Thor Explorations Releases Pre-Feasibility Study for Douta Gold Project in Senegal

• Pre-tax NPV of US$908 million with 73% IRR at US$3,500/oz gold price; US$1.43 billion NPV and 102% IRR at US$4,250/oz
• Initial capital of US$254 million with payback period of 11 months at base case gold price, reducing to nine months at US$4,250/oz
• Mineral resource estimate of 1.7 million ounces indicated and 273,000 ounces inferred; maiden probable reserve of 1.2 million ounces
• First four years to produce 413,000 ounces at all-in sustaining cost of US$1,493/oz
• Environmental and social impact assessment approved January 2026; mining convention discussions ongoing

Thor Explorations Ltd. (TSXV: THX, AIM: THX) is a Canadian-based mineral exploration and mining company focused on developing gold projects in West Africa. The company operates the Segilola Gold Project in Nigeria and is developing the Douta Gold Project in Senegal. Thor holds a 100% economic interest in Douta following an agreement to acquire the remaining 30% stake in the Douta West permit for US$5 million in cash payments and a 1.25% net smelter royalty capped at US$7 million. Thor reported a cash balance of approximately US$137 million at year-end 2025. The company also holds exploration interests in Côte d'Ivoire and Burkina Faso.

Pre-Feasibility Study Results and Project Economics

The pre-feasibility study estimates a pre-tax net present value of US$908 million and an internal rate of return of 73% on a 100% equity basis, using a base case gold price of US$3,500 per ounce and a 5% discount rate. Post-tax results show an NPV of US$633 million and IRR of 61%, calculated using the statutory Senegalese corporate tax rate of 30%. The post-tax figures exclude fiscal incentives that are typically granted under mining conventions, which the company expects will be incorporated following negotiations with the government.

At a gold price of US$4,250 per ounce, the study indicates a pre-tax NPV of US$1.43 billion with an IRR of 102%. The payback period ranges from 11 months at the base case price to nine months at the higher gold price assumption, measured from the start of processing. The project contemplates life-of-mine capital expenditure of US$376.8 million, including US$254 million in initial capital, US$60.1 million for primary ore phase expansion, and US$63.2 million in sustaining capital.

The oxide ore phase spans four years, with planned production of 413,000 ounces at an all-in sustaining cost of US$1,493 per ounce.

President and chief executive Segun Lawson stated:

"The Oxide Ore Phase will produce approximately 413koz in the first four years, during which, the project will have an average annual gold production of over 111koz at an AISC of US$1,469/oz in the first three years."

Production is scheduled to continue through a primary ore phase for an additional 7.8 years, processing refractory ore through a suspension roasting circuit, with life-of-mine all-in sustaining costs estimated at US$1,890 per ounce.

Updated Mineral Resource and Reserve Estimates

The mineral resource estimate covers the Makosa, Makosa Tail, and Baraka 3 deposits, based on 69,598 metres of drilling comprising 2,936 metres of diamond drilling and 66,662 metres of reverse circulation drilling. The indicated mineral resource totals 50.6 million tonnes grading 1.04 grammes per tonne gold, containing 1.7 million ounces, reported at a cut-off grade of 0.3 grammes per tonne within optimised pit shells using a US$4,000 gold price. The inferred resource comprises 9.3 million tonnes at 0.92 grammes per tonne, containing 273,000 ounces.

The maiden mineral reserve estimate, prepared using a long-term gold price of US$3,000 per ounce, reports probable reserves of 36.6 million tonnes grading 1.03 grammes per tonne gold, containing 1.2 million ounces. The reserve supports a 12.6-year mine life producing 1 million ounces from 37 million tonnes of mill feed. Metallurgical recoveries vary by material type and location, ranging from 72.8% to 92.5% for oxide and transitional ores, and 76% to 88% for fresh ores treated through the suspension roasting circuit.

The project area encompasses approximately 538 square kilometres within the Birimian metasediments. Mineralisation remains open along strike and at depth, with the main transcurrent shear zone extending approximately 30 kilometres within the project area. Thor has allocated US$9 million for exploration in 2026, including a minimum 40,000-metre drilling programme.

Mr. Lawson noted:

"We are currently undertaking our 2026 budgeted 40,000 metre drilling program and aim to update the resource in Q3 this year."

A resource update incorporating further results from Baraka 3 and other prospects is scheduled for the third quarter of 2026.

Development Timeline and Financing Strategy

The project follows a two-phase development approach. The oxide ore phase uses conventional carbon-in-leach processing to treat 4 million tonnes per annum of oxide ore over four years. The primary ore phase incorporates suspension roasting technology to process 2.4 million tonnes per annum of refractory fresh ore for approximately 7.8 years, followed by seven months processing stockpiled oxide and transitional material. Conventional open-pit mining is scheduled to commence at the end of 2027, with plant commissioning and production ramp-up during the first quarter of 2028.

The company has completed work with Norinco International, its engineering, procurement, and construction partner from the Segilola project, using a methodology that incorporates turnkey components. Capital cost estimates include a 10% contingency for most items and 5% for processing plant and tailings storage facility expenditures. Operating costs are based on contractor quotations for mining operations and established rates for processing, with life-of-mine mining costs ranging from US$2.75 to US$2.90 per tonne mined and processing costs varying from US$17.50 to US$35.76 per tonne depending on material type.

Near-term activities include finalising the mining convention with the government of Senegal, commencing detailed design, ordering long-lead items, and awarding the engineering, procurement, and construction contract, all targeted for the first half of 2026. Thor intends to fund construction using existing cash reserves and project financing. The company reported a cash balance of approximately US$137 million at year-end 2025 and states it is in discussions with potential funding parties. An investment decision is expected in the first half of 2026.

Conclusion

The pre-feasibility study for the Douta Gold Project outlines a 12.6-year operation with initial capital of US$254 million and estimated pre-tax NPV of US$908 million at a US$3,500 per ounce gold price. The environmental and social impact assessment received approval in January 2026. Near-term milestones include finalising the mining convention with the government of Senegal, commencing detailed design, and awarding the engineering, procurement, and construction contract in the first half of 2026. Mining is scheduled to begin in late 2027, with first production targeted for early 2028. The company plans to update the mineral resource estimate in the third quarter of 2026 following ongoing drilling programmes. An investment decision is expected in the first half of 2026.

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