On June 6, 2007, Thunder Mountain Resources, Inc. entered into a Stock Sale Agreement for the acquisition of all of the outstanding stock of South Mountain Mines, Inc., an Idaho Corporation. Closing of the transaction is subject to numerous terms and conditions as set forth in the Stock Sale Agreement, most notably the completion of due diligence evaluation of the site conditions. Closing is scheduled on or before October 1, 2007. The assets of South Mountain Mines, Inc. are primarily represented by the deed to 17 patented mining claims, consisting of approximately 326 acres, located in the South Mountain Mining District, Owyhee County, Idaho.
The South Mountain Mining District was first discovered and worked in the late 1800s for high-grade silver ore. Mineralization on the South Mountain property consists of silver-galena veins and skarn-hosted polymetallic sulfide bodies hosted in a Paleozoic and/or Mesozoic carbonate unit. The principal metals historically recovered from the South Mountain property were silver, zinc, lead, copper, and gold. Approximately sixty-thousand tons of ore are reported to have been extracted from the district, principally during World War II, and in the post-war period for the strategic stockpile reserves. The reported grade of the mined ore was approximately 12% zinc, 10.0 ounces per ton silver, 2.0% copper, 0.10 ounce per ton gold, and 1.0% lead. South Mountain Mines acquired the claims in the early-1970s and conducted underground and surface exploration program through to the mid-1980s.
Historical records indicate that a total of approximately 13,000 feet of exploration and development drilling has been completed at South Mountain. South Mountain Mines, Inc. completed their exploration in the 1980s. In total, over 8,000 feet of underground workings explore and develop the silver-lead veins and polymetallic skarn mineralization located on the South Mountain claims.
A 43-101 compliant ore reserve has not been completed for the property. Resource calculations utilizing diamond drilling, rotary drilling, and underground sampling were completed in the 1950s by the Defense Minerals Exploration Administration (DMEA) and in the 1980s by South Mountain Mines, Inc. The South Mountain property consists of numerous chimney-like and lenticular ore zones which may contain significant amounts of mineralized material with grades typical of the historic average mined. Mineralization appears to be open to depth with the potential of additional mineralized zones along the strike of the carbonate unit.
About Thunder Mountain Gold, Inc.
Thunder Mountain Gold is an exploration company focused on the generation of precious and base metal projects in the Western United States, Mexico, and Alaska. Thunder Mountain Gold performs its own natural resource exploration and generates value for shareholders by aggressively developing high-grade, high-quality precious and base metal resources in politically stable mining regions.
This release has been reviewed and approved by Company Vice President Pete Parsley (M.Sc. and Registered Professional Geologist), and “qualified person” as that term is defined in National Instrument 43-101.
Investor Relations: Jim Collord e-mail: email@example.com
Statements made which are not historical facts, such as anticipated production, exploration results, costs or sales performance are “forward-looking statements”, and involve a number of risks and uncertainties that could cause actual results to differ materially from those projected, anticipated, expected or implied. These risks and uncertainties include, but are not limited to, metals prices volatility, volatility of metals production, exploration project uncertainties, industrial minerals market conditions and project development risks. Refer to the Company’s Periodic Filings for a more detailed discussion of factors that may impact expected future results. Thunder Mountain Gold undertakes no obligation to publicly update or revise any forward-looking statements.
Cautionary Note to Investors
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.