Thor Mining updates resource estimate at Molyhil Project

The AIM-traded firm said it also consisted of 0.1% molybdenum, 0.05% copper, and 17.75% iron, all using a 0.07% tungsten trioxide cut-off.

It reported a new measured classification in the upper portion of the Southern Lode, adding that concurrent 3D geological modelling had identified priority drill targets to increase the resource.

New exploration targets had been identified near the existing resource, it added.

Thor noted that in July of last year, the Northern Territory government awarded the Molyhil Project ‘Major Project Status’.

It said the next Steps were geotechnical drilling for pit wall optimisation, an ore sorting review, and drill testing of priority resource and regional targets.

The company added that it was in continued discussions with potential financiers and joint venture partners to advance the project.

“This revised mineral resource estimate using support matrix kriging has generated a more robust resource with the upper portion of the Southern Lode now classified as measured - the minimum standard required by many project financiers,” said executive chairman Mick Billing.

“The Thor team is encouraged by the 3D geological model and the drill targets it has generated.”

Billing said that, with the “steady recovery” of tungsten prices, the testing of the targets - in conjunction with the proposed geotechnical drilling and ore sorting review - were expected to “significantly enhance” the project’s economic outcomes.

“Global commodity pricing for both tungsten and molybdenum have shown encouraging improvement since recent lows during the period of August to November and, with post-Covid-19 global growth recovery and increased global infrastructure spending, Thor's directors expect this to continue.”

At 1607 BST, shares in Thor Mining were down 5.59% at 0.8p.