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Thor Mining (THR.L): Moly mining in australia


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COMPANY== Symbol : Paid- : NAV , 12moRange ShsOS MarketCap

Thor Mining... (THR.L): 3.60p : 1.20p , 2.38 - 4.50, 186.67 Pd.7.00mn


Daily Chart ... update: daily-12mos : daily-6mos : compare-w/ BLE & ROK



"Thor is a mineral exploration and development company focused on advancing tungsten and molybdenum projects in the Northern Territory of Australia" - says THR's website.


Per Minesite:

"Resource statement for its main asset, the Molyhil molybdenum-tungsten project in Australia’s Northern Territory... at Molyhil now stands as follows: 2.4 million tonnes grading 0.80% combined tungsten, as trioxide, and molybdenum, as disulphide... The next key steps forward for Thor will be the receipt of metallurgical test results, which is expected in March, and the start of serious mine planning. This could lead towards first production at Molyhil in 2007, probably at an ore throughput rate of around 300,000tonnes/year."


Major shareholders/ THR:

Tennant Creek Gold Limited............ 45,000,000 24.8%

RAB Special Situations Master Fund 40,000,000 22.0%

City Equities .................................. 10,000,00 5.5%

Regency Mines PLC......................... 8,200,000 4.5%

Smyth Superannuation Fund........... 4,150,000 2.3%

Alpha Capital Inc............................. 4,150,000 2.3%

Others 80,175,000 44.1%



THR hasn't moved much since it was listed last summer at 2.75p, in a very dull market. The stock is mostly in the hands of a few funds and insiders (see above), and there has been limited promotional efforts thus far.


This may be set to change, since THR should have metallurical test results any day. After that, they are likely to announce a mining plan. From conversations with management some months ago, the cash flows on their combined Moly-Tungsten project are expected to be very robust. A movement towards mining production as early as 2007 could be expected to light a fire beneath these shares. The current price is a tiny P/E to expected profits from mining.


Moly plays are very much in favor in Canada now. See: comparisons with : ROKvs.THR and ???vs.THR . At the current market cap, you are getting Thor at a small multiple to expected future profits.


(Note: I have invested in other Moly plays like ROK.v and CYA.v, and I am up over 100% on those investments. I am not taking profits yet, but I wanted to get an exposure to THR.L roll before the news on a mining decision was released. I am also watching THR's top shareholder TNG.au for a buying opportunity.)


= = = = =


Corporate website : http://www.thormining.com/

Advfn thread/ THR: http://www.advfn.com/cmn/fbb/thread.php3?id=9337318

Minesite article.....: http://www.minesite.com/storyFull5.php?storySeq=3298

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News out on THR this morning so picked up a few for the long term:


Thor Mining sees 300,000 tpa mining operation in 1st 4 years of Molyhil project


Thor Mining Plc Feasibility Study

RNS Number:8464A

Thor Mining PLC

04 April 2006



Feasibility Study on Molyhil Project

Dated: 4 April 2006


Thor Mining PLC ("Thor") the mineral exploration and development company

focussed on advancing tungsten and molybdenum projects in the Northern Territory

of Australia today announces the commencement of a definitive feasibility study

on the Molyhil Tungsten and Molybdenum Project (the "Molyhil Project") following

the completion of a positive Scoping Study..




* Scoping study on Molyhil Project completed on schedule which confirmed

an indicative positive pre tax cash inflow of A$140m over initial

4 years.;


* Scoping study was based on an initial 4 year open pit mining operation

with an estimated A$20 million capital cost.;


* Definitive feasibility study targeted for completion in the December

quarter; and


* New program of in fill and resource extension drilling to commence at

Molyhil in April/May 2006;


Scoping study results


The scoping study assisted in identifying the priorities for the definitive

feasibility study and the highlights of the outcomes for the Molyhil Project

included the following:


* 300,000 tonne per annum open pit mining operation for the initial 4 years


* forecasted cash operating cost of A $80 per tonne; and

* estimated capital cost of A $20M.


