Thor Mining : Strategic Development - Australian Copper Interests

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Thor Mining PLC - THR Strategic Development: Australian Copper Interests Released 09:22 05-Mar-2019

RNS Number : 8731R

Thor Mining PLC

05 March 2019

5 March 2019

THOR MINING PLC

STRATEGIC DEVELOPMENT - AUSTRALIAN COPPER INTERESTS

The Board of Thor Mining Plc ("Thor" or the "Company") (AIM, ASX: THR), is pleased to announce the Company has signed a Memorandum of Understanding (MOU) (the "Agreement") for the vending of its interest in the Kapunda Copper Project into a new copper focused Company, Enviro Copper Limited ("Enviro Copper").

It is intended that Enviro Copper will seek a lis�ng on a recognised securi�es exchange in the near term.

Highlights:

• · Enviro Copper will be a new, copper focused en�ty which will hold earn in rights for up to 75% of both the Kapunda Copper Project and the Moonta Copper Project;

• · Following the acquisi�on of the Kapunda and Moonta Copper Project interests Enviro Copper will aim to develop an expanded por�olio of low environmental impact Insitu Recovery ("ISR") copper opportuni�es, ini�ally in South Australia;

• · Thor Mining PLC to hold up to 30% equity in Enviro Copper prior to any lis�ng ac�vi�es and eligible Thor Mining Shareholders will hold first op�on to invest in any lis�ng of the new en�ty;

• · Enviro Copper Limited will have a por�olio comprising;

  • · Kapunda Copper Project, hos�ng an ISR amenable Inferred Mineral Resource Es�mate of 119,000 tonnes contained copper, also with Australian Government CRCP Grant funding of A$2.85million to demonstrate feasibility;

  • · Moonta Project, the northern por�on of with an ISR amenable Explora�on Target of between 238 Mt and 310 Mt at a grade range of 0.18% to 0.23% Copper (between 428,000 and 713,000 tonnes of contained copper). Explora�on Targets are conceptual in nature and there has been insufficient explora�on to define a Mineral Resource under the JORC Code and it is uncertain if further explora�on will result in the determina�on of a Mineral Resource;

• · A key strategic target will be the �mely development of the Kapunda Copper Project into produc�on, demonstra�ng the opera�onal viability of ISR. This experience will then be applied at the larger scale Moonta Copper Project and to addi�onal new project opportuni�es acquired by Enviro Copper;

• · The new combined en�ty provides a strategic opportunity to build a large ISR focussed copper explora�on, development and produc�on business, ini�ally in Australia;

• · Furthermore, by seeking an early lis�ng on a recognised stock exchange, Thor and its partners will be able to demonstrate the value created through a shareholding in the listed equity of Enviro Copper which the directors and our partners believe will be a highly a�rac�ve copper investment opportunity;

• · Further informa�on to follow, in respect of the establishment of Enviro Copper and the important developments therea�er.

Mr Mick Billing, Execu�ve Chairman, commented:

"The non-invasive produc�on technique of In-situ Recovery of copper has the poten�al to co-exist without significant disrup�on to farming and once completed, have li�le to no impact on future agricultural land use. ISR is an extension of proven technology and has been in use since the 1960's. With recent technical advances ISR can now offer a lower footprint and is likely to find further applica�on in mineral recovery fields because it can coexist with other land use ac�vi�es."

"This is a very exci�ng development in our copper strategy, poten�ally adding significant scale to our copper interests by bringing the Moonta Copper Project together with our exis�ng interest in the Kapunda Copper Project, into a poten�ally large ISR focussed copper business, ini�ally in Australia."

"While Kapunda is compara�vely more advanced, the Moonta project, albeit at an earlier stage, provides poten�al for a much larger, and longer-term copper produc�on en�ty"

"The opportunity for eligible Thor Mining shareholders to have a priority investment opportunity in the new vehicle is seen as a core ingredient in the establishment and lis�ng of this new en�ty."

"Also, through their shareholding in Thor Mining plc, shareholders we be able to see the demonstrable value of our interest in Enviro Copper and that value will be in our financial accounts as a tradable market valued asset, rather than as merely a project within the Company."

