Thor Explorations Announces Financial and Operating Results for the Three and Nine
Thor Explorations Announces Financial and
Operating Results for the Three and Nine
Months Ending September 30, 2023
Focus on drilling regional Segilola gold targets, continuation
of lithium prospects
Vancouver, British Columbia--(Newsfile Corp. - November 27, 2023) - Thor Explorations Ltd. (TSXV:
THX) (AIM: THX) ("Thor Explorations", "Thor" or the "Company") is pleased to provide an operational
and financial review for its Segilola Gold mine, located in Nigeria ("Segilola"), and for the Company's
mineral exploration properties located in Nigeria and Senegal for three ("Q3 2023" or the "Period") and
nine months to September 30, 2023.
Financial Highlights of Q3 2023 and nine months to Sept 2023
US$
Q3 2023
Q3 2022
Nine months
to Sept 2023
Nine months
to Sept 2022
Revenue
$36.6m
$55.7m
$118.2m
$121.9m
AISC*
$1392/oz
$1378/oz
$1321/oz
$1273/oz
Cash operating cost
$1193/oz
$1137/oz
$1005/oz
$991/oz
EBITDA
$11.8m
$17.8m
$47.0m
$49.0m
Net Profit
$2.3m
$7.6m
$14.5m
$17.8m
Cash at end of period
$8.3m
$2.5m
-
-
Net Debt
$19.4m
$40.7m
-
-
*
all-in sustaining cost
Operational Highlights for Q3 2023
Gold production targets on track for FY23 guidance
Gold production for the Period totalled 19,021 ounces ("oz")
Nine months to Sept '23 production of 63,328 oz - in line with expectations
All main operating units of the process plant continue to perform well, with the main west wall push
back completed
Ongoing improvements at process plant being undertaken and to be commissioned in Q4 2023
Focused exploration at Segilola
Focus of gold exploration activities within a 25km radius from the Segilola operations
Continuation of reverse circulation ("RC") drilling, stream sediment sampling and grid auger
sampling at the Kola Prospect, 23km south of Segilola
Continuation of diamond drilling on identified high-grade quartz-vein style mineralisation at Aye-Ile
prospect which is located 15km west of Segilola with several narrow high-grade intersections
drilled
Ongoing Preliminary Feasibility Study Workstreams of Douta Project
Further progress made with Pre-Feasibility Study ("PFS") workstreams with an expected
completion for Q1 2024
Environmental and Social Impact Assessment is ongoing
Metallurgical test work is continuing at IMO Laboratory in Perth, Western Australia
Compilation and reporting of geotechnical data
Resource drilling, which targeted the higher-grade parts of the existing inferred resource has been
completed
Thor Lithium Exploration at Oyo Project
At Oyo Project Location 6 a total of 77 RC drillholes totalling 4,585 metres ("m") were drilled
Significant intersections previously reported include 11m grading 1.53% lithium oxide ("Li2O"), 9m
grading 2.42% Li2O and 11m grading 2.61% Li2O
Regional soil geochemical surveys commenced
Additional tenure obtained at both the Oyo and Ekiti Project Areas
Reconnaissance mapping and sampling at the Ekiti Project returned positive results including a
rock chip sample grading 2.92% Li2O with drilling now commence at this Project
ESG
Two weather stations installed at Segilola to assist with accurate climate database and mine
planning
Continuous progression of livelihood restoration programmes to individuals affected locally within
the Segilola mine footprint
Community projects undertaken by Africa Star Resources team in Senegal, including
improvements of local school toilet facilities, clearing wasteland at local cemetery and providing a
generator for the local police station
Outlook
FY 2023 production guidance of 85,000 oz of gold maintained
AISC guidance for the year maintained at US$1,150 - US$1,350 per ounce
H2 2023 drilling programs:
Continuation of drilling at Segilola gold regional targets and underground project
Continuation of drilling at Oyo lithium prospect and commencement of drilling at the Ekiti
lithium prospects in Nigeria
Completion of the Douta resource update in Q4 2023
Continued assessment of prospective exploration properties in Nigeria
Continued exploration programs across our exploration portfolio in Nigeria
Segun Lawson, CEO, commented:
"Our Q3 2023 gold production of 19,104oz is in-line with our August guidance update of 85,000oz for
the full year 2023.We are pleased to have achieved this and to have completed the pushback of the
west wall which means that the pit conditions have significantly improved. We are now well positioned
to mine more flexibly and efficiently going forwards.
