulk density is assigned according to weathering
profile with a weighted average of 2.78.
* The resource estimate was prepared by Mr Kevin
Selingue, Principal Geologist of MineralMind,
Australia in accordance with NI 43-101. Mr Selingue
is an independent qualified person ("QP") as defined
by NI 43-101.
Mineral Resource Estimate
The MRE, as detailed in Table 2, has been estimated by an
independent consultant and is reported at a cut-off grade of 0.5
g/t Au within optimised shells using a gold price of US$2,000.
Area Classification Tonnes Grade Contained Thor
(g/t Au) Gold (ounces) Interest
Makosa Indicated 15,210,000 1.22 598,000 70%
---------------- ------------------ ---------- --------------- ----------
Makosa Inferred 18,490,000 1.10 654,600 70%
---------------- ------------------ ---------- --------------- ----------
Makosa Tail Indicated 4,610,000 1.73 256,800 70%
---------------- ------------------ ---------- --------------- ----------
Makosa Tail Inferred 3,170,000 1.68 171,300 70%
---------------- ------------------ ---------- --------------- ----------
Sambara Indicated 360,000 1.75 20,100 70%
---------------- ------------------ ---------- --------------- ----------
Sambara Inferred 2,427,000 1.07 83,500 70%
---------------- ------------------ ---------- --------------- ----------
Total Indicated 20,180,000 1.34 874,900 70%
---------------- ------------------ ---------- --------------- ----------
Total Inferred 24,090,000 1.17 909,400 70%
---------------- ------------------ ---------- --------------- ----------
Table 2: Douta Gold Project Mineral Resource Estimate by Area,
March 2023
(reported at cut-off grade of 0.5 g/t Au)
* Open Pit Mineral Resources are reported in situ at a
cut-off grade of 0.50 g/t Au. An optimised Whittle
shell (US$2,000) was used to constrain the resources.
* The Mineral Resource is considered to have reasonable
prospects for economic extraction by open pit mining
methods above a 0.50 g/t Au and within an optimised
pit shell.
* Cut-off grade varied from 0.45 g/t to 0.48 g/t in a
pit shell based on mining costs, metallurgical
recovery, milling costs and G&A costs
* Metallurgical and mining recovery factors not
applied.
* Mineral Resources are not Mineral Reserves and do not
have demonstrated economic viability.
* Totals may not add exactly due to rounding.
* The statement used the terminology, definitions and
guidelines given in the CIM Standards on Mineral
resources and Mineral Reserves (May 2014) as required
by NI 43-101.
* Bulk density is assigned according to weathering
profile with a weighted average of 2.78.
* The resource estimate was prepared by Mr Kevin
Selingue, Principal Geologist of MineralMind,
Australia in accordance with NI 43-101. Mr Selingue
is an independent qualified person ("QP") as defined
by NI 43-101.
Drilling
The MRE is based on data obtained from a total of 64,567m of
drilling consisting of 1,937m of diamond drilling and 62,630m of
Reverse Circulation (" RC ") drilling which have been used to
generate the updated MRE. RC drilling was carried out by Sengold
(2020-2023), while historic diamond drilling was carried out by
International Drilling Company (2017), Sendrill Consulting (2018)
and ADS (2012).
Sample Analysis and Database
Drilling has been almost exclusively sampled on 1m intervals
with the primary laboratory for analysis being ALS Global's
laboratory in Bamako, Mali. Split samples ranging in weight from
0.5 kilograms (" kg ") to 3.5kg, with an average of 2.3kg were
collected for analysis. After the sample preparation a fire assay
with an atomic absorption finish on a 50 grammes (" g ") subsample
of the pulp (AA26), was completed. Umpire samples were submitted to
the MSA laboratory in Abidjan.
Standard QA/QC protocols were followed with inserts of certified
standards, blanks and duplicates representing approximately 10% of
all analyses.
The Company's database is maintained internally with independent
audits carried out by Cube Consulting (Perth) on request.
Figure 1: Douta Project Location Map
Estimation Parameters
A four-pass Inverse Distance grade estimation was carried out
within hard geological boundaries defined by a numerical models
based on a nominal modelling grade cut off of 0.65 g/t Au. Ordinary
Kriging has been used to validate the Inverse Distance estimation
results.
Separate numerical models, using a 0.65 g/t Au cut off were
generated for Makosa Tail, Makosa North and East and Sambara.
A weathering model was developed so bulk densities could be
assigned according to weathering state.
