Thor Mining (ASX: THR) has recommenced drilling at its Spring Hill Gold Project in the Northern Territory that targets near-surface mineralisation and potential extension to increase gold resources of 40,000 ounces.
Any addition to the mining inventory that may come from drilling has the potential to increase production at reduced unit cost, current below A$1,100/ounce.
Drilling will also test potential satellite targets within the Spring Hill lease area that is located southeast of Darwin.
The company noted that any addition to the mining inventory had the potential to increase production at a reduced unit cost.
Its 2,000 metre reverse circulation drilling program targets:
- Near-surface mineralisation, including shallow targets identified in 2012 outside of the current resource;
- Potential extensions to high grade mineralisation previously subject to historic mining operations; and
- Other potential satellite targets within Spring Hill lease area.
The program is expected to last for several weeks.
The 2012 drilling program confirmed considerable depth extensions to the known mineralisation below the Hong Kong zone at Spring Hill. Additionally, this drilling identified a potential new zone of mineralisation located between the Hong Kong and Western lodes.
Spring Hill Gold Project
The Spring Hill project is located about 150 kilometres south of Darwin. It is served by all-weather access and is in close proximity to the sealed arterial Stuart Highway, and other local infrastructure.
Thor holds a 51% equity interest in the Spring Hill project, and is exercising rights to increase that interest to 80%.
Spring Hill has a current Resource of 6.95 million tonnes grading 1.74 grams per tonne for 389,000 ounces of contained gold.
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