Name of the Project
Segilola gold project.

Location
Nigeria.

Project Owner/s
Thor Explorations.

Project Description
A definitive feasibility study (DFS) 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 is making steady progress with its Segilola gold project, having signed an engineering, procurement and construction engineering, procurement and construction contract (EPC). The project is now 89% funded.

Chinese-headquartered Norinco International will deliver Segilola at a fixed price of $67.5-million for the full delivery of design, engineering, procurement, construction and commissioning of the proposed 650 000 t/y gold ore processing plant within 18 months of the start date.

The start of the EPC contract was subject to certain conditions precedent, including financial close of $78-million in financing from Africa Finance Corporation (AFC). Thor reported that the AFC board had approved the financing and the parties were documenting the financing.

Norinco International has also committed to provide $6.5-million in financing of the EPC contract. As a result of the AFC and Norinco International financings and indicative terms provided by the project’s consumables supplier for a $1.9-million working capital arrangement, the project was now 89% funded, or $86.4-milllion of a total project funding requirement.

A preliminary economic assessment has also been undertaken for a proposed supplemental underground project at Segilola, which could produce 33 000 oz/y.

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.