The tonnage factor in the block models was based on 188 bulk
density measurements and determined by assigning the averaged bulk
densities to the following material types:
-- 2.76 t/m3 for Fresh (FRS),
-- 2.70 t/m3 for weakly oxidized (WOX),
-- 2.60 t/m3 for moderately oxidized (MOX), and
-- 2.50 t/m3 for strongly oxidized (SOX).
At this stage of the project, it is appropriate that blocks
within the Makosa mineralised zones have the same average bulk
densities as the blocks within the Makosa waste zones.
Exploratory Data Analysis and Top Cut Selection
Prior to selecting the composite length, the average sample
length was determined. The majority (91%) of the samples are 1.0m
long, thus a 1m composite length was adopted.
Statistical analysis was completed on assay values composited to
1m and extracted from within the mineralised zone domains for the
two prospect areas, with a top cut (cap) being selected to reduce
the influence of any 'outlier' high grades.
Globally, a total of 4,594 composites were included in the
database for top capping analysis. At Makosa Main, nine (9)
composite gold values that exceeded 15 g/t were reduced to 15 g/t.
At Makosa Tail, eleven (11) composite gold values that exceeded 15
g/t were reduced to 15g /t. At Sambara, two (2) composite gold
values that exceeded 15 g/t were reduced to 15 g/t. Gold composite
values below were unchanged. The effect of the application of the
top cuts is summarised in Table 3.
At Makosa, the top capping reduced the average mean grade from
1.29 g/t Au to 1.23 g/t Au. At Makosa Tail, the top capping reduced
the average mean grade from 1.69 g/t Au to 1.57 g/t Au. At Sambara,
the top capping reduced the average mean grade from 1.9 g/t Au to
1.81 g/t Au.
Domain No of Maximum Mean Top Cut Capped No of Composites % Metal
Composites Au (g/t) Au (g/t) Au (g/t) Mean Au affected
(g/t)
Makosa 3,346 54.5 1.29 15 1.23 9 -5%
---------------- ---------- ---------- ---------- --------- ----------------- --------
Makosa
Tail 1,079 36.18 1.69 15 1.57 11 -7%
---------------- ---------- ---------- ---------- --------- ----------------- --------
Sambara 169 21.12 1.90 15 1.81 2 -5%
---------------- ---------- ---------- ---------- --------- ----------------- --------
Total 4,594 54.5 1.74 1.62 22 -5%
---------------- ---------- ---------- ---------- --------- ----------------- --------
Table 3: Composite statistics and effect of top cut on contained
metal
Estimation Methodology
Variography was carried out on each combined domain with the
appropriate parameters used to estimate the gold grade using
Inverse Distance (ID). Due to the difference in orientation between
Makosa Tail, Makosa/Makosa North and Sambara three separate block
models were created to better align blocks with the orientation of
the lode systems.
Block estimation used a five-pass strategy with the number of
required samples with 1 to 5 for pass 1, 2 to 10 for pass 2, 2 to
20 for pass 3, 4 and 5, and search distance increased for each
estimation pass.
Classification
Drill hole density ranges from 50m to 200m spaced sections with
spacing between holes on-section typically 30m (Figure 2).
The sample population within the 0.2 g/t grade shell indicates a
good grade continuity, superior to most orogenic gold deposits.
Classification is based on parameters extracted from the sample
variograms.
The classification as 49% indicated and 51% inferred is
considered appropriate for the current level of understanding and
development of the Mineral Resource.
Mineral Resource Constraints
To test the reasonable prospects for eventual economic
extraction, the 2023 MRE is constrained by an optimised pit shell
(revenue factor of 1) defined by the parameters shown in Table
4.
A cross-section showing the pit shell in relation to the mineral
resource at Makosa Tail is illustrated in Figure 3.
