Thundermin Resources Inc.
TSX : THR

Thundermin Resources Inc.

July 07, 2009 08:00 ET

Thundermin and Cornerstone Announce a Significant NI 43-101 Mineral Resource for the Little Deer Copper Deposit, Springdale Area, Newfoundland

TORONTO, ONTARIO--(Marketwire - July 7, 2009) - Thundermin Resources Inc. ("Thundermin")(TSX:THR) and 50% joint venture partner Cornerstone Resources Inc. ("Cornerstone")(TSX VENTURE:CGP) are pleased to announce the results of a National Instrument 43-101 ("NI 43-101") compliant mineral resource estimate for the Little Deer Copper Deposit (the "Deposit") which is located approximately 10 km north of Springdale in north-central Newfoundland. The mineral resource estimate was completed by Micon International Limited ("Micon") of Toronto, Ontario, Thundermin's and Cornerstone's independent resource estimate consultants.

Micon has estimated that the Deposit contains Indicated Resources of 1,087,000 tonnes at an average grade of 2.9% Cu and Inferred Resources of 1,950,000 tonnes at an average grade of 2.3% Cu (see Table 1 and Figure 1).

Table 1: Micon Mineral Resource Estimate, July 7, 2009

Resource Classification Tonnes (t) Copper Grade (%)
Indicated 1,087,000 2.9
Inferred 1,950,000 2.3

Notes: 1. Assaying of drill core since 2007 by Thundermin and Cornerstone suggests that the reported mineral resource may contain from 0.02% to 0.03% cobalt. However, a reliable estimate of the overall cobalt grade for the reported mineral resource is not possible at the present time as cobalt was not consistently assayed on historical drill core.

  1. An average dry bulk density of 3.06 tonnes per m³, as determined from direct measurements from drill core, has been used for the tonnage estimate.
  2. In order not to distort the estimated grade of the Deposit with the influence of extremely high grade copper samples, four copper assays from two historical drill holes have been capped at 11.0% Cu. This capping of high copper grades reduces the overall estimated grade of the Indicated Resource by 0.03% Cu.
  3. A copper price of USD $2.17/lb (being the 27 month London Metal Exchange forward price as at June 1, 2009) and an exchange rate (USD/CAD) of 1.1 : 1 was used for the mineral resource estimate (copper price of CAD $2.39/lb).
  4. A cut-off grade of 1.25% Cu was used to construct a domain model of the copper mineralization on cross sections spaced 50 m apart (+/-25 m viewing windows).
  5. The grade of the mineral resource estimate was determined using the ordinary kriging method.
  6. Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing or other relevant issues.
  7. The quantity and grade of reported Inferred Resources in this estimation are conceptual in nature and there has been insufficient exploration to define these Inferred Resources as an Indicated or Measured Mineral Resource. It is uncertain if further exploration will result in the upgrading of the Inferred Resources into an Indicated or Measured Mineral Resource category.

Figure 1: Longitudinal View, Little Deer Copper Deposit Looking NNW (after Micon, July 7, 2009) (Green – Indicated Resources; Blue – Inferred Resources).

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The Little Deer mineral resource estimate was calculated using a database containing 85 current and historical drill holes, 63 (30,800 m) of which were drilled from surface between 1961 and 2009 and 22 (3,008 m) of which were drilled from underground during 1968. The database includes all of the holes drilled by Thundermin and Cornerstone up to and including holes LD-09-22 and LD-08-16A, the results of which were released on June 16, 2009.

The mineral resource estimate was prepared by Mr. Reno Pressacco, M.Sc.(A), P.Geo., Senior Geologist for Micon of Toronto, Ontario. Mr. Pressacco is an independent Qualified Person ("Q.P.") in accordance with NI 43-101. Mr. Pressacco has reviewed the contents of this news release for accuracy. A NI 43-101 compliant Technical Report for the mineral resource estimate is currently being prepared by Micon and it will be filed on SEDAR within 45 days. Mr. Andrew Hussey, P.Geo., Project Geologist and Lands Manager, Cornerstone Resources Inc., is the Q.P. responsible for supervising the drilling program on the property for the purposes of NI 43-101. Mr. Hussey has also reviewed the contents of this news release for accuracy.

The Little Deer Copper Deposit is well situated to take advantage of Newfoundland's developed infrastructure. The Deposit is located approximately 16 km from the Trans Canada Highway and it is easily accessible by a 10 km network of paved and gravel roads north of Springdale, where there is an available skilled mining workforce. The site is approximately 8 km from a major power transmission grid and there is a plentiful supply of fresh water in the area. The Whalesback tailings impoundment site, which may be able to be used to store additional tailings, is located only 1,200 m north of the Deposit. There is also reasonably good access to a deep water port for any future shipment of copper concentrates. The Duck Pond base metal concentrator, which is owned by Teck Resources Inc., is located approximately 165 km by paved and gravel road from the Little Deer site, 66 km of which is on a secondary paved road and 70 km of which is along the Trans Canada Highway.

To date, the Little Deer Copper Deposit has been intersected over a strike length of approximately 1,050 m and to a vertical depth of approximately 895 m. The Deposit remains open to the east, west and at depth and the potential for discovery of additional mineral resources is believed to be high (see Figure 1).

Diamond drilling on the Deposit is on-going and it is expected that two new holes, designed to expand the reported initial mineral resource estimate, will be completed as part of the $900,000 exploration program outlined for the first half of 2009. Results from these holes will be released once they have been completed and assays are received.

Thundermin, the operator, and Cornerstone have the option, on a 50/50 basis to earn a 100% interest in the Little Deer copper deposit and adjacent property from Weyburn Investments Ltd. Thundermin, under its joint venture agreement with Cornerstone, has the right to increase its interest in the Little Deer property to 75% by completing a feasibility study and by arranging 100% of the necessary bank financing required to place the property into commercial production. Details on the Little Deer copper deposit and the terms of the agreement with Weyburn can be found in news releases dated May 1, June 21, July 9, October 30, December 11, 2007 and January 24, April 9, May 15, June 6, June 17, July 25, November 26, 2008 and February 25, May 12 and June 16, 2009 and on Thundermin's and Cornerstone's respective websites and on SEDAR.

Thundermin and Cornerstone would like to acknowledge the financial support received from the Junior Exploration Assistance (JEA) Program of the Province of Newfoundland and Labrador in carrying out a portion of their work on the Little Deer property.

Forward-Looking Statements

This news release may contain "Forward-Looking Statements" that involve risks and uncertainties, such as statements of Thundermin's plans, objectives, strategies, intentions and expectations. The words "potential," "anticipate," "forecast," "believe," "estimate," "expect," "may," "project," "plan," and similar expressions are intended to be among the statements that identify "Forward-Looking Statements". Although Thundermin believes that its expectations reflected in these "Forward-Looking Statements" are reasonable, such statements may involve unknown risks, uncertainties and other factors disclosed in our regulatory filings that can be viewed on the SEDAR website at www.sedar.com. For us, uncertainties arise from the behavior of financial and metals markets and from numerous other matters of national, regional, and global scale, including those of an environmental, climatic, natural, political, economic, business, competitive, or regulatory nature. These uncertainties may cause our actual future results to be materially different than those expressed in our "Forward- Looking Statements". Although Thundermin believes the facts and information contained in this news release to be as correct and current as possible, Thundermin does not warrant or make any representation as to the accuracy, validity or completeness of any facts or information contained herein and these statements should not be relied upon as representing its views subsequent to the date of this news release.

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