These outcomes were based on assumptions including:


* Current concentrate commodity prices which are:


Tungsten Ore Min 65% WO3 USD: $240 mtu


Molybdenum roasted concentrates (oxide) MoS2 57% USD: $24 per lb


* Exchange rate US$ 0.75: A$1.00.............................(cont)

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Monumental opportunity?:


"an indicative positive pre tax cash inflow of A$140m over initial 4 years"

(Note: Pd=$1.74 / A$=$0.716 , so A$/Pd= A$2.43 , and A$140mn = Pds.58mn)


That is HUGE! what's the MarketCap here.. Pds. 7.0mn ??

Capital cost of A$20mn., that's another...... Pds.8.2mn

That's an "enterprise value" of ................. Pds.15.2 million,


So Pds.58mn is Pds.11-12mn per year, and so the PE is less than one

Enterprise value to Cash flow is: about 1.3

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(from Advfn, before the SS was reported):


cs... - 23 Mar'06 -


"Scoping study is due shortly, and with Moly and Tungsten prices looking strong it is going to be a cracker as the capex is tiny and the mining costs reasonable. I wouldnt be surprised to see Thor come out with a serious set of numbers and the fund managers raise their heads out of lunch and come and buy this one. At 7m pounds THR is one of the best value little mining plays in the AIM market. I dont know another stock with this level of advancement for the market cap, and it is just a function of how inefficient the AIM market is that it hasnt attracted attention in size yet. Similar plays in Canada have market caps of over C$50-100m, and Thor has a lot better grade than most of them. "

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Another Uk-quoted Moly play, So.China (SCR.L) has been on a tear




might the success, and some buying in it spill over into Thor??

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  • 1 month later...

The will be hiring a new president soon, and I anticipate good news before many weeks

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Having not heard of the metal, it aroused my curiosity a few weeks back. It appears the moly market peaked a few years back, where prices shot up, but have since staggered down. What I find confusing is that the earth appears to have plenty of moly, and much of it seems easily extractable. I’m also not sure whether the demand for steel will grow in the next 5 years – simply because the feverish building activity over the last few years may slow down as part of a wider slowdown. I'm reminded of those pics from Shanghai! Also, there appears to be plenty of miners trying to cash in on the price rises, but once they’re in production won’t it then be a buyer’s market – thus driving prices down? If the price of THR rises over the summer and sustains it at over 10% I’ll reconsider, but not THR. Instead, I’ll look for better value plays in Canada, Russia, or China.

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Dated: 18 May 2006



Thor Mining PLC (the “Company”) the mineral exploration and development company focussed on advancing tungsten and molybdenum projects in the Northern Territory of Australia has raised £300,000 (gross) by the issue of 10,000,000 new ordinary shares of 1p each in the capital of the Company (the “Shares”) at 3p per Share, conditional on the Shares being admitted to trading AIM. The funds are to supplement the Company’s working capital and to provide additional finance for the development of the definitive feasibility study on the Molyhil Tungsten and Molybdenum Project.




Following the issue of these Shares the Company’s total issued share capital will be 191,765,000 ordinary shares. Application has been made to the London Stock Exchange for the Shares to be admitted to trading of on AIM. Dealings are expected to commence at 8.00 a.m. on 19 May 2006.

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  • 4 weeks later...

And, NOW; URANIUM and a Listing in Oz


Thor Mining buys uranium assets portfolio in Australia's NT from Batavia


LONDON (AFX) - Thor Mining PLC said it is acquiring a portfolio of uranium

exploration assets in the Northern Territory of Australia through the purchase

of Hale Energy Ltd from Australian Stock Exchange listed minerals company

Batavia Mining Limited.

Thor is paying for the purchase with the issue of 16 million new ordinary

shares in the company and the issue of 8.5 million warrants entitling the

holders to subscribe for shares.


Thor had previously announced that it is proposing to list on the Australian

Stock Exchange (the "ASX") and, as part of the acquisition of Hale, Thor said it

will undertake an Initial Public Offering in Australia and to list the shares in

the Hale acquisition and these IPO shares on the ASX.

