Stirling Property (Zinc-Lead-Copper-Silver-Gold)

Location MapPage Index:
Project Overview
Objective
Background
Brief History
Property Geology
Mineral Resources
Metallurgical Test Work
Infrastructure
2012/2013 Exploration Program
QA/QC

Project Overview
Ownership 100% Thundermin
Operator Thundermin
Past Production None on current property. Mindamar (Stirling) Mine immediately northeast of the property produced over 1,000,000 t of ore grading 6.3% Zn, 1.5% Pb, 0.8% Cu, 74 g/t Ag and 1.1 g/t Au  in the 1930’s and 1950’s
Deposit Type Classic volcanogenic massive zinc-lead-copper-silver-gold sulphide deposit (Kuroko Type)
NI 43-101 Resource No resources defined
Process No metallurgical test work completed
Mine Type Shaft - underground
Location Richmond County, Cape Breton Island, Nova Scotia
Status 8 Exploration Licenses in good standing to January 19, 2014. First phase exploration program completed in early November 2011. Diamond drilling program consisting of 1,888 m of drilling in six holes completed in 2012 with encouraging results.
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Objective 
Thundermin intends to undertake various geological and geophysical surveys on the Stirling property in order to identify drill targets for the discovery of a new volcanogenic massive zinc-lead-copper-silver-gold deposit.
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Background 
The Stirling base metal property consists of 8 Exploration Licences (404 claims: 64.6 km²) (the “Stirling Property”) that cover approximately 13 kms of favourable volcanic stratigraphy trending south-southwest from the past-producing Mindamar (Stirling) Mine in Richmond County on Cape Breton Island, Nova Scotia. The northeast corner of the Stirling Property is approximately 50 km south-southwest of Sydney, Nova Scotia. The Stirling Property is easily accessible via paved highway #327 from Sydney to Fouchu and paved highway # 247 from Forchu to St. Peter’s. Numerous gravel logging roads afford easy access to the property from highway #247.
 
On July 21, 2011, Thundermin announced that it had signed a formal agreement (the “Stirling Agreement”) with two vendors (the “Vendors”) to acquire a 100% interest in the Stirling Property. Under the terms of the Stirling Agreement, Thundermin has the right to earn a 100% interest in the Stirling Property by spending $1,000,000 on exploration and by making cash payments of $70,000 and issuing 300,000 Thundermin shares to the Vendors over four years. The first year commitments were a minimum of $150,000 in exploration expenditures and the payment of $15,000 cash and the issuance of 100,000 Thundermin shares to the Vendors upon the signing of the Stirling Agreement, which commitments were met. All remaining exploration expenditures, cash payments and share issuances beyond the first year are at Thundermin’s option, subject to a minimum exploration expenditure of $100,000 per year if Thundermin elects to continue the option. If Thundermin acquires a 100% interest in the Stirling Property, the Vendors will be entitled to receive a 2.0% net smelter returns royalty, 50% of which may be purchased from the Vendors by Thundermin at any time for $1,000,000. If Thundermin acquires a 100% interest in the Stirling Property but fails to reach commercial production by May 17, 2019, then Thundermin will be required to pay the Vendors a recoupable advance royalty in the amount of $25,000 per year until commercial production is reached (see Thundermin’s news releases dated June 23 and July 21, 2011 for additional details on the terms of the Stirling Agreement and the Stirling Property).
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Brief History 
The Stirling massive sulphide deposit was initially discovered as a copper prospect in the 1890’s. The deposit, which consisted of numerous massive sulphide lenses, was mined in the 1930’s and in the 1950’s with production of approximately 1,060,000 tonnes of ore grading 6.3% Zn, 1.5% Pb, 0.8% Cu, 74.0 g/t Ag and 1.1 g/t Au.
 
Numerous operators have conducted exploration programs over portions the Stirling Property over the years with limited success. The most recent work was undertaken by Xstrata Canada Inc. (“Xstrata”) (formerly Falconbridge Limited) during 1989-1991. Xstrata conducted a significant lithogeochemical program over portions of the Stirling Property and demonstrated that rocks with similar geochemical signatures to those that host the Mindamar Mine occur up to 10 kms to the southwest of the mine. Of significance was the discovery of the Taylor Brook base metal showing where wide intervals of sulphide mineralization, containing anomalous values of copper and zinc, were intersected in four shallow holes with the best intersection being 5.2% copper over 1.0 m.
 
