Thor Mining said that it is very confident its Molyhil tungsten and molybdenum project in Australia would be a profitable operation.

Addressing shareholders at its annual meeting, executive chairman Mr Mick Billing said previous estimates from the reverse circulation drilling program may have understated the grades, particularly those likely to be mined within the first two years of operations. He said that next steps at Molyhil will be to put in place financing and to seek product off take agreements. The process has already started and the firm is optimistic development will start during 2012.

Capital costs for Molyhil have been estimated at USD 66 million, while operating costs are expected to be USD 79 per tonne. A definite feasibility study is expected to be completed by the end of the year.

At the Spring Hill gold project, drilling is under way until the end of the year with further exploration planned in 2012 once the rainy season is over. Thor owns 25% of Spring Hill with an option to take that stake up to 80%.

Mr Billing said that "Potential exists for a much larger ore body at depth at Spring Hill using a Callie style model based on work done by the Northern Territories Geological Survey."

At Dundas, conditions are challenging, he added, but the firm is committed to continuing as Thor believes there is the potential for it host a significant gold ore body.

Mr Billing concluded that "The progress we have achieved this year gives the board confidence that there is plenty of opportunity for the coming year."

(Sourced from www.proactiveinvestors.com.au)