Thor said it will use funds from the IPO to finance a vigorous, well funded

exploration programme of the enlarged portfolio of exploration and development

assets and, if required, to finalise the definitive feasibility study of the

Tungsten and Molybdenum Project, announced on April 4.


The company said it intends to finalise the prospectus for listing on the

ASX and lodge it with the ASX in July. Thor is currently negotiating an

underwriting agreement for the proposed IPO.

Up to 60 pct of the Australian fundraising will be made available to the

Batavia shareholders.


Thor said Hale's uranium project portfolio - including the Harts Range

Uranium Project in the Arunta Province of the Northern Territory and a number of

prospective exploration areas - represents a significant strategic acquisition

for the group alongside its specialty metals projects in the Northern Territory.

The acquisition includes over 2100 square kilometres of prospective

exploration ground and a comprehensive database of historical uranium

exploration information. The group said a number of advanced targets for high

grade intrusive, sandstone and structurally controlled uranium deposits have

been identified within the portfolio.


The company also said it is currently considering other potential

acquisition opportunities in the specialty metals sector internationally, and

intends to build on the strong asset base established in the Northern Territory

of Australia to further advance its growth as a diversified international mining

and resource company.


Link to company statement


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Here is another interesting article discussing Thors prospects I have around 120k shares which I am happy to hold:


Molybdenum, Tungsten and Uranium in One Package


Molybdenum, Tungsten and Uranium in One Package


By Stephen Clayson 15 Jun 2006 at 01:03 PM EDT


LONDON (ResourceInvestor.com) -- Thor Mining [AIM:THR]isn’t as well known a proposition as it should be given that the company has a lot going for it, including the strong likelihood of molybdenum-tungsten production in the near term and the recent acquisition of a large portfolio of uranium exploration ground. Shrewd investors might look to take the current temporary period of market-wide weakness as a buying in point.


Thor’s assets are all currently in the Northern Territory of Australia, which is interesting as the state has generally speaking received somewhat less mineral exploration than many other parts of Australia. The company though has an international outlook, and in the future may look to acquire new projects just about anywhere, so long as all the parameters are right.


The company’s near term production asset is the Molyhil project, which recently saw a scoping study successfully completed, and is now under definitive feasibility study. The scoping study outlined an operation processing around 300,000 tonnes of material per annum from an open pit, for an initial period of 4 years. Forecasted cash operating costs were A$80/tonne ($60/tonne) and the estimated capital cost was A$20 million ($15 million).........................


.............Investment Outlook


Thor shares have made little lasting progress since they were listed on AIM midway through last year. However, with a listing on the ASX in Sydney upcoming that is intended to bring in substantial new funding, the definitive feasibility study on Molyhil in progress and the potential for exciting exploration results to be achieved, the shares should be set for an upward re-rating, particularly as new projects may enliven the mix further.


[EDIT] Thor up 8% Today 12:30 16 June :)

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  • 1 month later...

John Barr, Chairman of Thor Mining (AIM: THR) hasn’t had much luck in exciting the London investment community over the past year. Thor listed on AIM primarily to raise cash for the development of Molyhil, a molybdenum-tungsten project near Alice Springs in the Northern Territory in Australia.


Sadly, as mentioned in previous articles on Proactive, bringing an Australian asset to London and whipping up interest is a lot harder than one might think. Despite the lack of enthusiasm for Thor, the company has made good progress at Molyhil which is now at the feasibility stage. The company also recently announced the acquisition of some uranium prospects and a capital restructuring aimed at encouraging new investors.


The combination of Molyhil moving through feasibility, the new uranium prospects, and a secondary listing on the Australian Stock Exchange (ASX) may just be the combination required to kick start interest in this prospective junior.


Molyhil Deposit


After completing a positive scoping study on the Molyhil project this spring, the company moved swiftly to initiate a full feasibility study. The tonnage at Molyhil is quite small and the grade moderate, but with today’s robust molybdenum and tungsten prices, the mine should generate healthy cash flow for Thor.


