Monday 15 March 2021

Thor Mining plc

("Thor" or the "Company")

Half year report

The Directors of Thor Mining plc (AIM, ASX: THR) are pleased to announce the Company's results for the six months ended 31 December 2020.

The Company's Half Year Report was also today lodged with the Australian Stock Exchange ("ASX") as required under the listing rules of the ASX.  A copy of the Half Year Report will shortly be available on the Company's website www.thormining.com

Key Highlights:

GOLD (Ragged Range in the Pilbara region of Western Australia)

·    High grade stream sediment samples

·    Geochemical sampling delineates 13km anomalous gold trend

COPPER (Alford East, SA Australia)

·    JV farm-in agreement to acquire an 80% interest in copper deposits

·    Maiden Mineral Resource Estimate (MRE) containing 177,000 tonnes of copper and 71,500 oz gold

COPPER (Alford West & Kapunda, SA Australia)

·    Increased equity in EnviroCopper Ltd (ECL) to 30%

·    ECL continued to advance the Kapunda project with hydro-geological test-work and copper production tests on drill samples

URANIUM & VANADIUM (Colorado & Utah, USA)

·    completed the acquisition of American Vanadium Pty Ltd

·    field sampling program returned a number of high-grade uranium and vanadium assays from the Colorado claims.

TUNGSTEN & MOLYBEDENUM (Molyhil, NT Australia)

·    Major project status was awarded to the Molyhil tungsten and molybdenum

·    Discussions to fund critical minerals project development are on-going

Enquiries:

Updates on the Company's activities are regularly posted on Thor's website www.thormining.com, which includes a facility to register to receive these updates by email, and on the Company's twitter page @ThorMining.

About Thor Mining PLC

Thor Mining PLC (AIM, ASX: THR) is a resources company quoted on the AIM Market of the London Stock Exchange and on ASX in Australia.

At the 100% owned Ragged Range Project in the Pilbara region of Western Australia, Thor has exciting early stage results for which gold and nickel drilling is planned."

At Alford East in South Australia, Thor is earning an 80% interest in copper deposits considered amenable to extraction via Insitu Recovery techniques (ISR)

Thor also holds a 30% interest in Australian copper development company EnviroCopper Limited, which in turn holds rights to earn up to a 75% interest in the mineral rights and claims over the resource on the portion of the historic Kapunda copper mine in South Australia recoverable by way of in situ recovery⁴. Thor also holds rights to earn a 75% interest in portion of the Alford West copper project also in South Australia, and is also considered amenable to recovery by way of in situ recovery⁵.

Thor holds mineral claims in the US states of Colorado and Utah with historical high grade uranium and vanadium drilling and production results.

Thor holds 100% of the advanced Molyhil tungsten project in the Northern Territory of Australia, for which an updated feasibility study in August 2018¹ suggested attractive returns.

Adjacent Molyhil, at Bonya, Thor holds a 40% interest in deposits of tungsten, copper, and vanadium, including Inferred resource estimates for the Bonya copper deposit, and the White Violet and Samarkand tungsten deposits².

Thor holds 100% of the Pilot Mountain tungsten project in Nevada USA which has a JORC 2012 Indicated and Inferred Resources Estimate³ on 2 of the 4 known deposits.

Notes

¹ Refer ASX and AIM announcement of 23 August 2018

² Refer ASX and AIM announcement of 26 November 2018, and 29 January 2020

³ Refer AIM announcement of 13 December 2018 and ASX announcement of 14 December 2018

⁴ Refer AIM announcement of 10 February 2016 and ASX announcement of 12 February 2018

⁵ Refer ASX and AIM announcement of 15 August 2019

THOR MINING PLC

Half-year Report

For the six months ended

31 December 2020

HIGHLIGHTS

ISR Copper

A joint venture farm-in agreement to acquire an 80% interest in copper deposits amenable to Insitu Recovery (ISR) production at Alford East in South Australia was followed by a maiden Mineral Resource Estimate (MRE) based on substantial historical drilling. Thor reported an Inferred Resource estimate of 125.6 million tonnes (MT) grading 0.14% copper (Cu), containing 177,000 tonnes of copper, at a cut-off grade of 0.05% Cu, and also grading 0.018 g/t Au containing 71,500 oz gold.

Thor's equity interest in EnviroCopper Ltd (ECL), the holder and operator of the Kapunda and Alford West ISR copper projects, increased to 30%. ECL continued to advance the Kapunda project, in particular, with hydro-geological test-work and copper production tests on drill samples.

Gold

Stream sediment sampling programs, and detailed airborne magnetic survey work, has delineated a 13 km trend of anomalous gold for drill testing at Ragged Range in the Pilbara region of Western Australia. 

