Mineral exploration company Thor Mining has increased the tungsten resource at its Molyhil project in the Northern Territory, 320km west of Alice Springs.
Molyhil is one of the world’s highest-grade open pit tungsten projects and Thor Mining (ASX:THR) has upgraded its resource to include a new measured classification in the upper portion of its southern lode.
The Molyhill project’s resource on a measured, indicated and inferred basis now totals 4.4 million tonnes at 0.27 per cent tungsten trioxide.
“This revised mineral resource estimate using Support Matrix Kriging has generated a more robust resource with the upper portion of the southern lode now classified as measured, the minimum standard required by many project partners,” executive chairman, Mick Billing, said.
The project’s resource also contains molybdenum at 0.10 per cent, 0.05 per cent copper, and 17.75 per cent iron.
Support Matrix Kriging is a statistical technique used to model geological features.
New drilling targets selected
New exploration targets have been identified at Molyhil near to its existing resource.
“The Thor team is encouraged by the 3D geological model and the drill targets it has generated,” said Billing.
Thor Mining is to carry out geotechnical drilling for pit wall optimisation, and an ore sorting review, as well as drill testing of priority resource targets as its next steps for the project.
Molyhil’s resource has been upgraded from a mineral resource estimate of 4.71 million tonnes on only an indicated and inferred basis at 0.28 per cent for tungsten trioxide at 13,300 tonnes.
Steady recovery in tungsten price
The ore reserves at Molyhil are sufficient to sustain a seven-year open pit mine, and there is the possibility of an underground extension to mining.
A definitive feasibility study demonstrated Molyhil has low operating costs and early payback of its capital cost of $US43m ($56.5m) within 18 months.
“With the steady recovery of the tungsten price, the testing of these targets, in conjunction with the proposed geotechnical drilling and ore sorting review, are anticipated to significantly enhance the economic outcomes of the project,” said Billing.
Molyhil was awarded major project status by the Northern Territory government last July.
“Global commodity pricing for both tungsten and molybdenum have shown encouraging improvement since recent lows during the period of August to November 2020, and with post-COVID-19 global growth recovery and increased global infrastructure spending, Thor’s directors expect this to continue,” said Billing.
Thor Mining has several other mineral projects it is progressing, including the Ragged Range gold project in WA, and Alford East copper project in South Australia, plus its Wedding Bell and Radium Mountain uranium project in the US state of Colorado.
This article was developed in collaboration with Thor Mining, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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Barry Stroman was a reporter for Zerg Watch, before becoming the lead editor. Barry has previously worked for Wired, MacWorld, PCWorld, and VentureBeat covering countless stories concerning all things related to tech and science. Barry studied at NYU.