Thor Explorations (LON: THX) shares are gaining Tuesday on news it has achieved commercial production at its wholly-owned Segilola Gold Mine located in Osun State, Nigeria.
The first gold at the mine was poured in July. It is now fully operational with approximately 90,000 tonnes of ore material mined to the end of the third quarter. In addition, it is operating at the target daily mine production rate.
Moreover, the process plant is operating in line with its design throughput capacity of 715,000 tonnes per year.
The company had to overcome several minor faults during the ramp-up, including a faulty heat exchanger and a faulty valve. Thor also encountered some supply chain issues relating to the supply of good quality activated carbon. However, all of the problems are now resolved.
“I am pleased that the Segilola Gold Mine has achieved Commercial Production and also pleased to report that the mine is running smoothly at design throughput capacity,” said Thor Explorations President and CEO, Segun Lawson.
“This is a significant achievement and marks the start of an exciting growth phase for the Company through the combination of stable high grade gold production and exploration potential in the region around Segilola and progress on our Douta project in Senegal,” he added.
Thor Explorations shares have climbed 1.5% to 15.226p following the company's announcement. In August, THX shares rose 1.3% after “robust” drill intersections were returned from its Douta Project, Senegal.
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