The scoping study assumed an open pit mine processing 300,000 tonnes per annum for four years with a combined molybdenum-tungsten grade of 0.8%. Assuming prices of US$24/lb molybdenum sulphide and US$240 per metric ton unit (mtu) tungsten oxide, the mine could generate cash flow of A$30-35 million per annum. This assumption is based on a cash cost per tonne of A$80 and capital expenditure of A$20 million.


The four year mine plan is modelled on the shallow portion of a larger geological formation, but Thor will be drilling a few deeper holes this summer as there is potential for an increased resource at depth. Therefore, the four year mine life may be increased.


Overall, Molyhil could be a project that offers significant near term cash flow - very helpful indeed for a small company trying to explore and expand. It is envisaged that the feasibility will be completed around the end of this year. If the results are positive then the company should swiftly move towards financing and on to mine development in 2007.


. .




Thor falls into the ‘micro-cap’ category of mining companies listed in London, and the shares have been hampered by low levels of awareness amongst investors. After meeting with John Barr in London, it quickly became apparent that the company sees the need to shake things up and a plan is now in place. The secondary listing on the ASX, the share consolidation, the issue of free warrants, and the new uranium prospects should help boost interest in Thor and should enable any additional good news to be more readily reflected in the share price.


...MORE: http://www.ProactiveInvestors.com

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  • 4 weeks later...

Csmyth from the ADVFN Thor thread :


One of my favourites


Thor is consolidating 3 for 1 which means the current share price will be 2.88 * 3 = 8.64p.


The Aussie IPO prospectus is being done at 20c, which is a current price of 8p.


Existing shareholders of Thor will get a bonus 1 for 2 warrant (tradeable) which has a strike of 25c (10p). This will have a value of about 4c (1.5p). This means that anyone holding the stock right now will end up with another 0.5p of value added to their position from the warrants (1.5p / 3 pre consolidation). Record date for this is 11th September from memory.


Thor is raising $10m at 20c and I have been keeping a very close eye on the brokers interest to this. There is an EXTREMELY good level of demand for it and they expect zero shortfall in the underwriting (which means it is oversubscribed by a large extent).


The thing I am really looking forward to is that once it is listed in australia the market makers wont be able to pull this bullshit spread that they currently have on the stock. I am bid in size at 2.5p trying to pick up any loose stock that falls out from impatient holders before the record date and someone is getting ripped off by the absurd spread of 2.50p-3.25p (30% spread).


Once it is consolidated the aussie market trades on a much tighter spread and I expect a price of about 20-21c on open (which is a spread of 8.06p - 8.46p or 5% spread).


The UK market maker system is a joke for low priced stocks and retail investors are getting fleeced. The germans wont touch AIM stocks for this reason.


I think that Thor is about to get a significant new leg up and the UK investors selling now are nuts. I will buy as much as I can here as frankly the story is fantastic. Net cash flow from the Molyhil mine over the next 4 years generates $140m using average metal prices according to that scoping study. This puts Thor market cap on a fraction of its NPV. My feeling is that the company will perform strongly after listing.

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  • 4 weeks later...

Dated: 21 September 2006


The Director's of Thor Mining PLC ("Thor" or the "Company"), the specialist

metals company currently focussed on projects in the Northern Territory of

Australia, is pleased to announce: the Initial Public Offering("IPO") in

Australia has closed raising AUD$10.0 million; the acquisition of Hale Energy

Limited ("Hale Energy") from Batavia Mining Limited ("Batavia"); the dual

listing of the New Shares and Warrants on the Australian Stock Exchange (the

"ASX"); and Admission of the New Shares and Warrants to AIM..


Terms used in this announcement have the same meaning as the defined terms in

the Circular issued on 9 August 2006.




