Thundermin Resources Inc.
TSX : THR

Thundermin Resources Inc.

May 01, 2007 08:00 ET

Thundermin and Cornerstone to Acquire a 100% Interest in the Little Deer Copper Deposit, Springdale Area, North-Central Newfoundland

TORONTO, ONTARIO--(CCNMatthews - May 1, 2007) - Thundermin Resources Inc. ("Thundermin") (TSX:THR) and Cornerstone Resources Inc. ("Cornerstone") (TSX VENTURE:CGP) (collectively, the Little Deer Joint Venture "LDJV") announce that they have signed a letter of intent ("LOI") with Weyburn Investments Ltd. ("Weyburn") under which the LDJV has an option to acquire a 100% interest in Weyburn's Little Deer copper deposit and adjacent property (the "Weyburn Property") which is located approximately 10 kms north of Springdale in north-central Newfoundland (see Figure 1).

The Weyburn Property consists of 78 claims (1,950 ha) comprising the Little Deer and Duck Pond Mineral Licences (10215M and 10214M), which cover the past-producing Little Deer copper deposit and potential southwest extensions near Duck Pond, plus four additional Mineral Licences lying to the east of the Little Deer Licence. In addition to the Weyburn Property, the LDJV also holds Cornerstone's Mineral Licence 12196M which consists of 232 claims (5,800 ha) (collectively, the "LDJV Property"). Mineral Licence 12196M essentially surrounds the Little Deer and Duck Pond Licences on three sides and covers a gap that exists between these two licenses.

The Little Deer copper deposit was discovered in 1952 by Falconbridge Nickel Mines Limited. Small tonnages of copper ore were mined from the property during two campaigns in the 1970's. Mining was undertaken by British Newfoundland Exploration Company ("BRINEX") from 1970 to 1972 with access being gained via a 1,144 m long drift on the 244 m level from the adjacent Whalesback Mine, which lies north of the Little Deer deposit on Mineral Licence 12196M. BRINEX ceased mining operations at Little Deer in 1972 with the closure of the Whalesback Mine. In 1973, Green Bay Mining Company ("Green Bay") leased the property and mined the Little Deer deposit via a 329 m decline. Green Bay ceased mining operations in 1974 due to low copper prices. Reserves at the cessation of mining were quoted as 210,200 tonnes grading 1.53% Cu above the 245 m level (Kean, B. F., Evans, D. T. W., and Jenner, G. A., Report 95-2, Department of Natural Resources, Government of Newfoundland and Labrador, 1995). These reserves are historical in nature and should not be relied upon. An independent qualified person has not audited or classified this historical reserve as current reserves under NI 43-101.

A program of geological mapping, surface and borehole geophysical surveys and 6,815 m of diamond drilling in 12 holes was undertaken on the Little Deer property from 1998 to 2000 by Mutapa Gold Corp. ("Mutapa"). Mutapa's exploration results, in conjunction with the results from other historical holes drilled in the 1960's by BRINEX, indicate that there is the potential to outline a significant resource of economic grade copper mineralization in the Little Deer deposit below and along strike from the areas that were mined previously (see Table 1 and Figure 2).



Table 1: Significant Copper Drill Hole Intersections Little Deer Property.

