Thor Explorations Announces First Quarter 2022 Financial and Operating Results, for the
Thor Explorations Announces First Quarter
2022 Financial and Operating Results, for the
Three Months Ending March 31, 2022
This Announcement contains inside information as defined in
Article 7 of the Market Abuse Regulation No. 596/2014
("MAR"). Upon the publication of this Announcement, this
inside information is now considered to be in the public
domain.
Vancouver, British Columbia--(Newsfile Corp. - May 31, 2022) -
Thor Explorations Ltd. (TSXV: THX)
(AIM: THX) ("Thor Explorations" or the "Company") is pleased to provide an operational and financial
review for its mineral properties located in Nigeria, Senegal and Burkina Faso for the three months to
March 31, 2022 ("Q1 2022" or the "Period").
The Company's Condensed Consolidated Interim Financial Statements together with the notes related
thereto, as well as the Management's Discussion and Analysis for the three months ended March 31,
2022, are available on Thor Explorations' website
https://thorexpl.com/investors/financials/
Operational Highlights of the Period
Achievement of commercial production with 21,343 oz of gold produced at Segilola in the Period
Mill feed grade was 3.38 grammes per tonne ("g/t") gold and recovery was 94.1%
The Company exported the gold regularly throughout the period selling 16,658 oz of gold and
922 oz of silver in the Period
Gold dore inventory of 6,626 oz as at the end of Q1 2022
7,500 metre reverse circulation ("RC") and diamond drilling programme commenced at Segilola to
test both near mine and regional drill targets that were generated during the Period and are within
trucking distance of the Segilola Plant
6,000 metre RC drilling programme completed on the Douta Project, Senegal subsequent to the
period.
One Lost Time Incident over the Period
Commencement of the Company's 2021 Sustainability Report, which is scheduled for completion
in Q2 2022
The Company has funded a range of livelihood restoration programmes to aid the local community
members who lost assets (crops and trees) and land within the mine's footprint
Community development included support for women's programmes, school scholarships for
children from vulnerable families; road upgrades and construction of local market facilities
Financial Highlights of the Period
First gold sales in the Period generating revenues of US$24,865,482
As at March 31, 2022, the Company had cash of US$6,276,376
Shipped 16,658 oz at a cash operating cost of US$696 per oz sold and all-in sustaining cost
("AISC") of US$799 per oz sold
In the Period, the Company cancelled US$1.35 million of its Senior Facility with Africa Finance
Corporation ("AFC") it did not draw down. The Company also made its first scheduled debt
repayment on March 31, 2022, to AFC of US$2.53 million consisting of principal and interest in
accordance with the terms of its Senior Secured Facility
Instalment payments on the AFC Senior Secured Facility of US$22,904,418 are due by December
31, 2022. These will be paid from cashflows during the year
Following gold shipment of 16,658 oz in Q1 2022, all outstanding Mining Contractor invoices to the
end of the Period were paid. The payment of the final EPC invoices, amounting to US$10,992,978
has been extended by the EPC Contractor following the delay in commercial production
experienced in Q4 2021 and will be paid from cash flows during H2 2022
In Q1 2022, the Company changed its presentation currency to the United States dollar ("$"). This
being the functional currency for the Company, and the currency of the primary economic
environment in which the Company operates.
Post Period Highlights
Senior Management Appointments
Following the transition to commercial production, the Company is pleased to announce that James
Philip has been appointed as Chief Operating Officer.
James has been the Vice President of Corporate Development at Thor since 2016 and has been
instrumental in the successful development of the Segilola project and the establishment of the
Company's current operating and project development platform. James has a long track record in the
mining industry and brings a diversified skill set having worked in project development, strategy,
corporate finance and more recently in operations. He is a graduate of the Royal School of Mines,
Imperial College London with a M.Eng. degree in Earth Resources & Environmental Engineering.
