Thundermin Resources Inc.
TSX : THR

Thundermin Resources Inc.

January 20, 2011 08:00 ET

Thundermin and Cornerstone Intersect High Grade Copper Mineralization Assaying 5.0% Copper Over 16.5 m in the Upper Portion of the Little Deer Copper Deposit, Newfoundland

TORONTO, ONTARIO--(Marketwire - Jan. 20, 2011) - Thundermin Resources Inc. ("Thundermin") (TSX:THR) and 50% joint venture partner Cornerstone Resources Inc. ("Cornerstone") (TSX VENTURE:CGP) announce that they have intersected high grade copper mineralization assaying 13.4% Cu over 0.5 m, 4.6% Cu over 4.2 m and 5.0% Cu over 16.5 m, including intervals of 6.1% Cu over 5.1 m and 9.2% Cu over 5.5 m within hole LD-10-39 which was drilled in the upper portion of the Little Deer Copper Deposit ("Deposit") (see Table 1 and Figure 1). The Deposit is located approximately 10 km north of Springdale in north-central Newfoundland.

Table 1: Little Deer Drill Results (2010)
 
Hole No. East North Dip Az From To Interval Cu
  (m) (m) (°) (°) (m) (m) (m)* (%)
LD-10-39 14,057 4,459 -37.1 321.6 208.6 209.1 0.5 13.4
and         213.9 218.1 4.2 4.6
and         233.9 250.4 16.5 5.0
incl.         233.9 239.0 5.1 6.1
incl.         244.9 250.4 5.5 9.2
                 
LD-10-40 14,057 4,459 -35.8 315.0 294.5 295.2 0.7 2.4
                 
LD-10-41 14,057 4,459 -36.1 335.1  Assays awaited 
               
Note: * The reported copper intersections approach true thickness.

A $1,600,000 diamond drilling program, comprising approximately 12,000 to 13,000 m of drilling in 16 to 20 holes and employing two drills, commenced on the Deposit on December 1, 2010. The primary purpose of this drill program is to increase the estimated mineral resources outlined to date in the Deposit to the five to six million tonne range. The potential increase of the current mineral resources is conceptual in nature and it is uncertain whether further exploration drilling will result in an expansion of this mineral resource.

The current drill program will focus on three main areas: 1) above the -250 m elevation where historical drilling suggests that there is good potential for outlining high grade resources above the area where Thundermin and Cornerstone have focused their drilling to date and have established a National Instrument 43-101 ("NI 43-101") compliant resource for the Deposit (approx. above the -800 foot level drift from the Whalesback Mine as shown on Figure 1); 2) along strike both east and west of the limits of the currently outlined mineral resource between the -650 m and the -250 m elevations where the boundaries of the Deposit have not been defined to date; and 3) at depth below the -650 m elevation where a preliminary interpretation of the results from borehole Pulse electromagnetic surveys suggest that there is potential for the discovery of additional copper mineralization. The Deposit has been outlined by drilling over a strike length of 1,050 m and to a vertical depth of 1,000 m. Note that Figure 1 presented here only covers the upper portion of the Deposit (see the longitudinal section accompanying the news release dated July 29, 2010 for a view of the complete Deposit). Details on the Deposit can be found in numerous Thundermin and Cornerstone news releases dated between May 1, 2007 and November 30, 2010 which are on each company's website and on SEDAR.

A compilation of historical surface and underground diamond drilling information obtained from the archives of the Newfoundland and Labrador Department of Natural Resources, dating from the 1960's to the early 1970's and, some of which was not previously available, has recently been completed. Drill logs and assay information for a total of 47 surface and 86 underground holes were recovered as shown on Figure 1 and listed in Table 2 at the end of this release. Six surface and 28 underground holes lie outside of the area of drill indicated mineralization shown on Figure 1. The assay results for seven of the underground holes were included in a news release dated February 25, 2009 but this data was not incorporated in any resource estimates as the drill logs for these holes were not previously available.

Figure 1 shows the areas in the upper portion of the Deposit that were mined out, as well as the areas that were developed but not mined out, by British Newfoundland Exploration Company from 1966 to 1972 and Green Bay Mining Company from 1972 to 1974. All known mine workings and the upper limit of the current NI 43-101 mineral resource estimate are also shown on Figure 1.

