Northern Territory
Mineral Investment Opportunities
October 2014
© Northern Territory Government, October 2014 Disclaimer
This publication has been compiled by the Northern Territory of Australia as a guide ONLY to the exploration and investment opportunities in the Northern Territory of Australia and is not intended to qualify for, be utilised or interpreted as a prospectus for any contributing party or to give any impression that the Northern Territory of Australia endorses any particular exploration project. Further information should be obtained directly from any contributing entity (including by way of due diligence enquiries) where you are considering opportunities outlined in this publication.
Reliance should not be placed upon any information contained in this publication for the purpose of making any legal, corporate or investment decisions. The Northern Territory of Australia recommends any person proposing to invest in any exploration activity or entity conducting exploration in the Northern Territory of Australia to obtain relevant independent fi nancial and legal advice which specifi cally takes into account matters relating to your particular situation. The Northern Territory of Australia disclaims any liability or responsibility or duty of care towards any person for any loss or damage whatsoever caused by the use of, or reliance on the information contained in this publication.
The Northern Territory of Australia compiled this publication using materials and information provided by private sector entities. While all care has been taken to ensure that information contained in this Northern Territory Mineral Investment Opportunities publication is correct at the time of publication the Northern Territory of Australia has not independently verifi ed the information provided. Changes in circumstances of the private sector entities contributing to this publication after the time of its publication may impact on the accuracy of information contained
Contact Details
Dr. Ian Scrimgeour Executive Director
Northern Territory Geological Survey Tel: +61 8 8999 5377
e-mail: [email protected] Fiona Park
Director Investment Attraction
Northern Territory Geological Survey Tel: +61 8 8999 1385
e-mail: fi [email protected]
www.core.nt.gov.au
Project Status Summary
STATUS COMMODITY PROJECT
Grassroots Exploration Opportunities
Bowgan Minerals Au, Cu, Ag Neutral Junction
Bowgan Minerals U, Au, base metals Bowgan
Crossland Strategic Metals REE, U Mount Stafford
Red Metal Cu, Au, NI Irindina
Red Metal Cu, Au Tennant Creek
Spectrum Rare Earths Base metals, Au Calvert
Daylight Jack Diamonds and base metals Kirkimbie
Ismins Au, Ag, Cu, Sn Compass Creek
Early Stage Exploration
Crossland Strategic Metals U, Au, base metals Chilling
Outback Metals Sn, W, Au, Ag, Cu Maranboy/Yeuralba
Outback Metals SN (Cu, Au) Mt Wells
Spectrum Rare Earths REE Stromberg and Skyfall HREE
District
Spectrum Rare Earths REE, U Quantum
Thundelarra Exploration U Ngalia Basin
TNG Ltd Cu Mount Hardy
Uranium Equities U, PGE, Au Nabarlek
Advanced Exploration
Alligator Energy U Tin Camp Creek
Crossland Strategic Metals REE Charley Creek
Deep Yellow U Napperby
KGL Resources Cu, Zn, Ag, Pb Jervois
Minemakers P (P2O5) Wanarah
Rum Jungle Resources Potash Karinga Lakes
Rum Jungle Resources P (P2O5) Ammaroo
Thor Mining Au Spring Hill
Project Development
Arafura Resources REE Nolans
TNG Limited V, Ti, Fe Mount Peake
Thor Mining W, Mo Molyhil
Tellus Holdings NaCl Chandler Salt Mine
Project Status Defi nitions
PROJECT STATUS DEFINITIONS
Grassroots Exploration Opportunities This category is for exploration tenements with identified prospectivity, but with little or no drilling undertaken.
Early exploration This project is at a preliminary stage of investigation. While the company might have reported some exploration results, the information is not yet sufficient to estimate the size of a Mineral Resource according to the JORC Code.
Advanced exploration Exploration results have been sufficient to estimate a Mineral Resource or Ore Reserve according to the JORC Code.
Project development Having defined Mineral Resource or Ore Reserve according to the JORC Code, the company is now undertaking studies and/or seeking approvals to determine whether the project can feasibly be developed into an operating mine.
