Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Thor Mining Testing Further Spring Hill Gold Mineralisation At Depth, Targets Callie Look-Alike

Thor Mining (ASX: THR) has started a drilling program to test the continuity of the gold mineralising system below the existing Hong Kong lode at its Spring Hill Project just south of Darwin.

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%.

Three holes totalling 1050 metres will be drilled in the area corresponding with the strongest Hong Kong mineralisation seen so far to test the deeper potential indicated by drilling in 2011.

Spring Hill, which has a JORC Resource of 3.6 million tonnes at 2.34 grams per tonne (g/t) gold for a contained 274,000 ounces of gold, based on a 1g/t cut off grade, has not being tested to more than 150 metres in depth, with mineralisation open at depth on almost all sections.

The Spring Hill drilling program will also test potential satellite targets within the lease area as well as the potential for deeper 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.

Thor plans to initially drill one 700 metre hole to test the Callie theory as well as 4 reverse circulation holes targeting potential satellite mineralisation.

Previous drilling by Ross Mining and BHP Billiton (ASX: BHP) in 1989-92 had located additional gold mineralisation to the main Spring Hill lodes. One deposit is located about 1 kilometre north while other similar deposits exist to the south and west.

It plans to carry out scoping studies to assess the potential to accelerate mine development.

*** Thor will be presenting at "Stars in 2012 Series" in Sydney. Don't miss out. CLICK HERE to register for free ***

Proactive Investors is a market leader in the investment news space, providing ASX "Small and Mid-cap" company news, research reports, StockTube videos and One2One Investor Forums.