Thor Mining’s share price shot up 20 percent on the ASX on the news. Bonya is part of a tenement jointly owned with Arafura Resources.
Thor Mining (ASX:THR,LSE:THR) has released an initial mineral resource estimate for the Bonya copper mine deposit, reporting an inferred resource of 230,000 tonnes at 2 percent copper with traces of tungsten and molybdenum.
The Bonya copper mine deposit is part of the Bonya tenement recently bought into by Thor, and is jointly owned by Thor (40 percent) and rare earths-focused Arafura Resources (ASX:ARU) (60 percent). It’s situated adjacent to Thor’s Molyhil mine project in Australia’s Northern Territory.
While the deposit is considered small, it’s also seen as a moderately high-grade copper resource with the inferred resource containing 4,600 tonnes of copper. The maiden resource also indicates that the deposit has the potential to add six months to Molyhil’s mine life.
“This small but high-grade copper resource will provide valuable supplementary mill feed to the company’s nearby Molyhil process plant,” Thor Executive Chairman Mick Billing said in a statement.
“The Molyhil processing plant design is amenable to the treatment of copper ores of this nature, without modification, and we expect this material will flow through the plant with no additional investment required, other than mining and haulage,” he added.
Molyhil is a tungsten-molybdenum project that consists of six wholly owned tenements with an indicated and inferred resource of 4.7 million tonnes at 0.28 percent tungsten and 0.13 percent molybdenum.
In late August, the company released an upgraded definitive feasibility study for Molyhil. It lays out a seven-year mine life with first production docketed for early 2020.
Alongside Bonya’s copper deposit are vanadium and tungsten deposits, which the company intends to further explore going forward. According to Thor, an external review of the vanadium deposits is currently underway, while drill testing at the tungsten deposits is planned for early 2019 after clearance for site access is received.
Thor’s share price on the ASX shot up 20 percent on Monday (November 26), closing the day at AU$0.036. On the LSE the company closed up 13.51 percent at GBP 2.10.
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Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.