PROJECT DEVELOPMENT DEFINITIONS Scoping study
A scoping study is a preliminary economic and technical study to understand the approximate economics and viability of various development options for the mining and treatment of a mineral deposit. It will involve a conceptual or preliminary mine plan and is used as the basis for determining whether to proceed to more detailed studies. Scoping studies are developed copying plans and factoring known costs from existing similar projects completed elsewhere and are accurate to within plus or minus 35-50%.
Feasibility Studies
A Preliminary Feasibility or “Pre-Feasibility Study” (PFS) is more detailed than a Scoping Study. A Pre-Feasibility Study is used in due diligence work, determining whether to proceed with a Definitive Feasibility Study and as a
“reality check” to determine areas within the project that require more detailed attention. Pre-Feasibility Studies are done by factoring known unit costs and by estimating gross dimensions or quantities once preliminary technical, engineering and mine design has been completed. Pre- Feasibility Studies are generally accurate to 20-30%.
A Definitive Feasibility Study (DFS) is the most detailed study and will determine definitively whether to proceed with the project. A Definitive Feasibility Study requires a high level of technical, engineering and design work as well as detailed capital and operating budget figures for the project. Definitive Feasibility Studies are accurate to within 10-15%.
A Bankable Feasibility Study (BFS) is a Definitive Feasibility Study, with a focus on financial and budget aspects, that is presented to financiers to obtain project financing. It is also accurate to within 10-15% depending on the requirements of the financial institution.
OTHER DEFINITIONS JORC Code
The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves is called ‘the JORC Code’.
The JORC Code is a professional code of practice that sets minimum standards for Public Reporting of minerals Exploration Results, Mineral Resources and Ore Reserves.
The JORC Code provides a mandatory system for the classification of minerals Exploration Results, Mineral Resources and Ore Reserves according to the levels of confidence in geological knowledge and technical and economic considerations in Public Reports.
Any Public Reporting of Exploration Results, Mineral Resources or Ore Reserves must be signed off by a Competent Person in accordance with the JORC Code.
A Competent Person must be a Member or Fellow of The Australasian Institute of Mining and Metallurgy, or of the Australian Institute of Geoscientists, or of a ‘Recognised Overseas Professional Organisation’ (the 2004 Edition) or ‘Recognised Professional Organisation’ (2012 Edition).A Competent Person must have a minimum of five years’ experience working with the style of mineralisation and type of deposit under consideration and relevant to the activity which that person is undertaking.
COMMODITY COMPANY PROJECT STATUS PAGE URANIUM
U Alligator Energy Tin Camp Creek A 6
U, Au, base metals Crossland Strategic Metals Chilling E 13
U Deep Yellow Napperby A 20
U Thundelarra Exploration Ngalia Basin E 24
U, PGE, Au Uranium Equities Nabarlek E 31
RARE EARTHS
REE Arafura Resources Nolans PD 39
REE Crossland Strategic Metals Charley Creek A 43
REE Spectrum Rare Earths Stromberg and Skyfall HREE District
E 51
REE, U Spectrum Rare Earths Quantum E 57
BASE METALS
Cu, Zn, Ag, Pb KGL Resources Jervois A 66
Cu TNG Ltd Mount Hardy E 72
FERROUS METALS & FERROALLOYS
V, Ti, Fe TNG Limited Mount Peake PD 79
W, Mo Thor Mining Molyhil PD 86
GOLD
Au Thor Mining Spring Hill A 90
U, Au, PGE Uranium Equities Nabarlek E 93
PHOSPHATE, POTASH
P (P2O5) Minemakers Limited Wonarah A 101
Potash Rum Jungle Resources Karinga Lakes A 108
P (P2O5) Rum Jungle Resources Ammaroo A 114
SALT
NaCl Tellus Holdings Chandler Salt Mine PD 119
TIN
Sn, W, Au, Ag, Cu Outback Metals Maranboy/Yeuralba E 125
Sn (Cu, Au) Outback Metals Mt Wells E 132
Grassroots Exploration Opportunities
Au, Cu, Ag Bowgan Minerals Neutral Junction G 138
U, Au, base metals Bowgan Minerals Bowgan G 147
REE, U Crossland Strategic Metals Mount Stafford G 153
Cu, Au, NI Red Metal Irindina G 158
Cu, Au Red Metal Tennant Creek G 163
Base metals, Au Spectrum Rare Earths Calvert G 168
Diamonds, base metals Daylight Jack Kirkimbie G 178
Au, Ag, Cu, Sn Ismins Compass Creek G 185
Key to symbols
PD: Project Development A: Adanced Exploration E: Early Stage Exploration G: Grassroots Exploration Opportunities
Northern Territory
Mineral Investment Opportunities
UPDATED
NEW UPDATED
NEW UPDATED
UPDATED
UPDATED UPDATED
UPDATED UPDATED
UPDATED UPDATED UPDATED UPDATED
UPDATED UPDATED UPDATED
Ferrous Metals & Ferroalloys TNG Limited
Commodity Vanadium, Titanium, Iron Project name Mount Peake
Project maturity Feasibility
Company name TNG Ltd
Company type Public listed on the Australian stock exchange (ASX:TNG) Company size Market capitalisation $120 million at 1 April 2014
Project details The project is 100% owned by TNG Ltd
Current project status A measured, indicated and inferred resource estimate has been defined of 160 million tonnes @ 0.3% V2O5, 5% TiO2, 23% Fe (under JORC 2012).