Three holes of the current drill program totaling 966 m were completed in December prior to the seasonal shutdown (see Figure 1). These three holes were drilled to confirm the presence of high grade copper mineralization known to exist in the upper portion of the Deposit (see Figure 1 and Table 2). Hole LD-10-39, which intersected high grade massive, semi-massive and stringer chalcopyrite-pyrite-pyrrhotite mineralization over significant widths (see Table 1), was drilled to confirm the copper mineralization in historical surface hole LD-62-78 which intersected 2.9% Cu over 60.1 m, including intervals of 5.9% Cu over 7.9 m, 5.3% Cu over 15.5 m and 3.1% Cu over 11.6 m (see Table 2). Hole LD-10-40, which was drilled approximately 35 m west of LD- 10-39, intersected minor copper mineralization comprising 2.4% Cu over 0.7 m. Hole LD-10-41 (assays pending) was drilled approximately 50 m east of hole LD-10-39. The current drill program will recommence shortly with two drills and will be completed by June 30, 2011.

A preliminary interpretation of the recovered drill log and assay data suggests that there is potential to add from 500,000 to 650,000 t of copper mineralization, excluding the areas that were mined on two occasions from 1966 to 1974, with grades similar to that already estimated for the Little Deer Zone above the area of the mineral resources outlined to date (see Figure 1 and Table 2). The potential addition of these mineral resources to the total mineral resource estimate for the Deposit is conceptual in nature and will need to be confirmed by an independent Qualified Person ("Q.P").

John B. Heslop, President and CEO of Thundermin stated "We are extremely pleased to have been able to recover such a large quantity of invaluable diamond drill information from the archives of the Newfoundland and Labrador Department of Natural Resources. We anticipate that this information will, in due course, allow us to be able to add a significant amount of essentially "free" tonnes to the mineral resource estimate for the Deposit. In addition, with the new data, we now also have a better understanding of the existing underground infrastructure which may potentially afford substantial cost savings for access via ramp for underground definition drilling and mining".

Mineral Resource Estimate

On October 13, 2010, Thundermin and Cornerstone announced that an updated NI 43-101 compliant mineral resource estimate had been completed by Scott Wilson RPA under the supervision of Mr. Reno Pressacco, M.Sc. (A), P.Geo., Senior Geologist for Scott Wilson RPA and an independent Q.P. in accordance with NI 43-101. Scott Wilson RPA estimated that the Deposit contains Indicated Resources of 1,150,500 t at an average grade of 2.8% Cu within the Little Deer Zone and additional Inferred Resources of 1,227,300 t at an average grade of 2.2% Cu within the Little Deer Zone and 1,108,200 t at an average grade of 1.9% Cu within the Footwall Zone. A NI 43-101 compliant Letter Report entitled "Mineral Resource Update for the Little Deer Project" dated September 30, 2010, to support the updated mineral resource estimate, is available on Thundermin's and Cornerstone's websites.

Metallurgy

On October 19, 2010, excellent metallurgical results from scoping level test work on core samples from the Deposit were announced. This work, which was undertaken at SGS Lakefield Research Limited ("Lakefield") of Lakefield, Ontario, indicates that a saleable, high grade copper concentrate grading over 28% copper with over 97% recovery and free of any deleterious elements can be produced from the Deposit. The use of a simple rougher-cleaner flowsheet, a common xanthate collector, pH control with lime and a relatively course primary grind for copper liberation from mineralization of medium hardness suggest that the operating costs should fall into the low range for any metallurgical plant constructed to treat the Little Deer copper mineralization.

Qualified Person

Mr. Andrew Hussey, P.Geo., Project Geologist and Lands Manager, Cornerstone Resources Inc., is the Q.P. responsible for supervising the drilling program and the compilation of all of the historical data on the Deposit for the purposes of NI 43-101. Mr. Hussey has also reviewed the contents of this news release for accuracy. All holes drilled by Thundermin and Cornerstone are NQ in size. Specific gravity measurements, rock quality designations and photographic logging of significant mineralized intersections are performed systematically prior to assaying. The core is logged and the mineralized sections, where appropriate, are sawn in half at a core logging facility in Springdale. Half of the core is submitted for analyses to Eastern Analytical Limited, an independent and qualified assayer located in Springdale, and the remaining half of the core is kept for future reference. Blanks, duplicates and standards are routinely used as part of the assay procedures.

Little Deer Joint Venture

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 Deposit and the terms of the agreement with Weyburn can be found in numerous news releases and on Thundermin's and Cornerstone's respective websites and on SEDAR.

Junior Exploration Assistance Program

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.

