Canada-listed junior miner Thor Explorations (TSX-V: THX) published Friday first results from metallurgical test work at its Segilola project in Nigeria, poised to become the country's first large-scale gold mine.
The testing is part of the definitive feasibility study (DFS) for the project, located about 200km from the capital Lagos, and which is expected to come online in early 2020.
The project, poised to become Nigeria's first large-scale gold mine, is expected to come online in early 2020.Highlights of the results, which used a bulk sample of 500kg of core, showed 77.5% average gravity recovery rate, and 98.9% total recovery was confirmed at 106 um (micrometer) grind size and 24-hour cyanide leach
Average recovered head grade was 8.73 grams per tonne of the yellow metal, compared to estimated grade of 6.66 g/t gold.
"We are extremely encouraged by these results which have both confirmed our hypotheses and exceeded our expectations," the company's president and chief executive, Segun Lawson, said in the statement.
"The results confirm substantial gravity recovery is achievable and a significant opportunity exists for optimisation of the process plant, resulting in a reduced operating cost, increased total recovery and improved process efficiency. The results also return a 30% increase in the recovered grade compared to the estimated grade."
Probable gold reserves at Segilola, Thor's flagship project, are currently pegged at 448,000 ounces of gold grading 4.2 grams per tonne of gold within a global resource base of 862,000 ounces gold.
Shares in Thor Explorations stood at 22 Canadian cents on Friday afternoon. So far this year, they've climbed nearly 50%.