Boise, Idaho — April 25, 2013 – Thunder Mountain Gold, Inc. (TSX-V: THM; OTCQB: THMG) (the Company), is pleased to provide an update for its South Mountain Project Joint Venture in Owyhee County, Idaho.
Excellent progress has been made at South Mountain. Underground miners, Widman Contractors, Inc., of Baker City, Oregon mobilized late in 2012 and commenced site work on the upper Laxey and lower Sonneman Levels. Widman’s nine-man crew completed construction of the steel portal sets and commenced expanding the size of the drift for future production, with the main Sonneman Level being enlarged to 12 ft X 12 ft. The expanded size accommodates mining with diesel rubber tired equipment. As of mid April, mining had advanced 300 feet on the Laxey Level, and 400 feet in the Sonneman Level. Despite high initial costs associated with winter weather and infrastructure construction, the development costs have now stabilized at $800 to $900 per foot of drift.
During the expansion on the Laxey Level, an extensive zone of polymetallic mineralization was intercepted, exposing a larger “halo” of potentially economic mineralization surrounding the historic ore zone that was mined from the 800-foot deep Laxey Shaft during World War II. This is very encouraging and could significantly enhance the economics of the South Mountain Mine.
In addition to the increased size of the historic Laxey ore zone, a new metal-rich mineralized zone was encountered in the Laxey at a distance of 231 to 241 feet. Approximately 50 tons of material was mined and stockpiled, and assays are pending. It is expected that this newly-encountered mineralized zone can be utilized for metallurgical testing for mill design.
The Company expects to reach the first significant historic ore zone on the Sonneman Level in May at about the 900 foot mark. This is where the first underground drill station will be developed as this historic ore zone is mined and stockpiled for additional metallurgical testing and processing later.
Underground drilling contractors are being selected for testing the historic ore zones between the Laxey and Sonneman Levels, a distance of about 320 feet. The down dip extension of the historic ore shoots will also be tested. It is anticipated that sufficient development work will be completed by mid-August to provide drill stations. In addition, surface drilling is planned for June after the snow has melted.
Additionally, the Joint Venture Project has engaged the following outside services to help with Project development:
• FL Schmidt of Midvale, Utah has been engaged to provide bulk ore testing at their Midvale Utah laboratory, including metallurgical optimization for ore amenability, process development, flow-sheet layout and plant design.
• Mine and Mill Engineering of West Jordan Utah has been retained to provide mill engineering and design services for the South Mountain Mill design.
• Yanke Energy of Boise Idaho has been engaged to review and design the power needs and distribution to the South Mountain mine and millsite. The Project will require a 15-mile 69 kv powerline upgrade over the existing power line from the substation in Jordan Valley, Oregon.
Discussions are underway with various private land owners for acquisition of a millsite parcel. It is anticipated that a millsite will be acquired within the next 60 days, allowing geotechnical work to begin.
Other Corporate News:
The Company will hold its Annual Shareholder Meeting at 1 p.m. on Tuesday, April 30, 2013. The meeting location is Tablerock Brewpub, 705 Fulton St., Boise, ID 83712.
Qualified Person — Edward D. Fields 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, a junior gold exploration company 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 gold, silver, zinc, lead, and copper, 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 Mining Corp. 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.
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 are based on certain assumptions, which could change materially in the future. 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 Company may not fully advance the South Mountain Project 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.
Phone: (208) 658-1037
Jim Collord, Vice President and C.O.O.