FOR FURTHER INFORMATION PLEASE CONTACT:
Thundermin Resources Inc.
Mr. John B. Heslop
President
or
Mr. Hugh D. Harbinson
Managing Director of Thundermin (THR:TSE)
(416) 364-0001
NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: THUNDERMIN RESOURCES INC.
TSE SYMBOL: THR
OCTOBER 20, 1999
Thundermin Options Pelletier Lake Gold Property To SOQUEM
INC.
TORONTO, CANADA--Thundermin Resources Inc. ("Thundermin")
announces that it has entered into an agreement with SOQUEM INC.
("SOQUEM") giving SOQUEM the right to acquire a 100% interest in
Thundermin's Pelletier Lake gold property which is located at
Rouyn-Noranda, Québec. The property consists of 35 claims and 2
mining concessions covering 607 hectares of mineral lands
straddling several splays eminating from the Cadillac-Larder Lake
Break. This regional structure hosts numerous producing and
past-producing gold mines in the Larder Lake - Rouyn-Noranda - Val
d'Or areas.
The property includes the past-producing Stadacona Mine where
approximately 2,800,000 tonnes of ore grading 5.5 g/t Au were
mined from 1928 to 1958. The property also covers the Pelletier
Lake gold deposit which was discovered in 1987 along the south
shore of Pelletier Lake approximately 2,000 metres west of the
Stadacona shaft. Surface and underground diamond drilling led to
the discovery of four main gold zones which contain inferred
resources of 501,595 tonnes grading 8.1g/t Au. These gold zones
remain open at depth and along strike and the possibility exists
to discover additional gold zones parallel to or along strike with
the Stadacona mineralization.
The agreement grants SOQUEM the right to acquire a 100% interest
in the Pelletier Lake property from Thundermin by:
1. Paying Thundermin $50,000 upon signing a formal agreement and
paying Thundermin a further $50,000 on each of September 3, 2000
and September 3, 2001;
2. Incurring $300,000 in exploration and development expenditures
on the property prior to September 3, 2000;
3. Preparing and delivering to Thundermin a Bankable Feasibility
Study ("BFS") on or prior to September 3, 2002.
SOQUEM is obligated to pay Thundermin the first $50,000 and to
incur exploration and development expenditures totaling at
least $300,000 on the property following which SOQUEM may
terminate the agreement and shall have earned no interest in the
property. SOQUEM may extend the option period and the delivery of
the BFS yearly by paying Thundermin $100,000 annually.
The agreement further provides that, should the BFS indicate a
return on investment ("ROI") of greater than 20%, SOQUEM is
required to make a production commitment whereupon Thundermin has
the option to:
1. Exercise a back-in right to re-acquire a 35% participating
interest in the property by agreeing to fund its share of
pre-production capital expenditures, or
2. Exercise a back-in right to re-acquire a 25% carried interest
in the property which shall not require Thundermin to contribute
to pre-production capital expenditures, or
3. Elect to be paid $2,500,000 cash upon commencement of
commercial operations from the property plus a 1% NSR royalty on
all production from the property.
The agreement further provides that, should the BFS indicate a ROI
of less than 20%, then SOQUEM can postpone a production commitment
for a period of up to 5 years by paying Thundermin $125,000
annually. Failure to make a production decision as required will
result in SOQUEM forfeiting all interest in the property.
SOQUEM intends to undertake an aggressive exploration program on
the property starting immediately. This program will involve a
thorough review and compilation of all exploration conducted to
date followed by a diamond drilling program to further evaluate
the known gold-bearing structures and to explore for new zones
that will lead to the establishment of an economic gold mining
enterprise on the property.
SOQUEM INC. is a division of SGF Minéral inc., which is a
subsidiary of the SGF. The mission of the SGF is to carry out
economic development projects in cooperation with partners and in
accordance with accepted requirements of profitability, in
particular the industrial sector. Since 1985, the SGF has produced
investments in the region of $6.7 billion, thereby enabling the
creation of 22,000 jobs, directly and indirectly. Furthermore, the
consolidation assets of all companies in which the SGF holds a
share represent an amount of $10 billion. The SGF is associated
with 34 international partners conducting business operations in
Quebec.
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