About Thundermin

Thundermin is a Canadian-based mineral exploration company focused on the exploration for and the discovery of economically viable base metal and gold deposits in Canada. Thundermin has an interest in, or the right to earn an interest in 11 base metal and gold properties in Canada. Thundermin also has royalty interests in a further 28 base metal and gold properties located in Manitoba, Saskatchewan, British Columbia and Quebec, the most significant being a 2.5% net smelter return royalty in the Pelletier Lake gold deposit which is under option to Alexis Minerals Corporation. Thundermin also has various shareholdings in thirteen other junior resource companies that are actively exploring for base metal, gold, chrome, vanadium-titanium and diamond deposits in Canada.

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.

For further information on Thundermin Resources Inc. please contact:

John B. Heslop, President & CEO of Thundermin at (647) 344-1167 or James W. Gill, Chairman at 416-450-1851 or E-mail info@thundermin.com or visit Thundermin's website at www.thundermin.com or the SEDAR website at www.sedar.com.

Table 2: Little Deer – Historical Surface and Underground Drill Results
 
Holes Drilled From Surface   Holes Drilled From Underground
Hole No. From To Width Cu   Hole No. From To Width Cu
  (m) (m) (m) (%)     (m) (m) (m) (%)
LDP-1 22.1 24.4 2.3 6.5   60 93.3 94.3 1.0 0.2
LDP-3 25.3 26.8 1.5 1.8   61 85.3 89.9 4.6 0.1
LDP-4 46.9 49.5 2.6 1.2   62 120.4 121.9 1.5 0.2
48 60.1 61.6 1.5 0.7   63 76.8 81.7 4.9 2.6
50 31.7 39.3 7.6 1.7   69 52.1 53.3 1.2 0.3
51/51A 216.4 217.9 1.5 0.7   70 73.2 74.7 1.5 1.1
52 109.4 112.5 3.1 2.4   72 74.7 77.7 3.0 0.5
53A 56.4 57.9 1.5 1.3   74 144.8 146.3 1.5 0.7
and 64.0 68.6 4.6 1.5   75 75.3 76.8 1.5 1.6
54 119.4 128.6 9.2 1.6   76 --- --- --- NSV
59 104.2 106.3 2.1 1.5   80 88.4 91.4 3.0 0.6
61 39.9 42.0 2.1 0.4   81 97.5 100.6 3.1 1.2
62 42.7 45.7 3.0 2.4   82 48.8 54.9 6.1 2.1
63 191.0 192.5 1.5 0.3   and 77.7 82.3 4.6 2.7
66 191.1 193.8 2.7 2.4   83 51.8 62.5 10.7 2.0
68 58.5 64.9 6.4 1.2   and 91.4 92.9 1.5 8.3
71 100.0 101.5 1.5 2.5   84 42.7 48.8 6.1 1.2
73 91.4 95.7 4.3 1.6   85 40.8 42.6 1.8 0.7
74 101.2 107.0 5.8 1.2   86 100.6 102.1 1.5 0.4
75 100.9 106.4 5.5 1.9   87 15.2 16.4 1.2 0.2
76 112.8 121.3 8.5 1.4   88 33.2 36.6 3.4 1.2
77 69.2 96.3 27.1 2.3   89 57.9 68.6 10.7 2.4
78 179.2 239.3 60.1 2.9   90 46.0 47.8 1.8 1.9
incl. 179.2 187.1 7.9 5.9   91 73.2 79.3 6.1 0.5
incl. 198.1 213.6 15.5 5.3   92 48.8 56.4 7.6 2.7
incl. 227.7 239.3 11.6 3.1   and 71.6 76.2 4.6 3.3
80 196.6 200.3 3.7 4.3   93 39.6 41.3 1.7 0.4
83 179.8 190.2 10.4 3.1   95 29.9 31.4 1.5 0.5
85A 156.0 167.3 11.3 1.2   96 56.4 77.7 21.3 4.2
86 224.6 238.3 13.7 2.1   incl. 56.4 61.0 4.6 3.1
88/88A 63.7 68.9 5.2 2.3   incl. 67.0 77.7 10.7 6.9
89 194.4 199.0 4.6 2.5   and 88.4 90.8 2.4 1.7
and 211.8 217.9 6.1 1.5   97 30.5 32.0 1.5 0.1
90 180.6 184.0 3.4 3.1   98 25.9 28.2 2.3 0.1
92 243.5 245.0 1.5 4.6   *99 (2) 68.2 71.6 3.4 1.1
101 117.0 121.9 4.9 1.3   *100 (5) 87.2 89.9 2.7 2.4
102 182.9 186.0 3.1 1.6   *101 (7) 106.6 109.7 3.1 2.8
103 31.8 36.6 4.8 1.3   *102 (6) 91.4 126.8 35.4 1.3
104 65.5 67.0 1.5 1.7   incl. 120.4 126.8 6.4 4.1
105 49.1 51.1 2.0 2.5   103 33.4 38.3 4.9 3.1
106 80.7 83.8 3.1 3.3   104 28.3 29.7 1.4 2.0
107 62.5 67.1 4.6 1.0   105 53.8 57.6 3.8 1.0
108 155.5 157.0 1.5 0.7   106 --- --- --- NSV
109 71.6 81.7 10.1 1.4   *107 (1) 74.4 79.3 4.9 2.8
112 186 187.6 1.6 0.4   108 35.8 43.0 7.2 2.9
129 86.0 87.5 1.5 2.5   109 27.8 30.5 2.7 0.1
130 107.6 112.8 5.2 2.4   110 46.5 49.1 2.6 5.2
and 125.6 128.2 2.6 1.5   111 33.5 36.6 3.1 2.8
131 104.1 108.7 4.6 1.3   112 45.7 51.8 6.1 1.8
133 151.2 167.4 16.2 2.0   113 35.4 36.9 1.5 1.1
139 197.2 199.6 2.4 2.5   115 31.7 34.9 3.2 2.3
140 --- --- --- NSV   116 40.1 42.7 2.6 1.6
142 196.6 197.1 0.5 3.7   117 53.2 54.3 1.1 1.0
     
