Thor Explorations more than doubles resource at Senegal gold project

New figures showing more than twice the potential gold in Thor Explorations (TSXV: THX; LSE: THX) Douta project in Senegal means “greater confidence” it will be the company’s second mine in West Africa, analysts said.  

Douta holds an indicated resource of 20.2 million tonnes grading 1.3 gram gold per tonne for 874,900 oz. contained metal and an inferred resource of 24.1 million tonnes grading 1.2 grams gold for 909,400 oz. contained metal, the company said in a news release on Monday.  

The updated estimate’s 1.78 million oz. of contained gold is a 144% increase compared with an initial resource in November 2021 that outlined inferred resources totalling 730,000 oz. of gold in 15.3 million tonnes grading 1.5 grams gold. 

Echelon Capital Markets called the new figures “impressive” for Douta, which lies in in the far southeast of Senegal and is 70% owned by Thor while the rest is held by International Mining Co. More drilling is planned for this year as Thor prepares a preliminary feasibility study for what could be an open-pit operation. 

“The impressive resource growth illustrates the potential for Douta to become Thor’s second operating asset in West Africa, potentially largely funded via internal cash flow, which should help de-risk the story and ultimately help close the valuation gap with peers,” Ryan Walker, a mining analyst for Echelon, wrote in a note on Monday.