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Thor Explorations (TSXV: THX) (AIM: THX) recently expanded its footprint in Senegal with the acquisition of two licences located in the southern part of the West African country. Together, these areas cover nearly 150 km2 of land.
The first is a majority interest in the Douta-West licence next to the company’s Douta gold project, which it is currently advancing towards the preliminary feasibility stage and eventually its next gold-producing asset.
The licensed area covers 93 km2 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 Masawa gold mine.
As consideration, Thor will pay $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 Sofita licence located approximately 20 km south of the Douta project. It comprises a single exploration licence that covers an area of 56.5 km2 that is geologically similar to Douta. Total consideration comprises $300,000 of work expenditures over two years and a payment of $20,000.
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 statement.
“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,” Lawson said.
The Douta project currently has 20.2 million tonnes of indicated resources grading 1.3 g/t gold for 874,900 oz. contained gold, and 24.1 million tonnes of inferred resources grading 1.2 g/t 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.
