LONDON (ShareCast) - (ShareCast News) - Australia's Thor Mining plans to drill near its Molyhil mine in the Northern Territory, which could lead to tungsten mineralisation, in one of many new projects for the AIM-listed company.
The company plans to drill adjacent to the Molyhil mine in the Northern Territory in Australia to test for tungsten at a cost of about $48,m. About $10m will be used for equipment, which equipment or leasing finance could be secured. This will reduce the cost to below $40m.

The company said there are ongoing discussions to secure finance and for balance of concentrate production off-take for the Molyhil project.

Executive chairman Mick Billing said: "Scheduling a drilling program to test magnetic anomalies very close to Molyhil may, if successful, eventually lead to the delineation of additions to the Molyhil mining inventory.

"The objective is to extend the operating life of the project, but also to provide the opportunity to reduce operating costs via increased production.

"The initial drill programme is designed to, at a modest cost, drill just below the alluvial cover, into bedrock and test material for tungsten mineralisation. If successful, further deeper drilling into that mineralisation will be required."

Seasonal factory shutdowns, in the northern hemisphere this summer resulted in commodity prices losing part of their recent gains, as demand contracted temporarily. Industry commentators predicted that price will strengthen, particularly for tungsten, in the medium term.

The company's other tungsten mine in Pilot Mountain in Nevada, US, is pending funds for exploration. Planning began for the exploration phase on deposits with previous multiple mineralised intersections.

The Dundas gold mine project in Western Australia had exploration targets identified but other projects which were prioritised prevented progress in exploration activities.

Thor Mining, during the first quarter ended 30 June, also raised £300,000 from investors.

Shares in Thor Mining were up 8.99% to 0.0327% at 1449 BST.

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