Thor Explorations Announces Q3 2024 Operating Update
Thor Explorations Announces Q3 2024
Operating Update
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. - October 16, 2024) - Thor Explorations Ltd. (TSXV: THX)
(AIM: THX) ("Thor Explorations" or the "Company") is pleased to provide an operational update for the
Segilola Gold mine, located in Nigeria ("Segilola"), and for the Company's mineral exploration
properties located in Nigeria and Senegal, for the three months to September 30, 2024 (the "Quarter" or
"Q3").
Segilola Q3 2024 Operational Highlights
Gold poured of 20,110 ounces ("oz")
Gold produced from 201,958 tonnes milled at an average grade of 3.22 grammes per tonne ("g/t")
of gold ("Au")
Mine production of 355,515 tonnes at an average grade of 2.01g/t of Au for 23,029 oz
Ore stockpile increased by 2,094 oz to 39,934 oz of Au at an average grade of 0.94g/t of Au which
includes a medium-grade stockpile of 52,947 tonnes at an average grade of 1.95g/t of Au for
3,316 oz
Release of a further 1,614 oz of Au in circuit ("GIC")
Payment of US$4.0 million towards the outstanding senior debt facility with Africa Finance
Corporation ("AFC") leaving a balance of $3.9 million scheduled to be fully repaid by the end of
2024
Exploration Q3 2024 Highlights
Nigeria
Initial positive drill results received from the first two holes drilled out of an ongoing 12 hole drilling
programme from the Segilola Underground Exploration programme including 3.0 metres ("m")
grading 11.24g/t Au from 294m and 1.5m grading 3.22g/t Au from 269m
Additional drilling was carried out two kilometers ("km") north of the Segilola Mine. This was
carried out as a follow up for targets generated from stream sediments sampling and geophysical
surveying. A total of two holes were drilled. No significant results were reported.
Geochemical sampling programmes continued over the Quarter, focusing on the area to the South
of the Segilola mine. A total of 2,525 geochemical samples were collected, with the objective of
generating drilling targets. Regional stream sediment sampling returned a total of 31 samples that
returned assays of >1g/tAu including nine samples that assayed >3.0g/tAu.
Senegal
Geochemical exploration activities during the quarter were focused on generating drill targets at
the Douta West and Sofita projects.
Reverse circulation ("RC") drilling has focussed on increasing the percentage of oxide resources
at the Makosa East Prospect which runs parallel to the main Makosa mineralisation and which is
additional to the current mineral resource. Additional infill drilling was also completed at the
Makosa North, Mansa and Maka prospects
Pre Feasibility Study ("PFS") workstreams are continuing, with a target completion in Q4 2024.
Cote D'Ivoire
During the Quarter, the Company expanded its operations into Cote d'Ivoire, a country that hosts
over 30% of West Africa's greenstone belts and is proving to be an emerging region for world
class gold discoveries.
Signing of binding agreements to acquire the Guitry gold exploration project from Endeavour
Mining Corporation. The project is characterised by numerous gold-in-soil geochemical
anomalies that have only been partially drill tested by the previous explorers. Some of the drill
results include 12m grading at 10.4g/tAu, 16m grading at 7.90g/tAu, 24m grading at
2.02g/tAu and 16m grading at 2.25g/tAu. The two major prospects, Krakouadiokro and
Gbaloukro, are yet to be fully tested with several additional targets yet to be drilled.
The Company has entered into an earn-in agreement to earn up to an 80% interest in the
Boundiali Exploration Permit, an early-stage gold exploration permit located in northwest
Côte d'Ivoire. In the Quarter, the Company undertook an initial geochemical exploration
programme which identified several continuous soil geochemical anomalies.
FY 2024 Outlook and Catalysts
FY 2024 production guidance reduced to 85,000 oz of Au as a result of extreme rainfall, delays in
mining certain high grade areas in the pit and the late installation of the new SAG Mill liner
FY 2024 All-in Sustaining Cost ("AISC") guidance range reduced to $800 to $900 as a result of
the implementation of cost reductions and lower mining volumes year-to-date and forecast to year-
end
Drilling programmes across all the Company's exploration portfolio:
Segilola underground drilling programme – completion of existing 12 hole programme
Nigeria – continuation of scout drilling programmes on identified targets
Senegal –
Douta licence, additional RC drilling targeting additional oxide resources
Cote D'Ivoire - Guitry license, initial drill programme on identified targets
Updated Mineral Resource Estimate and PFS at the Douta Project scheduled for Q4 2024
Segun Lawson, President & CEO, stated
:
"This has been a challenging Quarter for the Company. Operationally at Segilola, we have been
impacted by extreme weather conditions with a heavy and prolonged rainy season and have also
been disrupted by a fly-rock incident and logistics delays early in the period.
"Corporately, we are continuing our engagement with the relevant Federal Ministries, including the
Ministry of Solid Minerals Development (the "Federal Ministry of Mines") to resolve the unfounded
accusations, demands and disruptive actions instigated against us by the Osun State government
and look forward to a full resolution by the end of the year.
