Pilbara Goldfields Adjacent Tenements Acquisition
23 November 2020
THOR MINING PLC
PILBARA GOLDFIELDS RAGGED RANGE PROJECT
ACQUISITION OF ADJACENT EXPLORATION TENEMENTS
The directors of Thor Mining Plc ("Thor" or the "Company") (AIM, ASX: THR) are pleased to advise that it has signed a non-binding Term Sheet for the acquisition of additional licence areas adjacent to Ragged Range in the Pilbara region of Western Australia.
· Two additional licences (E46/1340 and E46/1354 (application) include areas over, and surrounding, historical small scale gold and copper mines.
· Total Thor Pilbara licence area, including 73 sq kms under application, totals 213 sq kms.
· New licence area increases the Thor exposure to potential granite contact deposits, complementing the mafic/ultra mafic contact exposure dominated by the 13 kilometre gold zone previously reported(THR:ASX 21 October 2020).
· The newly acquired tenure is considered highly prospective for shear hosted gold mineralization along the granite contacts to the north and hydrothermal copper mineralization associated with the felsic porphyries intruding the mafic Euro Basalts in the north- east.
· Anomalous historic stream sediments include up to 76ppb gold with 240ppm copper (Sample 2430)1
· Data review over the newly acquired ground continuing, with field programs planned for early 2021.
· Airborne magnetics data has been received with magnetic interpretation in progress.
· Stream sediment samples from the October field program are still at the laboratory with results now anticipated early December.
1Open File Report A050141-Great Southern Mines -Surrender Report
Mick Billing, Executive Chairman of Thor Mining, commented:
"We are delighted to be able to add to our holdings adjacent to Ragged Range where we have made very encouraging progress this year."
"The eastern portion of the newly acquired area hosts sites of historical small scale gold and copper mining, however there has been very little modern day exploration of this area."
"We expect shortly to have assays from the October sampling program where we also recovered visible gold via panning, and are also working on interpretation of the data from the recently completed airborne magnetic survey, which is aimed at refining gold and nickel drill program planning."
A map showing the acquired licence area, and its proximity to the Thor Ragged Range project can be accessed from the Thor website via the attached link:
Thor have executed a non-binding Term Sheet with Redstone Metals Pty Ltd and associated parties to acquire a 100% interest in each of E46/1340, and E46/1354 (under application). Acquisition consideration comprises:
· Initial Consideration
§ 12.5 million ordinary shares in Thor;
§ 8.333 million options to acquire Thor shares @ A$ 3.0cents, expiring 10 November 2022;
§ Thor to transfer 100% of its interest in E52/3679 (WA licence under application with a value in the Thor accounts of approximately A$4,400);
§ Net Smelter Royalty of 1% from production from each tenement area acquired.
· Milestone consideration
o Upon three drill intercepts of, or equivalent to, 3 metres @ 2.0grams/tonne, Thor pay further consideration of A$250,000, as follows.
§ 50% in Thor shares valued @ 2.0cents/share, and
§ 50% in cash
The parties have agreed, using reasonable commercial endeavours, to negotiate and execute a binding Sale and Purchase Agreement (SPA) within 30 days of the execution of the Term Sheet for this transaction.
On execution of the SPA, the Company will provide further advice, including details of the share allotment, and the effect on voting rights and the impact on total issued shares.
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.
Competent Person's Statement
The information in this report that relates to exploration results is based on information compiled by Nicole Galloway Warland, who holds a BSc 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 2018¹ 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 deposits².
Thor also holds 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 recovery⁴. EnviroCopper 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 recovery⁵.
Thor holds 100% of the Pilot Mountain tungsten project in Nevada USA which has a JORC 2012 Indicated and Inferred Resources Estimate³ 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."
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
⁴ Refer AIM announcement of 10 February 2016 and ASX announcement of 12 February 2018
⁵ Refer ASX and AIM announcement of 15 August 2019
1. JORC Code, 2012 Edition - Table 1 report template
1.1 Section 1 Sampling Techniques and Data
JORC Code explanation
· Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.
· Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.
