Positive DFS for NT tungsten and molybdenum proposal
Thor Mining delivered a positive Definitive Feasibility Study for the Molyhil tungsten and molybdenum project, located 220km north-east of Alice Springs.
The study identified that Molyhil will deliver attractive financial returns as well as the early payback of the capital required for its development, with the possibility of an extended mine life also being identified.
DFS out comes calculated on a 4 year ore reserve indicate a production cost of $125/mtu with revenue of $354/mtu.
Molyhil currently hosts an Ore Reserve of 1.64 million tonnes at 0.42% tungsten and 0.13% molybdenum, and importantly the tungsten grade in the reserve is 50% above resource estimate grade.
Substantial upside potential on this Ore Reserve was identified on optimisation of pit design parameters to extend the mine life.
These may include extending the open cut operation and/or underground mining to extract more of the 65% of the resource, laterally and at depth, which is not included in the ore reserve.
There may also be the ability to for additional production exploration targets, including some recently identified within several kilometres of Molyhil.
Finally, if the large magnetic target below the known Molyhil resource can be proven to contain economic mineralisation, then this could open up the door for a sustained longer term underground mining operation.
With the completion of the study, Thor will look to secure offtake agreements and finance for Molyhil before going to tender for design, construct and EPCM work.