Gold mining and exploration company Thor Explorations has reported a $24-million year-on-year decrease in revenue from $165.2-million in 2022 to $141.2-million for the year ended December 31, 2023.

Thor operates the Segilola gold mine, in Nigeria, and also holds several mineral exploration properties in Nigeria, Senegal and Burkina Faso.

In its audited year-end financial results, the company noted a similar drop in earnings before interest, taxation, depreciation and amortisation from $84.2-million in 2022 to $55.3-million in 2023, along with a $27.1-million drop in net profit, from $37.9-million to $10.8-million.

The company sold 73 356 oz of gold throughout the year at an average realised price of $1 907/oz, while its cash operating costs amounted to $1 006/oz sold, with all-in sustaining costs (AISCs) at $1 313/oz sold. 

However, the company’s cash and cash equivalents rose to $7.8-million from $6.7-million in 2022. Its senior debt facility was also significantly reduced from $54-million to $22.6-million in 2023, with a payment of $8.2-million made towards the outstanding senior debt facility paid in the post period, leaving a balance of $15.2-million to be paid this year, compared with $31.6-million at the end of 2022.

"The end of 2023 marks two calendar years of commercial gold production at our flagship asset, the Segilola gold mine. Thinking back to the original mine plan in the definitive feasibility study, we knew as a management team that the second year of production was going to be an operationally challenging year, requiring the pushback of the western wall of the pit and mining of waste material in order to access the orebody efficiently in the subsequent years,” Thor president and CEO Segun Lawson said on April 29.

Thor pointed out that its production guidance for this year had been set at 95 000 oz to 100 000 oz, with an AISC guidance of between $1 100/oz and $1 200/oz for the year.

The company managed to produce 84 609 oz of gold at Segilola for 2023, which included recoveries of about 11 210 oz of gold in-circuit.

In addition, Thor reported that it had successfully upgraded the process plant elution and electrowinning system during the year.

Near the mine, the exploration tenure was expanded to a total area of 1 542 km². This tenure comprises 16 granted permits owned by Thor together with nine granted permits held under option agreements with seven third parties.

In addition to near-mine exploration, activities on the ground focused on the western prospects of Igila and Aye-Ile, along with the central prospect of Kajola.

At the western prospects, initial results from the soil geochemistry programme returned values of 6.50 g/t gold and 10 g/t gold towards the south-east portion of the area.

Thor said rock chip sampling returned high-grade values including 65.1 g/t gold in the central part of the area, with several samples in excess of 30 g/t gold located towards the north-west.

Based on these results, an initial drill testing programme, comprising both diamond core and reverse circulation (RC) drilling, was completed during the year.

In terms of the southern prospects, drill testing intersected several zones of interest including 11 m grading 22 g/t gold. Ongoing exploration is focused on generating additional targets in the general area.

At Douta, in Senegal, Thor reported an updated mineral resource estimate (MRE) during 2023, which encompasses the Makosa, Makosa Tail and Sambara zones.

The MRE stated an initial indicated mineral resource of 20.2-million tonnes grading 1.3 g/t gold for 874 900 oz of gold, and an inferred mineral resource of 24.1-million tonnes grading 1.2 g/t gold for 909 400 oz of gold.

The Douta resource is supported by a total of 64 567 m of drilling.

At the site, workstreams designed to advance the project to the prefeasibility stage have started and are expected to be completed by the second half of the year.

This includes a diamond drilling programme that was designed to obtain sufficient core samples for comprehensive metallurgical test work and mineralogical studies. 

Thor, through its subsidiary Newstar Minerals, secured more than 600 km² of granted tenure in Nigeria that form Oyo State, Kwara State and Ekiti State lithium project areas.

The Oyo State lithium project comprises about 38 km² of exploration tenure that is located towards the westernmost border of Nigeria and within 200 km of Lagos.

At the Oyo prospect, a programme of RC drilling targeted an identified pegmatite trend that is developed within northerly trending mafic sequence that is surrounded by granitoid-gneiss terrain, Thor said.

Meanwhile, at the Ekiti Prospect, nine RC holes were completed.

Significant intersections include 11 m grading 1.53% lithium oxide (Li₂O), 9 m grading 2.42% Li₂O and 11 m grading 2.61% Li₂O.

Following the drilling campaigns, follow-up soil sampling and mapping continued to generate anomalous targets which have been identified for drilling in the second quarter.

POST 2023 

During the first quarter of this year, Segilola produced 19 589 oz of gold.

In addition, three additional carbon-in-leach tanks in the process plant were successfully upgraded and commissioned, with the drawdown of excess gold in circuit successfully started in March.

Meanwhile, additional near-Segilola drilling targets were delineated, with drilling starting this month.

Thor also acquired additional licences in Senegal, which include the contiguous Douta-West licence, and started exploration activities. Initial results have delineated anomalies which will be drilled in the second quarter as part of the company's Douta exploration plan.

Exploration on Thor’s lithium licences in Nigeria continued during the first quarter and managed to generate several drill targets. The company said that it would start a 4 000 m drilling programme in May.

"In 2024, the company's strategy will be focused on growth. The first priority is to extend the Segilola mine life, where there is currently an underground resource of over 100 000 oz that has not been incorporated into the existing mine plan.

“At the current prevailing high gold prices, we aim to assess our options in reoptimising the Segilola pit to produce gold from this resource prior to transitioning into an underground mine. We also aim to carry out further exploration at depth aimed at increasing the existing underground resource which has not been closed out,” Lawson said.