The Company is also pleased to announce the appointment of Chris Omo-Osagie as Acting Chief
Financial Officer, succeeding Ben Hodges who has resigned as Chief Financial Officer ("CFO"). Chris
will report directly to the CEO and is not joining the Board of the Company. Ben will remain as a
consultant to the Company over the next three months to ensure a smooth transition.
Chris moves into the position from Deputy Chief Finance Officer of Thor. Chris has served in various
senior executive roles across North America, Europe, the Caribbean and Africa with
PricewaterhouseCoopers, Deloitte, Centrica, Molson Coors and more recently as Deputy Regional
Chief Finance Officer for Dangote Cement Plc in Nigeria. Chris has led and sponsored numerous
business transformational projects and has extensive experience in financial reporting, finance
operations, mergers and acquisitions, controls and assurance, and treasury management and also
financial advisory and corporate finance services to organizations, with transaction values from US$30
million to US$45 billion, including supporting new listings on the TSX.V (Toronto Stock Exchange) and
the Irish Stock Exchange.
Chris is a Chartered Accountant and Fellow of the Institute of Chartered Accountants in England and
Wales, and member of the Institute of Chartered Accountants of Ontario, Canada.
Outlook
2022 production guidance of 80,000 to 100,000 oz of gold at an AISC of US$850-950 per oz
Continue to advance the Douta project to preliminary feasibility study ("PFS")
Advance exploration programmes across the portfolio, focusing on near mine and underground
exploration at Segilola, extension drilling at Douta as well as accessing regional targets in Nigeria
Segun Lawson, President & CEO, stated
:
"Firstly, on behalf of the Company, I would like to thank Ben for his contributions since joining the
Company over the last six years, seeing the Company grow from an exploration company to a gold
producer. Ben has played an instrumental role acting as CFO and Company Secretary since the
acquisition of the Segilola Project, supporting all financial transactions, due diligence and regulatory
activities and reporting for all the Company's subsidiaries. We wish him well in all his future endeavours."
"The Company's performance in Q1 2022 provides a solid foundation for the rest of the year. Segilola is
now running efficiently and the Company continues to be on track to achieve its guidance of 80,000 to
100,000 ounces of gold this year within our AISC guidance of US$850-US$950 per ounce."
"We are also proud of our Environmental, Social and Governance efforts in and around the local
communities. We are particularly proud to share our inaugural sustainability report, which will be
published later in the year. In particular, we are proud of our International Women's Day celebrations,
where the theme was women in STEM, we continue to address the gender chasm in male dominated
STEM careers."
Further details can be found on the Company's website:
www.thorexpl.com
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".
THOR EXPLORATIONS LTD.
Segun Lawson
President & CEO
For further information please contact:
Thor Explorations Ltd
Email:
Canaccord Genuity (Nominated Adviser & Broker)
Henry Fitzgerald-O'Connor / James Asensio / Thomas Diehl
Tel: +44 (0) 20 7523 8000
Hannam & Partners (Broker)
Andrew Chubb / Matt Hasson / Nilesh Patel / Franck Nganou
Tel: +44 (0) 20 7907 8500
Fig House Communications (Investor Relations)
Tel: +1 416 822 6483
Email:
BlytheRay (Financial PR)
Tim Blythe / Megan Ray / Rachael Brooks
Tel: +44 207 138 3203
FY 2021 Operational Review
Segilola Project, Nigeria
During the period, there continued to be global supply chain issues resulting shortages and in increased
prices for a number of essential consumables and supplies such as ammonium nitrate, diesel and spare
parts. The Company has mitigated these risks through the bulk purchase of most supply chain items and
anticipates that its production guidance and costs for the year remain in line.
Gold Production
During the three months ended March 31, 2022, the Segilola Mine produced 21,343 ounces of gold.
There is no comparable information as the Segilola Mine achieved commercial production on January
01, 2022.
The Company exported the gold regularly throughout the period selling 16,658 ounces of gold and 922
ounces of silver in the period and had a further gold dore inventory of 6,626 ounces on hand. These
ounces will be sold in the second quarter of 2022.
