THR Thor Energy Plc

30 April 2024

Thor Energy PLC

("Thor" or the "Company")

Quarterly Activities and Cash Flow Report

January to March 2024

Nicole Galloway Warland, Managing Director, Thor Energy Plc, commented:

"High-grade uranium and vanadium assay results continue to drive Thor's resource drilling at our Groundhog, Rim Rock prospects within the Wedding Bell Project. We were particularly pleased to confirm high-grade uranium up to 0.63% and vanadium up to 3.0% at Groundhog, during the period.

"Uranium spot price remains at its high levels, with continued long-term demand and persistent threats to near-term supply. These positive fundamentals are supported by US producers reviving their deposits, including the reopening of Energy Fuels La Sal Operation in the Uravan Mineral Belt. Given the close proximity to Thor's assets, it validates the Company's continued optimism in its green energy metals portfolio. 

"We are also progressing well with our copper projects in Australia. We recently conducted 3D ANT modelling at our Alford East Project, which provided significant lithological and structural insights. Our exciting new 3D model now indicates key observations such as that the highest-grade copper oxide mineralisation is commonly found in metasediments (pelitic and carbonaceous sediments) and intermediate intrusives. This has allowed us to refine our targeting strategy and focus on the areas with potential high-grade REE and oxide copper-gold mineralisation. 

"We are delighted that IVR has completed their Stage 1 Earn-in Commitment by funding A$1m on exploration activities at the Molyhil Project and look forward to working with them as we move to the next joint venture phase.

"Looking ahead, we are preparing for resource drilling at our uranium and vanadium assets in our US portfolio, pump testing for ISR assessment in our Alford Copper Belt portfolio, with ECL continuing copper-gold recoveries from SELT at Kapunda.

"The Company continues its primary focus on the uranium potential at Wedding Bell, Radium Mountain and Vanadium King, as well as always continuing to identify new opportunities to add to the Thor portfolio."

Photo 1: Visible uranium in drill chips

URANIUM AND VANADIUM PROJECTS (USA)

Wedding Bell and Radium Mountain Project, Colorado:

The recently completed RC drill program at Wedding Bell Project comprised 23 shallow drillholes, totalling 2,737m. It was designed to target uranium and vanadium mineralisation within the Salt Wash Sandstone Member (sandstone/mudstone) of the Morrison Formation (Figure 2). This is the primary lithology for historic uranium and vanadium production in the prolific Uravan Mineral Belt.

The program successfully identified shallow (maximum depth is 125m at Section 23 and above 100m at Rim Rock and Groundhog), uranium and vanadium mineralisation in all holes; drilled at Section 23, Rim Rock Mine and Groundhog Mine (Figure 2, Table A). Uranium mineralisation is hosted within reduced sandstones close to the oxidation/reduction contact (redox front) within the Salt Wash Sandstone (Figure 3 and Photo 2) of the Jurassic Morrison Formation (Figure 2 and Figure 5). The Salt Wash Sandstone comprises four distinct massive, laterally continuous, ledge-forming sandstone layers (locally called "rims"), interbedded by thin siltstone and clay layers. This is the primary lithology for historic uranium and vanadium production in the Uravan Mineral Belt. 

Significant uranium and vanadium assay results include (ASX/AIM: 29 February 2024):

23WBR020:                         4.9m @ 1199ppm (0.12%) U₃O₈ and 6306ppm (0.63%) V₂O₅ from 82m,

Including,            0.6m @ 6250ppm (0.63%) U₃O₈ and 30348ppm (3.0%) V₂O₅ from 82.6m

Including,            1.8m @ 2999ppm (0.3%) U₃O₈ and 14912ppm (1.5%) V2O5 from 82m.

23WBR011:                         6.1m @ 563ppm (0.06%) U₃O₈ and 9100ppm (0.9%) V₂O₅ from 74.7m

Including,            1.5m @ 1624ppm (0.16%) U₃O₈ and 19637ppm (2.0%) V₂O₅ from 76.2m.

