Thor excited by Dundas

23rd Sep 2010 14:29

Thor Mining extended recent gains Thursday after it talked up its Dundas gold project in Western Australia where it will start a preliminary drilling programme as soon as permits are received.The miner picked up Dundas, just to the east of the spectacular 700km long greenstone belt that includes the massive Kalgoorlie mine, after a slump in prices meant its Molyhil tungsten-molybdenum project became uneconomical.Results show clusters of elevated gold values that have identified five previously unknown areas of gold anomaly in addition to the target area identified by previous exploration. Thor is preparing permitting for an initial rotary air blast drilling program, due to begin "as soon as practicable".Investors are taking interest in proceedings. The shares were changing hands for just 0.75p at the start of the month. They hit 2.1p earlier today.A fundraising in July brought in £630,000 before costs, but further capital raisings will be necessary in the coming financial year, the firm said today.It's previously estimated costs, including the A$100k initial payment for the 51% stake in Dundas, plus exploration and evaluation, will be between £1m and £1.5m in the year to 30 June 2011.Losses widened to £1.76m in the 12 months to June this year from £1.23m in 2009, mostly due to £1m of impairment on exploration assets.