Location and size The project is located 240km NNW of Alice Springs. The project area is 1,454 km2. The resource is located close to the existing infrastructure corridor with direct access to Darwin port
Infrastructure plans The project area is located 60km west of the sealed Stuart Highway to Darwin. A gas pipeline is 20km from the project and the Adelaide to Darwin railway is only 80km from the project.
History of project area TNG started exploration in the area in 2006.
Magnetite bearing gabbro containing high grade vanadium and titanium was discovered by TNG in 2008.
Business development plan
TNG is seeking investment for Feasibility completion, followed by project financing/development partner. Investment in either corporate or project equity. Production aimed to commence in 2016.
Business development of the Patented TIVAN Hydrometallurgical Process is also planned.
Company strategy The company is focused on the development of its Mount Peake vanadium
project and realising value from its other extensive minerals portfolio.
Target timeline to production
The company envisages the following potential timeline to developing the project into production:
x Feasibility study 2014 x Approvalsmid 2015 x Construction end 2015
x Potential production from 2016 Investment type
sought
Project development / financing via a joint venture partner, or other partnership. Project sale and off-take agreements also considered.
Company contact details
Paul Burton Managing Director Phone +61 8 9327 0900 Email: [email protected]
Updated September 2014
TNG Limited
COMMODITY: VANADIUM / TITANIUM / IRON
COMPANY CONTACT DETAILS
Company: TNG Limited
Contact Officer: Paul Burton
Position: Managing Director
Phone: +61 8 9327 0900
Fax: +61 8 9327 0901
Email: [email protected]
Web: www.tngltd.com.au
PO Address: PO Box 1126, Subiaco WA 6904
Head Office: Level 1, 282 Rokeby Road, Subiaco WA 6008 Market Capitalisation: 120 million
Number of Shares: 553 million
ASX Code: TNG
PROJECT DETAILS
Project Name: Mount Peake Project
Location: 240 kms NNW of Alice Springs, Northern Territory Project Tenements:
Tenement Area (km2) Grant Expiry
EL 27069 245.9 Granted 13/08/2009 12/08/2015
EL 27070 89.5 Granted 13/08/2009 12/08/2015
EL 27706 271.0 Granted 18/05/2010 17/05/2016
EL 27787 66.4 Granted 9/08/2010 8/08/2016
EL 27941 660.8 Granted 20/10/2010 19/10/2016
EL 28491 54.4 Granted 21/07/2011 20/07/2017
EL 29578 265.1 Granted 8/08/2012 7/08/2014
EL 29867 270 Granted 4/12/2013 3/12/2019
ELR 29627 1194 Hectares Granted 17/12/2012 16/12/2017
ML 28341 Application
ML 29855 Application
ML 29856 Application
Ferrous Metals & Ferroalloys
LOCATION OF MOUNT PEAKE PROJECT
Figure 1: Location of the Mount Peake Project area.
HISTORY OF PROJECT AREA
TNG discovered a magnetite bearing – gabbro in 2008 containing high grade vanadium, titanium and iron in a highly prospective part of the Arunta geological area close to existing infrastructure.
The Mount Peake project area is located approximately 240km NNW of Alice Springs, and 60km west of the sealed Stuart Highway to Darwin. The LNG gas pipeline runs 20 km east of the project area and the Darwin to Adelaide railway 80km to the east.
