5 minute read - Published 12:15 PM EST, Wednesday October 9
This article was authored by Peyton Baird of witan nook.
Thor Explorations Ltd. has established itself as a key player in the West African mining industry through its flagship Segilola Gold Mine in Osun State, Nigeria. Located approximately 120 kilometres northeast of Lagos, the Segilola project represents Nigeria's first large-scale gold mine and showcases the country’s growing role in the global gold mining industry. Since commencing commercial production, Segilola has not only met its production targets but also demonstrated significant exploration upside, underscoring Thor Explorations’ commitment to long-term growth.
The Segilola Gold Mine in Osun State, Nigeria | Thor Explorations LTD
A Snapshot of Segilola’s Production Achievements
Thor Explorations has completed two full years of gold production at the Segilola Gold Mine. In 2022, the mine produced an impressive 98,006 ounces of gold, followed by a solid output of 84,609 ounces in 2023. These achievements have cemented Segilola’s reputation as a reliable source of gold in West Africa. Looking ahead, Thor expects to produce between 95,000 and 100,000 ounces of gold in 2024, keeping the mine on track to continue delivering strong annual results.
The Segilola Gold Mine was developed based on a total probable reserve of 517,800 ounces of gold, grading 4.02g/t as of March 2021. This reserve estimate served as the foundation for the mine’s initial development, but the potential for additional resources through ongoing exploration provides Thor Explorations with the opportunity to extend Segilola’s mine life beyond its initial projections.
Geological and Exploration Potential
One of the key features of the Segilola deposit is its system of stacked, steeply-dipping, parallel quartz-pegmatite veins. These veins contain widespread, high-grade, free-milling gold, with visible gold occurrences further enhancing their appeal. Given this geological profile, the deposit offers significant exploration upside, particularly in terms of expanding the resource base both near the existing mine and at depth. Thor Explorations has prioritized exploration beneath the current open pit, where previous drilling identified several steep shoot-structures within the hanging wall lodes. This exploration has already yielded encouraging results, with recent drilling campaigns focusing on converting in-pit inferred resources to indicated status. As the full potential of the underground resource has yet to be realised, Thor remains committed to further exploration, aiming to upgrade the current inferred underground resource and test the depth continuation of the shoots.
The Segilola Gold Mine in Osun State, Nigeria | Thor Explorations LTD
Proof-of-Concept Drilling: Initial Successes
In a bid to unlock the underground potential of the Segilola Gold Mine, Thor Explorations launched a proof-of-concept drilling programme targeting the down-plunge potential beneath the current open pit extents. Initial drilling results have been positive, bolstering the company's confidence in the long-term viability of underground mining at Segilola. Notable results include 3.0 metres grading 11.24g/t gold from 294 metres in drillhole SNMDD011, and 1.5 metres grading 3.22g/t gold from 269 metres in drillhole SNMDD012. These intersections, located 50 metres below the current pit design, confirm the presence of high-grade gold mineralisation in areas that were previously unexplored.
The company’s CEO, Segun Lawson, highlighted the significance of these results, stating, “We are pleased to intersect high-grade gold mineralisation 50 metres below the current pit design. This is an encouraging start to the ‘proof-of-concept’ drilling programme, which has returned positive intersections in the projected locations below the current open pit design.” These early results represent the first step in a 12-hole drilling programme, of which five holes have been drilled so far. As further drilling progresses, Thor expects to gain a clearer picture of Segilola’s underground resource potential, paving the way for future expansion.
Towards a Longer Life of Mine
The objective of the ongoing exploration programme at Segilola is to upgrade portions of the inferred resource and increase the overall size of the underground resource. By doing so, Thor aims to extend the life of the Segilola Gold Mine, enhancing the project’s long-term economic viability. According to Lawson “This is the first demonstration since we started mining, that there is further potentially achievable underground mining below the designed Segilola pit. The target is to both upgrade parts of the remaining inferred resource and to increase the size overall of the underground resource with the objective of increasing the life of mine at Segilola.” If successful, these efforts could significantly increase the project’s overall gold production and extend the mine’s operational life, delivering sustained value for both Thor Explorations and its shareholders.
Overcoming Challenges to Build Nigeria’s First Large-Scale Gold Mine
The Segilola Gold Mine is particularly notable for the challenges Thor Explorations overcame to bring the project into production. Construction of the mine began amidst the Covid-19 pandemic, a time of global uncertainty and logistical difficulties. Despite these hurdles, the company successfully completed the build and commenced production in 2021. This achievement not only underscores Thor’s technical and operational expertise but also highlights the broader potential for mining development in Nigeria. As the first large-scale commercial gold mine in Nigeria, Segilola has set a benchmark for future projects in the country. The success of Segilola is expected to catalyse further investment in Nigeria’s mining sector, attracting both domestic and international interest.
Map Denoting the Segilola Gold Mine, and other Projects in Western Africa | Thor Explorations LTD
A Bright Future for Thor Explorations and Segilola
With two years of successful production under its belt, Thor Explorations is well-positioned to continue driving value from the Segilola Gold Mine. The combination of solid production results, ongoing exploration success, and the potential for underground mining bodes well for the company’s future. As exploration efforts continue, Thor is optimistic about the possibility of extending Segilola’s life of mine, unlocking additional gold resources, and contributing to Nigeria’s growing role as a gold-producing nation.
In conclusion, the Segilola Gold Mine is more than just a gold-producing asset for Thor Explorations; it represents the company’s commitment to growth, innovation, and long-term value creation in the West African mining industry. With its strong production performance, significant exploration upside, and ongoing efforts to extend the mine life, Segilola is poised to remain a cornerstone of Thor’s portfolio for years to come.
This article was authored by Peyton Baird of witan nook.
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