TIDMTHR

Thor Mining PLC

05 June 2020

5 June 2020

THOR MINING PLC

US URANIUM/VANADIUM SITE DUE DILIGENCE COMMENCES

The directors of Thor Mining Plc ("Thor" or the "Company") (AIM, ASX: THR) are pleased to advise the commencement of field activities associated with the due diligence assessment for the acquisition of American Vanadium Pty Ltd (AVU) , which holds interests in uranium and vanadium focussed projects in Colorado and Utah in the United States of America. The Company announced on 1 June 2020 an option agreement to acquire AVU, subject to satisfaction of due diligence requirements.

In addition, investigations to date, while not yet complete, have revealed no regulatory or environmental issues which would cast doubt on the transaction. Some historical data has been obtained, allowing a preliminary understanding of some potential opportunities.

Highlights:

-- The Thor team based in Colorado has commenced field due diligence activities consisting of site reviews and sampling from historical mines around the Wedding Bell and Radium Mountain.

-- Historical data reviews show substantial previous mining activity in the western portion of the Wedding Bell claims (Colorado), with the geology trending into the untested eastern portion of the claims.

-- At the Utah Claims, located approximately 40km north of the town of Moab, 1980's drilling reported significant uranium and vanadium mineralisation from within the Brushy Basin Member of the Jurassic Morrison Formation, however the deeper and normally higher grade Salt Wash Member remains substantially untested.

-- Anecdotal reports suggest that historical mining practices in the region often selectively recovered high grade material, leaving vanadium rich mineralisation, above and/or below the uranium rich zones.

-- Sampling and field based activities are expected to continue for the next week, with results planned to be released later this month.

Mick Billing, Executive Chairman of Thor Mining, commented:

Our Colorado based team have mobilised quickly and commenced a sampling program from the historical mines around Wedding Bell and Radium Mountain mines, along with other field due diligence activities. They have also, utilising their contacts, sourced additional historical records of mining and drilling activity in each project area which has, to date, reinforced our decision to progress this opportunity."

"We look forward to the results of this work and will provide further updates on progress as they become available."

PROJECT ACQUISITION

On June 1(st) 2020 the Company advised it had acquired an exclusive option to acquire 100% of the shares in American Vanadium Pty Ltd, a private Australian company, which in turn owns 100% each of the shares in Colorado company Standard Minerals INC (Standard), and Utah company Cisco Minerals INC (Cisco).

Colorado Claims

Standard holds 199 contiguous Bureau of Land Management (BLM) claims in south west Colorado, and within the Uravan Mineral Belt. The claims include the Wedding Bell and Radium Mountain groups of mines which are reported to have operated during the first world war and again in the second half of the 20(th) century (USGS Professional paper 300(a) ).

   (a)   https://pubs.er.usgs.gov/publication/pp300 

The review team has commenced the field phase of the assessment of these claims, including detailed sampling of underground workings which will complement the continuing review of historical production and drilling data.

The Uravan Mineral Belt and adjacent uranium-vanadium mining districts of the Colorado Plateau are reported to have produced, over the past 100 years, in excess of 85million lbs U3O8 and over 660 million lbs of V2O5 (2) from the Salt Wash sandstone formation of the Plateau. The average production grades from the Uravan Mineral Belt from the 1940's to January 1979 are reported be 0.25% U3O8 and 1.29% V2O5 (Thamm. et al., 1981 (b) ) Average vanadium to uranium ratios are reported to vary from 0.5 : 1 to 40 : 1.

(b) www.osti.gov/servlets/purl/6512174

Literature search to date appears to show that the eastern third of the Wedding Bell claim (Figure 2) has been precluded from historic mine production with no evidence found to indicate the area does not host a continuation of Salt Wash Formation uranium vanadium mineralisation.

Utah Claims

Cisco holds 100 BLM claims in south east Utah approximately 40km north of the town of Moab. There is reporting of significant uranium and vanadium mineralised body(ies) from drilling activities by Hunt Oil, Mineral Division, in 1980 and 1981, reported by Terra Ventures (TSX-V: TAS) in a report dated May 21 2007.

https://www.thormining.com/sites/thormining/media/miscellaneous/terra-ventures-20070521.pdf

Thor Mining wishes to reiterate that the Hunt Oil estimate 1980 - 81 does not comply with either the JORC or NI 43-101 guidelines for mineral resource reporting and is therefore not a valid resource estimate. The Hunt Oil estimate does however provide substantial indication of widespread uranium - vanadium mineralisation in the Cisco mineral claims in a similar geological setting to multiple deposits elsewhere in the region including the previously mined Colorado mineral claims included in this acquisition.

