Thor Mining tungsten mine to bring economic boost to NT

According to Mining News Pro - Thor Mining’s proposed Molyhil tungsten mine in the Northern Territory could deliver $100 million of net value and $500 million in revenue over its seven-year mine life, according to a definitive feasibility study (DFS).

The fly-in, fly-out (FIFO) project, 220km northeast of Alice Springs, lies about 30km west of 13 valuable tungsten outcrops at the Bonya tungsten deposits, which could also add to the overall value of the project.

The DFS figures refer only to the project’s known mining inventory. Mick Billing, executive chairman of Thor Mining, said the project had the capacity to expand into an underground operation.

“Strategically, the results of the enhanced DFS are based only on Molyhil’s known mining inventory and do not include the additional upside of either potentially going underground or mining Bonya,” he said.

“Molyhil will be a very low-cost tungsten producer on a global scale. The upgraded net present value in excess of $100 million demonstrates the substantial value this project holds for the company.”

The Molyhil mine is targeting first production by early 2020 at an overall cost of $69 million and production cost of $US90 ($123) per metric tonne. Project construction is expected to take 12 months.

Between 70–75 per cent of the project’s offtake is expected to go to US company Global Tungsten & Powders due to a non-binding memorandum of understanding between the two companies.