"Shareholders should expect a range of addi�onal market updates in the near term in respect of the developments at Enviro Copper, and as we take steps forward at Molyhil and Pilot Mountain."

EnviroCopper projects Loca�on map:h�p://thormining.com/-/thor/lib/images/maps/Kapunda%20Moonta.jpg

Agreement

A Memorandum of Understanding (MOU), subject to a 90 day due diligence period, has been executed between Thor Mining, Environmental Copper Recovery Pty Ltd ("ECR") (holding earn-in rights to 75% of that part of the Kapunda Copper project amenable to ISR), and Environmental Metals Recovery Pty Ltd (holding earning rights, subject to due diligence, to 75% of Moonta copper project comprising the northern por�on of explora�on licence EL5984), for the merging of the respec�ve interests, and the forma�on of Enviro Copper Limited, to hold and advance those interests.

Thor Mining PLC holds rights to a 60% interest in ECR for the considera�on of A$1.8million in project funding (A$0.45 million funded to date). Under the MOU, Thor will relinquish its interest in ECR and acquire a 25%, pre-lis�ng, interest in Enviro Copper for total funding of A$0.6million (including funds already provided). Further Thor will hold the right to acquire a further 5% seed capital interest in Enviro Copper Limited for considera�on of an addi�onal A$0.4 million.

The Agreement is condi�onal upon execu�on of a binding Farm-in and Joint Venture Agreement in respect of the Kapunda project, and also upon sa�sfactory due diligence in respect of the Moonta project acquisi�on from Andromeda Metals Limited (ASX: ADN) by Environmental Metals Recovery Pty Ltd (refer ADN announcement to ASX dated 19 December 2018).

Resources and Explora�on Targets

The Enviro Copper Limited ini�al por�olio will be comprised of;

• · Kapunda Copper Project, hos�ng an ISR amenable Inferred Mineral Resource Es�mate of 119,000 tonnes contained copper, also with Australian Government CRCP Grant funding of A$2.85million to demonstrate feasibility;

• · Moonta Copper Project, with an ISR amenable Explora�on Target* for the Moonta Copper

  Project in the range of 430,000 and 713,000 tonnes of contained copper;

Table A: Kapunda Resource Summary 2018 (Reported on 12 February 2018)

Resource			Copper
Mineralisa�on	Classifica�on	MT	Grade %Contained copper (t)
Copper Oxide Inferred 30.3 Secondary copper sulphide Inferred 17.1			0.24 73,000 0.27 46,000
Total 47.4			0.25 119,000

Notes:

• • Thor Mining PLC is earning up to a 45% equity in this resource, through earning up to 60% of ECR which has the right to earn in to 75% of that part of the Kapunda copper mine that is amenable to in-situ recovery techniques.

• • All figures are rounded to reflect appropriate levels of confidence. Apparent differences may occur due to rounding.

• • The Company is not aware of any informa�on or data which would materially affect this previously announced resource es�mate, and all assump�ons and technical parameters relevant to the es�mate remain unchanged

Moonta Explora�on Target

The Moonta project comprises steeply dipping zones of copper oxide mineralisa�on hosted within a deep weathering trough interpreted to extend over 11 kilometres strike length, and poten�ally beyond. The prospect is en�rely under sedimentary cover with variable amounts of geological data from drilling in addi�on to data from geophysical surveys. Copper mineralisa�on within the trough is in the order of 50 to 75 metres width with drill intersec�ons in excess of 350 metres deep. In areas where there is enough drill informa�on, grades appear to be in the order of 0.18 - 0.23% copper.

There is currently insufficient data for the es�ma�on of a JORC compliant geological resource, so the following explora�on target has been determined comprising three �ers on the basis of the varying amounts of available data.

