Thor Explorations Ltd (LON: THX) produced 20,629 ounces of gold from the Segilola mine in Nigeria during the first quarter 2023. A new high grade quartz vein system has been identified.
The production was 5% below planned levels and lower than the first quarter of 2022 because of large boulders in the area mined. The mining has nearly finished in the lower grade area.
There will be additional drilling at the Segilola mine to increase the resources level. This will indicate the potential for a move to underground mining.
Nigeria is an underexploited gold mining region and there should be further opportunities on existing licences, as well as additional ones. Debt has been reduced from $28.4m to $27.9m by the end of March 2023.
There was a recent update to the mineral resource estimate in the Douta project that increased the figure by 144% to 1.78 million ounces of gold. This includes the recently discovered Sambara prospects. A further 40,000 metres of drilling is set to be completed by the end of the year. The preliminary feasibility study for Douta should be completed in the fourth quarter.
Full year production guidance for the Segilola mine is between 85,000 and 95,000 ounces of gold. Last year’s figure was 98,006 ounces of gold. The grades are set to improve later in the year after investment in additional production drilling rigs.
The share price improved 0.25p to 19.5p. This is the highest level it has reached for nearly one year. When Thor Explorations was introduced to AIM in June 2021, the introduction price was 22p – it also has a quotation on the Toronto Venture Exchange.
