I went to the Proactive Investors presentation last night. I’ll...

I went to the Proactive Investors presentation last night. I’ll share some information, in turn I hope that anyone who attends future events outside of Sydney will report on them.

Firstly, I hope I can put any doubts that some have had on here about Mick’s commitment to Thor to rest. I was lucky enough to have a chat with Mick after the presentation last night - he comes across as a straight shooter who is dedicated to the success of Thor. He has more invested in this company than most would on here (he holds 10m shares) and it’s in his best interest to make Thor a success with as little dilution as possible.

Molyhil

Mick has met with Japanese and Chinese companies (including CITIC) to discuss off-takes and possible financing for Molyhil. The companies he has met with are in possession of the DFS and are doing their due diligence at this time. It is expected that it will take them a few months to complete this. Discussions continue with these parties, and discussions with other parties for off-take and financing are scheduled.

Pit Optimization – In previous announcements “pit optimization” was stated as a possible means to extract better financial results from the project. What this means is that the figures in the DFS were based on a pit wall angle of 48 degrees, the mining engineers are currently calculating how much they can increase this angle, which could have a significant impact on reserve, mine life and NPV. Mick wasn’t willing to speculate on how much these results could affect the financials of Molyhil, but I will make the point that it was stated in the DFS announcement that “a relatively modest 7% improvement in economic factors have the potential to increase the reserve and mining life by over 50%”, and in his presentation he did use the word “large” when describing the possible affect. This is currently with the mining engineers, after the delays from them in the past, Mick was unwilling to estimate when the results of this will be released.
Mick commented on the conservative pricing used in the DFS. He stated that low prices were used in case anything went wrong with the project, if everything was to go smoothly or better than expected, financial results would be much better than stated in the DFS. He also mentioned that Roskill are expecting Tungsten prices to rise by 6% per annum for the next 4-5 years.
Thor’s current efforts at Molyhil are focused on off-takes and financing, no further drilling is planned until after off-takes and financing for the project. Mick is confident in the strength of the project in terms of reaching these agreements, and in the potential to greatly increase the resource within the tenements. Many other prospective areas within the tenements have been identified.


Spring Hill

Drilling for the deep Callie model is underway and they were at 300m depth as of yesterday.

All results will be sent to the nearby Pine Creek labs for testing throughout the drilling campaign.

Pine Creek labs are known for a fast turnaround of results.

The drilling program is expected to be completed around September.

Processes of gaining Traditional Owner, Environmental Clearance etc. will proceed after the drilling campaign.

Spring Hill is expected to be a low cost mine. Some of the largest cost factors in mining are caused by distance from power and transport. Spring Hill is less than 1km from the Darwin railway line and is close to the power grid. Accommodation for workers would also be inside the nearby town, which means the costs of building and maintaining a mining camp would be additional cost savings.

An alternative option to investing in an on-site plant has been considered. Crocodile Gold has a suitable plant 20km from Spring Hill that is only being run at 60% capacity. However, Mick believes the terms for using their plant would be expensive, and believes if we have good drilling results at Spring Hill an investment in our own plant is most likely.


Capital Raising

Capital raising will take place before the end of the year (as expected).

It will not occur in the near future.

Obviously Mick couldn’t give any more accurate information regarding this.


Conclusion

Mick and the rest of the Thor team have over 150 years mining experience between them. Speaking to Mick it is easy to see that he is very knowledgeable, as I assume the rest of his team are.
I am very confident that they will be able to take Thor to the next level.

Good luck everyone