EXPLORATION & DEVELOPMENT

Pilot Mountain study shows potential

THE scoping study for Thor Mining’s Pilot Mountain tungsten project in Nevada has outlined a 12-year mine life.

Staff reporter
 Pilot Mountain could herald a return to US tungsten production

Pilot Mountain could herald a return to US tungsten production

The study was based on annual throughput of 650,000 tonnes per annum from the Desert Scheelite open pit to produce around 1000 tonnes of scheelite concentrate per annum, as well as copper-silver and zinc-silver concentrates.

Capital costs were estimated at US$30-35 million, while the base case payback period was estimated at 36 months.

The scoping study returned pre-tax profit expectations of $125 million, under a base case scenario, up to $317 million for an enhanced case that includes improved recoveries, higher throughput to lower costs, and the potential inclusion of the Garnet open pit.

The higher grade Garnet deposit was excluded from the study as it has only an inferred resource, but could add 120,000tpa of feed and reduce the payback period to less than 18 months.

There are four deposits in total at Pilot Mountain.

Thor executive chairman Mick Billing said he was delighted with the results of the study.

"Closed circuit metallurgical testwork on Desert Scheelite ore has commenced which will, hopefully, upgrade the results of open circuit work previously conducted, which achieved 72% recovery of scheelite and saleable quality concentrates," he said.

"The Pilot Mountain project hosts four known deposits, and it is anticipated that each of these has potential to contribute further as we continue to explore their potential."

Tungsten has been classified as a "critical mineral" in the US.

"With no US domestic production, and tungsten classified by the US Department of the Interior as a critical mineral, our objective is to restart Unites States commercial mining and tungsten concentrate production after a significant break," Billings said.

Adelaide-based Thor also owns the advanced Molyhil tungsten project in the Northern Territory, where a definitive feasibility study was released last month for a seven-year mine costing around $43 million.

Thor also holds South Australian copper and US lithium interests, as well as a royalty over the Spring Hill gold project.

The company's Australian stock, which trades as CHESS depositary interests, was up by 3.2% this afternoon to A3.2c. Thor last traded at 2p on London's AIM.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

editions

MiningNews.net Research Report 2024

Access a multi-pronged tool to identify critical risks and opportunities in Australia’s mining industry.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.