Thundermin acquired the right to earn a 100% interest in the Stirling Property, subject to the Stirling Agreement signed on May 17, 2011.
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Property Geology 
The Stirling Group of volcanic and sedimentary rocks of late Precambrian age (680 Ma) forms a belt which extends along the southwestern seaboard of Cape Breton Island for approximately 30 km. The volcanic rocks are chemically bimodal with basaltic and dacitic units predominating. These form lava flows and felsic domes as well as distinctive pyroclastic rocks, which can be traced for kms. The volcanics are intruded by regional basaltic sills and plugs and granitic plutons of both late Precambrian and Devonian age.
 
The host rocks for the Mindamar Mine comprise a sedimentary package that demonstrates a stratigraphic control on the deposition of the ore. The footwall to the ore consists of quartz-feldspar porphyry flows/domes and sills. The hangingwall rocks comprise two distinctive ash flow tuff units.
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Mineral Resources 
No mineral resources have been defined on the property to date.
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Metallurgical Test Work 
No metallurgical test work has been undertaken. However, historical mill records from the Mindamar Mine indicate a recovery rate of 73% for zinc, 66.5% for lead, 63% for copper, 56.5% for silver and 47% for gold.
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Infrastructure 
The property is well located and easily accessible from Sydney via paved and gravel logging roads. Water and power is abundant and the former tailings impoundment facility for the Mindamar Mine, which may be able to be upgraded and used to store additional tailings, occurs at the northeast end of the Stirling Property.
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2012/2013 Exploration Program 
During the third quarter of 2012, Thundermin completed an initial diamond drilling program consisting of 1,888 m of drilling in six holes. Three of the holes, STR12-02, 03 and 04, were designed to further evaluate thick sections of highly anomalous base metal mineralization intersected by Xstrata in 1991 in the Taylor’s Brook area, approximately 10 kms southwest of the past-producing Mindamar Mine. Two holes, STR12-05 and 06, were designed to further evaluate two target areas located 2-3 kms north of Taylor’s Brook where Amax Limited intersected highly anomalous zinc mineralization in 1981. One hole, STR12-01, tested an induced polarization geophysical anomaly located approximately 1.5 kms southwest of Taylor’s Brook.

The most significant copper mineralization was intersected in hole STR12-03 in the Taylor’s Brook area. This mineralization, which consists of chalcopyrite stringers within a siliceous, uniformly massive, quartz-feldspar porphyry (“QFP”) that also contains 2-3% fine grained, disseminated pyrite throughout, assayed 2.4% Cu over 0.9 m and 1.7% Cu over 1.0 m, within a wider zone assaying 0.93% Cu over 5.15 m, and 1.2% Cu over 0.5 m. This mineralization occurs approximately 250 m below a thick section of sulphide mineralization intersected by Xstrata within QFP that returned a best assay of 5.2% Cu over 1.0 m. Holes STR12-02, 03 and 04 also have sections with geochemically anomalous zinc, lead and silver with the best assays being 0.83% Zn over 1.0 and 0.23% Zn over 3.3 m. Anomalous copper and zinc mineralization has been intersected within favourable volcanic rocks in the Taylor’s Brook area over a strike length of 300 m and to a vertical depth of approximately 275 m. Hole STR12-05, which undercut a historical hole that intersected a 4.0 m section that assayed 0.35% Zn, intersected a 10.8 m section of strongly sericitized felsic tuff and tuff breccia with highly anomalous zinc values, a 4.0 m section of which assayed 0.38% Zn. Hole STR12-06 intersected a cherty mudstone unit that contained highly anomalous zinc and lead over approximately 5.0 m.

Subject to financing, Thundermin anticipates that it will undertake a follow-up diamond drilling program on the Stirling property during 2013.
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QA/QC 
The design of Thundermin’s exploration and drilling programs, Quality Assurance/Quality Control and interpretation of results is under the control of qualified persons employing a QA/QC program consistent with NI 43-101 and industry best practices. Mr. Doug Hunter, P.Geo., President of Earthunt Resources is the Q.P. that supervised the drilling program on the Stirling property for the purpose of the NI 43-101.
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