Thor Explorations Ltd. has released a highly anticipated Pre-Feasibility Study (PFS) for its Douta Gold Project in southeastern Senegal, confirming robust project economics and setting the stage for development of what could become a long-life, million-ounce gold mine.
The PFS, prepared to National Instrument 43-101 standards, outlines a 12.6-year open-pit operation that could deliver approximately 1.0 million ounces of gold over its life, with production averaging roughly 82,000 ounces annually.
Under a long-term gold price assumption of US$3,500 per ounce, the study estimates a post-tax net present value (NPV5%) of US$633 million and an internal rate of return (IRR) of 61%, underscoring the project’s financial strength.
Low capital, fast payback
The capital cost to build the Douta mine is estimated at about US$254 million, with first production targeted for early 2028, positioning the project for rapid advancement into construction.
Significantly, the study anticipates a payback period of just under one year from the start of processing, driven by strong early cash flows from processing higher-grade oxide and transitional ores.
In the first four years of operations, the project is forecast to produce roughly 411,000 ounces of gold at an all-in sustaining cost (AISC) of US$1,493 per ounce, generating substantial cash flow to support the early recovery of capital. Over the full life of mine, the average AISC is estimated at about US$1,890 per ounce.
Thor’s President and CEO, Segun Lawson, welcomed the results, saying the study “confirms Douta as a high-quality gold project with strong economics, a short payback period and long-term leverage to the gold price through its significant Indicated Resource base.”
Lawson added that the project is underpinned by a substantial mineral resource estimate — including an indicated resource of 50.6 million tonnes grading 1.04 g/t gold for 1.7 million ounces — and the study incorporates the project’s maiden probable mineral reserve of 1.2 million ounces.
Environmental and permitting progress
The Environmental and Social Impact Assessment (ESIA) for the project has received approval from Senegal’s Ministry of Environment, a crucial milestone ahead of finalising the Mining Convention with the Government of Senegal.
As part of advancing the project, Thor also signed a binding agreement to acquire the remaining 30% interest in the Douta West permit, moving the company closer to 100% ownership of its contiguous licence area.
Ongoing exploration across the Douta, Douta West and adjoining Bousankhoba permits is expected to further expand the resource base. Thor is undertaking a 40,000-metre drilling program through 2026 aimed at delineating additional oxide ounces and improving the mine plan.
With a strong cash position of about US$137 million at the end of 2025, Thor has signalled its capacity to fund early stages of development without immediate shareholder dilution.
Overall, the positive pre-feasibility study for Douta cements the project’s attractiveness and provides a clear pathway toward production — furthering Thor’s strategy to evolve into a multi-asset gold producer across West Africa.