Thor Explorations Ltd (TSX-V:THX, AIM:THX, OTC:THXPF) has strategically increased its holdings in southeast Senegal by acquiring interests in two licenses, a move designed to bolster its Douta gold project. This project now reports over 1.7 million ounces of gold in global resources, marking a significant milestone for the company. Segun Lawson, Thor's president and CEO, emphasized the strategic value of these acquisitions, particularly the license adjacent to the company's existing resources, describing it as a low-cost entry point with substantial exploration potential.
The agreement for the Douta West license involves a total consideration of $120,000, with the original license holder receiving a free carry until the completion of a preliminary feasibility study (PFS). Post-PFS, the holder has the option to either fund their interest or dilute it. The Senegalese government maintains a 10% free carry, leaving Thor with an 80% interest in the project. Despite expectations of a delayed PFS due to comprehensive processing flow sheet work, Thor is not only progressing towards this study but also initiating exploration activities on the newly acquired licenses.
Anticipated drill results in the current quarter, along with extended drilling programs and the analysis of soil and termite samples, could potentially expand the total resource base. Meanwhile, in Nigeria, Thor continues its exploration efforts at the Segilola mine to extend the mine's life, while also reaffirming its production guidance for the year. Lawson highlighted the company's focus on reducing leverage, strengthening its balance sheet, and achieving a robust free cash flow position. The strategic emphasis for the year includes exploring satellite deposits and deeper drilling beneath the Segilola pit, with significant updates expected from its Senegalese and Nigerian projects in the near term.
This expansion and exploration strategy underscores Thor Explorations Ltd's commitment to growth and its ability to capitalize on valuable mineral resources in West Africa. For more information on Thor Explorations Ltd and its projects, visit https://www.thorexpl.com.
