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Thor Mining intercepts high grade tungsten, molybdenum outside resource at Molyhil

Thor Mining (ASX: THR AIM: THR) has intercepted high grade tungsten and molybdenum outside the existing resource of 3.75 million tonnes at 0.32% tungsten oxide, 0.19% molybdenum disulphide and 28% iron oxide at the Molyhil Project in the Northern Territory.

Reverse circulation drilling identified mineralisation with underground mining potential to the east and southeast of the existing resource, and with open cut potential near surface to the west.

Best intercepts included:
-    16 metres at 0.81% tungsten oxide and 0.44% molybdenum disulphide from 189 metres;
-    13 metres at 0.38% tungsten oxide and 0.13% molybdenum disulphide from 290 metres; and
-    21 metres at 0.07% tungsten oxide, 0.19% molybdenum disulphide and 28.5% iron from 50 metres.

These results complement drilling assays from 2009 which tested down plunge extensions to the resource, with a best result of 53 metres at 0.23% tungsten oxide and 0.24% molybdenum oxide from 171 metres.

The latest round of results are from the first stage of a two stage drilling program, carried out mid-2011, with six reverse circulation holes to test for additional down plunge resources.

In the second stage of the program, six diamond holes were drilled to enhance confidence in the near surface resource.

Changes to the overall resource will be subject to confirmation by resource modelling, which will begin once diamond drill assays have been received.

Company chairman Mick Billing said: “These are very positive results and suggest that the life of the proposed Molyhil mining operation has strong potential to be profitably extended.

“While a revised resources estimate has yet to be prepared, and this will follow the receipt of the diamond drill assay results, we look forward to the outcome with keen anticipation”

Thor commissioned a Definitive Feasibility Study for Molyhil in June 2011. In September, the company released capital and operating cost estimates for the first phase of production.

Capital expenditure was estimated to be $66 million for an annual throughput of 400,000 tonnes per year and operating costs of $79 per tonne of ore processed.

The final results of the Definitive Feasibility Study are expected by the end of November.