The mineralisation commences at shallow depths, and the size potential of the gabbro body gives potential for a deposit in excess of 500Mt of ferro-vanadium-titanium.
The gabbro may also be part of a large layered mafic system with potential to host Ni/Cu/PGM at depth.
2006:
TNG conduct airborne magnetic and electro-magnetic surveys as part of regional Nickel exploration. Interpretation identified several targets. One diamond drill hole targeting potential Nickel sulphide conductor completed. Drill core intersects >100m of magnetite rich gabbro.
Ferrous Metals & Ferroalloys
2007:
TNG remodel the high resolution magnetic feature that was drilled showed dimensions of 4km x 1km, suggesting potential that the gabbro body is extensive.
2008:
Results reveal high quantities of Iron, Vanadium and Titanium within the Magnetite. Davis Tube Recovery show significant results of: 1.2% V2O5,56% Fe, 17% TiO2.
2009:
TNG complete drill programme to define extent of magnetite mineralisation. The Mineralised Zone commences at shallow depths (<5m) and is currently 1.3km in strike length, 500m wide and up to 120m thick.
JORC (2004) Inferred Resource defined from drilling of 107mt@ 0.3% V205, 25% Fe.
Metallurgical testwork produces high grade V205 concentrate.
Initial Scoping Study completed concludes positive economics, based on recovery of vanadium only.
Drilling to test layered mafic intrusion completed – minor layering and sulphides noted.
Heli-borne aeromagnetic/radiometric surveys undertaken.
Two further ELAs lodged to take TNGs landholding to over 2000km2. 2010:
Average metallurgical concentrate grade continues to exceed 1% V205.
JORC (2004) Inferred Resource of 139Mt@ 0.3% V205, 5.3% Ti02, 24% Fe at a 0.1% V205
cut-off.
Metallurgical testwork achieves high V205recovery of 85-97%.
A new hydrometallurgical process, jointly developed by TNG and Mineral Engineering Technical Services Pty Ltd (METS) successfully recovers the three main commodities (V, Ti, Fe) from the ore.
A joint patent application was submitted to protect the invention and allow commercialisation.
Positive interim results were received for the Mount Peake scoping study. Fe recovery 71- 75%, V recovery 91-95%, Ti recovery 75%.
Northern extension to the present 9km linear magnetic anomaly at Mt Peake is interpreted to contain magmatic feeder zones, which may contain Ni, Cu and PGE’s.
Copper gossan discovered in ultramafic package. Initial pXRF results returning 4-24%.
Subsequent assaying returned values of up to 6.07% Cu.
2011:
The hydrometallurgical process for extracting vanadium, titanium and iron from titanomagnetite ores has been successfully trialled on other titanomagnetite vanadium deposits within Australia.
Positive Scoping Study completed by Snowden Mining Industry Consultants confirms the Project’s technical and financial strength, with production to commence at 2Mtpa increasing to 5Mtpa after three years over a 24 year mine life.
A subsequent scoping study was commissioned to investigate the effect of producing a ferrovanadium product (FeV), as a further value-add to the vanadium pentoxide concentrate produced.
Pre-feasibility and pilot plant study commenced.
Diamond drilling results confirm large continuous iron-vanadium zone at Mount Peake, results of up to 0.6% V205, 10% Ti and 36% Fe.
An updated Indicated and Inferred Resource, calculated (under JORC 2004) incorporating the results of diamond and RC drilling carried out during 2011.
Total resource 160Mt grading 0.3% V2O5, 5.0% TiO2 and 22% Fe, The deposit remains open to the east.
2012:
Outstanding analytical results received from initial continuous-run pilot plant testwork programme.
Pre-Feasibility Study completed in July 2012.
Regional drilling of large magnetic features in the Mount Peake project area confirms two more, large magnetite-rich gabbro bodies opening up the potential for a substantial
Ferrous Metals & Ferroalloys
increase to the current JORC resource.
Additional RC and diamond drilling undertaken to convert resource to Measured/Indicated status and provide material for DFS metallurgical and process plant testwork.
Further metallurgical and pilot plant testwork commenced.
Hydrometallurgical pilot plant trial set to comment with CSIRO in June 2013.
MOU signed with Genesee & Wyoming Australia Pty Ltd (“G&W”), the rail operator and rolling stock provider for the Northern Territory railway.
