Name of the Project
Molyhil tungsten and molybdenum project.

Location
Northern Territory, Australia.

Project Owner/s
Thor Mining.

Project Description
The Molyhil 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.
 

Testwork on the project has demonstrated the production of a primary tungsten concentrate assaying 65%, with a recovery of 85%, and a primary molybdenum concentrate assaying 51.4%, with a recovery of 77.8%.

About 30 km east of Molyhil are 13 known outcropping tungsten deposits at Bonya. It is expected that these may add to the resource inventory and extend the operational life of Molyhil. Bonya has total mineral resources of 230 000 t grading 2% copper.

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.

Capital Expenditure
The project is estimated at $43-million.

Planned/Start/End Date
Construction and development is slated to take place in 2022, while production is expected to start in 2023.

Latest Developments
The government of the Northern Territory has awarded the project major project status.

Thor executive chairperson Mick Billing has said that the company is delighted to secure this level of support from the Northern Territory government.

“We expect the Molyhil project to generate tangible and meaningful benefits for the Northern Territory, with export income and job creation in the Alice Springs area, and also for the local communities near the project, as well as positive returns for the company’s investors.”

A final investment decision for the project is expected by the end of 2021, with Thor working on project financing to develop Molyhil.

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).

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