Thor Explorations Announces Third Quarter 2022 Financial and Operating Results, for the Three and Nine Months Ending
Thor Explorations Announces Third Quarter
2022 Financial and Operating Results, for the
Three and Nine Months Ending September 30,
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. - November 30, 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 (the
"Quarter" or "Q3") and nine months to September 30, 2022 (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 and nine months ended
September 30, 2022, are available on Thor Explorations' website:
https://thorexpl.com/investors/financials/
Operational Highlights of the Quarter and the Period
Gold production of 26,523 ounces ("oz") for the Quarter and of 71,651oz for the Period at the
Segilola Gold mine, located in Nigeria ("Segilola")
Average mill feed grade during the Quarter was 3.58 grammes per tonne ("g/t") and recovery
was 95.5%
28,787oz of gold and 1,931oz of silver sold in the Quarter, and 67,617oz of gold and 4,204oz of
silver sold in the Period
Gold dore inventory of 2,226oz at the end of the Quarter
Acquisition of additional exploration licences in Osun State and Kwara State, Nigeria
Entered into a Joint Venture ("JV") agreement over a further exploration licence in Kwara State,
Nigeria
Exploration during the Quarter:
An initial 1,280 metres of reverse circulation ("RC") and diamond drilling was carried out at
Segilola
At Douta, a RC drilling programme together with a target-generation termite geochemistry
programme occurred to test the Makosa East soil geochemistry anomaly
A total of 824 metres of RC drilling at the Sambara prospect at Douta was completed. Gold
mineralisation was discovered over approximately 500m of strike
13 corporate governance policies were either implemented or updated during the Quarter
The Company continues to fund a range of livelihood restoration programmes, including preparing
sites for fish farms and for vegetable nursery farms
Community development programmes included Youth Initiative and Women's Initiative
programmes focusing on practical skill-based courses and annual school scholarship awards
Financial Highlights of the Quarter and the Period
Gold sales generated revenue for the Quarter of US$55.7 million and US$121.9 million for the
Period
Net profit of US$4.1 million for the Quarter and US$10.4 million for the Period
All in sustaining cost ("AISC") of US$986 per oz for the Quarter and US$909 per oz for the Period
As of September 30, 2022 the Company had cash of US$2.4 million
As of September 30, 2022 the Company had Net Debt of US$40.7 million (Q2 2022: US$47.4
million)
US$10.3 million of Senior Debt Facility repaid reducing Senior Debt Facility to US$28.9 million
EBITDA of US$14.1 million for the Quarter and US$41.2 million for the Period
Post Period Highlights
A full transition from diesel to six megawatt ("MW") compressed natural gas generators was
completed, reducing Greenhouse Gas Emissions ("GHG") by 53%
Outlook
Production guidance for 2022 of 90,000 to 100,000oz of gold
Drilling programmes to resume in Q1 2023 at the Segilola Open Pit
Continuing to advance the Douta project towards a preliminary feasibility study ("PFS")
Continued exploration programmes across Segilola and Douta projects
Segun Lawson, President & CEO, stated
:
"This has been another outstanding Quarter for the Company. Over the Period the Segilola mine has
continued to produce at a steady rate, with the Company increasing production guidance twice over the
last nine months. I am grateful for the dedication and hard work shown by the team at site during this
Quarter and across the rainy season to keep production steady.
"Proudly and notably, the Company repaid another large sum of its Senior Debt Facility in the Period,
having now reduced the facility by almost half since commercial production commenced.
"The exploration programmes upcoming across our portfolio provide great potential for the Company
and I am positive that we have the teams, both managerial and on the ground, to realise the full potential
of each project.
"Our relationship with the communities surrounding Segilola remains strong, whilst we continue to
develop the project and explore the surrounding areas it is important to also develop the local
communities and bring equal benefit to the region.
"I look forward to provide more updates in the future on Thor's exciting portfolio."
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
Q3 2022 Operational Review
Segilola Project, Nigeria
During the Period, there continued to be global supply chain issues resulting in shortages and 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 September 30, 2022 the Segilola Mine produced 26,523 ounces of gold
(Q2 2022: 23,785 ounces).