Heads of Agreement (HoA) negotiations underway with Darwin Port Authority.
2013:
Signing of MOU with leading European engineering company regarding commericial development of TIVAN process.
Snowden complete resource calculation (see below) with over 80% converted to Measured/Indicated status.
Appointment of CSIRO to complete definitive pilot plant trial.
GHD appointed to carry out Environmental Impact Study.
Arccon appointed to carry out Definitive Feasibilty Study.
Pilot plant work well underway.
Mount Peake NOI lodges with NT Government.
Mount Peake awarded Major Project Status by NT Government.
TNG acquires 100% of TIVAN process from co-developer and co-owner METS.
High grade vanadium discovered at regional sites within Mount Peake tenure.
2014:
Offshore option for Mount Peake TIVAN processing reduces potential costs.
MoU signed with leading Korean vanadium company.
COMPANY MANAGEMENT EXPERIENCE & SKILLS Mr Paul Burton – Managing Director
B.Sc (Geology), M.Sc (Mineral Exploration), M.Aus.IMM, Fellow of Association of Exploration Geochemists (FAEG) – Exploration Manager and Geologist with > 20 years’ experience in multicommodity exploration.
Mr Paul Burton has over 20 years’ experience in exploration and mining throughout Australia and overseas.
Mr Burton is an Exploration Geologist and Geochemist and previously held the positions of Exploration Manager and Exploration Director with the company. He has managed successful mineral exploration and feasibility study programs for a range of different commodities including base-metals, precious-metals, diamonds and ferrous metals. Previous career appointments include senior executive roles with AngloAmerican/De Beers Ltd, Normandy Mining Ltd and Minotaur Exploration Ltd.
Mr Burton is a graduate of the University of Plymouth, UK (B.Sc Honours Geology), and of McGill University, Canada where he completed the M.Sc in Mineral Exploration. He is a Member of Australian Institute of Mining and Metallurgy, Australian Institute of Company Directors and a Fellow of the Association of Exploration Geochemists.
Mr Paul Vollant – General Manager, Business Development
Mr Vollant is highly experienced in the sales and marketing of metals and minerals in the commodity sector and has specialised in strategic metals, particularly vanadium and titanium.
Mr Vollant is a business graduate of the ESDES Business School, in Lyon France, and was formerly with the Noble Group in London and Hong Kong. He is a founding Director of global commodity distribution company Element Commodities which has specialised in vanadium and titanium and a Director of the HLG Group.
Ferrous Metals & Ferroalloys
Mr Grey has over 15 years’ experience as an exploration geologist, including senior roles with a number of Australian resource companies including Goldminex Resources, Mincor Resources and Norilsk Nickel Australia.
He has been involved in the discovery and delineation of variety of ore deposits both in Australia and internationally, including nickel, gold, porphyry and sediment-hosted copper, heavy mineral sands, base metals, and industrial minerals.
Mr Andy Rodda – Operations Manager
Mr Andy Rodda has more than 30 years’ experience in all facets of mineral exploration, mining and tenement management throughout Australia and overseas. He has managed successful mineral exploration programs for a range of different commodities including base-metals, precious-metals, mineral sands and ferrous metals. Mr Rodda has an Advanced Certificate of Engineering (Mech).
Mr Edward Fry – Indigenous and Native Title Consultant
Mr Eddie Fry was a Director of TNG between 2006 and 2011 and has been retained as a consultant to the Company. Mr Fry has extensive experience within the Australian resource sector and is a specialist in Indigenous and Native Title issues.
Mr Fry is Executive Director of Gimbulki Ltd, a Native Title Land access company he established in 2002 which has provided consulting services to a range of Australian Exploration and Mining Companies including Rio Tinto, Barrack, Ferraus, Transfield Services, Western Desert Resources and Sherwin Iron. During his career he also held senior Executive roles with Normandy Mining Ltd, where he established the company’s Traditional Owner policy, and later was manager of logistics and marketing of Normandy’s base-metal portfolio. His early employment included involvement with the Aboriginal and Torres Strait Islander Commission (ATSIC) and also the Aboriginal Development Commission.
Mr Fry holds a Diploma in Business Management from Adelaide University and is Chairman of Transfield Services Indigenous Advisory Board and Deputy Chair of the Aboriginal foundation of South Australia.
