PERTH (miningweekly.com) – ASX-listed junior Thor Mining has increased the life expectancy of its Molyhil tungsten mine, in the Northern Territory, from four to six years, following an update to the ore reserve.
The company on Tuesday reported that the Molyhil ore reserve was now estimated at three-million tonnes, grading 0.31% tungsten and 0.12% molybdenum, for some 9 200 t of tungsten and 3 600 t of molybdenum.
Earlier this year, the metals developer reported a 13% reduction in the expected operating costs at Molyhil to around A$78/t, following recent work on processing improvements and cost factors, and on extending the mine life from four to six years.
“This is a major step forward for the Molyhil project. The opencut ore reserve statement provides for significant additional production from Molyhil, while the process improvements demonstrate that production costs will be very low, particularly in the initial couple of years,” Thor executive chairperson Mick Billing said.
He noted that the next step would be to update the bankable feasibility study for the project, which would include a review of the capital and operating costs.
“This is anticipated to be completed before the end of the September quarter, enabling the financing of the project to be concluded. The directors believe that the enhanced project economics shown by this updated reserve statement will significantly boost the prospects of securing project financing,” Billing said.
The initial definitive feasibility study found that the Molyhil mine could produce some 400 000 t/y, delivering 2 200 t/y of scheelite product and 1 250 t/y of molybdenum concentrate.