Uranium & Vanadium

The Company completed the acquisition of American Vanadium Pty Ltd, the holder of mineral claims in the Uravan mineral belt in Colorado and Utah, USA in September 2021.  A field sampling program, conducted whilst assessing the licence area, returned a number of high-grade uranium and vanadium assays from the Colorado claims.

Tungsten & Molybdenum

Major project status was awarded to the Molyhil tungsten and molybdenum project by the Northern Territory government.

Discussions with potential investors as well as government agencies with mandates to fund critical minerals project development are on-going.

OUTLOOK FOR 2021

ISR Copper

Alford East drilling program, scheduled for the quarter ending June 2021 aimed at both testing for potential extensions to the resource estimate and also extracting mineralised material for first round laboratory copper extraction test work.

Kapunda Site Environment Lixiviant Testing (SELT) aimed at recovering copper in solution from the deposit.

Gold

Ragged Range, further stream sediment, soil and rock chip sampling followed by a maiden drilling program is due to commence in the June quarter.

Uranium & Vanadium

An initial drill program on several of the Colorado claims expected to commence in May 2021.

REVIEW OF OPERATIONS

Commodity Prices (source: Argus Metals)

Copper prices have recovered strongly over the period. In March 2020, copper reached its low point for 2020 at around US$4,650 tonne. The copper price then recovered strongly to US$7,800/tonne by the end of December 2020, with momentum continuing, peaking at US$9,500/tonne in late February 2021.

Gold prices held above US$1,800/oz for much of the period, peaking at over US$2,000/oz in August 2020.  Subsequently the gold price has declined slightly to over US$1,700/oz, however that continues to be viewed by the directors as a very robust price for producers and developers.

Tungsten pricing fell by approximately 20% early in the half year before recovering, now sitting at between US$260/mtu and US$267/mtu. The Molyhil project remains very well positioned with expected production costs of US$90/mtu, at the lower end of global production costs. Molybdenum pricing has also recovered recently and now sits in the US$12.15/lb and US$12.35/lb range.

Insitu Recovery Copper Portfolio (South Australia)

Alford East

During the period, Thor announced a joint venture farm-in to acquire up to an 80% interest in the Alford East copper-gold project. Full details of the acquisition terms and conditions are available on the Thor website:
www.thormining.com/sites/thormining/media/pdf/asx-announcements/20201123-new-copper.gold-project.pdf.   

Subsequent to the end of the period, on 27 January 2021, the Company announced a maiden Inferred Mineral Resource Estimate (MRE) for the Alford East project, of 125.6 million tonnes grading 0.14%, Cu and 0.018 g/t Au, containing 177,000 tonnes copper and 71,500 ounces gold:

www.thormining.com/sites/thormining/media/pdf/asx-announcements/20210127-maiden-copper.gold-estimate-alford-east-sa.pdf.

Table A: Alford East Mineral Resource Estimate by JORC (2012) classification (Reported 27 January 2021)

Note:

§ Figures are rounded to reflect appropriate level of confidence.  Apparent differences may occur due to rounding.

§ Cut-off of 0.05% Cu

§ Thor earning up to 80% interest in Alford East Copper-Gold Project

§ The Company is not aware of any information or data which would materially affect this previously announced resource estimate, and all assumptions and technical parameters relevant to the estimate remain unchanged

The next phases of activity at Alford East will have a dual focus - to test for extensions of the copper-gold mineralisation with consequent potential resource growth, and also to recover mineralised material from drillholes for specific ISR test work, with the objective of commencing technical feasibility of low cost ISR production. Historic drill hole samples will also be used for ISR test work, where practical, to minimise drilling. 

It is anticipated that this work should commence during the June 2021 quarter.

EnviroCopper Limited

Thor holds a 30% interest in Australian private company EnviroCopper Limited (ECL). ECL are earning a 75% effective interest, in two stages, rights over metals which may be recovered via in-situ recovery ("ISR") contained in the Kapunda deposit from Australian listed company, Terramin Australia Limited ("Terramin", ASX: TZN), and up to 75% of the Moonta copper project, comprising the northern portion of exploration licence EL5984, held by Andromeda Metals Limited (ASX: ADN).

Kapunda Project

In July 2018, the Company advised that the Australian Government Ministry for Science, Jobs and Innovation announced an offer to Environmental Copper Recovery (a 100% subsidiary of ECL) for research funding of A$2,851,303, over a 30-month period, for the Kapunda In-Situ Copper and Gold Recovery Trial.

ECL has also demonstrated successful gold recovery from Kapunda core, in addition to copper recovery, using a CSIRO developed thiosulphate product, instead of the more commonly used cyanide.

Field pump tests of the flow of fluids through the deposit for successful ISR activities have demonstrated good potential connectivity, and encouraging "in solution" copper values.