Our process plant continues to perform above design capacity. Upgrades to the process plant
leaching and electrowinning circuits are being phased-in over Q4 2023 and Q1 2024, which are
expected to result in a release of gold-in-circuit and increased plant recoveries from December 2023,
continuing throughout 2024.
In terms of financial performance, whilst the lower grades have led to lower revenue and profits in the
quarter, we have maintained good levels of positive cash flow. We anticipate a stronger financial
performance in the final quarter as the mine grade increases.
The resource drilling at our Douta gold project in Senegal, which was targeting the higher-grade zones
of the inferred resource, has been completed and final assays are pending. The Environmental and
Social Impact Assessment is ongoing and metallurgical test work is continuing at IMO Laboratory in
Perth, Western Australia. To maximise the full potential of the 1.78 Moz of gold resource at Douta, we
are extending the metallurgical testwork program with IMO and will also be conducting further testwork
with our engineering design partner JinPeng engineering in China to confirm equipment selection. It
is important that we confirm a robust process design that maximises the overall economics of the
project and that provides us with the confidence to progress directly to project implementation. We are
therefore postponing the preparation of an updated resource for Douta until confirmation of the
process design and thereafter release of the PFS, targeting Q1 2024.
We have made good early progress at our West Oyo Lithium Project in Nigeria, with an encouraging
initial set of drilling results. We have been able to confirm and delineate lithium-bearing
mineralisation, with spodumene confirmed as the primary lithium-bearing mineral. Our plan is to
expand our drilling program to the other pegmatites across our permits and expect to receive further
results in Q4 2023."
The Group's Consolidated Condensed Interim Financial Statements together with the notes related
thereto, as well as the Management's Discussion and Analysis for the three and nine months ended
September 30, 2023, are available on Thor Explorations' website at
https://thorexpl.com/investors/financials/
.
About Thor Explorations
Thor Explorations Ltd
. is a mineral exploration company engaged in the acquisition, exploration,
development and production of mineral properties located in Nigeria, Senegal and Burkina Faso. Thor
Explorations holds a 100% interest in the Segilola Gold Project located in Osun State, Nigeria and has a
70% economic interest in the Douta Gold Project located in south-eastern Senegal. Thor Explorations
trades on AIM and the TSX Venture Exchange under the symbol "THX".
For further information please contact:
Thor Explorations Ltd
Email:
Canaccord Genuity (Nominated Adviser & Broker)
Henry Fitzgerald-O'Connor / James Asensio / Harry Rees
Tel: +44 (0) 20 7523 8000
Hannam & Partners (Broker)
Andrew Chubb / Matt Hasson / Jay Ashfield / Franck Nganou
Tel: +44 (0) 20 7907 8500
Fig House Communications (Investor Relations)
Tel: +1 416 822 6483
Email:
Yellow Jersey PR (Financial PR)
Charles Goodwin / Shivantha Thambirajah / Soraya Jackson
Tel:
+44 (0) 20 3004 9512
BlytheRay (Financial PR)
Tim Blythe / Megan Ray / Said Izagaren
Tel: +44 207 138 3203
Qualified Person
The technical information included in this report has been prepared under the supervision of Alfred
Gillman (Fellow, AusIMM, CP Geology), who is designated as a "qualified person" under National
Instrument 43-101 and AIM and has reviewed and approves the content of this news release. He has
also reviewed QA/QC, sampling, analytical and test data underlying the information.