23WBR016:                         3m @ 636ppm (0.06%) U₃O₈ and 4677ppm (0.5%) V₂O₅ from 67.0m

Including,            1.5m @ 1044ppm (0.1%) U₃O₈ and 4677ppm (0.5%) V₂O₅ from 67.0m.

23WBR019:                         1.2m @ 1112ppm (0.11%) U₃O₈ and 3744ppm (0.4%) V₂O₅ from 90.8m,

The vanadium mineralisation forms extensive broader zones or haloes, adjacent to the uranium mineralisation. The vanadium-to-uranium ratio averages roughly 10:1, which is typical of the Uravan Mineral Belt. The exploration focus is on defining high-grade uranium mineralisation, with vanadium as a secondary endowment.

Copper (Cu), base metals (Pb, Zn), Molybdenum (Mo) and Selenium (Se) are path-finder elements associated with the uranium and vanadium mineralisation and can be used to determine the direction of the roll front of the uranium mineralising system (Figure 3, Figure 4, and Photo 2). Copper values up to 0.82% Cu and silver up to 55ppm Ag, were reported.

Chemical assays reported:

23WBRA015:  0.61m @ 190ppm U₃O₈, 3963ppm V₂O₅, 55.2g/t Ag and 8260ppm Cu from 58.83m

Groundhog Mine area drilling, comprising seven drillholes was designed to test areas along strike of historic mine workings predominately in the second and third sandstone rim (above 100m depth). 23WBRA020 returned the highest uranium and vanadium intercepts of 0.91m @ 0.69% eU₃O₈ uranium (downhole gamma) and 0.6m @ 0.62% U₃O₈ uranium (assay) and 1.8% V₂O₅ vanadium within a grey reduced sandstone (Figure 2 and 6). Further work is required to correlate these results with historic mine working levels and the 2022 drilling.

Chemical assays reported:

23WBR020:                         4.9m @ 1199ppm (0.12%) U₃O₈ and 6306ppm (0.63%) V₂O₅ from 82m,

Including,            0.6m @ 6250ppm (0.63%) U₃O₈ and 30348ppm (3.0%) V₂O₅ from 82.6m

Including,            1.8m @ 2999ppm (0.3%) U₃O₈ and 14912ppm (1.5%) V₂O₅ from 82m

Drilling at Rim Rock Mine area (seven drillholes) has identified high-grade zones of up to 0.32% eU₃O₈ uranium and up to 1.8% V₂O₅ vanadium adjacent to, as well as along strike from the historic workings (Figure 3 and 7). Uranium and vanadium mineralisation appears to be concentrated in the third sandstone rim of the Salt Wash Sandstone, approximately 60m below surface. Further work is required to correlate these results with historic mine workings and the 2022 drilling, to delineate mineral resources.

Chemical assays reported:

23WBR011:                         6.1m @ 563ppm (0.06%) U₃O₈ and 9100ppm (0.9%) V₂O₅ from 74.7m,

Including,            1.5m @ 1624ppm (0.16%) U₃O₈ and 19637ppm (2.0%) V₂O₅ from 76.2m

Section 23 is an underexplored area with no historic workings. The drilling (nine drillholes) was designed to test stratigraphic extensions to mineralisation in the Salt Wash Sandstone, targeting the uranium mineralisation identified from the first pass drilling program in 2022, as well as testing a portion of the airborne radiometric anomalies (Figure 8). The initial data review of the drilling has identified uranium mineralisation in all four sandstone rims within the Salt Wash Sandstone Member, increasing the potential for multiple mineralised zones in this area. Pathfinder geochemistry in 23WBRA009 and 23WBRA005 indicates roll front fluid pathway, which indicates uranium mineralisation potential to the southwest.

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Table 1: Uranium Intercepts above 100ppm U₃O₈

(ASX/AIM: 29 February 2024)

Next Steps:

§ Detailed mineralisation and geological interpretations are underway combining the 2022 and 2023 drilling results.