The Company exported the gold regularly throughout the Quarter selling 28,787 ounces of gold and
1,913 ounces of silver and had a further gold dore inventory of 2,226 ounces on hand. These ounces
have all been sold in the fourth quarter of 2022.
Mining
During the three months ended September 30, 2022, 4,018,431 tonnes of material was mined,
equivalent to mining rates of 44,649 tonnes of material per day. In this period, 225,182 tonnes of ore
were mined, equivalent to mining rates of 2,475 tonnes of ore per day, at an average grade of 4.43g/t.
The stockpile balance at the end of the period was 229,909 tonnes of ore at an average of 1.19g/t. This
comprised 406 tonnes (5.80g/t) at high grade, 2,028 tonnes (2.87g/t) at medium grade, and 227,475
tonnes (1.12g/t) at low grade.
Processing
During the three months ended September 30, 2022, a total of 241,434 tonnes of ore, equivalent to a
throughput rate of 2,682 tonnes per day, was processed.
The mill feed grade was 3.58g/t gold and recovery was 95.5% for a total of 26,523 ounces of gold
produced. The Company continues to review the process plant to optimize throughput and recoveries.
All of the main operating units of the process plant are performing as expected, and the plant is
consistently operating above nameplate capacity. The Company continues to carry out further
optimization activities for the gold recovery process.
Production Metrics
Units
Q3 2022
Q2 2022
Q1 2022
Mining
Total Ore Mined
Tonnes
225,182
284,079
226,314
Ore Processed
Tonnes
241,434
211,582
221,900
Ore Stockpiled
Tonnes
229,909
249,281
179,758
Waste Mined
Tonnes
3,793,249
3,747,504
3,533,610
Total Mined
Tonnes
4,018,431
4,031,584
3,759,524
Total Ore Mined Gold Grade
g/t Au
4.43
3.63
2.68
Ore Processed
g/t Au
3.58
3.66
3.18
Ore Stockpiled
g/t Au
1.19
1.46
1.23
Processing
Ore Milled
Tonnes
241,434
211,583
221,920
Daily Throughput Rate (average)
Tpd
2,835
2,784
2,760
Daily Throughput/ Nameplate
%
138%
141%
128%
Capacity
Ore Processed Gold Grade
Recovery
%
95.5
95.5
94.1
Gold Recovered
Oz
26,523
23,785
21,343
Environment and Social Summary Q3 2022
The main focus with respect to the Company's environment and social activities for Q3 2022 was
implementing its new governance policies (13 new and/or updated policies) which included finalising the
contract for an independent and free whistle blower hotline.
Thor's 2021 Sustainability Report was further
progressed, and metrics devised for measuring implementation of key sustainability parameters across
the material topics of Corporate Governance, People, Health and Safety, Social and Community
Development, Cultural Governance and Environment. The report will be completed in Q4 2022. The
Company has agreed to use the Global Reporting Initiative's (GRI) ESG reporting standards including
the recently released Mining and Metals Sector disclosure standards for Thor's 2022 Sustainability and
ESG Report.
During Q3 2022, significant progress has been made for the Company's wholly owned operating
subsidiary, Segilola Resources Operating Limited ("SROL") to attain its' ISO 45001 Health and Safety
accreditation with a site audit completed and agreement on actions to close out over the next 12 months.
Accreditation is expected in Q4 2023. SROL's General Manager, Mike Kelly, received the Safety
Ambassador Award from the Institute of Safety Professionals Nigeria (August 2022). This award from
health and safety peers is a professional acknowledgement of the high safety standards implemented at
the Segilola project.
A full transition from diesel to 6 MW compressed natural gas ("CNG") generators will reduce GHG by
53% over that generated by diesel generators. This is a key step in SROL's reduction of its carbon
footprint. This transition was completed post the period.
HSE statistics to end Q3 2022
To view an enhanced version of this table, please visit:
https://images.newsfilecorp.com/files/7003/146148_thorfigure1.jpg
An Environmental Impact Assessment for a helipad within the existing Segilola Mine site has been
submitted to Federal Ministry of Environment and is expected to be approved in Q1 2023.
