TSX-V- and Aim-listed Thor Explorations has announced the results of the prefeasibility study (PFS) for its Douta gold project in Senegal, confirming a robust, long-life project with strong economics, a substantial mineral reserve base and a clear pathway to development.

The study also incorporates an updated mineral resource estimate (MRE) and a maiden mineral reserve.

The PFS indicates that Douta will generate significant early cash flow, producing about 411 000 oz of gold in the first four years of oxide and transitional ore feed, with an all-in sustaining cost (AISC) of $1 493/oz.

The project’s pretax cash flow is expected to reach $814-million, resulting in about $561-million net cash flow after repayment of project capital, with a payback period of 11 months following the start of processing.

At a long-term gold price assumption of $3 500/oz, the pretax net present value (NPV) at a 5% discount rate is $908-million, with an internal rate of return (IRR) of 73%.

The post-tax NPV at 5% is $633-million, with an IRR of 61%, calculated using statutory Senegalese tax rates and excluding anticipated fiscal incentives under that country’s Mining Convention.

Thor noted that, at current spot gold prices of about $4 250/oz, the pretax NPV at 5% increases to $1.43-billion, with an IRR of 102% and a projected payback of nine months from the start of processing.

The PFS projects a long-life production profile delivering one-million ounces of gold from 37-million tonnes of mill feed grading an average of 1.03 g/t over 12.6 years of operations, including a two-phase production profile comprised of the oxide ore phase and the primary ore phase.

The project will require a relatively low initial capital of $254-million and a life-of-mine AISC of about $1 890/oz, supporting strong margins throughout operations.

Thor said it intends to fund the project entirely from its cash reserves and project financing.

In January, Senegal’s Ministry of Environment approved the environmental- and social-impact assessment (ESIA) for the project.

In a strategic move to consolidate ownership, Thor signed a binding sale and purchase agreement with joint venture (JV) partner Birima Resources to acquire the remaining 30% of the Douta-West permit. The agreement includes a $1.5-million cash payment at signing, a further $3.5-million payment at decision to mine and a 1.25% net smelter royalty capped at $7-million.

The updated MRE, constrained within optimised pit shells, comprises an indicated mineral resource of 50.6-million tonnes grading 1.04 g/t for 1.7-million ounces of gold and an inferred resource of 9.3-million tonnes grading 0.92 g/t for 273 000 oz.

These resources support a probable reserve of 36.6-million tonnes grading 1.03 g/t for 1.2-million ounces, calculated at a long-term gold price of $3 000/oz. The MRE includes the Makosa, Makosa Tail and initial results from the recently discovered Baraka 3 prospects, all of which remain open along strike and down dip.

Thor said that ongoing exploration is continuing across other prospects within the Douta, Douta-West and Bousankhoba permits, with a 40 000 m drilling programme scheduled for this year to delineate additional oxide ore. Mineralisation remains open along strike between known prospects, providing potential for further resource expansion.

“We are delighted with the results of the Douta PFS which represents a major milestone in our strategy to become a multi-asset gold miner. The results confirm Douta as a high-quality gold project with strong economics, a short payback period and long-term leverage to the gold price through its significant indicated resource base,” Thor Explorations president and CEO Segun Lawson said on January 26.

He said that, in addition to the strong economics, the project was positioned for further near-term growth in its resource and reserve inventory.

“Several drilling targets have been delineated through soil, rock chip and auger sampling, and aggressive drilling programmes are ongoing, targeting additional oxide resources in the recently acquired contiguous Douta West and Bousankhoba permits.

“The continued growth of the Makosa trend and inclusion of the first ounces from the Baraka 3 discovery underscore the district-scale potential of the Douta project,” Lawson said, adding that the company aimed to update the resource in the third quarter of this year.

“Having finished 2025 with a strong cash balance of about $137-million and our continued growing balance sheet in this high gold price environment, we are positioned to fund the construction of Douta without any shareholder dilution and have commenced high level financing discussions with interested parties.”

“With simple, low-cost oxide processing in the oxide ore phase, an approved ESIA, and active exploration across multiple prospects, we are strongly positioned to advance Douta towards development while continuing to unlock value across the broader licence package,” he said.

He added that he was pleased that Thor had agreed to terms and signed a binding agreement with Birima, the company’s Douta-West permit JV partner.

“This acquisition positions us to own the entire Douta project consisting of the Douta and Douta-West licences on a 100% equity basis and allows for an efficient development process and full exposure to the project economics prior to the government of Senegal’s 10% free carried interest,” he said.

Lawson said that, by completing the PFS, Thor had undertaken a significant amount of work alongside its engineering, procurement and construction (EPC) contractor, giving the company comfort in the EPC pricing and positioning Thor to fast-track to an updated feasibility study.

“We now look forward to the next steps in developing the project which include finalisation of our mining convention with the government of Senegal and ordering of the project’s long lead items,” he said.