CURRENT PROJECT STATUS x Feasibility study
x Access agreement signed with the Traditional Owners.
x Tenure secured and ML applications submitted.
x Two Scoping studies and Pre-feasibility study have been completed.
x Definitive feasibility study (DFS) underway PROPOSED FUTURE ACTIVITIES
1. Complete pilot plant, metallurgical, environmental, mining and financial analysis studies.
2. Deliver Definitive Feasibility Study.
3. Secure funding and commence development.
EXPENDITURE
REPORTING YEAR EXPENDITURE COMMITMENT
CURRENT EXPENDITURE
2008 – 2009 $67,000 $600,000
2009 – 2010 $120,000 $2.2M
2010 – 2011 $190,000 $630,000
2011 – 2012 $150,000 $513,000
2012 – 2013 $2.2M $1.7M
2013 – 2014 $1.8M $3.2M
Ferrous Metals & Ferroalloys
RECENT HIGHLIGHTS AND UPDATES
Snowden Mining Industry Consultants Pty Ltd (Snowden) completed an updated JORC (2012) compliant Resource estimate for the Mount Peake V-Ti-Fe Project in March 2013.
The updated Measured, Indicated and Inferred Resource is shown in Table 1.
Table 1: JORC (2012) Updated Measured, Indicated and Inferred Resource for Mount Peake, March 2013.
Category Tonnes
(Mt) V2O5% TiO2% Fe% Al2O3% SiO2%
Measured 118 0.29 5.48 23.64 8.18 32.81
Indicated 20 0.28 5.33 22.05 9.09 33.98
Inferred 22 0.22 4.41 19.06 10.38 37.79
TOTAL 160 0.28 5.31 22.81 8.60 33.64
The revised resource estimate is based on drilling completed in late 2012, which was intended to convert predominantly Indicated and Inferred Resource material to Measured Resource status. The previous resource calculation comprised 110Mt of Indicated Resource and 48Mt of Inferred Resource.
Key inputs used for the resource calculation include:
• 16856.6 metres of diamond and Reverse Circulation (RC) drilling were used (more than double the metres used for the previous calculation);
• Cut-off grade applied – 0.1% V2O5;
• Densities applied - from 2.51 (weathered material) to 3.40 (fresh ore); and
• Ordinary kriging was used.
Table 2 shows more detailed resource figures, with densities used and tonnages of weathered material included.
Table 2: Detailed resource figures for Mount Peake March 2013 resource update.
Cutoff Category Oxidation State
Tonnes
(Mt) Density V2O5% TiO2% Fe% Al2O3% SiO2%
0.1 Measured Oxide 1.9 2.51 0.28 5.82 20.76 8.4 35.77
Transitional 13.1 3.32 0.32 6.29 22.61 7.77 32.14
Fresh 103.3 3.4 0.29 5.38 23.8 8.23 32.85
Sub-total 118.3 0.29 5.48 23.64 8.18 32.81
0.1 Indicated Oxide 0.2 2.51 0.37 7.73 25.56 7.9 33.84
Transitional 2.1 3.32 0.3 5.75 20.61 9.08 35.24
Fresh 17.5 3.4 0.28 5.25 22.19 9.1 33.82
Sub-total 19.8 0.28 5.33 22.05 9.09 33.97
0.1 Inferred Oxide 0.1 2.51 0.18 3.93 15.46 10.41 42.49
Transitional 3.1 3.32 0.16 3.77 14.85 11.05 43.43
Fresh 19.1 3.4 0.23 4.51 19.75 10.27 36.86
Sub-total 22.2 0.22 4.41 19.06 10.38 37.79
Total 160 0.28 5.31 22.81 8.6 33.64
The Mount Peake Feasibility Study and Metallurgical Testwork are progressing well. The work completed to date has delivered encouraging results at a number of levels, including the potential for material reductions in both capital and operating costs.
BUSINESS DEVELOPMENT PLAN
The Company remains of the view that the most suitable development path for Mount Peake is to engage a major partner, Company or corporate conglomerate to provide development finance, engineering, procurement, design and construction in exchange for Project equity and or off-take agreements.
