Thor Explorations Ltd. (TSX-V: THX) (AIM: THX) is pleased to provide an operational update for the Segilola Gold mine, located in Nigeria, and for the Company’s mineral exploration properties located in Nigeria and Senegal, for the three months to September 30, 2024.
Segilola Q3 2024 Operational Highlights
Exploration Q3 2024 Highlights
Nigeria
Senegal
Cote D’Ivoire
FY 2024 Outlook and Catalysts
Segun Lawson, President & CEO, stated:
“This has been a challenging Quarter for the Company. Operationally at Segilola, we have been impacted by extreme weather conditions with a heavy and prolonged rainy season and have also been disrupted by a fly-rock incident and logistics delays early in the period.
“Corporately, we are continuing our engagement with the relevant Federal Ministries, including the Ministry of Solid Minerals Development (the “Federal Ministry of Mines”) to resolve the unfounded accusations, demands and disruptive actions instigated against us by the Osun State government and look forward to a full resolution by the end of the year.
“Despite our challenges, which have ultimately resulted in a lower guidance for the year, we are pleased to have poured over 20,000 ounces of gold in the period whilst further reducing our AISC guidance for the year.”
Segilola Operations
Late in the Quarter, the Company experienced a period of severe weather where more than 415 millimetres of rain fell over a 12-day period in September. This extreme level of rainfall over a short period exceeded the in-pit pumping capacity and affected access to planned mining areas of high grade ore.
The Company has since added more pumping capacity and have made good progress in dewatering the pit, which, is complete as at today’s date.
During the Quarter the company became concerned regarding blasting at the southern end of the pit, close to Iperindo, and delayed mining operations in this area until a new blasting strategy was developed and adopted.
Additionally, a delay in delivering the SAG mill liner led to lower mill throughput and recovery. This was due to operating under less-than-ideal milling conditions while managing the worn SAG mill liner and protecting the mill shell. The SAG mill re-relining was successfully completed in the final week of the Quarter.
Corporate
In September several claims and allegations against Thor’s wholly owned subsidiary, Segilola Resources Operating Limited were reported in the Nigerian press, by Special Advisers of the Osun State Government, Nigeria. The allegations relate to tax evasion, environmental violations and questionable business practices related to employment and shareholding structures. The Osun State Government has not presented any evidence to support its claims, and the Company has fully rejected the allegations in their entirety.
After the Osun State Government sought to impede operations at the mine, the Company initiated legal proceedings in the Federal High Court in Abuja, which has issued an interim injunction and restraining order preventing the Osun State Government and its officials from interfering with the Company’s activities. The Company will continue to pursue legal action against the Osun State Government and its officers until such time as the dispute is resolved.
Further, the Company has engaged with the Federal Ministry of Mines in its capacity as the sector regulator and the Federal Ministry of Mines has deployed a senior committee to hear and assess evidence on each side of the matter. Thor welcomes this intervention and hopes that it will result in a prompt and amicable resolution of the dispute.
Thus far, operations have remained unaffected by the dispute, and the Company is diligently working to reassure its employees at the mine, local communities, and other stakeholders.
The Company firmly believes that it has acted in accordance with all laws and regulations, that there is no validity to the claims made by the Osun State Government and that the Company have sufficient evidence to refute the claims that have been made.
Douta Project
Work on the Updated Resource and PFS is continuing and focussing on finalising metallurgical testwork and process design for the PFS on an updated resource. This is scheduled to be completed during Q4 2024.
In parallel, the Company is also continuing with its strategy, of adding oxide material to the resource inventory and will also be conducting a further drilling programme over the November-December period.
Financing
The Company is pleased to have made further progress towards fully repaying its senior debt facility by the end of the year with a balance of $3.9 million remaining outstanding and also continuing to make repayments towards its payables, whilst continuing to strengthen its balance sheet.
PRODUCTION SUMMARY
Units | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 | |
Mining | ||||||
Total Mined | Tonnes | 4,024,002 | 4,710,220 | 4,939,647 | 5,483,291 | 5,673,193 |
Waste Mined | Tonnes | 3,668,487 | 4,171,122 | 4,473,752 | 5,031,932 | 5,370,279 |
Ore Mined | Tonnes | 355,515 | 491,935 | 465,895 | 451,360 | 302,915 |
Grade | g/t Au | 2.01 | 1.78 | 2.07 | 1.93 | 2.44 |
Processing | ||||||
Ore Processed | Tonnes | 201,958 | 174,000 | 235,933 | 262,439 | 261,671 |
Grade | g/t Au | 3.22 | 3.42 | 2.85 | 2.77 | 2.46 |
Recovery | % | 88.5 | 94.6 | 90.7 | 93.4 | 92.3 |
Gold Recovered | oz | 18,496 | 18,090 | 19,589 | 21,798 | 19,104 |
Gold Poured | oz | 20,110 | 21,742 | 18,543 | 16,361 | 16,579 |
Table 1: Production Summary
About Thor
Thor Explorations Ltd. is a Canadian mineral exploration company engaged in the acquisition, exploration and development of mineral properties located in Nigeria, Senegal and Burkina Faso. Thor holds a 100% interest in the Segilola Gold Project located in Osun State of Nigeria. Mining and production commenced at Segilola in 2021. Thor holds a 70% interest in the Douta Gold Project located in south-eastern Senegal.
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