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Gold/Mining/Energy : Thunderwood Resources (T.THS) -- Ignore unavailable to you. Want to Upgrade?

To: BLZBub who wrote (35)	10/20/1999 11:51:00 PM
From: Brian MacDonald	Respond to of 36

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. -30-