Updated September 2014
Ferrous Metals & Ferroalloys
Updated September 2014
Thor Mining PLC
Project: Molyhil Tungsten & Molybdenum Project COMMODITY: TUNGSTEN AND MOLYBDENUM
COMPANY CONTACT DETAILS
Company: Thor Mining PLC
Contact Officer: Mick Billing
Position: Chairman & CEO
Phone: 08 7324 1935
Fax: 08 8351 5169
Email: [email protected]
Web: www.thormining.com
PO Address: PO Box 485 MARLESTON, SA, 5035 Head Office: 58 Galway Ave, MARLESTONE, SA, 5033 Market Capitalisation: A$7 million
Number of Shares: 2,350 million
ASX / AIM Code: THR
Company: Thor Mining PLC
PROJECT DETAILS
Project Name: Molyhil Tungsten & Molybdenum Project
Location: Molyhil is located 220 kilometres north-east of Alice Springs (320km by road).
Project Equity: 100% Thor Mining PLC
Tenement Area Grant Expiry
EL 22349 228 km2 17 May 2002 16 May 2014
ML 23825 96 ha 2 May 2008 1 May 2033
ML 24429 91 ha 2 May 2008 1 May 2033
ML 25721 56 ha 2 May 2008 1 May 2033
MAP SHOWING PROJECT LOCATION Molyhil is located 220 kilometres north- east of Alice Springs (320km by road) within the prospective polymetallic province of the Proterozoic Eastern Arunta Block in the Northern Territory.
Access is via the Plenty Highway, off the Stuart Highway, 70 kilometres north of Alice Springs
Ferrous Metals & Ferroalloys
HISTORY OF PROJECT AREA
Scheelite was first discovered at Molyhil in 1973, and mining activities were conducted by Petrocarb NL from 1978 to 1982 to a depth of 25metres. The mined closed in 1982, following A decline in global tungsten prices.
Thor Mining acquired the project in 2005 and have since conducted extensive exploration, evaluation, environmental and social studied with the objective of commencement of production.
COMPANY MANAGEMENT EXPERIENCE & SKILLS
The board and management of Thor Mining comprises experienced mining executives across the range of technical and commercial backgrounds, all with 30 or more years of relevant mining industry experience.
CURRENT PROJECT STATUS DEFINITIVE FEASIBILITY STUDY
Thor has commissioned an updated Definitive Feasibility Study (DFS) which is expected to substantially enhance the financial viability of the Molyhil project. The results of this study are expected during October 2014.
Based upon the revised Statement of Open Cut Ore Reserve (below) the upgraded project DFS will include profitable open pit mining for a period of 6 years.
RESOURCE ESTIMATE
Summary of Molyhil Mineral Resource Estimate (Compliant with JORC 2012, Reported to ASX in January 2014)
Classificati
on Resource MoS2 WO3 Fe
Tonnes Grade
% Tonnes Grade % tonnes Grade %
Indicated 3,820,000 0.22 8,200 0.29 10,900 18.8
Inferred 890,000 0.25 2,200 0.25 2,200 15.2
Total 4,710,000 0.22 10,400 0.28 13,100 18.1 Mineral Resource reported at 0.1% combined Mo + WO3 Cut-off and above 200mRL only.
Note: minor rounding errors may occur in compiled totals.
The upper levels of the resource estimate contain relatively high tungsten grades (see Table below), providing confidence in strong early cash flow and early pay-back of project capital.
Bench by bench summary of indicated & inferred resources Molyhil Deposit
January 2012 Resource (0.1% (Mo + WO3) Cut-off, Above 200m RL only) Bench
Top mRL
Tonnes T
MoS % (cut grade)
WO3 % (cut grade)
MoS
tonnes contained
(cut)
WO3 tonnes contained
(cut)
420 47,948 0.13 0.73 39 350
400 359,207 0.23 0.57 487 2,044
380 439,589 0.22 0.48 569 2,096
360 576,270 0.20 0.29 702 1,690
340 604,856 0.19 0.22 678 1,341
320 523,864 0.19 0.21 593 1,109
300 506,183 0.20 0.19 612 967
280 482,174 0.25 0.19 731 940
260 439,790 0.25 0.23 657 1,031
240 389,504 0.27 0.25 620 980
220 336,052 0.28 0.18 556 607
Ferrous Metals & Ferroalloys
ORE RESERVE
Molyhil Open Cut Ore Reserve Statement (Compliant with JORC 2012, Reported to ASX July 2014)
Classification Reserve WO3 Mo
‘000 Tonnes Grade % Tonnes Grade % Tonnes Probable 3,000 0.31 9,200 0.12 3,600
Total 3,000 0.31 9,200 0.12 3,600
Notes:
x Thor Mining PLC holds 100% equity interest in this reserve.
x Estimate has been rounded to reflect accuracy.
x All estimates are on a dry tonne basis.
x The reserve estimate extends to a maximum depth below surface of 150 metres.
