Thundermin Resources Inc.
TSX : THR

Thundermin Resources Inc.

June 23, 2011 08:00 ET

Thundermin Obtains the Right to Earn a 100% Interest in a Large Portion of the Stirling Zinc-Lead-Copper-Silver-Gold Massive Sulphide Belt, Cape Breton Island, Nova Scotia

TORONTO, ONTARIO--(Marketwire - June 23, 2011) - Thundermin Resources Inc. ("Thundermin") (TSX:THR) announces that it has signed a binding letter of intent ("LOI") with two vendors (the "Vendors") to acquire a 100% interest in eight Exploration Licences (the "Stirling Property") covering a large portion of the Stirling volcanogenic massive zinc-lead-copper-silver-gold sulphide belt located in the County of Richmond on Cape Breton Island, Nova Scotia.

The Stirling Property consists of 404 claims (64.6 km²) covering approximately 13 kms of favourable volcanic stratigraphy belonging to the Stirling Group that trends south-southwest from the past-producing Mindamar Mine. The Mindamar Mine, which was mined in the 1930's and in the 1950's, consisted of numerous massive sulphide lenses which contained over 1,000,000 tonnes of ore grading 6.3% Zn, 1.5% Pb, 0.8% Cu, 74.0 g/t Ag and 1.1 g/t Au. Thundermin believes that there is an excellent possibility of making additional precious metal rich, polymetallic base metal discoveries on the Stirling Property by using deeper penetrating geophysical techniques that have not been employed previously.

Numerous operators have conducted exploration programs over portions the Stirling Belt over the years with limited success. The most recent work was undertaken by Xstrata Canada Inc. ("Xstrata") (formerly Falconbridge Limited) during 1989-1991. Xstrata conducted a significant lithogeochemical program over portions of the Stirling Property and demonstrated that rocks with similar geochemical signatures to those that host the Mindamar Mine occur up to 10 kms to the southwest of the mine. Of significance was the discovery of the Taylor Brook base metal showing where wide intervals of sulphide mineralization, containing anomalous values of copper and zinc, were intersected in four shallow holes with the best intersection being 5.2% copper over 1.0 m. This area warrants further work and will be the focus of Thundermin's initial geological and geophysical programs on the Stirling Property that will commence this summer.

John B. Heslop, President & CEO of Thundermin said "We are extremely pleased to be able to acquire this significant land package covering an area that we feel is prospective for the discovery of additional precious metal rich, zinc-lead-copper deposits. This is the first time in many years that one company has been able to acquire such a substantial land package in the area. No substantial exploration work has been undertaken on the property since the early 1990's and we feel that, with the implementation of new state-of-the-art geophysical techniques, the potential exists for the discovery of additional deposits on the property. The Stirling Property is a relatively early stage project that will compliment our more advanced stage Little Deer copper project in Newfoundland".

Terms of LOI

Under the terms of the LOI, Thundermin has the right to earn a 100% interest in the Stirling Property by spending $1,000,000 on exploration and by making cash payments of $70,000 and issuing 300,000 Thundermin shares to the Vendors over four years. The first year commitments are a minimum of $150,000 in exploration expenditures and the payment of $15,000 cash and the issuance of 100,000 Thundermin shares to the Vendors upon the signing of a formal agreement (the "Agreement"). All remaining exploration expenditures, cash payments and share issuances beyond the first year are at Thundermin's option, subject to a minimum exploration expenditure of $100,000 per year if Thundermin elects to continue the option. If Thundermin acquires a 100% interest in the Stirling Property, the Vendors will be entitled to receive a 2.0% net smelter returns royalty, 1.0% of which may be purchased from the Vendors by Thundermin at any time for $1,000,000. If Thundermin acquires a 100% interest in the Stirling Property but fails to reach commercial production by May 17, 2019, then Thundermin will be required to pay the Vendors a recoupable advance royalty in the amount of $25,000 per year until commercial production is reached.

The Stirling Property transaction is subject only to the completion of the Agreement between Thundermin and the Vendors, TSX approval having already been granted.

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 12 base metal and gold properties in Canada. The most significant of these is the Little Deer copper property in the Springdale area of Newfoundland where Thundermin and 50% joint venture partner Cornerstone Resources Inc. have outlined Indicated Mineral Resources of 1,911,000 tonnes grading 2.37% copper and Inferred Mineral Resources of 3,748,000 tonnes grading 2.13% copper. 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.

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