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Hole No Easting Northing Dip Az From To Interval Cu
(m) (m) (degrees) (degrees) (m) (m) (m) (%)
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Mutapa
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LD-98-01 13706 4526 -60 325 338.4 340.5 2.1 5.2
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LD-98-02 13706 4526 -65 325 405.1 412.4 7.3 3.0
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including 405.1 407.2 2.1 4.0
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including 410.8 412.4 1.6 8.0
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LD-98-03 13706 4526 -67 325 434.7 447.6 12.9 3.1
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LD-98-04 13706 4526 -72 325 542.9 552.5 9.6 4.3
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LD-98-05 13646 4533 -65 325 423.3 431.5 8.2 2.3
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LD-98-06 13646 4533 -69 325 452.0 468.9 16.9 1.1
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including 452.0 458.0 6.0 1.5
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including 465.0 468.9 3.9 2.2
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LD-98-07 13596 4541 -70 325 563.0 568.8 5.8 2.9
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LD-98-08 13790 4523 -70 325 533.4 572.1 38.7 1.6
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including 533.4 541.7 8.3 2.5
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including 549.7 572.1 22.4 1.6
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LD-99-09 13786 4518 -72 346 438.6 443.1 4.5 1.8
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LD-99-10(a) 13747 4500 -74 330 382.2 387.2 5.0 1.5
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LD-00-11(b) 13496 4515 -52 325 382.5 383.0 0.5 1.7
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387.5 387.8 0.3 1.5
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LD-00-12 13396 4500 -65 325 622.0 623.8 1.8 3.5
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643.3 654.0 10.7 3.8
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BRINEX
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LD-66-132(c) 13605 4525 -62 360 337.1 340.8 3.7 1.2
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LD-66-135 13715 4525 -62 355 320.5 329.2 8.0 3.5
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LD-66-136 13380 4545 -62 325 348.0 354.2 6.2 1.9
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LD-67-143 13650 4535 -65 334 359.9 361.4 1.5 5.8
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Notes:
(a) Hole LD-99-10 steepened in dip and swung to the east and was stopped
short of the main mineralized horizon.
(b) Hole LD-00-11 intersected the mineralized horizon above the area of the
higher grade copper values.
(c) Hole LD-66-132 is at the same approximate elevation as hole LD-00-11
and intersected only the very top part of the main copper
mineralization.
Copper is the predominate economic mineral at Little Deer. However, values
from 1.0 to 4.0% Zn, 1.0 to 2.0 g/t Au and up to 0.1% cobalt over a few
metres have been recorded in the drilling. The total significance of these
elements is unknown at the present time.
All widths recorded above are core lengths.


Of particular interest to the LDJV is the potential to outline new copper resources in the area immediately beneath the old mine workings extending from approximately 250 m to a minimum of 600 m below surface and extending from L14000 E to L13400 E, a distance of 600 m. This area contains thirteen drill holes with significant copper intersections and remains open to the east, west and at depth (see Table 1 and Figure 2). Four of these holes, LD-98-08, LD-98-04, LD-98-07 and LD-00-12, each intersected significant copper mineralization over mineable widths over a distance of approximately 450 m on the 550 m elevation. Hole LD-00-12, which intersected 3.8% Cu over a core length of 10.7 m, is the farthest west hole drilled to date, except for a few shallow holes drilled by BRINEX in 1966 near Duck Pond on L12850E and hole LD-66-145. Hole LD-00-12 is approximately 250 m west of the nearest hole, LD-98-07, which contains 2.9% Cu over 5.8 m and 250 m below hole LD-67-137 that intersected 0.3 m of massive sulphides which were not assayed.

Previous surface and borehole geophysical surveys have shown a good correlation between conductivity and copper mineralization. Of significance is a strong surface DEEPEM geophysical conductor that correlates well with the copper mineralization intersected to date. This DEEPEM conductor extends from L14550E to at least L12750E, a distance of 1,800 m. Approximately 700 m of this conductor from L13450E, the approximate intersection of LD-00-12, west to line 12750E remains undrilled. The DEEPEM survey suggests that the top of the mineralized horizon plunges shallowly to the west and it may continue even further west onto Mineral Licence 12196M (see Figure 1). Shallow historical drilling undertaken by BRINEX in the area of L12850E intersected 1.1% Zn over 3.5 m. Re-assaying of the same core by Inco Limited in 1988 returned 1.5% Zn and 2.5 g/t Au over 1.4 m and 0.5% Zn over 9.5 m, including 1.7% Zn and 3.1 g/t Au over 0.8 m. These intersections may represent a shallow, more zinc-gold rich portion of the main Little Deer copper-bearing horizon which may occur at depth at this location.

The Little Deer volcanogenic massive sulphide ("VMS") copper deposit occurs within the Lush's Bight Group which is a Cambro-Ordovician sequence of ophiolitic-like rocks consisting mainly of intermediate to mafic pillow lavas with minor associated tuffs and agglomerates which have been intruded by gabbroic stocks and dykes. The main sulphide mineralization consists of disseminated, stringer, and semi-massive to massive pyrite, pyrrhotite and chalcopyrite with minor sphalerite. The main copper-bearing horizon dips approximately 75degrees to the south. There are eight similar VMS copper deposits in the Lush's Bight Group with reported resources of which the Whalesback and the Gullbridge are the largest at approximately 4.5 million tonnes ("Mt") each. These deposits form a group that belong to what is commonly referred to as the "Cyprus type" of VMS copper deposit. There are 17 such deposits known in Cyprus with similar characteristics to those occurring in the Lush's Bight Group with the largest being Mavaravouni at approximately 25 Mt.