The statement is derived from the Indicated portion of the resource estimate only, and the Inferred portion is excluded from the calculations. The long-term prices used were US$408/mtu for WO3concentrate and US$12.76/lb for Mo concentrate at an exchange rate of US$0.83 to A$1.00. The WO3and Mo Processing Recovery post ore sorting used was 85% and 77.8%
respectively.
METALLURGICAL
Substantial metallurgical testwork has been by independent consultants, and the resultant process flow sheet incorporated into the project technical and economic assessment. The testwork demonstrated the production of a Primary Tungsten Concentrate assaying 72.9%
WOΎ, with a recovery of >80% and a Primary Molybdenum Concentrate assaying 51.4% Mo, with a recovery of 77.8%.
ENVIRONMENTAL APPROVALS
Thor has completed the Public Environmental Report for the Molyhil Tungsten and Molybdenum Project. This report has been accepted by the Department of Regional Development, Primary Industry, Fisheries and Resources in the Northern Territory
This report was approved on the 15th July 2007 by the DRDPIFR (NT), who also confirmed in December 2011 that the approval remains current. The report is available on request.
TRADITIONAL OWNER APPROVALS
THOR Mining PLC has also obtained all the required agreements between the Traditional Owners of the land, and THOR Mining PLC, to enable the Molyhil Operations to proceed with the recognition and support of the Traditional Owners.
The Tripartite Deed records the terms of the Agreement between the parties in accordance with the Native Title Act and is between the Arrapere People, the Central Land Council and Thor Mining PLC.
CONCENTRATE OFF-TAKE AGREEMENTS
In November 2013, Thor received a Letter of Intent from US-based Global Tungsten &
Powders undertaking, subject to due diligence and sourcing project finance, to purchase 70%
to 75% of tungsten concentrates produced from Molyhil, at pricing benchmarked against Metal Bulletin (LMB) APT European free-market prices. Discussions with other parties, in respect of the balance of the concentrates, continue.
THE LONGER TERM FUTURE FOR MOLYHIL
It is expected that the feasibility study mining plan will largely reflect the open cut ore reserve statement, and therefore the life of the proposed operation in the Definitive Feasibility Study (DFS) will be of the order of 6 years.
Ferrous Metals & Ferroalloys
Updated September 2014
The potential beyond that estimated life may include:
x Extending the open cut operation and/or underground mining to extract some of the resource, laterally and at depth, which is not included in the ore reserve.
x Potential production exploration targets including some recently identified within several kilometres of Molyhil
x Potential from an also, recently identified, large magnetic target below the known Molyhil resource which, if it contains substantial economic mineralisation, could sustain a longer term underground mining operation.
Tungsten prospects (magnetic anomalies) adjacent Molyhil
Magnetic anomaly represented by the 0.15 SI unit, purple iso-surface derived by unconstrained magnetic modelling of the high resolution aeromagnetic data flown over the Molyhil Mine in May 2004. This work was commissioned by Tennant Creek Gold (NT) Pty Ltd and executed by Fugro Airborne Surveys using a line spacing of 50 metres and a nominal terrain clearance of 50 metres.
BUSINESS DEVELOPMENT PLAN
Upon completion of the DFS, Thor is planning to secure off-take agreements for the balance of tungsten and molybdenum concentrates, and finance to support the development of mining and processing operations at Molyhil. It is anticipated that the first production of concentrates will commence from late in 2015..
Thor Mining PLC is seeking equity investment in the company and/or joint venture participation, along with product off-take agreements to progress the development of the Molyhil project.
COMPETENT PERSONS STATEMENTS
The information in this report that relates to exploration results is based on information compiled by Richard Bradey, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Bradey is an employee of Thor Mining PLC. He has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the
‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’.
Richard Bradey consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
