Jinshan Gold Mines has begun its 2007 drilling campaign at the Chang Shan Hao (217) Gold Project in Inner Mongolia, China.

The 5000-metre drilling program, budgeted at US$800,000, is concentrated on the Southwest Zone, including 50-metre spaced in-fill drill holes designed to upgrade resources from the inferred category to the indicated category, and step-out drilling to test the south-west extension of the mineralized zone.

Three step-out holes drilled in 2005 at the Southwest Zone encountered significant intercepts of gold mineralization that expanded the zone to the west beyond previously determined boundaries. The host rock structure suggests that the mineralized zone may extend at least 600 metres further to the west where a secondary fold is interpreted.

The reverse circulation drilling program - which comprised a total of 25 holes drilled for 2586 metres - was designed to in-fill the up-dip extensions of new zones of hanging wall mineralisation discovered last year.

In addition, several deeper RC holes were completed to convert previously identified inferred resources to the indicated category.

Twenty one holes intersected good widths of black rock skarn, the host rock for the tungsten-molybdenum mineralisation at Molyhil. Significantly, a number of holes intersected mineralisation outside of the current open pit design, confirming the potential to increase the current resource/reserve base and, ultimately potentially extending the mine life of the proposed Molyhil operation.

Assay results from the drilling should be available in mid-to-late April 2007. Continental Resource Management has been engaged to commence work on an updated block and resource model incorporating the recent RC drill data. An updated resource estimate is expected to be completed by May 2007.

Thor CEO John Young, says: "I am confident that we have confirmed the potential for the hanging wall zone to deliver an overall increase in contained metal within the existing pit design. Once all the results are received, our next step will be to re-model and re-calculate the resource numbers."

Thor's development of Molyhil Tungsten-Molybdenum Project is being conducted in parallel with its Northern Territory uranium exploration programs, which are scheduled to start this month subject to final approvals from the Northern Territory Department of Mines and the Central Land Council.

Meanwhile, on community relations, a meeting was held on site at Molyhil on March 22 with the traditional owners of the area, in conjunction with the Central Land Council (CLC). Agreement was reached at the meeting regarding the proposed mining infrastructure plan for the site.

A tentative meeting is now scheduled for early this month with the CLC team to finalise the Native Title Mining Agreement.

Meanwhile, about 15 people from Hunan Nonferrousmetals Corp (HNG) were in Australia last week conducting a due diligence on the Molyhil Project as part of the memorandum of understanding signed between the two parties.

Hunan has until April 15 to complete due diligence and until April 30, to complete commercial negotiations. The commercial negotiations are currently scheduled to proceed in China in the last week of April.

As a result of this, the mandate with Penfold Marketing has now been extended from March 15 to April 30.