§ Preparation for 2024 resource - infill and extension - drilling at Rim Rock and Groundhog mine areas, plus continuing brownfield exploration drilling across tenure.

COPPER - REE PROJECTS (SA)

Thor holds direct and indirect interest in over 400,000 tonnes of Inferred copper resources in South Australia, via its 80% farm-in interest in Alford East copper-gold Project and its 26.3% equity interest in EnviroCopper Ltd in Kapunda and Alford West (Figure 9).

Each of these projects is considered by the Thor directors to have significant growth potential, and each is being advanced towards development via low-cost, environmentally friendly ISR techniques.

Figure 9: Location Map -Copper Projects (left) and Tenement Map (right) with Thor's Alford East Project

Alford East Copper-Gold Project

Next Steps:

§ Drill preparations (based on drill targeting from ANT and structural modelling)

§ Pump testing and preparations for push/pull connectivity testing, followed by Site Environmental Lixiviant Trial

3D Structural and ANT Model:

After the acquisition of ANT data by Fleet across the northern part of the Alford East Project in 2023 (Figure 10), Thor engaged with the consultant, Doreen Mikitiuk, DXplorer to review and update the current Alford East structural model and geological interpretation of the survey areas.

In preparation for the new structural interpretation, historical logging codes were simplified and grouped using information acquired from reports, core photos and Hylogger data. Lithology groups were based on the lithogeochemical assessment of multi-element assays of the 2021 diamond core drillholes and reassay of selected historic core, which was completed in 2023.

The 3D ANT survey provided a clearer understanding of the structural setting of the Alford East area (Figure 11). With improved knowledge of geology and weathering through the review of lithological information, the ANT results mapped localising faults and intrusives at depth. Deeply weathered troughs in areas of sedimentary rocks were found to be associated with zones of faulting, deep oxidation and intrusives at depth.

With the newly gained understanding of the geological and structural setting, targeting criteria for primary copper and oxide mineralisation were developed providing excellent opportunities for the discovery of new copper and REE mineralisation, which may have been missed by previous explorers.

Key observations from the 3D Modelling include:

1)    The highest-grade copper oxide mineralisation is commonly hosted in pelitic and carbonaceous sediments and intermediate intrusives, within faults facilitating deeper weathering and alteration. For example, MRE Domain Area 6, 7 and 8 (Figure 11, 12 and 13)

2)      Mineralisation in Area 5 is predominantly adjacent to fault zones within dioritic and/or felsic intrusives and pelitic sediments. Host rocks are more competent and brittle and may have concentrated oxide mineralisation to brecciated zones along faults/shears. Lower grade copper intersected towards the base of drillholes is found within shears in more competent diorite.

3)         Psammites seem to be less favourable host rocks for copper oxide mineralisation.

4)      The ANT surveys confirm the significance of the prominent north-northeast (NNE) structure associated with copper oxide mineralisation (Figure 12 and 13).

5)     Mineralised features are subsequently offset by regional scale east-northeast (ENE) dextral strike slip faults and associated northwest (NW) trending faults.

6)        Zones of low velocity at shallow depths (approx. 70m) correlate with pelitic sediments in trough-like structures which are closely related to higher velocity intrusives at depth (Figure 14 and 15). These higher velocities suggest intermediate, rather than felsic composition.

ANT Geophysics Surveys:

Two comprehensive ANT surveys were executed at the Alford East Project, covering the northern portion of the Mineral Resource Estimate Domains (Figure 9). The surveys were designed to delineate the low-velocity, weathered 'troughs' that are known to host the oxide copper-gold and REE mineralisation within the Alford Copper Belt (Figure 10). The oxide copper-gold and REE mineralisation within the Alford Copper Belt is associated with rocks that are significantly less dense with lower seismic velocity than the surrounding fresh units.