Upon completion of the definitive option agreement between the LDJV and Weyburn (the "Agreement"), the LDJV intends to commence an aggressive exploration program on the Weyburn Property. This work will consist of diamond drilling, borehole geophysical and geological mapping surveys and grid reconstruction. Final details of this program will be announced upon completion of the Agreement which is anticipated before the end of May.

Under the terms of the LOI with Weyburn, the LDJV has an option to acquire a 100% interest in the Weyburn Property by making the following option payments in cash and/or shares of equal value in each of Thundermin and Cornerstone, at each of Thundermin's and Cornerstone's respective election: CDN $170,000 upon the execution and delivery of the Agreement; $115,000 on or before the 2nd anniversary of the Agreement (the "Second Payment"); $200,000 on or before the 3rd anniversary of the Agreement (the "Third Payment")( should the LDJV make the second payment, then the Third Payment becomes a commitment of the LDJV); and an amount on or before the 4th anniversary of the Agreement (the "Buyout Amount") depending on the size of the mineral resource defined on the Weyburn Property (the "Buyout Mineral Resource"). The Buyout Amount will commence at $1,500,000 for a deposit of less than 4,500,000 t and range up to $5,000,000 for a deposit of 10,000,000 t. The LDJV will pay to Weyburn an additional $250,000 for each additional 500,000 tonnes of Buyout Mineral Resource in excess of 10,000,000 tonnes. All tonnes not paid for as at the date the Buyout Amount is determined will be paid for on the basis of tonnes mined and milled in the future.

The LDJV is committed to spend a minimum of $850,000 on the Weyburn Property on or before the second anniversary of the Agreement, a minimum of $500,000 of which will be spent on or before the first anniversary of the Agreement. All additional expenditures on the Weyburn Property above the $850,000 commitment are at the LDJV's sole option and discretion. Subject to the LDJV making the Second Payment, the making of any option payments beyond what is due to Weyburn upon the execution and delivery of the Agreement, including the payment of the Buyout Amount, is at the LDJV's sole option and discretion.

Once the LDJV has determined that it has completed sufficient drilling to outline a potentially economic deposit on the Property, the LDJV is to retain a qualified independent engineering firm to undertake a NI 43-101 mineral resource calculation (the "Mineral Resource Report"). Only the sum of the measured and indicated mineral resources determined in the Mineral Resource Report will be the Buyout Mineral Resource for the purposes of determining the Buyout Amount.

The LDJV will be responsible for the payment of a 2% net smelter returns royalty ("NSR") payable to a third party on the Little Deer Licence, 50% of which can be repurchased for $1,000,000, and the payment of a 3% NSR to third parties on the Duck Pond Licence. Should the LDJV place into production an orebody discovered on Mineral Licences 11043M, 11184M, 11187M or 11237M, the LDJV is to pay a 1.5% NSR royalty to Weyburn, 50% of which can be repurchased by the LDJV for $1,000,000.

The LDJV will be a 50/50 joint venture between Thundermin and Cornerstone with Thundermin as operator. Once the LDJV has completed sufficient exploration drilling to prepare a Mineral Resource Report, Thundermin, at its sole discretion and cost, has the right to carry out a detailed study to determine the economic viability of putting the property into commercial production (the "Feasibility Study"). Upon completion of the Feasibility Study, Thundermin will have earned an additional 15% undivided interest in the LDJV. Thundermin shall have the further right to increase its undivided interest in the LDJV by an additional 10% by arranging 100% of the necessary bank financing required to place the property into commercial production.

Mr. Bruce Mitton, P.Geo., Exploration Manager - Canada, Cornerstone Resources Inc. is the qualified person for the purposes of NI 43-101 that has reviewed and approved the content of this release.

To view the Cornerstone Resources & Thundermin Resources Little Deer & Duck Pond Area LDJV Joint Venture Property, Springdale, Newfoundland and Labrador, Canada, please click on the following link:

http://www.ccnmatthews.com/docs/thr1.pdf

To view the Cornerstone Resources & Thundermin Resources Little Deer & Duck Pond Area LDJV Joint Venture Property, Springdale, Newfoundland and Labrador, Canada, Longitudinal Section please click on the following link:

http://www.ccnmatthews.com/docs/thr2.pdf

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