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Thundermin (TSX:THR) and Cornerstone Announce Significant Copper Resources at the Whalesback Copper Deposit
Thundermin and Cornerstone Announce Significant Copper Resources at the Whalesback Copper Deposit in Newfoundland
TORONTO, ONTARIO--(Marketwire - July 26, 2012) - Thundermin Resources Inc. ("Thundermin") (TSX:THR) and 50% joint venture partner Cornerstone Resources Inc. ("Cornerstone") (TSX VENTURE:CGP) announce a National Instrument 43-101 ("NI 43-101") compliant mineral resource estimate for the 100% owned, past-producing Whalesback Copper Deposit ("Whalesback") located approximately 10 km north of Springdale in north-central Newfoundland. The resource estimate, which was prepared by P&E Mining Consultants Inc. ("P&E") of Brampton, Ontario, Canada, is comprised of Indicated Resources of 797,000 tonnes grading 1.67% Cu (29.3 million lbs. Cu) and Inferred Resources of 443,000 tonnes grading 1.57% Cu (15.3 million lbs. Cu) (see Table 1).
John B. Heslop, President and CEO of Thundermin said, "We are very encouraged with the copper resources outlined to date at Whalesback. This resource, when combined with the copper resources outlined at the adjacent Little Deer Copper Deposit ("Little Deer") (see Table 1), is expected to enhance the overall economics of developing a new copper mining and milling operation at Little Deer."
Whalesback remains open along strike to the east and west as well as down dip/plunge and downhole Pulse EM surveys will commence shortly to assist in determining the best location for future drilling. A Preliminary Economic Assessment carried out on Little Deer in 2011 indicated that there is potential to develop it on an attractive economic basis at current copper prices. Little Deer is also open to depth and along strike and additional resource delineation will be carried out as well as in-fill drilling prior to carrying out a pre-feasibility study on the Little Deer/Whalesback copper resources.
Table 1: Summary of Whalesback and Little Deer Mineral Resources at 1.0% Copper Cut-Off (P&E, July 9, 2012 (Whalesback) and June 20, 2011 (Little Deer))
Cu lbs (M)
Indicated Mineral Resources
Inferred Mineral Resources
Indicated Mineral Resources
Little Deer Zone
Inferred Mineral Resources
Little Deer Zone
Little Deer Footwall Zone
Little Deer Footwall Zone Splay
TOTAL INFERRED RESOURCES
TOTAL INDICATED RESOURCES
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, socio -political, marketing, or other relevant issues.
The quantity and grade of reported Inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred resources as an Indicated or Measured mineral resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured mineral resource category.
The mineral resources in this press release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.
Ordinary Kriging was used for Cu grade interpolation.
Grade capping of 5% and 15% Cu, respectively, utilized on composites for Whalesback and Little Deer.
A variable bulk density based on numerous field measurements was used for tonnage calculations.
Domain models were generated from successive polylines spaced every five metres (Whalesback) and 10 metres (Little Deer) and oriented perpendicular to the trend of the mineralization. The outlines of the polylines were determined by selecting copper grades equal to or greater than 1.0% Cu with demonstrated continuity along strike and down dip.
Whalesback: A copper price of US$3.82/lb (June 30, 2012 two year trailing average) and an exchange rate of US$0.99=C$1.00 was utilized to derive the 1% Cu cut-off grade. Mining costs were C$45/t, process costs were C$16/t and G&A was C$6/t. Concentrate freight and smelter treatment charges were C$10/t mined. Concentrate mass pull was 7%, process recovery was 97%, smelter payable was 96% and Cu refining was US$0.07/lb.
Little Deer: A copper price of US$3.42/lb (May 31, 2011 24 two year trailing average) and an exchange rate of US$0.95=C$1.00 was utilized to derive the 1% Cu cut-off grade. Mining costs were C$40/t, process costs were C$15/t and G&A was C$5/t. Concentrate freight and smelter treatment charges were C$10/t mined. Concentrate mass pull was 7%, process recovery was 97%, smelter payable was 96% and Cu refining was US$0.07/lb.
All Thundermin and Cornerstone assays were analyzed at Eastern Analytical Limited of Springdale Nfld. A QAQC program of field and lab duplicates, certified standards and blanks was put in place.
The mineral resource estimate for Whalesback is based on diamond drill hole records from 316 surface and underground drill holes totalling 37,163 m of drilling. Fourteen of these holes were drilled recently by Thundermin and Cornerstone (see news releases dated October 20, 2011 and February 23 and May 10, 2012) and the remainder were drilled by British Newfoundland Exploration Company between 1961 and 1970.
The Whalesback mineral resource estimate was prepared under the supervision of Mr. Eugene J. Puritch, P.Eng., President of P&E. Mr. Puritch is an independent Qualified Person ("Q.P.") in accordance with NI 43 -101 and has reviewed and approved the contents of this news release. Mr. Andrew Hussey, P.Geo., Senior Project Geologist and Lands Manager, Cornerstone Resources Inc., was the Q.P. responsible for supervising the drilling program at Whalesback for the purposes of NI 43-101. Mr. Hussey has also reviewed and approved the contents of this news release.
Little Deer Joint Venture
Under the terms of its joint venture agreement with Cornerstone, Thundermin 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 Little Deer and Whalesback and the terms of the agreement with Cornerstone can be found in numerous news releases between May 1, 2007 and June 28, 2012 and on Thundermin's and Cornerstone's respective websites and on SEDAR.
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. Thundermin owns a 100% interest in the Lebel Township gold property, which is located on the Kirkland Lake Main Break in the prolific Kirkland Lake gold camp. Thundermin acquired the right to earn a 100% interest in eight exploration licenses covering a large portion of the Stirling volcanogenic massive zinc-lead-copper-silver-gold sulphide belt located on Cape Breton Island, Nova Scotia. Thundermin has royalty interests in 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 fourteen other junior resource companies that are actively exploring for base metal, gold, chrome, vanadium-titanium and diamond deposits in Canada.