Mining
During the three months ended March 31, 2022, 3,759,524 tonnes of material was mined, equivalent to
mining rates of 41,772 tonnes of material per day. In this period, 226,314 tonnes of ore was mined,
equivalent to mining rates of 2,515 tonnes of ore per day, at an average grade of 2.68g/t.
The stockpile balance at the end of the period was 179,758 tonnes of ore at an average of 1.23g/t.
Processing
During the three months ended March 31, 2022, a total of 221,920 tonnes of ore, equivalent to a
throughput rate of 2,466 tonnes per day, was processed.
The mill feed grade was 3.18g/t gold and recovery was 94.1% for a total of 21,343 ounces of gold
produced. We continue to review the process plant to optimize throughput and recoveries.
For the month of March, the Segilola process plant continued to operate at a steady state, above design
mill throughput, with 69,907 tonnes of ore processed at an average head grade of 3.38g/t and an overall
gold recovery of 95.1% for a total of 7,220 ounces of gold produced.
All of the main operating units are performing as expected, and the plant is consistently operating above
nameplate capacity. Optimization of the gold recovery process is ongoing, and the start-up issues
encountered have been addressed.
Table 1: Production Metrics
Units
Q1 2022
Mining
Total Ore Mined
tonnes
226,314
Ore Processed
tonnes
221,900
Low Grade Ore Stockpiled
tonnes
179,758
Waste Mined
tonnes
3,533,610
Total Mined
tonnes
3,759,524
Total Ore Mined Gold Grade
g/t Au
2.68
Ore Processed
g/t Au
3.18
Low Grade Ore Stockpiled
g/t Au
1.23
Processing
Ore Milled
tonnes
221,920
Daily Throughput Rate (average)
tpd
2,760
Daily Throughput / Nameplate Capacity
%
128%
Ore Processed Gold Grade
g/t Au
Recovery
%
94.1
Gold Recovered
oz
21,343
Health and Safety
The health and safety of personnel at site is of paramount importance. During the quarter there was one
Lost Time Incident, four Medical Treatment Cases and eight Near Miss events.
Environmental
Environment and social activities for Q1 2022 focused on the Company's corporate sustainability
aspects including upgrading the Company's corporate governance policies and the commencement of
the Company's 2021 Sustainability Report, which is scheduled for completion in Q2 2022.
During Q1 2022 significant progress has been made on the Segilola Gold Mine Project's Greenhouse
Gas (GHG) Procedure and Tool. The Procedure sets out how carbon equivalent (CO
2
e) calculations will
be undertaken for the project and how they will be reported. The GHG Procedure and Tool will be
operational in Q2 2022.
The annual dry season biodiversity survey was undertaken for the Segilola Project March 2022.
Generally, the overall biodiversity account of the 2022 survey showed better biodiversity parameters than
that of 2021, indicating an increase and improvement in overall biodiversity and water quality status of
the sites. This is thought to be linked to the fact that human interference around these sites have
drastically reduced, allowing these sites to self-purify and re-grow.
Monthly environment baseline monitoring continued in Q1 2022 as per the Segilola EIA certificate
requirements. The monitoring results are in compliance with permits and applicable regulations.
Community
Social and community development parameters for the Segilola Project were also progressed in Q1
2022. Of significance was signoff for start-up funding for a range for livelihood restoration programmes
to aid those local community members who lost assets (crops and trees) and land within the mine's
footprint. Fish farms, chicken broiler farms and vegetable plots are being designed in land surrounding
the water storage dam. Land clearing has occurred, and construction is planned to commence in Q2
through to Q4 2022. Commitments to livelihood programmes were outlined in SROL's Livelihood
Restoration Plan. The programmes are expected to be self-sustaining within a two-year period and
operate beyond the lifetime of the mine. An agricultural expert has been seconded into the SROL team
to assist in the development of the agricultural programs.
