Name of the Project
Molyhil tungsten and molybdenum project.

Location
Northern Territory, Australia.

Client
Thor Mining.

Project Description
An upgraded definitive feasibility study on the project has resulted in improved economics.

The project has an opencut probable ore reserve of 3.5-million tonnes averaging 0.29% tungsten trioxide and 0.12% molybdenum. Total indicated and inferred mineral resources are estimated at 4.71-million tonnes grading 0.28% tungsten trioxide, 13.1% molybdenum and 18.1% iron.

Mining is planned using conventional opencut mining methods, contract drill-and-blast, followed by owner-operated excavation and haulage.

The mine will produce about 125 000 t/y of ore, and recover an estimated 8 583 t of tungsten and 3 133 t of molybdenum over a life-of-mine of seven years.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an all-equity net present value (NPV), at a 5% discount rate, of A$101-million and an internal rate of return (IRR) of 59%, both after payment of taxation and royalties, with a payback of 18 months.

The 2015 feasibility study estimated the NPV at A$67-million, and the IRR at 44%.

Value
The project is estimated at $43-million. This compares with a projected capital cost of A$70-million in a 2015 feasibility study.
Duration

First production is targeted for early 2020.

Latest Developments
The project is construction ready, subject to the submission of an acceptable mining management plan and the finalising of project-level mine construction financing.

Upon finalising the project-level financing, the construction phase of Molyhil is estimated at 12 months.

Thor Mining is working to secure the balance of concentrate sales and finance for the project development, after which detailed engineering studies will be undertaken, along with the completion of the mine management plan.

Key Contracts and Suppliers
RPM Global (resource estimates); AVCS (opencut ore reserve statement); Rosetta Stone Ops (capital costs); KYSPY Investments (metallurgical processes and outcomes), Keith Lindbeck & Associates (environmental studies); and Mazars Global Infrastructure Finance (economic model).

On Budget and on Time?
Too early to stated.

Contact Details for Project Information
Thor Mining, tel +61 8 7324 1935.