Thor Nearing Construction Start at Segilola in Nigeria

A map shows the footprint for the Segilola open-pit gold mine.
Thor Explorations is planning to begin construction of its Segilola open-pit gold mine in southwest Nigeria in the second quarter of 2019. Positive results from an independent definitive feasibility study describe a project producing 80,000 ounces per year (oz/y) of gold over a five year mine life. Thor has also reported the results of an independent preliminary economic assessment (PEA) of a proposed supplemental underground project at Segilola that could add 33,000 oz/y to Segilola production over a period of three years. The resource remains open at depth.

The open-pit project includes construction of a 625,000-metric-ton-peryear (mt/y) processing plant, with a flowsheet that includes a conventional crushing circuit, two-stage grinding, gravity, carbon-in-leach, elution, electrowinning, and smelting to produce gold doré. Gravity recoveries will account for more than 40% of total recovery. Preproduction capital expenditures to develop the project are estimated at $87 million, with an after-tax payback period of 1.4 years. Life-of-mine all-in sustaining costs are estimated at $662/oz.

The initial open-pit development is based on a probable mineral reserve of 3 million mt, grading 4.2 g/mt gold and containing 405,000 oz of gold at a 0.77 g/mt cut-off. Indicated resources stand at 469,000 oz, grading 4.7 g/mt, and inferred resources stand at 163,000 oz, grading 7.8 g/mt. The company intends to engage an experienced mining contractor for the drill, blast, load and haul operations. The project has all of its required mining and environmental licenses.

“We are pleased to announce that the company is in advanced discussions with project financiers and is proceeding with EPC turn-key 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 Q2 2019,” Thor Explorations President & CEO Segun Lawson said. “Exploration drilling on additional targets within the exploration license is ongoing, and the company considers that strong potential exists to realize exploration upside as we continue to explore for potential satellite deposits.”

As featured in Womp 2019 Vol 03 -