* Placing in Australia to raise AUD$10 million through the issue of

50,000,000 New Shares at AUD 20 cents completed successfully;

* The issue of 67,445,833 Warrants to: Existing Shareholders; Batavia, the

vendor of Hale Energy; the subscribers to the Offer; and Patersons

Securities Limited ("Patersons"), the lead manager and underwriter to the

Offer, at no extra cost;

* The acquisition of Hale Energy satisfied by the issue of 16,000,000 New

Shares and 8,500,000 Warrants;

* The consolidation of the share capital of the Company from #10,000,000

divided into 10,000,000,000 ordinary shares of 0.1p each into #10,000,000

divided into 3,333,333,333 ordinary shares of 0.3p each on the basis of 3

ordinary shares of 0.1p each for each new ordinary share of 0.3p each;

* The granting of Options to subscribe for up to 15,000,000 New Shares to

Directors and certain employees at a price of 8p per New Share;

* The quotation of the New Shares and Warrants on the ASX, traded by way of

CHESS depositary Interests ("CDI");

* Admission of 129,891,667 New Shares and 67,445,833 Warrants to trading on

AIM on Friday 22 September 2006; and

* Deep resource drilling at the Molyhil Tungsten - Molybdenum Project in the

Northern Territory ("Molyhil") has commenced with 8 holes planned to 300m.


Commenting on the above Thor's Chief Executive Officer, Mr John Young said: "I

am extremely pleased with the investor response to the IPO and strong support in

the priority offer from the Batavia shareholders. With the fund raising behind

us, we can aggressively pursue the completion of the definitive feasibility

study at Molyhil and commence an aggressive uranium exploration program, which

we plan to begin in October 2006."




Fund raising and quotation on the ASX


The Directors proposed that the Company offer up to 52,500,000 Offer Shares at

the Offer Price to raise up to AUD$10.5 million of which 2,500,000 Offer Shares

were to satisfy any over subscriptions, at the discretion of the Directors. The

Company closed the IPO following the successful placing of 50,000,000 New Shares

to raise AUD$ 10 million, before costs of the fund raising.


Every two Offer Shares will have one Offer Warrant attached at no extra cost.

The Company has applied for the New Shares and Warrants to be quoted on the ASX

and to be traded by way of CDIs which is expected to commence shortly.


Acquisition of Hale Energy


The Company agreed to acquire Hale Energy subject inter alia on the listing of

Thor's securities on the ASX. Hale Energy owns prospective uranium tenements and

tenement applications in the Northern Territory of Australia. Thor proposes to

aggressively and systematically explore and evaluate the uranium projects. The

acquisition of the Hale Energy uranium prospects should provide an opportunity

to deliver increased Shareholder value.


Mr Durack, a Director of the Company, is also a director of Hale Energy and



Under the terms and conditions of the Acquisition Agreement Thor has acquired

Hale Energy satisfied by the issue of 16,000,000 New Shares and 8,500,000

Warrants which at the Offer Price aggregates to an approximate consideration of

AUD$3.2 million.


An independent report by Continental Resource Management Pty Ltd in respect of

the tenements is included in he Prospectus.




Continental Resource Management Pty Ltd have prepared a valuation report on Hale

Energy's mineral tenements and values these tenements as being within a range of

AUD$2.1 million and AUD$3.9 million with a preferred value of AUD$3.0 million.


Details of the proposed Share Consolidation


Under the ASX Listing Rules Thor must issue the Offer Shares at no less than

AUD$0.20. To achieve an issue price of AUD$0.20 a consolidation of the Company's

issued ordinary share capital in the order of one New Share for every three

Existing Shares has been approved by Shareholders.


Shareholders on the register of members of the Company at the close of business

on the Record Date (21 September 2006) will exchange 3 Existing Shares for 1 New

Share and so in proportion for any other number of Existing Shares then held.

The proportion of the issued ordinary share capital of the Company held by each

Shareholder following the Share Consolidation will, save for fractional

entitlements and subject to the exercise of share options, be unchanged.

Following the Share Consolidation, Existing Shareholders will receive one

Warrant for every two New Shares held.


Other than the change in nominal value, the New Shares arising on implementation

of the Share Consolidation will have the same rights as the Existing Shares,

including voting, dividend and other rights.


Any Shareholder not holding a number of Existing Shares which is exactly

divisible by 3 on the Record Date will not be entitled to receive part of the

proceeds of this sale in respect of his fractional entitlement.