Parameter Unit
------------------------------- -------
SOX Strongly oxidised: 4% of 45 degrees
the resource
MOX Medium oxidised: 6% of the 45 degrees
resource
WOX Weakly oxidised: 4% of the 50 degrees
resource
Fresh Fresh Rock and sulphides: 58 degrees
86% of the resource
--------------------- ------------------------------- ------- --------
Mining Cost
- Load and Haul US$1.2/t @ surface, increase 1.2 $/t
$0.1/t per 5m bench
D&B - SOX 2.60 Total cost $/t 2.6 $/t
D&B - MOX/WOX 3.10 Total cost $/t 3.1 $/t
D&B - Fresh 4.00 Total cost $/t 4 $/t
Total
------------------------------- -------
Mining Recovery 95 %
Mining Dilution 5 %
Processing Cost
- Variable Cost power, reagents, consumables, 16 $/t ore
direct labour costs
- G&A + overheads 5.5 $/t ore
- Grade Control blast hole sampling/gc program 0.5 $/t ore
- Ore Mining Included in Mining Cost $/t ore
Total 22 $/t
------------------------------- -------
Process Recovery
SOX 90 %
MOX 90 %
WOX 90 %
Fresh 88 %
Product Sell Price Multiple gold prices to $2,000 US$/oz
be run
Sell Price $64.30 gram
Discount Rate 8 %
Mill Limit 2.5 Mill
Mt/pa
--------------------- ------------------------------- ------- --------
Table 4: Open Pit Optimisation Parameters
Metallurgical Factors
Thor has submitted metallurgical samples to ALS (Perth) and
preliminary recovery results indicate that oxide material may be
recovered by normal gravity/CIL methods whereas the fresh material
is refractory to partially refractory and may be recovered by
either Biological Oxidation (BIOX) or Pressure Oxidation (POX)
methods. Ongoing metallurgical test work is focussed on achieving
the optimal operational flow sheet for the fresh material.
The initial metallurgical results at Makosa are comparable to
those reported from initial test work at the Massawa deposit which
is located 4km to the west and which is owned by Endeavour Mining.
Following exhaustive metallurgical testing the optimal laboratory
flow sheet for Massawa achieved recoveries of 88% for fresh
(refractory to partially refractory) using a BIOX processing route
and 90% for oxide to transitional.
Until a representative number of samples has been fully tested
using optimal recovery techniques Thor has adopted similar recovery
factors used at Massawa.
This is considered appropriate for the current level of
classification and understanding of the Mineral Resource.
Figure 2: Drillhole Location Plan
Figure 3: Cross Section through Makosa Tail
Environmental Factors
No impediments with respect to reserves, parks or other areas of
significance have been identified on the project area. The Douta
exploration licence consists of a modified environment as a result
of human activities including harvesting forest flora and burning
vegetation as part of sporadic and unregulated historic artisanal
mining activity. There are no settlements within the licence
boundary.
Thor abide by the Senegal 2016 Mining Code which introduced an
obligation for mining title holders to contribute annually to a
local development fund in the amount of 0.5% of sales, minus annual
fees. Under the 2016 Code, mining projects require a prior
environmental impact assessment, to be approved by the Directorate
of the Environment and Classified Establishments.
Initial environmental baseline information within the Douta
exploration licence has included both dry and wet season ecology
surveys that were carried out in May 2021 and November 2022 by
Senegal-based Synergie Afrique. Further ground and surface water
quality monitoring has commenced within the exploration permit in
November 2022 and will continue with quarterly monitoring. The
surveys will form part of the overall Environment and Social Impact
Assessment ("ESIA") which is expected to be completed within 12
months.
Ongoing Exploration
Thor intends to progress the Makosa Resource expansion drilling
together with parallel workstreams including detailed metallurgical
sampling and testing, environmental and social baseline monitoring
as part of an Environmental and Social Impact Assessment,
geotechnical and hydrological studies.
The main resource expansion priorities are:
1. Infill and resource definition drilling to convert inferred to indicated classification.
2. Continued drilling to increase the overall resource base
through extensional drilling along the prospective corridor.
About Thor
Thor Explorations Ltd. is a Canadian, West African focussed
mineral gold producer listed on both the TSX Venture Exchange
(TSX-V:THX) and AIM Market of the London Stock Exchange (AIM:THX).
Thor produced 98,000 ounces from its 100% owned Segilola Gold Mine
located in Osun State of Nigeria and a 70% interest in the Douta
Gold Project located in south-eastern Senegal. Thor trades on the
TSX Venture Exchange under the symbol "THX".
THOR EXPLORATIONS LTD.
Segun Lawson
President & CEO
Qualified Person
The above information relating to the resource estimate has been
prepared by Mr Kevin Selingue, Principal Geologist of MineralMind,
Australia in accordance with NI 43-101, and is responsible for this
MRE. Mr Selingue is an independent qualified person ("QP") as
defined by NI 43-101 and is a qualified person under the AIM Rules
and has reviewed and approves the content of this news release.