The data collected from these two surveys was subject to extensive processing, leading to the development of a high-resolution 3D seismic velocity model of the subsurface. This model has revealed key features, such as regions with lower velocity within a high-velocity basement, inferring a 3D geometry of the interpreted variably weathered trough and a sheared metasedimentary basement, which is expected to host mineralisation (Figure 11).

Figure 14: Cross Section through MRE Domain AE8 highlighting the ANT-defined trough of increased weathering and oxidation hosting copper mineralisation

Figure 15: Cross Section through MRE Domain AE8 highlighting controlling NNE fault and the associated weathered trough hosting oxide copper-REE mineralisation

Background:

The Alford East Copper-Gold Project is located on EL6529, where Thor has 80% interest with unlisted Australian explorer Spencer Metals Pty Ltd, covering portions EL6529 (ASX/AIM: 20 November 2020).

The Project covers the northern extension of the Alford Copper Belt, located on the Yorke Peninsula, SA (Figure 9). The Alford Copper Belt is a semi-coherent zone of copper-gold oxide mineralisation, within a structurally controlled, north-south corridor consisting of deeply kaolinised and oxidised troughs within metamorphic units on the edge of the Tickera Granite, Gawler Craton, SA.

Utilising historic drill hole information, Thor completed an inferred Mineral Resource Estimate (MRE) by JORC (2012) classification as at 22 January 2021 (Figure 10), reporting for oxide material only, at a cut-off grade of 0.05% Copper which is consistent with the assumed ISR technique, (ASX/AIM: 27 January 2021), consisting of:

§ 125.6Mt @ 0.14% Cu containing 177,000t of contained copper

§ 71, 500oz of contained gold

Maiden Mineral Resources Estimate Release: (27 January 2021)

KAPUNDA and ALFORD WEST COPPER PROJECTS (Figure 9)

Thor holds a 26.3% equity interest in the private Australian company, EnviroCopper Limited. In turn, ECL has agreed to earn, in two stages, up to 75% of the rights over metals which may be recovered via ISR contained in the Kapunda deposit from Australian listed company, Terramin Australia Limited ("Terramin" ASX: "TZN"), and rights to 75% of the Alford West copper project comprising the northern portion of exploration licence EL5984 held by Andromeda Metals Limited (ASX: ADN).

Information about EnviroCopper Limited and its projects can be found on the EnviroCopper website:

Strategic Investment

Alligator Energy Limited ("Alligator") in January 2024 completed its initial strategic investment into EnviroCopper Ltd to further develop ISR copper projects. 

Investment Highlights (AIM/ASX: 25 January 2024):

§ Alligator completed an initial investment of A$0.9m for 7.8% of ECL, with the exclusive option to make further staged strategic investments to increase its ownership in ECL to 50.1%

§ ECL is currently advancing ISR trials for environmentally sustainable copper extraction at its flagship Kapunda copper project and has similar plans at its Alford West copper project to help meet copper demand for the green energy transition (Figure 9)

§ BHP Ltd (previously OZ Minerals) continues to fund part of ECL's field investigations, including a Site Environmental Lixiviant Trial ("SELT") of Copper ISR at Kapunda (AIM/ASX: 9 August 2022) 

§ ISR has been successfully (and economically) used to extract copper in several projects both in Australia and the US. It offers distinct economic advantages and environmental benefits over conventional open pit/crush/heap leach for shallow oxide copper projects.

§ A technical advisory committee formed, enabling Alligator to assist ECL with its planned In-Situ trial work across all projects and an ability to jointly apply any intellectual property ("IP") that is developed.    

Based on Alligator initial investment of A$0.9m for 7.8% interest in ECL, this values Thor's 26.3% equity interest at A$3.1m

Kapunda

The first phase of the Site Environmental Lixiviant Trial ("SELT") is underway, involving mixing a biodegradable solution called a "Lixiviant" with groundwater for placement within the copper orebody.  The lixiviant will reside in-situ for a period while being sampled and monitored (Photo 3), it will then be extracted, and the site rehabilitated.

