Thor Explorations marks significant achievement with first gold pour at Segilola mine

Thor Explorations Ltd reported that it has poured first gold from its Segilola mine in Nigeria this morning (July 30).  "The first gold pour at Segilola, our first mine and the first commercial gold mine in Nigeria, is a significant achievement for the company," CEO Segun Lawson told investors in a brief statement.  Commercial output is slated for September this year and the ramp-up of the process plant will continue over the next six weeks. At that stage, the plant will run at a processing rate of 715,000 tonnes per year, targeting around 85,000 ounces of gold a year. READ: Thor Explorations expects first gold pour from Segilola mine before end of July Thor Explorations CEO Lawson added: "This mine has been built in line with the budget and largely on schedule through a global pandemic. The Segilola mine is a high-grade, open-pit mine that has a projected Life-of-Mine All-In-Sustaining-Cost of $685 per ounce providing strong cash flows over the life of mine. "I want to take this opportunity to once again commend our team's commitment and hard work in achieving this milestone, especially given COVID-19 related restrictions. We look forward to hosting an on-site inauguration ceremony of Nigeria's first commercial gold mine with state and federal authorities in the coming months." Segilola in Osun state has a 25-year mining license and the NI-43 101 open pit probable reserve stands at 405,000 ounces of gold at a grade of 4.2 grams per ton (g/t). The higher confidence indicated resource is 469,000 ounces at 4.7 g/t of gold. Capital expenditure for the mine was put at just US$87.5 million and based on a gold price of US$1,300 per ounce, the post-tax net present value (NPV) comes in at US$138 million with an impressive 50% internal rate of return (IRR) and a payback in under 1.4 years. Contact the author at giles@proactiveinvestors.com