The information relating to exploration results has been
prepared under the supervision of Alfred Gillman (Fellow AusIMM,
CP), who is designated as a "qualified person" under National
Instrument 43-101 and the AIM Rules and has reviewed and approves
the content of this news release. He has also reviewed QA/QC,
sampling, analytical and test data underlying the information.
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014 .
For further information please contact:
Thor Explorations Ltd
Email: info@thorexpl.com
Canaccord Genuity (Nominated Adviser & Broker)
Henry Fitzgerald-O'Connor / James Asensio / Thomas Diehl
Tel: +44 (0) 20 7523 8000
Hannam & Partners (Broker)
Andrew Chubb / Matt Hasson / Nilesh Patel / Franck Nganou
Tel: +44 (0) 20 7907 8500
Fig House Communications (Investor Relations)
Tel: +1 416 822 6483
Email: investor.relations@thorexpl.com
BlytheRay(Financial PR)
Tim Blythe / Megan Ray / Said Izagaren
Tel: +44 207 138 3203
Unit Definition
g Grammes
------------------------------
g/t Grammes per tonne
------------------------------
km Kilometre (1,000 m)
------------------------------
km (2) Square kilometres
------------------------------
koz Kilo ounces (1,000 oz)
------------------------------
kt Kilotonnes (1,000 t)
------------------------------
m Metre
------------------------------
m (2) Square metres
------------------------------
m (3) Cubic metres
------------------------------
Moz Million ounces (1,000,000 oz)
------------------------------
Mt Million tonnes (1,000,000 t)
------------------------------
Mtpa Million tonnes per annum
------------------------------
oz Troy Ounces
------------------------------
t Tonne
------------------------------
t/m(3) Tonnes per cubic meter
------------------------------
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
This press release does not constitute an offer to purchase
securities. The securities to be offered in the offering have not
been and will not be registered under the United States Securities
Act of 1933, as amended, or any state securities laws and may not
be offered or sold in the United States or to, or for the benefit
or account of, a U.S. person, except pursuant to an available
exemption from such registration requirements.
Cautionary Note Regarding Forward-Looking Statements
Except for the statements of historical fact contained herein,
the information presented constitutes "forward looking statements"
within the meaning of certain securities laws, and is subject to
important risks, uncertainties and assumptions that could cause the
actual results of the Company to differ materially form the
forward-looking statements. Such forward-looking statements,
including but not limited to, the Company's ability to fully
finance the Project, to bring the Project into operation or to
produce gold from the Project, and the use of the proceeds. The
words "may", "could", "should", "would", "suspect", "outlook",
"believe", "anticipate", "estimate", "expect", "intend", "plan",
"target" and similar words and expressions are used to identify
forward-looking information. The forward-looking information in
this news release describes the Company's expectations as of the
date of this news release and accordingly, is subject to change
after such date. Readers should not place undue importance on
forward-looking information and should not rely upon this
information as of any other date. While the Company may elect to,
it does not undertake to update this information at any particular
time.
Glossary of Technical Terms:
"Au" the chemical symbol for gold;
"cut-off grade" The lowest grade, or quality, of mineralised
material that qualifies as economically mineable and available in a
given deposit. May be defined on the basis of economic evaluation,
or on physical or chemical attributes that define an acceptable
product specification;
"g/t" grams per tonne;
"Indicated resource" a part of a mineral resource for which
tonnage, densities, shape, physical characteristics, grade and
mineral content can be estimated with a reasonable level of
confidence. It is based on exploration, sampling and testing
information gathered through appropriate techniques from locations
such as outcrops, trenches, pits, workings and drill holes. The
locations are too widely or inappropriately spaced to confirm
geological and/or grade continuity but are spaced closely enough
for continuity to be assumed;
"Inferred resource" a part of a mineral resource for which
tonnage, grade and mineral content can be estimated with a low
level of confidence. It is inferred from geological evidence and
has assumed, but not verified, geological and/or grade continuity.
It is based on information gathered through appropriate techniques
from locations such as outcrops, trenches, pits, workings and drill
holes that may be limited or of uncertain quality and
reliability;
"Inverse Distance Squared" a conventional mathematical method
used to calculate mineral resources. Near sample points provide a
greater weighting than samples further away for any given resource
block;
"m" Metres;
"oz" Ounces;
"t" Tonnes;
"optimised pit shell"; Is generated by computer software that
uses the Lerch-Grossman algorithm, which is a 3-D algorithm that
can be applied to the optimisation of open-pit mine designs. The
purpose of optimisation is to produce the most cost effective and
most profitable open-pit design from a resource block model.
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