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Shares of tungsten exploration company Thor Mining were on the rise after it announced a new drill program at its Pilot Mountain project in Nevada.
Shares of tungsten exploration company Thor Mining (LSE:THR,ASX:THR) were on the rise after the company announced a new drill program at its flagship project in Nevada last week.
The Pilot Mountain project is comprised of the Desert Scheelite, Gunmetal, Garnet and Good Hope tungsten deposits, and the goal of the program is to confirm and expand its resource.
The program will include four reverse-circulation drill holes and two diamond drill holes. It will follow up previous good results from Good Hope and will test high-grade mineralization at Desert Scheelite.
“The Pilot Mountain drilling program at Good Hope and Desert Scheelite demonstrates our strong belief that Pilot Mountain will become a very significant multi commodity deposit,” said Mick Billing, executive chairman at Thor Mining.
In 2012, a drill program at Desert Scheelite intersected 17.5 meters at 1.8 percent copper, 2.2 percent zinc and 32 g/t silver, along with 13.5 meters of 0.89 percent tungsten trioxide.
The company expects to confirm and update those findings with the new program, which is expected to cost no more than $250,000 and is scheduled to last two to three weeks. Assay results will be due several weeks after.
Thor Mining is betting on a rebound in prices for tungsten, which is used in cemented carbide and alloys.
“We are particularly encouraged by the recent tungsten price improvement showing tightness in the market, during what is normally a period of seasonal weakness,” Billing added.
At the beginning of the year, the company sold its Spring Hill gold project for AU$1.5 million to focus its efforts on Pilot Mountain. Aside from this asset, Thor also owns the Molyhil tungsten-molybdenum project in Australia.
Thor Mining also recently acquired a 25-percent stake in US Lithium, a private company with interests in lithium projects in the US.
Thor Mining’s share price closed in London at 0.94 pence on Monday (August 14), a rise of 3.61 percent since the announcement. It has surged more than 100 percent since the beginning of the year.
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Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.