Issue of Warrants


As part of the Proposals the Company will issue:


1. 31,945,833 Warrants to Existing Shareholders;


2. 8,500,000 Warrants to Batavia pursuant to the acquisition of Hale Energy;


3. 25,000,000 Warrants pursuant to the terms of the Offer; and


4. 2,000,000 Warrants pursuant to the terms of the underwriting agreement

to Patersons.


The terms of the Warrants, issued at no extra cost are identical. Each Warrant

will entitle the holder to subscribe for one New Share at a price of 8p per New

Share. The Warrants will expire on 15 June 2009. The Warrants will represent

31.1 per cent of the issued share capital of the Company on Admission on a fully

diluted basis.


Application has been made for the Warrants to be admitted to trading on AIM. The

Warrants will be traded separately from the New Shares following Admission.


The New Shares to be issued on the exercise of the Warrants will rank for all

dividends or other distributions declared, made or paid by reference to a record

date on or after the relevant exercise and will otherwise rank pari passu with

the New Shares in issue on the relevant exercise date.


Directors and employee share options


The Directors have been authorised to grant Options over the authorised share

capital of the Company in an amount not exceeding 15,000,000 New Shares.


The Company proposes to grant the Options to Directors and certain employees to

subscribe for New Shares. Such Options shall be exercisable at a price of 8p per

New Share.


The Directors propose to grant the following Options:


1. John W Barr be granted Options to subscribe for 6,000,000 New Shares;


2. John Young be granted Options to subscribe for 5,000,000 New Shares; and


3. Damian Delaney be granted Options to subscribe for 1,500,000 New Shares.


The balance of Options to subscribe for 2,500,000 New Shares are to be granted

to certain current and future employees and consultants at the discretion of the



Mr Barr has previously been granted 4,000,000 options to subscribe for Shares

exercisable at 3.75p per Share. As a result of the proposed Share Consolidation,

this will become an Option to subscribe for 1,333,333 New Shares at 11.25p per



The Options expire on 15 June 2009.


Use of proceeds


The funds raised from the IPO, will be used to pursue an aggressive development

strategy focused on the completion of a definitive feasibility study (the "DFS")

for Molyhil. Thor intends to bring Molyhil into production during 2007, in

parallel with a major exploration effort on its newly acquired uranium





Thor Mining also today announced the commencement of a program of deep resource

drilling at Molyhil. The program comprises 8 reverse circulation ("RC") holes to

be drilled to a planned depth of 300m. The drilling will test for depth

extensions of the Molyhil resource, which currently totals 2.38 million tonnes

at a combined Tungsten-Molybdenum uncut grade of 0.80%. Magnetic modelling

indicates that the Molyhil resource continues to a depth of at least 450m below



A number of geotechnical holes relating to tailings dam studies and

hydrogeological investigations will also be completed as part of the DFS, which

is due to be completed by mid-November 2006.




Thor is also preparing for the commencement of uranium exploration at its five

uranium projects in the Northern Territory. The portfolio covers a total area of

3,000 sq km, with the Hale River and Plenty Highway projects covering some 1,200

sq km of tertiary basin sediments and palaeo-drainage channels prospective for

sandstone and roll-front style uranium deposits. The portfolio includes advanced

target areas with previous uranium exploration history located in close

proximity to existing discoveries.


Admission to AIM


Application for Admission has been made by the Company for the New Shares and

the Warrants issued as a result of the proposals to be admitted to trading on

AIM. It is expected that Admission will become effective and dealings will

commence at 8.00am on Friday 22 September 2006.

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the mid-price is about 8.5P, so that is near 3p on the old structure


don't forget, you also have 2009 warrants, and they have value too


= =


the reverse split was designed to help narrow the spread.

that hasnt worked so far, but trading in australia will give you an alternative place to sell


the thing is, thor was spun-out of another company, tennant creek gold,

partly at the suggestion of rab, who invested some early money.

the london listing never worked that well.



+ remoteness of the project from london,

+ time until project is in production- and some scepticism,

+ lack of sustained promotional efforts in london


an oz-quote is better

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i think you can sell them wherever...


but they may need to be re-registered.

still, a strong price in oz, would help london too

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these expire in 2009, i believe, so you have plenty of time to learn


they are like options,

they give you the right- but not the obligation- to buy stock at a fixed price.

