Thor encouraged by Spring Hill drilling

THE DRILL SERGEANT: Thor Mining has announced results from diamond drilling carried out at the company’s Spring Hill gold project in the Northern Territory.

The company said the drilling had demonstrated potentially economic mineralisation extending up to 100 metres below historical resource drilling.

The company also said it had achieved a good correlation between diamond drill holes and historical reverse circulation gold intersections in the upper levels.

 

Spring Hill cross section showing gold mineralisation in an un-drilled
portion of the resource outline and at depth. Source: Company
announcement

Notable intersections received include:

–    3.6 metres at 0.7 grams per tonne gold from 191 metres, including 0.6 metres at 3.9g/t from 194 metres;

–    3.4m at 9.7g/t gold from 24.6m, including 1.0m at 31.4g/t from 25m;

–    4.7m at 5.7g/t gold from 28.6 metres, including 0.7m at 36.2g/t from 30.8 metres and 5.0m at 2.1g/t gold from 106m, including 0.1m at 78.5g/t from 109.2m; and

–    20.0m at 1.6g/t gold from 100m, including 3.1m at 5.1g/t from 115m.
 
Thor’s 2011 diamond drilling program was designed to confirm, in drill core, mineralisation that had been intersected at relatively shallow depths and contained within the historical resource estimate outline.

It was also undertaken in order to demonstrate the existence of extensions to greater depths.

“These results provide confidence in the potential for early development of an open pit gold mining operation at Spring Hill, and also reinforces our belief that the resource may be substantially larger than initially estimated,” Thor Mining chairman Mick Billing said in the company’s announcement to the Australian Securities Exchange.

“More drilling is scheduled for 2012 along with studies to assess the potential for early commencement of mining operations.”

Thor’s 2011 drilling program was originally designed to be 10 holes but had to be shortened due to a combination of adverse drilling conditions and the early onset of the annual wet season.

Six diamond holes were completed for a total of 1,574m.

The results showed a good correlation with historical reverse circulation drilling intersections, which Thor said had increased its confidence in the historical resource estimate and Spring Hill’s potential for early development as a profitable mining operation without resource extension.

The company said additional intersections of mineralisation achieved below the historical estimated resource confirm the potential it had previously identified for extension of the resource at depth.