Production Metrics
Units
Q3 - 2023
Q2 -2023
Q1 - 2023
Q4 - 2022
Q3 - 2022
Q2 - 2022
Q1 - 2022
Mining
Total Mined
Tonnes
5,673,193
5,633,688
4,194,689
4,296,494
4,018,431
4,031,584
3,759,524
Waste Mined
Tonnes
5,370,279
5,355,105
3,996,264
3,974,073
3,793,249
3,747,504
3,533,610
Ore Mined
Tonnes
302,915
278,583
198,425
322,421
225,182
284,079
226,314
Grade
g/t Au
2.44
2.43
2.85
3.51
4.43
3.63
2.68
Daily Total Mining Rate
Tonnes/Day
61,665
61,909
46,608
46,701
43,679
44,303
41,772
Daily Ore Mining Rate
Tonnes/Day
3,292
3,061
2,205
3,505
2,448
3,122
2,515
Stockpile
Ore Stockpiled
Tonnes
338,558
297,060
270,215
300,531
229,909
249,281
179,758
Ore Stockpiled
g/t Au
0.99
1.06
1.14
1.48
1.19
1.46
1.23
Ore Stockpiled
Oz
10,756
10,124
9,904
14,300
8,796
11,701
7,109
Processing
Ore Processed
Tonnes
261,671
255,231
231,001
254,824
241,434
211,582
221,900
Grade
g/t Au
2.46
2.99
2.95
3.38
3.58
3.66
3.18
Recovery
%
92.3
94
94.1
95
95.5
95.5
94.1
Gold Recovered
Oz
19,104
23,078
20,629
26,331
26,523
23,785
21,343
Milling Throughput
Tonnes/Day
2,844
2,805
2,567
2,770
2,624
2,325
2,466
Key Exploration updates
Exploration Activity Summary Q3 2023
Segilola near mine exploration continued as a priority for the Group in 2023. The Group also completed
its field exploration activities at the Douta Project in Senegal and is now completing various
workstreams for the Douta Preliminary Feasibility Study.
The Group continued to expand its portfolio in Nigeria through the acquisition of additional pegmatite
bearing lithium licences in various locations via entering into joint venture agreements with existing
licence holders.
The majority of the exploration activities carried out on all the Group's licences, consisted of Reverse
Circulation drilling, Diamond Drilling, geochemical stream sediment sampling, auger drilling and soil
sampling. Work continued on the Kola target which is located about 20km from the Segilola Mine
following the significant geochemical signature and
follow up drill results that included several anomalous
zones.
In Senegal, the Group's Douta Project encompasses a mineral resource of 1.78 million ounces ("Moz")
of gold ("Au"). Workstreams focussed on the proposed process flow sheet in support of a Preliminary
Feasibility Study (PFS) commenced during the quarter following the completion of the resource drilling
program.
As part of its strategy of identifying high-value mineral resource opportunities, Thor, through its fully
owned subsidiary Newstar Minerals Ltd, continued to carry out drilling activities on its West Oyo Lithium
project however the drilling program was interrupted due to heavy rains in Oyo, delaying the drill results
to Q4 2023.
Exploration drilling statistics summary for the Period
Prospect
Target
Commodity
Diamond
RC
Total
No.
Holes
Metres
No.
Holes
Metres
No.
Holes
Metres
Western Prospect - Aye-ile
gold
14
1,866
14
1,866
Southern Prospect -Kola
gold
39
2,621
39
2,621
Newstar Lithium - Oyo
lithium
77
4,585
77
4,585
Total
14
1,866
116
7,206
130
9,072
Nigeria Gold
Introduction
The high grade Segilola gold deposit is located on the major regional shear zone that extends for
several hundred kilometres through the gold-bearing Ilesha schist belt (structural corridor) of Nigeria.
The key objective of the exploration strategy is to extend the life of mine ("LOM") at Segilola.