Since you got them free, they are like have some upside without risk.

No need to exercise early, you can hold them until they are in the money (assuming they get there), and you are ready to sell the stock

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these expire in 2009, i believe, so you have plenty of time to learn


they are like options,

they give you the right- but not the obligation- to buy stock at a fixed price.

Since you got them free, they are like have some upside without risk.

No need to exercise early, you can hold them until they are in the money (assuming they get there), and you are ready to sell the stock


Ok I see. I saw these in my bank trading account a while back, now I no longer see them. Guess better call the bank and ask them whats going on.


Thanks for info Bubb

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  • 3 weeks later...

I know a few here may be interested in this.


Molyhil production upgrade (sorry about the crap formatting)


25th October 2006


• Metallurgical test work program successfully completed as part of Definitive Feasibility Study on the Molyhil Tungsten-Molybdenum Project.

• Production estimates and concentrate specifications exceed initial Scoping Study, confirming potential production of approximately 100,000 mtu of tungsten oxide per annum and 1,000,000 lbs of Mo per annum.

• Project water supply confirmed.


Thor Mining (AIM & ASX: THR) today announced completion of the key metallurgical test work phase of the Definitive Feasibility Study for its 100%-owned Molyhil Tungsten-Molybdenum Project in the Northern Territory of Australia.

The delivery of final concentrate specifications from this test work program will enable it to progress negotiations for an off-take agreement and financing package for the Project.


Thor is well advanced with the Definitive Feasibility Study, which is scheduled to be completed by mid-November 2006. The Company intends to accelerate development of the Molyhil Project with a view to commencing production during 2007.


The key metallurgical test work program carried out over the past 6 months has been supervised by Thor and Proteus Engineering, with the involvement of metallurgical consultants, Independent Metallurgical Laboratories Pty Ltd, Orway Mineral Consultants and Nagrom & Co.


The metallurgical recoveries used in the Scoping Study for WO3 and MoS2 were based on pilot plant test work conducted by Nagrom in early 2005. The definitive metallurgical results received this week have improved the Scoping Study figures, as reflected in the table below:


Scoping Study (Jan2006) Definitive Feasibility Study (Oct2006)


Concentrates Recovery Concentrate Grade Recovery Concentrate Grade Concentrate Production @ 300,000 tpa

Tungsten (WO2) 51% 68.6% 67.2% 69.3% 1,511 tonnes

Molybdenum (MoS2) 78.1% 82.5% 77% 85% 905 tonnes




Molyhil Upgraded Following Completion of Metallurgical Testwork

This equates to planned production of approximately 100,000 mtu of tungsten oxide per annum and 1,000,000 lbs of Mo per annum. Current prices for Tungsten Oxide concentrates (min 65% WO3) are USD$220mtu and the price for Molybdenum concentrates (min 57% Mo) is USD$26lb.


The most significant change arising from the metallurgical test work program is in the recovery of Tungsten to the gravity circuit. The initial flowsheet used magnetic separation prior to flotation and gravity recovery, however this procedure is now completed at the end of the processing circuit on the finer Tungsten fractions, removing deleterious elements and improving overall recovery. The concentrate grade specifications are within a marketable range, and improvements in the molybdenum specifications were made with the removal of between 2 and 4% copper in concentrates, with copper levels now within specification.


Recent results from investigative hydrogeological drilling has identified an adequate supply of excellent quality water for the project, with six out of the eight locations successful in identifying substantial aquifers.


The Molyhil Definitive Feasibility Study is progressing well with the processing plant, infrastructure and mine development capital estimates due within a few weeks


Thor’s Chief Executive Officer, Mr John A. Young, said: “The completion of the metallurgical test work program is an important step in the progress of our off-take agreement, with a number of interested parties waiting for these final concentrate specifications. Marketing and negotiations can now begin with the aim of securing both a buyer and a finance package that will enable development of the Molyhil Project to be fast-tracked.”

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