"Despite our challenges, which have ultimately resulted in a lower guidance for the year, we are
pleased to have poured over 20,000 ounces of gold in the period whilst further reducing our AISC
guidance for the year."
Segilola Operations
Late in the Quarter, the Company experienced a period of severe weather where more than 415
millimetres of rain fell over a 12-day period in September. This extreme level of rainfall over a short
period exceeded the in-pit pumping capacity and affected access to planned mining areas of high grade
ore.
The Company has since added more pumping capacity and have made good progress in dewatering
the pit, which, is complete as at today's date.
During the Quarter the company became concerned regarding blasting at the southern end of the pit,
close to Iperindo, and delayed mining operations in this area until a new blasting strategy was developed
and adopted.
Additionally, a delay in delivering the SAG mill liner led to lower mill throughput and recovery. This was
due to operating under less-than-ideal milling conditions while managing the worn SAG mill liner and
protecting the mill shell. The SAG mill re-relining was successfully completed in the final week of the
Quarter.
Corporate
In September several claims and allegations against Thor's wholly owned subsidiary, Segilola
Resources Operating Limited ("SROL") were reported in the Nigerian press, by Special Advisers of the
Osun State Government, Nigeria. The allegations relate to tax evasion, environmental violations and
questionable business practices related to employment and shareholding structures. The Osun State
Government has not presented any evidence to support its claims, and the Company has fully rejected
the allegations in their entirety.
After the Osun State Government sought to impede operations at the mine, the Company initiated legal
proceedings in the Federal High Court in Abuja, which has issued an interim injunction and restraining
order preventing the Osun State Government and its officials from interfering with the Company's
activities. The Company will continue to pursue legal action against the Osun State Government and its
officers until such time as the dispute is resolved.
Further, the Company has engaged with the Federal Ministry of Mines in its capacity as the sector
regulator and the Federal Ministry of Mines has deployed a senior committee to hear and assess
evidence on each side of the matter. Thor welcomes this intervention and hopes that it will result in a
prompt and amicable resolution of the dispute.
Thus far, operations have remained unaffected by the dispute, and the Company is diligently working to
reassure its employees at the mine, local communities, and other stakeholders.
The Company firmly believes that it has acted in accordance with all laws and regulations, that there is
no validity to the claims made by the Osun State Government and that the Company have sufficient
evidence to refute the claims that have been made.
Douta Project
Work on the Updated Resource and PFS is continuing and focussing on finalising metallurgical testwork
and process design for the PFS on an updated resource. This is scheduled to be completed during Q4
2024.
In parallel, the Company is also continuing with its strategy, of adding oxide material to the resource
inventory and will also be conducting a further drilling programme over the November-December period.
Financing
The Company is pleased to have made further progress towards fully repaying its senior debt facility by
the end of the year with a balance of $3.9 million remaining outstanding and also continuing to make
repayments towards its payables, whilst continuing to strengthen its balance sheet.
PRODUCTION SUMMARY
Units
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
Mining
Total Mined
Tonnes
4,024,002
4,710,220
4,939,647
5,483,291
5,673,193
Waste Mined
Tonnes
3,668,487
4,171,122
4,473,752
5,031,932
5,370,279
Ore Mined
Tonnes
355,515
491,935
465,895
451,360
302,915
Grade
g/t Au
2.01
1.78
2.07
1.93
2.44
Processing
Ore Processed
Tonnes
201,958
174,000
235,933
262,439
261,671
Grade
g/t Au
3.22
3.42
2.85
2.77
2.46
Recovery
%
88.5
94.6
90.7
93.4
92.3
Gold Recovered
oz
18,496
18,090
19,589
21,798
19,104
Gold Poured
oz
20,110
21,742
18,543
16,361
16,579
Table 1: Production Summary
THOR EXPLORATIONS LTD.
Segun Lawson
President & CEO
About Thor
Thor Explorations Ltd. is a Canadian mineral exploration company engaged in the acquisition,
exploration and development of mineral properties located in Nigeria, Senegal and Burkina Faso. Thor
holds a 100% interest in the Segilola Gold Project located in Osun State of Nigeria. Mining and
production commenced at Segilola in 2021. Thor holds a 70% interest in the Douta Gold Project located
in south-eastern Senegal. Thor trades on the TSX Venture Exchange under the symbol "THX".
For further information please contact:
Thor Explorations Ltd
Email:
Canaccord Genuity (Nominated Adviser & Broker)
James Asensio / Henry Fitzgerald-O'Connor / 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
Yellow Jersey PR (Financial PR)
Charles Goodwin / Shivantha Thambirajah / Zara McKinlay
Tel:
+44 (0) 20 3004 9512
BlytheRay (Financial PR)
Tim Blythe / Megan Ray / Said Izagaren
Tel: +44 207 138 3203
Qualified Person
The above information has been prepared under the supervision of Alfred Gillman (Fellow AusIMM, CP),
who is designated as a "qualified person" under National Instrument 43-101 and the AIM Rules 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.
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