Social and community development parameters for the Segilola Project were also progressed in Q3
2022. Focus has been on establishing livelihood restoration projects by preparing sites for the fish farms
(construction expected in Q1 2023) and site clearance for the vegetable farms' nursery. Contracts have
been awarded to local companies for the construction of both livelihood projects. Specialist agricultural
assistance from Nigerian experts has been contracted in by SROL to assist with implementation during
the next 12 month period to enable the projects' community operators to become self-sufficient and
financially viable within the next 12 to 18 months.
Through funding agreed via Community Development Agreements ("CDA") signed with the three
communities surrounding the Segilola Mine, community programmes were progressed in Q3 2022.
These included Youth Initiative and Women's Initiative programmes focusing on practical skill-based
courses - truck driver training, mobile phone repairs and value-added production equipment. Annual
school scholarship awards to enable children from vulnerable backgrounds to remain in school, are
progressing with testing and interviews completed. Recipients will be selected in Q4 2022.
Compensation for temporary loss of assets and lands impacted by exploration activities (at 13
explorations sites across three states in Nigeria) stands at $354,000 for 585 asset owners and 15
landowners (as of end of Q3 2022).
Social listening continues (monitoring SROL and Thor mentions in Nigerian media) across electronic,
TV and printed media and findings are shared with key departments in SROL. Most media coverage
has been positive.
In Senegal, exploration activities at the Douta Project have progressed throughout Q3 2022. The project
has now appointed a HSE officer with HSE leading and lagging indicators being recorded. A site waste
plan has been implemented and waste generated from the drill site and camp is stored in separate bins
of biodegradable and non-biodegradable. Biodegradable such as paper, sample bags and food are
burned. Non-biodegradable such as cans, and empty water bottles are given to the local population for
recovery or recycling. Used oils are stored in a well-defined place pending delivery to specialised
companies for disposal. The HSE officer has formalized the sale of metal waste and the money from this
sale is paid into the company's social fund for community projects.
Exploration Activity Summary Q3 2022
Nigeria
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.
Thor's exploration tenure comprises 11 wholly owned explorations licences and four joint ventures.
Together with the mining lease over the Segilola Gold Deposit, Thor's total exploration tenure amounts to
over 1,400 km
2
.
Exploration Activity
In the Quarter, the Company increased its exploration footprint in Nigeria via the acquisition of additional
exploration licences in Osun State and Kwara State and also entered into a joint venture agreement over
a further exploration licence in Kwara state.
The Company's licence portfolio now consists of 17 exploration licences and the Segilola mining licence.
Figure 1: Thor Explorations/ Segilola Licence Portfolio Map
To view an enhanced version of Figure 1, please visit:
https://images.newsfilecorp.com/files/7003/146148_9a342f21642109a9_003full.jpg
Exploration during the Quarter consisted of an initial 1,280 metres of reverse circulation ("RC") and
diamond drilling. In addition to the drilling programme, the Company prioritised the generation of drilling
targets, with a focus on targets within trucking distance of the Segilola plant. Exploration activities
comprised of soil and stream geochemical surveys, auger drilling, trenching and ground magnetic
programmes.
The areas drilled were north of the Segilola Open Pit and at the "Ijana" and "Esteedan" targets which are
located 14km to the west of Segilola. The main objectives of this programme are:
1
.
To test the geochemical and structural targets generated by auger soil sampling and trenching in
EL 20776 and EL23573 also the drilling was targeting the occurrence of gold mined in shallow pits
mined by artisanal.
2
.
To test the gold-in soil anomalies generated by auger soil and trench sampling at Odo within
EL19066, 3km north of Segilola deposit.
The drilling programmes are scheduled to resume in January following the receipt of all assay results
and completion of drill target generation work.
Figure 2: Map Showing Drilling Programme Locations
To view an enhanced version of Figure 2, please visit:
https://images.newsfilecorp.com/files/7003/146148_9a342f21642109a9_004full.jpg