Thor Explorations (LSE:THX) has published a positive pre-feasibility study for its 100%-owned Douta Gold Project in Senegal, outlining a long-life open-pit operation with forecast production of around 1 million ounces of gold over a 12.6-year mine life. The development plan is underpinned by a probable reserve of 1.2 million ounces and an indicated resource base of 1.7 million ounces.
Operational and financial highlights
The study highlights strong project economics, generating a post-tax NPV (5%) of US$633 million and an internal rate of return of 61% using a gold price assumption of US$3,500 per ounce. Initial capital expenditure is estimated at a relatively modest US$254 million, with rapid capital recovery expected in under 12 months, driven by high-margin oxide ore production in the early years. Sensitivity analysis indicates substantial leverage to prevailing gold prices, providing meaningful upside potential.
Key project milestones are already in place, including approval of the environmental and social impact assessment. Thor has also entered into a binding agreement to acquire the remaining 30% interest in the Douta West permit, consolidating full ownership across the broader project area. Ongoing drilling of approximately 40,000 metres is aimed at further expanding resources and testing district-scale potential along the mineralised trend. Importantly, the company reports it has sufficient cash resources to fund construction without the need for equity dilution, with first gold production targeted for early 2028. Collectively, these factors position Thor to evolve into a multi-asset gold producer with a strengthened growth profile in West Africa.
More about Thor Explorations
Thor Explorations is a West Africa–focused gold exploration and mining company listed on the TSX Venture Exchange and AIM. The group already has producing assets in Nigeria and is pursuing a growth strategy centred on building a diversified, multi-asset gold portfolio across the region. Its activities span exploration, development and production, with the Douta Gold Project in Senegal representing a cornerstone growth asset supported by active drilling programmes and strategic permit consolidation.
Leave a Reply