An updated estimate for Thor Mining"s Molyhil Tungsten-Molybdenum Project in the Northern Territory of Australia indicates a 98% increase in overall JORC-compliant reserve to 2.15 million tonnes.

The new Proven and Probable reserve is based on only the Measured and Indicated categories of the revised resource. Approximately 73% of these Measured and Indicated resource tonnages converted to reserve status

Open pit designs have now been completed in two stages. The initial pit has been designed for the first 3.7 years of operation to maximize cash flow with the subsequent pit design continuing for a further 1.9 years at current commodity prices.

The mining reserve contains 4.8 million pounds of molybdenum metal and 700,000 mtu's of tungsten which will be produced over the expected 5.6 year life of the open pit design.

Perth-based consulting engineering group, GR Engineering, has completed a review of the capital cost estimate for Molyhil. This included the previously announced proposed upgrade in the processing capacity of the plant to 400,000 tonnes per annum.

The estimated total capital cost for the Molyhil process plant, including an allowance for contingency, EPCM and owner operator costs is Aus$63.3 million. This includes a provision of Aus$13.7 million for owner operator plant and equipment, previously included in operating costs as lease or hire costs. This additional capital reduces forecast processing and mining operating costs from Aus$94 per tonne to Aus$78 per tonne, a significant saving over the projected mine life.

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