Thor Explorations Ltd (CVE:THX) said initial diamond drilling results at its Segilola gold project in Nigeria has reinforced its view that the in-pit reserve can be upgraded ahead of the first gold pour next year.
The first pour of the yellow metal at the mine is scheduled for the second quarter of 2021.
READ: Thor Explorations on track for first gold pour from Segilola in 2021 as it reveals new construction milestones
Highlight initial assays included 15 metres (m) grading at 7 grams per ton (g/t) of gold, which included an intersection of 5.6m at 9.2g/t of the yellow metal and 4.3m at 12.1g/t containing abundant particulate visible gold.
"We are very encouraged by these initial drill results which intersected the orebody where predicted," said Segun Lawson, the group's chief executive, in a statement.
"Given the proven resource and grade continuity, together with the abundance of visible gold is extremely encouraging and further strengthens management’s belief that the in-pit reserve can be positively upgraded ahead of first gold pour in Q2 2021.”
The diamond core drilling program was designed to upgrade portions of the in-pit resource currently classified as waste material and inferred resources in the Segilola definitive feasibility study (DFS).
The drill results are part of a wider drilling campaign which includes infill in-pit resource conversion; down dip resource exploration, and satellite reverse circulation (RC) exploration.
The DFS pegs the Segilola open pit mineral resource as 441,000 ounces of gold at 4.5 g/t indicated and 73,000 ounces at 6.8 g/t inferred.
Based on a probable reserve of 405,000 ounces at 4.20 g/t gold, the current project open pit DFS shows a post-tax net present value of US$138 million, a 50% internal rate of return and payback in under 1.4 years.
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