Approximately 80% of the Group's Nigerian exploration effort is concentrated within a 25km radius from
the Segilola operation such that potential gold-bearing material can be easily trucked to the existing
plant. In parallel to this, the Group also continued to carry out generative exploration activities in areas
that are further from the mine.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/7003/188702_5125ac80c4470a69_002full.jpg
Segilola Southern Prospects
The southern prospects cover an area that is located to the south from the Segilola Gold Mine. Regional
stream sediment sampling located an area of interest at what is now referred to as the Kola target. Kola
is located about 20km from the Segilola Mine. Further follow up drill testing of this greenfield target
intersected several high grade anomalous zones of interest including 13m grading 11.57g/tAu.
Further drilling at the Kola Target has delineated high grade mineralisation extensions to the north-west
and the south-east as illustrated in Figure 2.2 below. Drilling is ongoing throughout Q4 2023 to test these
extensional targets.
Figure 2.2 Segilola Southern Prospects
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/7003/188702_5125ac80c4470a69_003full.jpg
Kola Prospect Significant Results Q3 2024
Hole ID
x
Y
Z
Depth
Dip
Azimuth
From
(m)
To
(m)
Interval
(m)
Grade
(g/tAu)
SGRC202
699920
807870
259
31
-90
0
0
7
7
0.86
SGRC203
699913
807870
259
26
-90
0
0
13
13
11.57
SGRC203
21
24
3
0.97
SGRC204
699938
807889
259
70
-60
270
5
11
6
0.73
SGRC215
699921
807890
259
31
-60
90
17
22
5
2.54
SGRC236
699901
807898
259
60
-60
90
20
26
6
2.24
(0.5g/tAu lower cut off; maximum 1m internal dilution)
Segilola Western Prospects
The Western Prospects are located about 15km directly west from the Segilola Gold Mine and cover
mostly amphibolitic rocks that contrast with the more gneissic terrain that is developed at Segilola itself.
The prospect comprises several exploration permits that are held under exercised option agreements.
The area is easily accessed through a series of sealed roads and gravel tracks. The Western Prospects
are held under a joint venture agreement ("Thor-Esteedan JV") between Thor's wholly owned subsidiary
Segilola Gold Limited ("SGL") and a local mineral exploration company, Esteedan Limited ("Esteedan").
Igila
Drilling continued at Igila following up on the series of narrow high grade mineralised lodes. Exploration
activities at the Western Prospects was aimed at identifying additional strike length and identifying
additional lodes such as the Aye-Ile prospect.
Aye-Ile
The Aye-Ile prospect is located approximately 1.2km along strike to the south-east from Igala. Drill
testing of anomalous auger geochemistry located a north-east dipping vein-system that is developed on
the same structural orientation as Igala. Additional drilling is planned to expand the zone of
mineralisation and to infill the prospective strike between Igala and Aye-Ile. Further drilling intersections
were drilled in the period with results highlighted in the table below.
Prospect
Hole ID
x
Y
Z
Depth
Dip
Azimuth
From
(m)
To
(m)
Interval
(m)
Grade
(g/tAu)
Aye-Ile
SGD250
684182
836855
386
110
-60
320
40.7
41.8
1.1
0.64
Aye-Ile
SGD266
684219
836824
376
84
-60
320
36.2
38.1
1.9
8.34
Aye-Ile
SGD272
684246
836842
347
101
-60
320
70
73
3
6.84
(0.5g/tAu lower cut off; maximum 1m internal dilution)
Aye- Ile exploration map
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/7003/188702_5125ac80c4470a69_004full.jpg
Newstar Lithium
Thor has secured over 600km
2
of granted tenure in Nigeria that form Oyo State, Kwara State and Ekiti
State Lithium Project Areas. The Oyo State Project Area encompasses what Thor considers to be one
of Nigeria's most significant lithium pegmatite occurrence which is currently being exploited by small-
scale lithium mining.
In the period, Thor has added further licences in Ekiti to its portfolio.
The Oyo State Lithium Project comprises approximately 38km
2
of exploration tenure that is located
towards the westernmost border of Nigeria and within 200km of the commercial capital of Lagos. The
project area is unique in the Nigerian context as it is mostly located in a relatively sparsely populated
region of the country but within close proximity to large population centres and advanced infrastructure