Available data to date of the Vanadium King (Utah) historical drilling suggest that the drilling programs focussed upon mineralisation in the Brushy Basin Member of the Jurassic Morrison Formation. Thor's local consultants have suggested that the deeper and normally higher grade Salt Wash Member may remain substantially untested. Historical mining of the nearby Thompson Creek group of mines have historically produced high grade ore from the Salt Wash Member - a likely focus for future work by Thor.

MARKET OUTLOOK FOR URANIUM AND VANADIUM

Uranium

The price of Uranium currently sits at US$34/lb of U O ( www.kitcometals.com/ ), with forecasters predicting that demand is likely to be greater than existing supply in the mid term. In addition demand is expected to be boosted the US Department of Energy has released a plan to boost the US energy industry, including a US$150 million reserve proposal which would include purchasing inventory from domestic producers.

https://thehill.com/policy/energy-environment/500155-trump-administration-aims-to-buy-uranium-for-reserve-as-soon-as

Vanadium

The price of Vanadium currently sits at US$13.12/Kg of V O , although in late 2018 is was quoted above US$60/Kg (Argus Metals). Earlier this month the US Commerce Department advised it was opening an investigation into whether imports of vanadium impair US national security.

https://www.mining.com/web/us-opens-national-security-probe-into-vanadium-imports/

Enquiries:

 
Mick Billing             +61 (8) 7324        Thor Mining PLC        Executive Chairman 
                           1935 
 Ray Ridge                +61 (8) 7324        Thor Mining PLC        CFO/Company 
                           1935                                       Secretary 
 Colin Aaronson/            +44 (0) 207 383   Grant Thornton UK LLP  Nominated Adviser 
  Richard Tonthat/ Niall     5100 
  McDonald 
 Nick Emerson               +44 (0) 1483      SI Capital Ltd         Joint Broker 
  Claire Louise Noyce        413 500           Hybridan LLP           Joint Broker 
  /                          +44 (0) 203 764 
  John Beresford-Peirse      2341 
 

Updates on the C o m pan y 's activities are regular ly p o sted on Thor's we bsite w w w.th o r m i n i ng .c o m , which includes a facility to regi ster to receive these updates by email, and on the Co m pan y's twitter page @ThorMining.

About Thor Mining PLC

Thor Mining P LC (AI M, A S X: THR) is a r esources comp any quoted on the AIM M a rket of the London Stock Exchange and on ASX in Austr alia.

Thor holds 1 0 0% of the ad v anced Molyhil t ungsten p r oject in t he No rthe rn T e rr ito ry of Aust r alia, for w hich an updated feasibility study in August 2018(1) suggest ed attr a ctive retur ns.

Adjacent Molyhil, at Bonya, Thor holds a 40% interest in deposits of tungsten, copper, and vanadium, including Inferred Resource estimates for the White Violet and Samarkand tungsten deposits and the Bonya copper deposit (2).

Thor a lso holds 1 0 0% of t he Pilot Mountain tungst en p roject in Nevada U SA which has a JORC 20 12 Indicated and Inferred Res o u rces Estimate (3) on 2 of the 4 k nown deposits. The US Department of the Interior has confirmed that tungsten, the primary resource mineral at Pilot Mountain, has been included in the final list of Critical Minerals 2018.

Thor holds a 25% in ter est Aust r alian copper d evelopment company EnviroCopper Limited (with rights to increase its interest to 30%). EnviroCopper Limited holds:

-- r ights to earn up to a 7 5% interest in the mineral rights and claims over the resource on the p o r tion of the historic Kapunda copper mi ne in South Aust r alia considered recover able by way of in situ recove ry; and

-- rights to earn up to 75% of the Moonta copper project, also in South Australia comprising the northern portion of exploration licence EL5984 and includes a resource estimate for several deposits considered recover able by way of in situ recove ry .

Thor also holds a production royalty entitleme nt from t he S p ring Hill Gold project of :

-- A$5.70 p er ounce of gold p rod uced from the S p ring Hill te neme nts whe re the gold produced is sold for up to A$ 1,5 00 per ounce; and

-- A$13.30 p er ounce of gold p roduced from the S p ring Hill tenements where the gold p roduced is sold for amounts over A $1 , 5 00 per ounce.

N ot e s

   (1) Refer  ASX and AIM an n o u ncement  of  23   August   2 0 18 
   (2) Refer  ASX and AIM an n o u ncements  of  26   November   2 0 18 and 29 January 2020 

(3) Refer AIM ann o un cement of 13 December 2018 and ASX ann o unce ment of 14 December 2018

Refer AIM a nn o un c e m e nt of 10 F e b r u ary 2 0 18 a nd ASX ann o uncement of 12 February 2 0 18

   Refer  ASX and AIM an n o u ncement  of  15 August   2 0 19 

Refer AIM a nn o un c e m e nt of 26 F e b r u ary 2 0 16 a nd ASX ann o uncement of 29 February 2 0 16

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END

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June 05, 2020 02:00 ET (06:00 GMT)

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