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Thor Mining identifies seven potential drill targets at Harts Range in Australia’s Northern Territory

Thor Mining (ASX, AIM: THR) told investors that it has identified at least seven electromagnetic (NYSE:EM) anomalies, with potential for future drilling, at the Harts Range exploration licence (EL24735) northeast of Alice Springs in Australia’s Northern Territory.

The anomalies where identified through the interpretation of a helicopter-borne Airborne Electromagnetic Survey. The survey consisted of 49 flight line traverses flown in a north south direction for a total of 314 line kilometres.
Modelling and interpretation of the survey data has enabled Thor to identify one “Priority 1” anomaly and six “Priority 2” anomalies sourced by potential bedrock conductors and detected at depth of less than 100m below surface.

The company said the cluster of anomalies at the western end of the license, and in particular the Priority 1 anomaly, are associated with layered amphibolitic rocks and are considered prospective for nickel, copper, gold and platinum group element mineralisation.

Thor chairman Mick Billing noted that the company has proposed a follow-up ground survey in order to better characterise and delineate the selected anomalies, and to enable the design of a drilling program to target their source.

Separately, Thor also reported a proposed AUD$150,000 fundraising, with a placing of 10 million voting CDI’s (CHESS Depository Interest) securities at 1.5 cents each. Thor also issued 5 million free attaching options to Western Desert Resources (ASX: WDR).

According to Billing, the cash raised from the issue will be used by the company to supplement working capital along with exploration expenses for the Dundas gold project.

The completion of the placement and the receipt of funds will take place within the next week, and Thor said it intends to make an application to ASX Securities Limited for listing of the CDI’s securities in due course.

The Australian resource company has several projects across a number of metal commodities, it operations are primarily focussed on the Northern Territory and Western Australia. One of the company’s flagship projects, the advanced Molyhill molybdenum-tungsten is poised to recommence as the company awaits improved economics.

Back in November 2009 the company announced that Molyhil was on hold due to the depressed price of molybdenum.

In April, Thor noted the increase in tungsten and molybdenum prices, which bode well for the restart of the development of its Molyhil project in Australia. The price of molybdenum roasted concentrates has increased to US$17.50/lb from a low of US$8/lb in April 2009, while tungsten prices have risen from US$185/mtu in July 2009 to the current US$215-220/mtu.

However, steps were taken to conserve cash levels, and Thor said that whilst prices were still below level that would make the project economic, if trends continue at the same pace, the Molyhil development would proceed as the fundamentals of the project were “sound".

Whilst Molyhill has been on hold, Thor has been actively progressing the other prospective projects in its portfolio, with particular emphasis on the recently acquired Dundas Gold project and the Harts Range license.

Along with the realisation of its new expanded exploration and acquisition strategy, announced in February 2010, Thor initially proposed its acquisition of three mining tenements in Western Australia - which were subsequently known as the Dundas Gold project.

Geologically, the Dundas project lies within the Albany-Fraser Province, which covers more than 50,000 square kilometres at the south-eastern margin of the gold-rich Yilgarn Province. The most notable gold discovery in Albany-Fraser is the 5 million ounce (Moz) Tropicana gold deposit. Prior to the Tropicana discovery the province was hardly explored for gold.

Specifically, the tenements are located in a part of the Albany-Fraser Province where the south-westerly grain of the Province is displaced south-eastwards by about 50 kilometres. “The overprint of a south-easterly structure appears to mimic elements of the Tropicana geology and apparently creates opportunities for dilation of the rock sequence - a structural element generally favourable for mineralisation”, Thor stated

The Dundas area has never been explored in detail and no drilling has been conducted within the boundaries of these tenements. Previously a limited, 40 square kilometre surface geochemical program conducted by BHP Billiton (LSE: BLT, ASX: BHP) revealed gold anomalies comparable with those associated with gold mineralisation elsewhere in the Wiluna-Kalgoorlie-Norseman greenstone belt. According to Thor, these anomalies are drill ready and untested.

In all, 335 square kilometres of the Dundas project remains unexplored.

In April, Thor told investors that the first phase of exploration at Dundas had commenced, with a soil sampling program underway, covering parts of the project not explored by the previous sampling. The company plans to start drilling later this year.