Table B: Moonta Explora�on Target Summary*

Rank	Prospect	Explora�on Target
1	Wombat/Bruce	80-120Mt @ 0.18-0.23% Cu	Target based on 3D modelling of weathered trough and large number of drill intersec�ons
Total Tier 1 Explora�on Target	80-120Mt @ 0.18-0.23% Cu
2	Six Ways	9-11Mt @ 0.18-0.23%Cu	Target areas were defined by the presence of ACM (Automa�c Curve Matching of magne�c anomalies), presence of mul�ple drill intersec�ons greater than 0.2% and intersec�on of significantly weathered interval in drill holes (>70m)
2	Bluetoungue	15-19Mt @ 0.18-0.23%Cu
2	North Wallaroo	12-15Mt @ 0.18-0.23% Cu

Total Tier 2

38-45Mt @ 0.18-0.23% Cu

Explora�on Target

3	Target 1	13-16Mt @ 0.18%Cu
3	Target 2	4-6Mt @ 0.18-0.23%Cu
3	Target 3	20-24Mt @ 0.18-0.23%Cu
3	Target 4	15-18Mt @ 0.18-0.23%Cu
3	Target 5	24-30Mt @ 0.18-0.23%Cu
3	Target 6	6-8Mt @ 0.18-0.23%Cu
3	Target 7	16-19Mt @ 0.18-0.23%Cu
3	Target 8	18-22Mt @ 0.18-0.23%Cu
Total Tier 3
	120-145Mt @ 0.18-0.23% Cu
Explora�on Target
Total Explora�on
	238 - 310Mt @ 0.18% - 0.23% Cu
Target All Categories

Tier 1: Known modelled mineralisa�on

Tier 2: Known Mineralisa�on with drilling and geophysical support

Target areas were defined by the presence of ACM (Automa�c Curve Matching magne�c anomaly) and coincident surface geochemical anomalies

Tier 3: Poten�al for Mineralisa�on shown by geophysical and geochemical responses *Explora�on Targets are conceptual in nature and there has been insufficient explora�on to define a Mineral Resource under the JORC Code and it is uncertain if further explora�on will result in the determina�on of a Mineral Resource.

The revised explora�on target builds on the target announced by Andromeda Metals in their ASX release of 20 July 2017 which introduced a new geological model for mineralisa�on in the northern sec�on of the Moonta Project. This model which incorporates mineralised weathering troughs iden�fiable by a dis�nct geophysical signature, has been used to review the drilling, geochemical and geophysical data in the area. The reprocessing of exis�ng geophysical data using different processing techniques combined with the new explora�on model has generated several poten�ally prospec�ve addi�onal target areas.

The work required to confirm this target includes re logging drill holes, modelling of the trough dimensions from drill hole cross sec�ons (where applicable), addi�onal work to further determine ISR amenability which would include hydro geological studies and addi�onal studies on lixiviant systems.

TIER 1 EXPLORATION TARGETS

Tier 1 Prospects have demonstrated copper mineralisa�on based upon exis�ng quan�ta�ve data and updated geophysical interpreta�on using ACM (Automa�c Curve Matching). Previous laboratory work suggests mineralisa�on in the troughs is considered to be amenable to ISR recovery.

The Wombat and Bruce deposits

(refer Andromeda Metals Limited ASX announcement of 20 July 2017)

The Wombat and Bruce prospects are located in the north of the project tenement, with Bruce one of several mineralised zones discovered at the Alford West prospect. Both deposits are characterised by deeply developed weathering troughs that extend for hundreds of metres below the surface. Figure 2 shows a cross sec�on through the Wombat deposit illustra�ng the weathering trough at that deposit. The weathering troughs can be traced between drill sec�ons and extend for the en�re strike length of both deposits.

The rocks to both the north and south of the weathering troughs are fresh and impermeable, while the trough material is oxidised, porous and likely permeable. The majority of the weathered material contained in the troughs is mineralised. Wombat hole MPD-06-22 hit 174 metres at 0.20% copper, while WOMDD001 intersected 115 metres at 0.53% copper, with very few samples assaying less than 0.05% copper, a common interna�onally quoted lower cut-off grade used for ISR resources.

At Bruce, significant drill intersec�ons of trough material include 115 metres at 0.27% copper in hole AWRC006, and 168 metres at 0.28% copper in hole DDH-132. Copper minerals observed in the weathering trough mineralisa�on include those typically seen in the weathered profile of copper sulphide deposits. These include chalcocite (Cu2S), na�ve copper, rare copper carbonates, and a black oxide phase tenta�vely iden�fied as tenorite (CuO). Chalcopyrite is present but rare.

