Thor Mining says gold project much bigger than thought

Shares in Thor Mining jumped 10% after the firm said recent drilling indicates that its Spring Hill gold project in Australia is considerably bigger than it originally estimated.

Economic mineralisation is potentially as much as 100 metres below historical resource drilling with good correlation between diamond drill holes and historical reverse circulation gold intersections in the upper levels.

MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Mick Billing, Executive Chairman of Thor Mining said: "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. More drilling is scheduled for 2012 along with studies to assess the potential for early commencement of mining operations."

The program, which was originally designed to be 10 holes, was shortened due to adverse drilling conditions and the early onset of the annual wet season which made continuation impractical. Consequently, six diamond holes were completed for a total of 1,574 metres.

Since August 2011 Thor has owned a 25% interest in Spring Hill, and holds the right to increase it to 80%.

The share price rose 10% to 0.1p by 1.10p by 11:19.

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.