AMN - NIGERIA: Studies confirm Segilola is robust

Thor Explorations has received positive results for an independent open pit definitive feasibility study (DFS) at the Segilola Gold Project in Nigeria. The DFS confirms that the project is robust.

A positive independent preliminary economic assessment (PEA), undertaken by Roscoe Postle Associates Inc, has also been received for a proposed supplemental underground project at Segilola.

The DFS project comprises an open pit mine and will include construction of a new 625,000 tonnes per annum processing plant. This would consist of a conventional crushing circuit, two-stage grinding, gravity, carbon-in-leach, elution, electrowinning and smelting to produce gold dore.

The DFS envisions a construction start date in the second quarter of 2019 and an 18-month construction period with an initial 5-year mine life.

The UG project considers an initial 3-year underground operation which can be brought on during the open pit mine life to supplement the open pit ore with high-grade underground production.

The deposit remains open below the resources considered in the UG project.

Thor's president and CEO Segun Lawson said: “We are excited to kick off the year with a robust definitive feasibility study of the Segilola Open Pit Project and the preliminary economic assessment of the Segilola Underground Project.

"Both these studies confirm the robustness of Segilola and the significant upside potential that exists.

"The DFS confirms that the initial Segilola Open Pit is a high margin gold project generating a robust post-tax IRR of 50% with an excellent 1.4-year payback and an NPV5% of $138 million with excellent leverage to gold price sensitivity.

"The Underground PEA demonstrates an initial view of the potential of the deposit, which remains open at depth, whilst already potentially providing an additional NPV5% of $35 million to the project.

"We are also pleased to announce that the company is in advanced discussions with project financiers and is proceeding with EPC turnkey documentation with its preferred EPC contractor Norinco International, who assisted the company in the development of the feasibility study, with a view to commencing construction at Segilola in Q2 2019.

"Exploration drilling on additional targets is ongoing and the company considers that strong potential exists to realise exploration upside as we continue to explore for potential satellite deposits.

"The Government of Nigeria is strongly promoting the growth of the mining industry and is offering a compelling fiscal incentive program to support companies in the development of the country’s mineral resource sector. The company is highly appreciative of the continued support provided to it by the Government of Nigeria,” he added.

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