CAS/Iron Creek Project — Idaho Cobalt Trend — Lemhi County Idaho
The Company is pleased to announce that it exercised the option to lease with a purchase option on the prospective gold/cobalt CAS claim group in the Idaho Cobalt Belt during the 4th quarter 2011. The 46 unpatented lode claims are located in the Iron Creek Mining District of the Idaho Cobalt Belt approximately 15 miles southeast of Formation Metal’s cobalt mine in Lemhi County, Idaho.
Terms of the agreement include Advanced Minimum Royalty payments of $25,000 upon signing (completed), $25,000 within 4 months and $50,000 on/before the first year anniversary; $75,000 on or before the second and third year anniversaries; and $100,000 on or before the fourth year anniversary, and every anniversary thereafter. The property carries an NSR royalty of 4% if gold sold is $1,500 per ounce or below and 5% NSR if the price of gold sold is above $1,500 per ounce.
The claims are located on U.S. Forest Service managed lands. The property has had extensive geophysical and geochemical work completed from 2003 through 2006, plus 19 drill holes with selected assay results outlined below:
Drill Hole Orientation Interval (ft) Total Footage Gold Grade (OPT) Cobalt Grade
(%/ lb/t)
IC0302 N10E / -50 0 254.5 to 275.0 / 20.5 0.241 0.510 / 10.25
IC0303 N10E / -45 0 239.0 to 252.0 / 13.0 0.106 0.260 / 5.14
IC0304 N10E / -50 0 420.0 to 435.0 / 15.0 0.243 0.340 / 6.72
IC0307 N50W / -55 0 125.0 to 155.0 / 30.0 0.102 0.040 / 0.073
SRR6001 S20W / -55 0 151.0 to 161.0 / 10.0 Not Sampled 0.470 / 9.33
• Grades and intervals have not been confirmed by the Company.
Select surface samples of three siliceous exhalative zones sampled in 2011 by the Company yielded assays ranging from 0.34 OPT (11.8 gr/t) Au to 1.09 OPT (37.6 gr./t) Au, and 0.13% Co to 0.92% Co respectively.
The gold and cobalt present on the CAS claim group occurs in exhalative style sulfide mineralization typical of the Cobalt Belt. The Company feels that this prospect has significant potential of high-grade underground gold-cobalt mineralization, and will be conducting exploration work on the property once the snow conditions allow in the spring/summer of 2012.
Trout Creek Project — Eureka Battle Mountain Gold Trend — Nevada
The Company has staked an additional 18 unpatented lode claims that the Company feels are strategic, in open ground in and around the Trout Creek Project, where the Company has a strategic exploration agreement with Newmont Mining Corporation. In addition, the Company is preparing a geophysical survey that will aid in defining the drill target which is situated at the intersection of two significant geophysical trends and peripheral to a probable buried intrusive within the Reese River pediment. Jim Wright of Wright Geophysics has recommended additional geophysical work to enhance the primary target area.
With Newmont’s private mineral package covering about 9,565 acres added to Thunder Mountain’s 78 unpatented mining claims (1,560 acres) controlled by the Company within the thirty-square mile Area of Influence, the Trout Creek Project has a significant area for exploration. The exploration area is situated on the Eureka-Battle Mountain gold trend in the Reese River Valley to the east of Newmont’s operating Phoenix Mine and past producing Cove-McCoy Mines.
Interpretation of the extensive geophysical, geochemical and drill data around the target area provided by Newmont has helped guide the drilling program planned over the next couple of field seasons.
Qualified Person — G. Peter Parsley, Professional Geologist, is the Qualified Person as defined by National Instrument 43-101 responsible for the technical data reported in this news release.
About Thunder Mountain Gold, Inc.
Thunder Mountain Gold, founded in 1935, holds a 100% interest in several U.S. gold projects. The Company’s principal assets are The South Mountain Project — a historic former producer of polymetallic ore located in southern Idaho, just north of the Nevada border, and their Trout Creek Project — a grass roots gold target in the Eureka-Battle Mountain trend of central Nevada, currently under Joint Exploration Agreement with Newmont Gold. For more information on Thunder Mountain, please visit the Company’s website at www.Thundermountaingold.com.
U.S. Securities Act of 1933
This press release does not constitute an offer of any securities for sale or a solicitation of an offer to purchase any securities. The securities to be issued in connection with the Acquisition t have not been and will not be registered under the United States Securities Act of 1933 (the “1933 Act”) and may not be offered or sold in the United States absent registration under the 1933 Act or pursuant to an available exemption from the registration requirements of the 1933 Act. In addition, neither the securities of the Company or the securities of Green River to be issued in connection with the private placements contemplated in this press release have been or will be registered under the 1933 Act and may not be offered or sold in the United States absent registration under the 1933 Act or pursuant to an available exemption from the registration requirements of the 1933 Act.
Forward-Looking Statements
This press release contains forward-looking statements that are based on the beliefs of management and reflect the Company’s current expectations. The forward-looking statements in this press release also include information relating to the intention of the Company to complete the Acquisition and the completion of the private placements contemplated in connection with the Acquisition and disclosed in this press release. The forward-looking statements are based on certain assumptions, which could change materially in the future, including the assumption that the non-binding Letter of Intent will lead to a definitive agreement, that the transactions contemplated in the Letter of Intent will be completed, and that the Company will successfully complete the Acquisition. By their nature, forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include the risk that the Letter of Intent may be terminated, that the transaction contemplated in the Letter of Intent may not result in a binding definitive agreement and any agreement may have terms and conditions different from those contemplated in the Letter of Intent, that the Acquisition and contemplated private placements may not be completed and that Company may not expend its available funds following completion of the Acquisition in the manner contemplated in this press release. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, investors should not place undue reliance on forward-looking information. Forward-looking information is provided as of the date of this press release, and the Company assumes no obligation to update or revise them to reflect new events or circumstances, except as required in accordance with applicable laws.
Cautionary Note to Investors
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The United States Securities and Exchange Commission (“SEC”) permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce.
For further information, please contact:
Thunder Mountain Gold Inc.
Eric Jones, President and C.E.O.
Email: eric@thundermountaingold.com
Phone: (208) 658-1037
Jim Collord, Vice President and C.O.O.
Email: jim@thundermountaingold.com