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Thor Mining Lifts Molyhil Tungsten Recovery By 27%, Improves Project Economics

Thor Mining (ASX: THR) has enhanced the economics of the Molyhil Tungsten and Molybdenum Project in the Northern Territory, lifting tungsten recovery to 85%, up 27% on the figure estimated in the project's Feasibility Study.

Executive chairman Mick Billing told Proactive Investors today that the increase in recovery grades was likely to improve the economic outcome of Molyhil.

"With previous estimates showing A$900,000 in additional revenue per each 1% of tungsten recovery, the 100%-owned Molyhil project looks increasingly robust," Billing said.

"It should make a difference to the early economics and early payback of capital, it could also mean that the mine life will hopefully will be a little longer than we would earlier have assumed, because blocks of ore that previously weren't economic now should be."

The increase has been achieved through adding a flotation step to the tungsten recovery process, after gravity separation.

This process was identified by test work undertaken by metallurgical testing and mineral beneficiation consultants Nagrom & Co.

Results from this test work will be incorporated into the economic ore reserve and mining plan calculations for the Molyhil Definitive Feasibility Study.

Timeline to mining

Following the completion of the Feasibility Study, Thor will need to secure offtake agreements and finance for Molyhil before the company will move to tender for design, construct and EPCM work.

Billing told Proactive Investors that Thor was on track for production from Molyhil in late 2013.

"If we can commence development early in the second half of this year, and at this stage we're relatively optimistic that we can, then there's a construction period of roughly 12 months," he said.

"By September 2013 we could well be putting out our first truck load of concentrate."