Table B: Kapunda Resource Summary 2018 (Reported 12 February 2018)

Notes:

• EnviroCopper are earning a 75% interest in this resource, and Thor hold 30% equity in EnviroCopper.

• All figures are rounded to reflect appropriate levels of confidence.  Apparent differences may occur due to rounding.

• Cut-off of 0.05% Cu

• The Company is not aware of any information or data which would materially affect this previously announced resource estimate, and all assumptions and technical parameters relevant to the estimate remain unchanged.

The 2021 field program (scheduled to start during the June quarter) is primarily focussed on Site Environment Lixiviant Recovery (SELT) trials. This work (funded by the Australian Government grant) is aimed to be the final technical feasibility demonstration of ISR technology at Kapunda for copper and gold recovery, prior to commencement of commercial feasibility study processes.

Alford West Project

During the 2020 financial year, the Company announced that EnviroCopper Limited, on behalf of 100% subsidiary Environmental Metals Recovery, had completed a Mineral Resource Estimate (MRE) on several of the deposits at Alford West, based on substantial historical drilling. This resulted in an Inferred Resource estimate of 66.1 million tonnes (MT) grading 0.17% copper (Cu), containing 114,000 tonnes of copper, at a cut-off grade of 0.05%Cu.

Table C: Alford West Copper Mineral Resource Estimate (Reported 15 August 2019)

Notes:

·    ECL are earning a 75% interest in this resource, and Thor hold 30% of ECL.

·    Figures are rounded to reflect appropriate levels of confidence.  Apparent differences may occur due to rounding.

·    Cut-off grade used of 0.05% Cu.

·    The Company is not aware of any information or data which would materially affect this previously announced resource estimate, and all assumptions and technical parameters relevant to the estimate remain unchanged.

Ragged Range Gold Project (Pilbara, Western Australia) (100% Thor)

Thor holds a 100% interest in three granted tenements and two tenements under application in the Pilbara region of Western Australia, approximately 40 km west of the township of Nullagine.

Since acquisition, Thor has conducted several programs of stream sediment sampling and flown an airborne magnetics survey over the tenement area.

During July 2020, the Company conducted follow up stream sediment and rock chip sampling with best results, received during the quarter, of high-grade gold in stream sediments including:

§ >2000ppb Au (>2.0 g/t) repeat 2.2g/t Au - 20PST51 (Au AR25 with repeat FA25)

§ 1886ppb Au (1.9 g/t) - 20PST54 (Au AR25)

§ 126ppb Au - 20PST52 (BLEG)

§ 173ppb Au -20PST58 (BLEG)

§ 111ppb Au-20PST66 (BLEG)

Thor has defined four distinct clusters of consistently high-grade gold within a 13 km anomalous gold corridor, trending along the interpreted thrust-faulted mafic/ultramafic contact.

The program for 2021, is aimed at drill testing the 13 km gold corridor, with particular initial emphasis on the 5 km long Sterling prospect. Drilling is scheduled for early in the June quarter, to be preceded by a further program of stream and soil sampling during which drill access options will be assessed.

Uranium & Vanadium Projects (Colorado & Utah USA) (100% Thor)

Thor holds a 100% interest in two US companies with mineral claims in Colorado and Utah, USA. The claims host uranium and vanadium mineralisation in an area known as the Uravan mineral belt, which has a history of high-grade uranium and vanadium production.

Within probable economic transport distance is a processing plant (Energy Fuels White Mesa Mill) which may be a low hurdle processing option for any production from these projects.

During 2020, the Company announced receipt of assays showing high-grade uranium and vanadium from samples collected during the due diligence period. 

Highlights from samples identified as potentially vanadium rich: www.thormining.com/sites/thormining/media/pdf/asx-announcements/20200708-us-uranium.vanadium-sampling-assays.pdf 

·   The eight initial assay results averaged 1.0% V₂O₅ and 0.043% U₃O_8.

·   Two outcrop samples from the Rim Rock mine were 1.8% and 2.0% V₂O_5.

Highlights from samples identified as potentially uranium rich:

www.thormining.com/sites/thormining/media/pdf/asx-announcements/20200721-high-grade-uranium-assays.colorado-field-sampling.pdf 

·   The 13 assay results averaged 0.706% U₃O₈ and 1.36% V₂O_5.

·   Four samples assayed 1.0% U₃O₈ or greater with a best uranium assay of 1.25% U₃O₈

·   Three samples assayed over 2% V₂O₅ with a best vanadium assay of 3.47% V₂O₅

The next steps involve drill testing a number of targets in the Colorado claims, scheduled for the June quarter of 2021.

Molyhil Tungsten/Molybdenum project (NT, Australia) (100% Thor)

The Molyhil project is located 220 km north-east of Alice Springs (320 km by road).

In August 2018, Thor announced an updated definitive feasibility study (DFS) for its wholly-owned Molyhil tungsten project, with robust outcomes.