Through funding agreed via Community Development Agreements, signed with the three communities
surrounding the Segilola Mine, community programmes were progressed in Q1 2022. These included
support for women's programs, school scholarships for children from vulnerable families (19
scholarships awarded); road upgrades (grading of local roads) and construction of local market
facilities.
To mark International Women's Day (IWD) on the 8th of March, SROL celebrated with the female
children and teachers of host communities. The theme - Women in STEM -aimed at addressing the
gender chasm in male dominated Science, Technology, Engineering and Maths "STEM" careers. The
program was organized by SROL's Cooperate Affairs Department.
In attendance were speakers and
guests from the Ministry of Mines and Steel Development and the Chairperson from Atakunmosa East
LGA.
Compensation for the Segilola project footprint continued in Q1 2022.
The compensation budget for the
Project sits at $3.5 million in line with the overall compensation budget for the Project. This provides
compensation for 234 landowners and 1044 asset owners (March 2022). Additionally, compensation for
temporary loss of assets and lands impacted by exploration activities (at 10 explorations sites across 3
states in Nigeria) stands at ~$288,000 for 415 asset and landowners (as of March 2022).
Exploration
Douta Project, Senegal
In November 2021 Thor issued a Maiden mineral resource estimate ("MRE") for the Makosa deposit at
the Douta Gold Project ("Douta") in Senegal. The MRE is classified as Inferred Resources and is
constrained within optimised pit shells and comprises 15.3 million tonnes grading 1.5 g/t gold for
730,000 ounces of gold.
Reverse circulation (RC) drilling commenced during the quarter. The main objectives of this program
are:
Extensional drilling northwards from the Makosa Resource that will bridge the gap between
Makosa and Mansa prospect.
Initial exploration drilling at Sambara Prospect.
Table 2: Douta RC Drilling Statistics
Prospect
No. of Holes
Metres Drilled
No. of Samples
Makosa North
54
3,572
4,199
Sambara
46
3,036
3,573
100
6,608
7,772
Regional Exploration, Nigeria
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.
Thor's exploration tenure now comprises nine explorations licences and five joint venture partnership
exploration licences. Together with the mining lease over the Segilola Gold Deposit Thor's total
exploration tenure amounts to over 1,252 square kilometres.
Exploration during the quarter comprised on-going regional steam sediment sampling, soil sampling and
termite mound sampling in the exploration lease located both north and south of the Segilola Gold
Deposit. Activity during the quarter generated a total of 4,330 surface geochemical samples (Figure
2.1).
Sample turnaround in Nigeria is currently being affected by the delayed commissioning of the exploration
laboratory which the Company anticipates will be commissioned in July 2022. Until the exploration lab is
commissioned, the Company continues to send its samples to third party laboratories in Ghana and
Canada.
An extensive soil geochemical survey commenced at the new exploration lease (EL34429) that is owned
100% by Thor.
A total of 647 surface soil samples were collected together with 26 rock chip samples.
Detailed geological mapping has been completed withing the exploration permit. This lease is located
160km north from Segilola in a newly identified gold-bearing schist belt. Follow up geochemical surveys,
including 801 auger-assisted soil samples, were completed in the north-western sector of EL29978
where several anomalous stream sediment samples were previously collected.
Subsequent to the period, the Company commenced a 7,500 metre combined reverse circulation and
diamond drilling program on a number of drill targets within trucking distance of the Segilola Processing
Plant.
COVID-19 Pandemic
The COVID-19 pandemic continued in 2021 and has had a significant impact on businesses through
restrictions put in place by governments around the world including the jurisdictions in which we conduct
our business. Over the last two years, aspects of the Company's operations have been impacted by
COVID-19 for a variety of reasons, such as government and other restrictions on transportation and the
mobility of personnel and mandatory quarantine periods and border closures.
As of the date of this MD&A, it is not possible to determine the extent of the impact that this pandemic
will have on our activities as the impacts will depend on future developments which themselves are
uncertain and cannot be predicted with confidence. These uncertainties arise from the inability to predict
the ultimate geographic spread of the disease, its extent and intensity, the duration of the outbreak, and
possible government, societal, and individual responses to the situation.
