Thor Explorations Ltd. [THX-TSXV] reported materially positive results for the updated mineral resource and mineral reserve estimate and improved life-of-mine (LOM) plan for its Segilola gold project in Nigeria, scheduled to commence production in June, 2021.
Highlights include Total Probable Reserve of 517,800 ounces at 4.02 g/t gold representing a 28% increase over the March 2019 Segilola Definitive Feasibility Study (DFS). The Segilola process plant design capacity increased to 715,000 tonnes per annum, representing a 14% increase to the DFS design. The LOM plan has been optimized to support increased process plant production rate with a LOM All-in sustaining cost (AISC) of $685/oz.
The project has a Net Present Value (NPV) of $311 million at a 5% discount rate and Internal Rate of Return (IRR) of 85%.
Segun Lawson, President & CEO, stated: “We are pleased with the 28% reserve increase at Segilola which has had a materially positive effect on the project economics. It has been achieved through further upgrade drilling of Inferred Resource, an increase in the design pit at a similar waste / ore ratio to the DFS and at the fixed unit rate mining costs agreed with our mining contractor. This combined with other optimisations including a 14% increase in process plant design capacity has resulted in a significant increase in project value for our shareholders at a competitive forecast all-in sustaining cost of $685/oz.
“The Segilola Project remains on schedule to pour first gold in June 2021. The increased production capacity and mine plan are being implemented within the company’s existing project funding.”
In addition to the ongoing exploration at Segilola, the company is progressing with exploration on its exploration licences in the region which cover approximately 913 km2 of the gold bearing Ilesha Schist Belt. In January 2021, the company recruited a dedicated regional exploration team and has ongoing systematic exploration programmes on all its licences in Nigeria.