     
Holes Drilled From Underground   Holes Drilled From Underground
Hole No. From (m) To (m) Width (m) Cu (%)   Hole No. From (m) To (m) Width (m) Cu (%)
118 29.3 31.1 1.8 2.1   136 47.2 73.4 26.2 1.2
119 33.8 36.5 2.7 1.8   incl. 47.2 57.9 10.7 1.1
120 50.1 51.5 1.4 3.9   incl. 65.2 73.4 8.2 2.0
121 30.8 33.4 2.6 1.8   and 121.9 125.0 3.1 7.4
122 30.2 32.0 1.8 2.0   137 74.4 75.9 1.5 0.1
123 50.3 82.3 32.0 2.3   138 48.7 53.3 4.6 0.6
incl. 50.3 61.0 10.7 2.3   139 53.3 57.9 4.6 0.1
incl. 79.2 82.3 3.1 12.0   140 46.9 52.1 5.2 0.8
124 37.0 41.1 4.1 1.6   141 55.5 67.1 11.6 1.9
125 38.1 42.7 4.6 6.0   142 50.3 53.3 3.0 1.5
126 42.1 43.0 0.9 4.0   143 76.2 89.3 13.1 8.1
127 51.8 62.5 10.7 2.3   144 62.5 64.0 1.5 0.4
and 77.7 84.3 6.6 6.8   145 67.1 70.1 3.0 3.2
128 34.8 36.3 1.5 1.1   148 61.0 62.5 1.5 3.4
129 34.1 34.7 0.6 1.6   149 71.6 73.4 1.8 1.0
130 41.1 47.2 6.1 1.3   153 42.7 50.3 7.6 1.5
and 57.9 62.8 4.9 2.7   154 41.2 47.6 6.4 1.3
131 48.8 53.4 4.6 1.5   155 59.4 60.9 1.5 2.5
132 59.1 62.5 3.4 3.2   156 --- --- --- NSV
134 96.0 97.5 1.5 0.2   157 49.7 52.1 2.4 2.3
135 47.2 77.7 30.5 1.1   158 48.3 51.2 2.9 2.2
incl. 47.2 56.4 9.2 1.1   *164 (4) 88.4 89.9 1.5 0.7
incl. 62.5 77.7 15.2 1.5   *165 (3) 99.4 102.1 2.7 2.4
and 89.3 90.4 1.1 10.4   172 --- --- --- NSV
            176 112.7 116.7 4.0 0.7
            186 154.2 156.0 1.8 3.9

Notes:

1) All drill holes shown on Figure 1 and not listed in Table 2 have been released previously in news releases dated May 1, 2007; December 11, 2007; and February 25, 2009.

2) Holes in Table 2 marked with an asterisk and shown on Figure 1 were previously released as holes 1 to 7 in a news release dated February 25, 2009.

3) The reported copper intersections are core lengths but the widths reported for many of the holes in Table 2, in particular the holes drilled from underground, approach true thickness.

4) Surface and underground holes falling outside the area of drill indicated copper mineralization as shown on Figure 1.

To view Figure 1, please visit the link below:

http://media3.marketwire.com/docs/THR%2001-20-11%20Figure%201.pdf 

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