Adelaide company Thor Mining says numbers for its NT tungsten project stack up

CAMERON ENGLAND The Advertiser January 12, 2015 2:11PM PM's Rio Tinto Mining trucks. SHARES in Adelaide company Thor Mining doubled after it announced its Northern Territory tungsten project would be a good earner. The stock doubled from 0.1c to 0.2c, valuing the company at less than $3 million. Thor said the project, 220km northeast of Alice Springs, had a payback of 18 months after royalties and taxes, and would have a six year mine life. The company said the project would be a simple open-cut operation, and would cost just $70 million to build. “Following the publication in July 2014 of an updated ... open cut ore reserve statement for Molyhil, Thor has completed the necessary mining and production schedules and capital and operating cost estimates, and incorporated these results into the feasibility model,’’ the company said. “Molyhil is located 220km northeast of Alice Springs in Australia’s Northern Territory. “Access is via the Plenty Highway — a partially sealed road off the Stuart Highway — which connects Alice Springs and Darwin. “The project will operate as a fly-in fly-out operation with provision for camp and electricity generation facilities provided in the cost estimates. The project has ample water from underground aquifers nearby.’’ The company said it would now look to complete detailed engineering studies and secure project development finance. It already has a letter of intent from US-based Global Tungsten & Powders to take 70-75 per cent of the concentrate from the mine. “The Molyhil project has taken a significant step forward with this enhanced feasibility study,’’ executive chairman Mick Billing said. “The returns are very attractive, and cash flow available for debt servicing of 2.5 times project capital cost. “Substantial work has been undertaken to improve costs and we believe that Molyhil has a very attractive cost structure and a low start-up capital expense. We do not underestimate the task in securing project finance, however we believe these upgraded project economic outcomes are compelling. “The next steps for the Molyhil project involve securing the balance of concentrate sales (offtake) agreements and finance for the project development, after which it is planned to commence detailed engineering studies, along with completion of the mine management plan and on-site civil works in preparation for mine and process plant construction and development.”