Thor Explorations (LSE:THX), the Nigeria-focused gold miner, said diamond drilling beneath its Segilola open pit has intersected further high-grade gold mineralisation that remains open at depth.
Standout results include 1.2 metres at 11.31 grammes per tonne of gold from 288 metres, and 2 metres at 9.27 g/t from 420 metres, extending a steeply dipping ore shoot to 400 metres below the pit.
"We are extremely pleased to report these drill results which demonstrate the continuation of high-grade mineralisation beneath the Segilola pit," said Segun Lawson, President and CEO.
The company is running four owner-operated rigs to test along-strike and down-plunge extensions as it works toward a decision on underground mining.
A 2018 preliminary economic assessment outlined an underground resource of 28,000 ounces at 9.4 g/t indicated, plus 90,000 ounces at 7.9 g/t inferred, since partly absorbed into the current open pit design.
Thor has engaged a mining consultancy to assess both underground potential and further open pit life extension, given what it described as record gold prices reshaping project economics.
The company aims to publish an updated resource estimate by the end of the year.
News Intelligence what this means for the company
Thor has intersected high-grade gold mineralisation beneath its operating Segilola pit that remains open at depth, with standout intercepts of 1.2 m at 11.31 g/t and 2 m at 9.27 g/t extending a steeply dipping ore shoot 400 metres below the pit floor. The company is now running four owner-operated rigs to test extensions and has engaged a mining consultancy to assess underground potential alongside further open pit life extension, with an updated resource estimate due by year-end—a move that could reshape the mine's economics given current gold prices and potentially extend production life beyond the current pit design.
The extension of high-grade mineralisation at depth shifts Segilola from a finite open pit asset toward a potential underground operation, which could materially extend mine life and offset depletion of the current pit. At current gold prices, underground economics may now justify development; the year-end resource update will be critical to quantifying that upside and informing the underground feasibility decision.
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