molyhil production upgrade, page-2

Here it is for you:





25th October 2006




• Metallurgical test work program successfully completed as part of Definitive
Feasibility Study on the Molyhil Tungsten-Molybdenum Project.

• Production estimates and concentrate specifications exceed initial Scoping Study,
confirming potential production of approximately 100,000 mtu of tungsten oxide per
annum and 1,000,000 lbs of Mo per annum.

• Project water supply confirmed.
Thor Mining (AIM & ASX: THR) today announced completion of the key metallurgical test work
phase of the Definitive Feasibility Study for its 100%-owned Molyhil Tungsten-
Molybdenum Project in the Northern Territory of Australia. The delivery of final concentrate
specifications from this test work program will enable it to progress negotiations for an off-
take agreement and financing package for the Project.
Thor is well advanced with the Definitive Feasibility Study, which is scheduled to be completed
by mid-November 2006. The Company intends to accelerate development of the Molyhil
Project with a view to commencing production during 2007.
The key metallurgical test work program carried out over the past 6 months has been
supervised by Thor and Proteus Engineering, with the involvement of metallurgical
consultants, Independent Metallurgical Laboratories Pty Ltd, Orway Mineral Consultants and
Nagrom & Co.
The metallurgical recoveries used in the Scoping Study for WO3 and MoS2 were based on pilot
plant test work conducted by Nagrom in early 2005. The definitive metallurgical results
received this week have improved the Scoping Study figures, as reflected in the table below:
Scoping Study
(Jan2006)
Definitive Feasibility Study
(Oct2006)
Concentrates
Recovery Concentrate
Grade Recovery
Concentrate
Grade
Concentrate
Production @
300,000 tpa
Tungsten
(WO2) 51% 68.6% 67.2% 69.3% 1,511 tonnes
Molybdenum
(MoS2) 78.1% 82.5% 77% 85% 905 tonnes

HIGHLIGHTS
Molyhil Upgraded Following Completion
of Metallurgical Testwork



This equates to planned production of approximately 100,000 mtu of tungsten oxide per
annum and 1,000,000 lbs of Mo per annum. Current prices for Tungsten Oxide
concentrates (min 65% WO3) are USD$220mtu and the price for Molybdenum concentrates
(min 57% Mo) is USD$26lb.
The most significant change arising from the metallurgical test work program is in the
recovery of Tungsten to the gravity circuit. The initial flowsheet used magnetic separation
prior to flotation and gravity recovery, however this procedure is now completed at the end of
the processing circuit on the finer Tungsten fractions, removing deleterious elements and
improving overall recovery. The concentrate grade specifications are within a marketable
range, and improvements in the molybdenum specifications were made with the removal of
between 2 and 4% copper in concentrates, with copper levels now within specification.
Recent results from investigative hydrogeological drilling has identified an adequate supply of
excellent quality water for the project, with six out of the eight locations successful in
identifying substantial aquifers.
The Molyhil Definitive Feasibility Study is progressing well with the processing plant,
infrastructure and mine development capital estimates due within a few weeks
Thor’s Chief Executive Officer, Mr John A. Young, said: “The completion of the metallurgical
test work program is an important step in the progress of our off-take agreement, with a
number of interested parties waiting for these final concentrate specifications. Marketing and
negotiations can now begin with the aim of securing both a buyer and a finance package that
will enable development of the Molyhil Project to be fast-tracked.”

Great signs.

Regards,
Snake13.