Thor Mining plans to drill deeper at Spring Hill Gold Project
Thor Mining (ASX: THR) believes there is potential for economic mineralisation at the Spring Hill Gold Project to extend more than 100 metres below historical resource drilling.
A six hole diamond drilling program intersected mineralisation below that in historical drill holes, showing potential for extensions at depth.
Significant intersections included:
- 3.6 metres at 0.7 grams per tonne (g/t) gold from 191 metres, including 0.6 metres at 3.9g/t gold;
- 3.4 metres at 9.7g/t gold from 24.6 metres, including 1 metre at 31.4g/t gold; and
- 4.7 metres at 5.7g/t gold from 28.6 metres, including 0.7 metres at 36.2g/t gold.
Importantly, there was good correlation between diamond drill holes and historical reverse circulation gold intercepts at the upper level, increasing confidence in the historical resource estimate.
The JORC Resource for Spring Hill, announced in 2003, is 3.6 million tonnes at 2.34g/t gold for a contained 274,000 ounces of gold, based on a 1g/t cut off grade.
Spring Hill has not been tested to more than 150 metres in depth, with mineralisation open at depth on almost all sections.
Thor acquired a 25% interest in Spring Hill, located in the Northern Territory, from Western Desert Resources (ASX: WDR) in early 2011, and has the right to increase its holding to 80%.
In 2012, Thor plans to continue drill testing extensions to the existing resource along with known mineralisation nearby.
The company will also undertake scoping studies to assess the potential to accelerate mine development.
Thor believes the Spring Hill gold deposit could indicate the presence of substantial sheeted vein mineralisation system similar to that at Leighton Holdings’ (ASX: LEI) giant Callie Gold Mine.
Callie has production and resources totalling more than 5 million ounces of gold at a grade of 5-6g/t gold.
The Tanami Inlier where Callie is located lies a few hundred kilometres south west of Spring Hill, and Thor says the geological characteristics of this inlier are comparable with those of the Pine Creek Inlier where Spring Hill resides.