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Thor Explorations shares definitive feasibility study results for Segilola Gold Project

Published by , Assistant Editor
Global Mining Review,

Thor Explorations Ltd. (Thor) has announced positive results for its Independent Open Pit Definitive Feasibility Study (DFS) at its 100% owned Segilola Gold Project (the DFS Project) in Nigeria. Thor has also completed an Independent Preliminary Economic Assessment (PEA), undertaken by Roscoe Postle Associates Inc., for a proposed supplmental Underground Project (the UG Project) at Segilola.

The DFS project comprises an opencast mine and will include the construction of a new 625 000 tpy processing plant, which 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 2Q19 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 opencast 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.

The DFS Project description conforms with the project’s existing 25 year Mining License “ML41” (renewed in September 2016) and approved Environmental Impact Assessment (EIA).

DFS and PEA highlights

Base Case is stated at a gold price of US$1300.

PEA results are stated on an accretive to DFS basis unless otherwise stated.

Segun Lawson, President & CEO, commented: “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 Feasibility Study 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 US$138 million with excellent leverage to gold price sensitivity. The Underground Preliminary Economic Assessment demonstrates an initial view of the potential of the deposit which remains open at depth whilst already potentially providing an additional NPV5% of US$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 2Q19.


Exploration drilling on additional targets within the exploration license 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 programme 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.”

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