Thor Explorations (TSXV: THX; AIM: THX) has expanded its footprint in Senegal with the acquisition of two licences near its resource-stage Douta gold project.
The first is a majority interest in the Douta-West licence next to the company’s Douta project, which it is currently advancing towards the preliminary feasibility stage. The licensed area covers 93 sq. km and hosts several historic gold-in-soil anomalies that extend from the Makosa Tail prospect at Douta and that also run parallel to the Makosa trend between Makosa and Endeavour Mining‘s (TSX: EDV) Masawa gold mine.
Thor will pay US$120,000 for an initial 70% interest, potentially rising to 85% later on. Its previous owner Birima Gold will have a free-carry interest until the completion of a preliminary feasibility study.
The second is an 80% interest in the 56.5-sq.-km Sofita licence roughly 20 km south of Douta. Thor can earn its stake by spending US$300,000 over two years and paying the seller US$20,000.
Together, these areas cover nearly 150 km2 of land in southern Senegal.
As required by law, the Senegalese government retains a 10% interest in both licences.
“We are pleased to acquire additional, strategically located, ground in Senegal where we have been successfully operating and advancing the Douta gold project for a number of years,” Segun Lawson, CEO of Thor Exploration, said in a release.
“The acquisition of the Douta-West permit, which has a number of geochemical targets, allows us to potentially add scale to the Douta gold project, in particular, extensions to Makosa Tail.”
Douta, which is majority-owned by Thor, hosts 20.2 million tonnes of indicated resources grading 1.3 grams gold per tonne for 874,900 oz. contained gold, and 24.1 million tonnes of inferred resources grading 1.2 grams gold for 909,400 oz. of gold.
The updated Douta resource includes the Makosa, Makosa Tail and the Sambara prospects, all of which remain open along strike and down-dip after 64,567 metres of drilling, the company said in the mineral resource update last March. The mineralization remains open along strike between the prospects with growth potential along 20 km of prospective strike length.
Its partner on Douta, International Mining Co., has a 30% free-carried interest in the project until Thor declares a probable reserve. At that point, International Mining must either sell its interest to Thor or fund its pro-rata share of exploration and operating expenses.
Thor has a market cap of $150 million with shares trading between 17¢ and 40¢ in the past 12 months.
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