Name of the Project
Segilola gold project.

Location
Nigeria.

Project Owner/s
Thor Explorations.

Project Description
A definitive feasibility study on Segilola has proposed the construction of an openpit mine, which will include the construction of a new 625 000 t/y processing plant that will comprise a conventional crushing circuit, two-stage grinding, gravity, carbon-in-leach, elution, electro­winning and smelting to produce gold doré. Production is estimated at 80 000 oz/y over the life-of-mine (LoM).

The project has an initial five-year LoM.

The project has probable mineral reserves of three-million tonnes grading 4.2 g/t gold.

A preliminary economic assessment (PEA) has also been undertaken for a proposed supplemental underground project at Segilola.

Underground production is estimated at 33 000 oz/y.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The Segilola openpit has a pretax net present value (NPV), at a 5% discount rate, of $138-million and an after-tax internal rate of return of 50%, with an after-tax payback of 1.4 years on initial capital. The Segilola underground project has a pretax NPV, at a 5% discount rate, of $35-million.

Capital Expenditure
The Segilola openpit has an estimated preproduction capital expenditure of $87-million. The underground operation has an estimated development capital expenditure of $13-million.

Planned Start /End Date
The DFS envisages construction starting in the second quarter of 2019 and an 18-month construction period.

Latest Developments
Thor Explorations has executed an agreed term sheet with the Africa Finance Corporation (AFC) for a $78-million financing package for the construction and ramp-up of the Segilola gold project. The agreement represents the introduction of a new strategic investor in Thor.

This follows the completion of a definitive feasibility study (DFS) in February.

The financing is subject to mutually satisfactory documentation, AFC board approval, completion of due diligence and other conditions precedent, which are expected to be completed in May.

The funding constitutes a $54-million senior secured credit facility, a $9-million gold stream prepayment and a $15-million equity investment from AFC.

Thor will now proceed with turnkey engineering, procurement and construction (EPC) contract finalisation and the start of construction works. The first production is targeted within 18 months of the start of the EPC contract.

Meanwhile, the company has also recently completed a preliminary economic assessment on the Segilola underground resource, which has showed “great potential”.

Thor is hopeful that further underground drilling and exploration during the openpit construction period will considerably increase the company’s reserves.

The company will also seek to raise a further $18-million from debt or equity sources to ensure it is fully funded to production.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Thor Explorations, tel +1 778 373 0102 or email info@thorexpl.com.