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Thor Explorations reports encouraging drill results from Segilola gold project, which augurs well for potential resource boost

Published: 11:45 10 Dec 2020 EST

Thor Explorations Ltd. -
Highlight drill assays included 32.5 metres (m) (17m true width) grading at 3.2 grams per ton (g/t) gold in one hole, and 47.5m (20m true width) grading at 2.2 g/t gold in another

Thor Explorations Ltd (CVE:THX) announced encouraging final drill results from its in-pit and extensional diamond drilling at the Segilola gold project in Nigeria, which could potentially lead to more ounces being recovered.

The mine is scheduled to pour its first gold in the second quarter of 2021.

READ: Thor Explorations draws down initial disbursement of US$54 million facility to fund Segilola construction

"The continuation of positive drill results not only provides adequate de-risking of a key operational aspect ie, continuity of mineralisation near the base of the design pit, but, more significantly, shows continuity outside the current reserve limits," Segun Lawson, the mining firm's CEO, said in a statement.

"We are aiming to update the Segilola resource statement in early Q1 2021, prior to mining. We believe that we have sufficient information through this drilling to materially increase the indicated resource which should, ultimately, have a positive impact on the recoverable ounces."

Highlight drill assays included 32.5 metres (m) (17m true width) grading at 3.2 grams per ton (g/t) gold in one hole, and 47.5m (20m true width) grading at 2.2 g/t gold in another.

Segilola open pit mineral resource currently hosts 441,000 ounces of the yellow metal at 4.5g/t gold 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, the current project open pit definitive feasibility study  (DFS) shows a post-tax net present value (NPV) of US$138 million, a 50% IRR and a payback in under 1.4 years.

These figures are based on the data as of December 1, 2018, and a gold price of US$1,300 per ounce.

With the current reserve, at a US$1,600 gold price, the Segilola project shows a post-tax NPV of US$238.1 million and at a US$1,800 gold price shows a post-tax NPV of US$305 million.

Contact the author at giles@proactiveinvestors.com

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