Bonya tungsten deposits adjacent to Molyhil ready to drill in NT

DRILLING at the Bonya tungsten deposits in Central Australia is to start after the Aboriginal Areas Protection Authority provided clearance for the work

Drilling at the Bonya tungsten deposits adjacent to Molyhil, in Central Australia, is set to start. Picture: Supplied

DRILLING at the Bonya tungsten deposits adjacent to Molyhil, in Central Australia, is set to start following advice from the Aboriginal Areas Protection Authority (AAPA) providing clearance for the planned drilling program.

Thor has advanced its 100 per cent owned Molyhil tungsten and molybdenum project to mine construction ready status and is in a commercialisation process to secure project level finance for the mine construction phase.

The Bonya project is held in joint venture with Arafura Resources Limited, with both parties contributing to the cost of the program in proportion to their project equity (THR 40 per cent: ARU 60 per cent).

• NT News offer: Subscribe for just $5 per month for the first 3 months

Drilling is now expected to start this month.

Thor Mining executive chairman Mick Billing said he was extremely pleased with the news the company could now start exploration activities on the Bonya tungsten deposits.

“The 13 outcropping tungsten deposits at Bonya, several of which have historical mine workings, have the potential to add considerably to the life, scale, and economic outcomes of the company’s flagship Molyhil project nearby,” he said.

Thor has appointed Argent Partners Limited as corporate advisers to assist with completion of offtake and financing arrangements for Molyhil.

Together with them, Thor is engaging with a number of parties who have expressed interest on four main fronts:

• Joint Venture

• Tungsten offtake, preferably with finance attached

• Molybdenum offtake, preferably with finance attached

• Standard project level debt arrangements.

Shareholders have been told the eventual outcome may be a mix of several of the above.

Thor said it and its corporate advisers are continuing to work hard to achieve the best possible outcome for the company and its shareholders.

Last week Thor announced the acquisition of two Australian private companies to expand its operational portfolio in anticipation of the crystallisation of value from Molyhil.