3-dimensional models of the weathering troughs at both Wombat and Bruce were constructed using available drillhole data and tonnage ranges es�mated by applying a density factor of 1.8 t/m3 to the model volumes. The 3-D models are restricted to the troughs where they fallbelow the water table and below the normal depth of weathering. Copper grade ranges were es�mated by length weighted averaging of all assayed drill samples captured within the 3-D trough model volumes. No lower cut-off copper grade was employed.

The depth of the troughs is the least known variable. A single hole at Wombat has passed beneath the trough giving an indica�on of depth, however no holes pass below the Bruce trough. As currently modelled, the Wombat trough represents the larger of the two deposits, contribu�ng approximately 70% of the Tier 1 Explora�on Target tonnage. The es�mated grades of both deposits are very similar. The Explora�on Target tonnage and grade range is comparable to the resource metrics of interna�onal ISR copper projects.

While the weathering troughs at both Wombat and Bruce are fairly uniformly mineralised, there are internal zones of higher grade copper which may allow es�ma�on of higher grade resources.

Image of Wombat sec�on showing weathering trough:h�p://thormining.com/-/thor/lib/images/miscellaneous/Wombat.jpg Preliminary Copper Solubility Testwork

A total of 24 composited samples of mineralised material from Wombat and Bruce troughs were submi�ed for a simple first pass acid solubility test. These tests provide substan�al ini�al support for the poten�al of ISR in these deposits.

The composite samples were collected from Wombat diamond holes WOMDD001 and WOMDD002, and Bruce RC holes AWRC006 and AWRC008. Composited downhole lengths ranged between 5 and 10 metres, with the composites selected to give uniform coverage of the trough material where original assays confirmed the presence of copper mineralisa�on. Acid soluble analyses were conducted on pulverized samples using 4% sulphuric acid agitated for 1 hour, with the solu�ons then read for copper. Soluble copper ranges up to 0.97% at Wombat and 0.48% at Bruce.

Head assays using a total digest method were completed to allow calcula�on of copper recovered to the leaching solu�on. At Bruce the percentage of the total copper leached from each composite ranged from 41% to 56%, averaging 49%. At Wombat, soluble copper recoveries ranged from 0% to 65%, averaging 35%. Significant copper is leaching into solu�on a�er one hour, confirming it to be present in soluble mineral phases. Trialling of different leaching �mes and reagents, or the addi�on of reagents to assist copper solubility, are considered likely to improve the recoveries to solu�on. Drill hole assay data and acid drop tests on the weathered drill samples do not indicate the presence of non-copper bearing, acid consuming phases such as carbonate.

TIER 2 EXPLORATION TARGETS

Category 2 target areas were defined by the presence of ACM (Automa�c Curve Matching of magne�c anomalies), the presence of mineralisa�on greater than 0.2% in drill holes (Air Core, RC, Auger and limited diamond drilling) and logged saprolite thickness > 70m. Average width of the weathered troughs was es�mated at 60m (determined by interpre�ng drill hole cross sec�ons where available) and these were assumed to be sub ver�cal. Strike lengths were measured using Mapinfo so�ware, ver�cal extent was limited to 250m (although geophysical modelling suggests poten�ally greater depth). Volumes were determined by mul�plying the strike length by es�mated zone thickness and ver�cal extent. Tonnage ranges were es�mated by applying a density factor of 1.8 t/m3 to the model volumes. The 3-D models are restricted to the troughs where they fall below the water table and below the normal depth of weathering. Copper grade ranges used were assumed to be the same as for the Wombat and Bruce troughs. Copper grade ranges used were assumed to be the same as for the Wombat and Bruce troughs, with the ranges supported by the limited drilling data for these targets.

TIER 3 EXPLORATION TARGETS

Category 3 target areas were defined by the presence of ACM (Automa�c Curve Matching magne�c anomaly) and coincident surface geochemical anomalies, which in Tier 1 and Tier 3 targets are confirmed to reflect underlying mineralisa�on. Average width of the weathered troughs are assumed to be similar to category 1 and 2 target areas due to the presence in the same geological environment, similar geophysical and geochemical responses and the troughs are assumed to be sub ver�cal. Strike lengths were measured using Mapinfo so�ware, ver�cal extent was limited to 250m. Volumes were determined by mul�plying the strike length by