· Aspects of the determination of mineralisation that are Material to the Public Report.
· In cases where 'industry standard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.
The historic program comprised stream sediment trap site sampling for geochemical analysis for Au 2.5kg BLEG (-20mesh/850um), and B/AAS for Cu, Pb, Zn, Ag, Sb, As, Ni, & Mn. Bulk cyanide Leach with DIBK and graphite furnace finish for Au & Pb to 0.1ppb
· Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).
Drill sample recovery
· Method of recording and assessing core and chip sample recoveries and results assessed.
· Measures taken to maximise sample recovery and ensure representative nature of the samples.
· Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.
· Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.
· Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.
· The total length and percentage of the relevant intersections logged.
No logging was undertaken
Sub- sampling techniques
· If core, whether cut or sawn and whether quarter, half or all core taken.
· If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.
· For all sample types, the nature, quality and
Stream Sediment 2.5kg BLEG sample collected in the field for analysis
Pre-prepared 2kg BLEG standards were submitted every 30-50 samples for quality control
and sample preparation
appropriateness of the sample preparation technique.
· Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.
· Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.
· Whether sample sizes are appropriate to the grain size of the material being sampled.
Quality of assay data and laboratory tests
· The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.
· For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.
· Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.
The assay method is appropriate for preliminary exploration.
All samples were prepared and analysed by independent laboratory Genalysis in Perth, WA.
Samples were analysed for the following:
1. mix and split off 250grams for drying and pulverised to 75microns.
2. Digestion and analysis for Cu, Pb, Zn, Ag, Sb, As, Ni, & Mn using B/AAS sample method.
3. Remaining 2.25 sample was Bulk cyanide Leached with DIBK and graphite furnace finish for Au & Pb to 0.1ppb
Pre-prepared 2kg BLEG standards were submitted every 30-50 samples for quality control
Verification of sampling and assaying
· The verification of significant intersections by either independent or alternative company personnel.
· The use of twinned holes.
· Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.
· Discuss any adjustment to assay data.
Location of data points
· Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.
· Specification of the grid system used.
· Quality and adequacy of topographic control.
Aerial photography at 1:25,000 scale used to plan and locate drainage spots. All drainage plotted onto 1:25,000 base and subsequently digitised into Micomine database.
Data spacing and distribution
· Data spacing for reporting of Exploration Results.
· Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.
· Whether sample compositing has been applied.
Not applicable - no resource is being reported
Orientation of data in relation to geological structure
· Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.
· If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.
Orientational bias is not applicable to stream sediment sampling which are essentially one dimensional.
· The measures taken to ensure sample security.
Samples submitted to Intertek Genalysis Perth, WA for analysis.
Sample security appropriate for preliminary reconnaissance assessment.
Audits or reviews
· The results of any audits or reviews of sampling techniques and data.
Section 2 Reporting of Exploration Results
Mineral tenement and land tenure status
· Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.
· The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.
Exploration results are reported on E46/1190 and E46/1262 in Western Australia held 100% by Thor Mining PLC.
Exploration done by other parties
· Acknowledgment and appraisal of exploration by other parties.
Geological mapping and stream sediment sampling by Great Southern Mines. Open File Report A050141-Surrender Report.
· Deposit type, geological setting and style of mineralisation.
Yet to be determined
Drill hole Information
· A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:
o easting and northing of the drill hole collar
o elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar
o dip and azimuth of the hole
o down hole length and interception depth
o hole length.
· If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.
No drilling has been undertaken or reported
Data aggregate n methods
· In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.
· Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.
· The assumptions used for any reporting of metal equivalent values should be clearly stated
Only field observations have been reported. There has been no data aggregation.
Relationship between mineralisaton widths and intercept lengths
· These relationships are particularly important in the reporting of Exploration Results.
· If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.
· If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg 'down hole length, true width not known').
No drilling has been undertaken or reported
· Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.
Data included in report
· Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.
All results have been reported
Other substantive exploration data
· Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.
All data have been reported
· The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step- out drilling).
· Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.
It is anticipated that further stream sediment geochemistry and geological mapping will be undertaken to locate the source of any mineralisation.