A full background on the project is available on the Thor Mining website www.thormining.com/projects.

Table D: Molyhil Summary JORC (2012) Mineral Resource Estimate (Reported 10 October 2019)

Notes:

· Thor Mining PLC holds 100% equity interest in this project.

· The Mineral Resource is reported at 0.12% WO₃ equivalent cut-off and above 200mRL only on a dry, in-situ basis

· The Company is not aware of any information or data which would materially affect the Mineral Resource, and all assumptions and key technical parameters relevant to the previous estimate remain unchanged.

During the period, the Northern Territory government announced that the Molyhil project had been awarded Major Project Status.

Efforts to secure project finance to bring Molyhil into production continue, with on-going discussions with various potential partners who have expressed interest, in either off-take, joint venture or debt finance arrangements. It is hoped that, on the back of improved tungsten prices, and the release of resource estimates at the nearby Bonya deposits, a favourable arrangement can be finalised in the near term. More recently interest has been expressed by various Australian government agencies, including Export Finance Australia, Defence Export Facility, Critical Minerals Facilitation Office and the North Australian Infrastructure Facility.

Bonya (Tungsten, Copper, Vanadium) (40% Thor)

The Bonya project sits approximately 30 km east of Molyhil and holds tungsten and copper resources which are expected to complement the Molyhil development.

Table E: Bonya Tungsten Mineral Resources (Reported 29 January 2020)

Notes:

·      0.05% WO3 cut-off grade.

·      Totals may differ from the addition of columns due to rounding.

·      Thor Mining PLC holds 40% equity interest in this project.

·      The Company is not aware of any information or data which would materially affect this previously announced resource estimate, and all assumptions and technical parameters relevant to the estimate remain unchanged.

Table F: Bonya Copper Inferred Resource Estimate (Reported 26 November 2018)

Notes:

·      40% owned by Thor Mining Plc

·      The Company is not aware of any information or data which would materially affect this previously announced resource estimate, and all assumptions and technical parameters relevant to the estimate remain unchanged.

Pilot Mountain Tungsten project (Nevada, USA) (100% Thor)

The Pilot Mountain project, acquired in 2014, is located approximately 200 km south of the city of Reno and 20 km east of the town of Mina located on US Highway 95. 

The project is comprised of four tungsten deposits: Desert Scheelite, Gunmetal, Garnet and Good Hope. All are in close proximity, approximately 3 km of each other, and have been subjected to small-scale mining activities at various times during the 20th century.

A full background on the project is available on the Thor Mining website: www.thormining.com/projects.

Table G: Pilot Mountain Resource Summary 2018 (Reported 13 December 2018)

Notes:

·   100% owned by Thor Mining PLC

·   All figures are rounded to reflect appropriate levels of confidence.  Apparent differences may occur due to rounding

·   Cut-off grade 1,500ppm WO₃

·   The Company is not aware of any information or data which would materially affect this previously announced resource estimate, and all assumptions and technical parameters relevant to the estimate remain unchanged.

Capital Raisings

During the period, the Company's cash balances were augmented via the placement of 243,150,000 new ordinary shares of 0.01p each (Ordinary Shares), including options exercised, raising £1,248,000 before costs. The Company's Directors participated in these placements, investing £31,136 of their own funds.  Additionally, directors elected to receive a portion of their usual directors fees in Ordinary Shares, in lieu of cash payment of £35,958.

Subsequent to the half year period, on 27 January 2021, Thor completed the placement of 88,235,296 new Ordinary Shares, raising gross proceeds of £750,000. The shares were issued to placees, with £600,000 being invested by a London based specialist resource investor and £150,000 being invested by Artemis Resources Ltd, a company with major gold exploration and development projects in Western Australia's Pilbara region, of which Thor director Mark Potter is Non-Executive Chairman.

Board and Management Changes

During the period, Mark McGeough joined the Board as Non-executive Director, while Richard Bradey, Director and Exploration Manager, resigned and was replaced as Exploration Manager by Nicole Galloway-Warland. The Board would like to express appreciation and gratitude to Richard Bradey for his service lasting over nine years.

Comprehensive Income

The comprehensive income statement records a comprehensive loss of £512,000 (2019: £895,000 loss) after taking into account unrealised exchange loss of £115,000 (2019: £416,000 loss).

Mick Billing

Executive Chairman

15 March 2021

Competent Person's statements

The information in this report that relates to exploration results is based on information compiled by Nicole Galloway Warland, who holds a BSc Applied geology (HONS) and who is a Member of The Australian Institute of Geoscientists. Ms Galloway Warland is an employee of Thor Mining PLC. She has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which she is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Nicole Galloway Warland consents to the inclusion in the report of the matters based on her information in the form and context in which it appears.

The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and, in the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement.