Thor Explorations flags solid progress in Nigeria, Senegal

Thor Explorations reported substantial production achievements at its Segilola Gold Mine in Nigeria in an update on Monday, as well as significant progress in its exploration projects in Nigeria and Senegal.

The AIM-traded firm said that in the second quarter, the Segilola Gold Mine reported a gold pour of 21,742 ounces, produced from milling 174,000 tonnes of ore at an average grade of 3.42 grams of gold per tonne.

It said the mine's production included 491,935 tonnes of ore at an average grade of 1.78 grams per tonne, equating to 28,153 ounces of gold.

The ore stockpile increased by 9,034 ounces, totaling 38,298 ounces of gold, with an average grade of 1.01 grams per tonne.

That included a medium-grade stockpile of 7,620 ounces at two grams per tonne.

Additionally, the release of 3,652 ounces of gold in circuit was achieved due to enhanced operational efficiency following the carbon-in-leach circuit upgrade.

The company also made a $7.9m payment towards its senior debt with the Africa Finance Corporation, reducing the balance to $7.9m, which was expected to be fully repaid by the end of 2024.

In Nigeria, Thor started underground exploration at Segilola, focusing on structural studies and completing phase one of the underground drilling programme design by the end of the quarter.

An additional 155 square kilometres of exploration tenure was acquired south of Segilola.

In Senegal, the 2024 drilling programme started with promising initial results, including significant gold intercepts.

Exploration was focussed on generating new drill targets at the Douta West and Sofita projects and extending the oxide resource at Makosa East.

The pre-feasibility study for the Douta Project remained on track for completion in the second half of 2024.

Thor added that its subsidiary Newstar secured over 600 square kilometres of granted tenure for lithium projects in Nigeria.

The company conducted geological mapping, detailed auger soil sampling, and drilling within its exploration permits, continuing to acquire prospective lithium areas.

For the 2024 financial year, Thor maintained its production guidance of 95,000 to 100,000 ounces of gold and an all-in sustaining cost (AISC) guidance of $1,100 to $1,200.

The company said it planned extensive drilling programmes across its portfolio, including near-mine targets at Segilola, the Segilola underground, Douta and Douta West in Senegal, and its lithium projects in Nigeria.

An updated mineral resource estimate and preliminary feasibility study for the Douta Project were expected in the second half.

“We were pleased by the performance of the Segilola Mine in the quarter,” said president and chief executive officer Segun Lawson.

“Following the completion of the upgrade of the CIL circuit in the first quarter of 2024, in the quarter, we prioritised releasing GIC, by decreasing process plant throughput whilst focussing on increasing recovery and improving circuit efficiency.

“I am pleased to report that this has been a successful exercise, which is reflected in our operational results for the quarter, during which we achieved a recovery rate of 94.6% and poured more gold than recovered from the mine.”

Lawson said the company was now positioned in the third quarter to return to the increased process plant throughput rate while maintaining its operational improvements, which should result in the continued increased amount of gold poured in the second half from both mined ore and further releases from GIC.

“In Senegal, the Douta project continues to deliver promising exploration results, offering compelling upside potential for the company.

“The first set of drilling results from our 2024 programme were positive and the 15,000 metre drilling program is continuing through the third quarter, designed at adding oxide ounces outside of the existing resource, to be incorporated into the Douta preliminary feasibility study.

“We are pleased to have made further progress towards fully repaying our senior debt facility by the end of the year with a balance of $7.9m remaining outstanding and also continuing to make repayments towards our payables, whilst continuing to strengthen our balance sheet.”

At 1102 BST, shares in Thor Explorations were down 1.18% at 15.07p.

Reporting by Josh White for Sharecast.com.