The results are expected to be announced in Q2 2024.

Photo 3: ECL Managing Director, Leon Faulkner with copper sample from current test work at Kapunda

GOLD/COPPER PROJECT

Ragged Range Project (WA)

The Ragged Range Project, located in the prospective Eastern Pilbara Craton, Western Australia is 100% owned by Thor - E46/1190, E46/1262, E46/1355, E46/1340 and E46/1393 (Figure 16).

Since the acquisition, Thor has conducted several programs of stream sediment and soil sampling to delineate drill targets. Thor has also flown an airborne magnetics survey over the tenement area to better define the structural features of the area.

As Thor focuses on its Uranium and Energy Metal projects, a divestment or joint venture partner is being sought for the Ragged Range Project. This project has potential for gold, copper-gold, lithium, and nickel. With the change in focus of Thor Energy towards critical minerals in the energy and green economy, this group of tenements is no longer considered core in Thor's exploration portfolio.

TUNGSTEN PROJECT

MOLYHIL TUNGSTEN - MOLYBDENUM-COPPER PROJECT - NT (100% Thor)

Post the end of the Quarter,  Fram completed the "Stage 1 Commitment" obligations by funding A$1m of exploration activities ((ASX/AIM: 24 April 2024) (geophysics and drilling - results pending)), as per the HoA (ASX/AIM: 24 November 2022).

Under the HoA, Fram is now entitled to a 25% interest in the Tenements (25% Fram and 75% Molyhil) and 40% in the Bonya tenement (EL29107). By electing to transfer a 25% interest in the Tenements, a Joint Venture ("JV") will become effective.

IVR as per the HoA is to issue Thor A$250,000 worth of IVR shares upon formalising Fram's 25% JV interest.

Fram can opt to continue to earn up to 80% interest in the Tenements via a three-stage process.

As part of the exploration funding, Fram completed a 13-hole diamond drilling program at Molyhil Project to verify and update the Mineral Resource Estimate ("MRE"). A gravity survey was also conducted, with results from the exploration activities and revised MRE anticipated in May 2024.

Bonya JV- Jervois Vanadium Projects (40% Thor)

The Bonya copper, tungsten and vanadium deposits are located approximately 30km to the northeast of Molyhil (Figure 18). Thor, in a joint venture with Arafura, holds a 40% equity interest in the resources. Thor's interest in the Bonya tenement EL29701 (copper and tungsten deposit) is planned to be divested as part of the Farm-in and Funding agreement with Investigator Resources Limited.

Figure 18: Molyhil Project location showing adjacent Bonya tenements.

CORPORATE, FINANCE, AND CASH MOVEMENTS

For the Quarter, the Company had total net cash outflows of $479,000, comprising:

§ Net cash outflows from Operating and Investing activities for the quarter of $479,000 which included outflows of $193,000 directly related to exploration activities.

§ Cash outflows from financing activities for the quarter were $12,000, related to lease payments. This was offset by the effect of currency exchange rate movements on cash held in British pounds.

§ Providing an ending cash balance of $499,000.

Cashflows for the Quarter include payments of $88,000 to Directors, comprising the Managing Director's salary, and Non-Executive Directors' fees. 

The Board of Thor Energy PLC has approved this announcement and authorised its release.

For further information, please contact:

Competent Person's Report

The information in this report that relates to exploration results is based on information compiled by Nicole Galloway Warland, who holds a BSc Applied geology (HONS) and who is a Member of The Australian Institute of Geoscientists. Ms Galloway Warland is an employee of Thor Energy PLC. She has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which she is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Nicole Galloway Warland consents to the inclusion in the report of the matters based on her information in the form and context in which it appears.