Possible impacts of the continuing or worsening spread of COVID-19, including new variants of the virus,
may include mandated or voluntary closures of operations, illness among the Company's workforce,
restricted mobility of personnel, interruptions in the Company's logistics and supply chain, delay at or
closure of the Company's refining and smelting service providers and global travel restrictions, all of
which could disrupt the Company's operations and negatively impact its financial performance.
SUBSEQUENT EVENTS
Appointments
Following the period end, the Company appointed James Philip as Chief Operating Officer, and Chris
Omo-Osagie as Acting Chief Finance Officer.
We believe that both James and Chris' operational experience will be valuable in taking us through the
next phase of our evolution into a multi asset development, management, and operating group.
Resignation
Ben Hodges has resigned from his position as Chief Finance Officer and will be transitioning from the
Company over the next three months.
We are extremely grateful to Ben for his commitment and service during a very important period of the
Company's development and we wish Ben the very best in his future pursuits.
OUTLOOK AND UPCOMING MILESTONES
This Section 5 of the MD&A contains forward looking information as defined by National Instrument 51-
102. Refer to Section 16 of this MD&A for further information on forward looking statements.
We are focussed on advancing the Company's strategic objectives and near-term milestones which
include:
Maintain our rigorous health and safety protocols
2022 Operational Guidance and Outlook
Gold Production
oz
80,000-
100,000
All-in Sustaining Cost ("AISC")
US$/oz Au sold
$850 - $950
Capital Expenditure
US$
9,243,000
Exploration:
Nigeria
US$
4,200,000
Senegal
US$
2,000,000
The critical factors that influence whether Segilola can achieve these targets include:
Segilola's ability to maintain an adequate supply of consumables (in particular Ammonium
Nitrate, Flux and Cyanide) and equipment, particularly if there is any resurgence in the COVID-
19 pandemic
Fluctuations in the price of key consumables, in particular Ammonium Nitrate, and Diesel
Commissioning of the CNG generators in May 2022, thereby reducing the cost of power
generation to the process plant
Segilola's workforce remaining healthy
Continuing to receive full and on-time payment for gold sales
Continuing to be able to make local and international payments in the ordinary course of
business
Continue to advance the Douta project to preliminary feasibility study ("PFS")
Continue to advance exploration programs across the portfolio:
Segilola near mine exploration
Segilola underground project
Segilola regional exploration program
Douta extension program
Douta infill program
Assess regional potential targets in Nigeria
SUMMARY OF QUARTERLY RESULTS
The table below sets forth selected results of operations for the Company's eight most recently
completed quarters.
Table 2: Summary of quarterly results
$
2022 Q1
Mar 31
2021 Q4
Dec 31
2021 Q3
Sep 30
2021 Q2
Jun 30
Revenues
24,865,482
6,205,345
-
-
Net profit/(loss) for period
200,473
2,665,653
460,745
(5,582,090)
Basic and fully diluted profit/(loss) per
share (cents)
0.00
0.40
0.08
(0.90)
$
2021 Q1
Mar 31
2020 Q4
Dec 31
2020 Q3
Sep 30
2020 Q2
Jun 30
Revenues
-
-
-
-
Net profit/(loss) for period
(67,365)
(1,560,694)
(1,030,715)
812,003
Basic and fully diluted profit/(loss) per
share (cents)
(0.05)
(0.25)
(0.17)
0.16
RESULTS FOR THREE MONTHS ENDED March 31, 2022
The review of the results of operations should be read in conjunction with the Company's Consolidated
Financial Statements and notes thereto.
The Company reported a net profit of $200,473 ($0.00 profit per share) for the three months March 31,
2022, as compared to a net (loss) of ($67,365) ($0.05 loss per share) for the three months ended March
31, 2021. The move to profit for the three months was largely due to:
sales in Q1 2022 of $24,865,482 in Q1 2021 (nil);