Updates on the Company's activities are regularly posted on Thor's website https://thorenergyplc.com which includes a facility to register to receive these updates by email, and on the Company's twitter page @thorenergyplc

About Thor Energy Plc

The Company is focused on uranium and energy metals that are crucial in the shift to a 'green' energy economy. Thor has a number of highly prospective projects that give shareholders exposure to uranium, nickel, copper, lithium and gold. Our projects are located in Australia and the USA.

Thor holds 100% interest in three uranium and vanadium projects (Wedding Bell, Radium Mountain and Vanadium King) in the Uravan Belt Colorado and Utah, USA with historical high-grade uranium and vanadium drilling and production results.

At Alford East in South Australia, Thor has earnt an 80% interest in oxide copper deposits considered amenable to extraction via In-Situ Recovery techniques (ISR). In January 2021, Thor announced an Inferred Mineral Resource Estimate¹. Thor also holds a 26.3% interest in Australian copper development company EnviroCopper Limited, which in turn holds rights to earn up to a 75% interest in the mineral rights and claims over the resource on the portion of the historic Kapunda copper mine and the Alford West copper project, both situated in South Australia, and both considered amenable to recovery by way of ISR.²³

Thor holds 100% of the advanced Molyhil tungsten project, including measured, indicated and inferred resources⁴, in the Northern Territory of Australia, which was awarded Major Project Status by the Northern Territory government in July 2020. Thor executed a $A8m Farm-in and Funding Agreement with Investigator Resources Limited (ASX: IVR) to accelerate exploration at the Molyhil Project on 24 November 2022.⁶

Adjacent to Molyhil, at Bonya, Thor holds a 40% interest in deposits of tungsten, copper, and vanadium, including Inferred resource estimates for the Bonya copper deposit, and the White Violet and Samarkand tungsten deposits.⁵ Thor's interest in the Bonya tenement EL29701 is planned to be divested as part of the Farm-in and Funding agreement with Investigator Resources Limited.⁶

Thor owns 100% of the Ragged Range Project, comprising 92 km² of exploration licences with highly encouraging early-stage gold, copper, lithium and nickel results in the Pilbara region of Western Australia. Thor is now looking for a JV partner or divestment of these group of tenements.

Notes

¹ https://thorenergyplc.com/investor-updates/maiden-copper-gold-mineral-resource-estimate-alford-east-copper-gold-isr-project/

² www.thorenergyplc.com/sites/thormining/media/pdf/asx-announcements/20172018/20180222-clarification-kapunda-copper-resource-estimate.pdf

³ www.thorenergyplc.com/sites/thormining/media/aim-report/20190815-initial-copper-resource-estimate---moonta-project---rns---london-stock-exchange.pdf

⁴ https://thorenergyplc.com/investor-updates/molyhil-project-mineral-resource-estimate-updated/

⁵ www.thorenergyplc.com/sites/thormining/media/pdf/asx-announcements/20200129-mineral-resource-estimates---bonya-tungsten--copper.pdf

⁶ https://thorenergyplc.com/wp-content/uploads/2022/11/20221124-8M-Farm-in-Funding-Agreement.pdf

TENEMENT SCHEDULE

As of 31 March 2024, the consolidated entity holds an interest in the following Australian tenements:

As of 31 March 2024, the consolidated entity holds 100% interest in the uranium and vanadium projects in USA States of Colorado and Utah as follows:

Appendix 5B

Mining exploration entity or oil and gas exploration entity
quarterly cash flow report

Compliance statement

1          This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

2          This statement gives a true and fair view of the matters disclosed.

Date:                     30 April 2024...........................................................

Authorised by:  the Board....................................................................

(Name of body or officer authorising release - see note 4)

Notes

1.        This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity's activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

2.        If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

3.     Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4.      If this report has been authorised for release to the market by your board of directors, you can insert here: "By the board". If it has been authorised for release to the market by a committee of your board of directors, you can insert here: "By the [name of board committee - eg Audit and Risk Committee]". If it has been authorised for release to the market by a disclosure committee, you can insert here: "By the Disclosure Committee".

5.         If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council's Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.