Thunder Mountain Gold, Inc. Updated Mineral Resource Estimate at South Mountain Project Shows a Substantial Increase. 7.7% increase to the Measured & Indicated tonnage, including a significant increase in zinc, silver, gold, and copper.
Thunder Mountain Gold, Inc. Updated Mineral
Resource Estimate at South Mountain Project
Shows a Substantial Increase.
7.7% increase to the Measured & Indicated tonnage, including a significant increase in
zinc, silver, gold, and copper.
15.1% increase in the Inferred tonnage, including a 14% increase in zinc and silver.
The DMEA Zone extended an additional 250 feet.
Boise, Idaho, and Vancouver, British Columbia--(Newsfile Corp. - November 13, 2023) - Thunder
Mountain Gold, Inc. (OTCQB: THMG) (TSXV: THM), (the "Company" or "THMG") is pleased to report an
updated Mineral Resource Estimate ("MRE") incorporating results from surface diamond drilling
program conducting in 2021 at the South Mountain Project ("South Mountain" or "South Mountain
Project" or the "Property") in southwestern Idaho, U.S.A.
The updated MRE includes an increased
resource for the Project while maintaining the high-grade mineralization.
The updated Independent MRE, which has an effective date of October 16, 2023, was prepared in
accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI-43-101")
by Hard Rock Consulting, LLC, based in the U.S.A.
More details are included in Table 1 below.
A
technical report for this MRE will be filed with SEDAR, and on the Company's website, within 45 days
from the date of this news release.
HIGHLIGHTS OF UPDATED MINERAL RESOURCE
Measured & Indicated ("M&I"):
223,000 tons grading 9.02% Zinc ("Zn"), 4.27 ounces per
ton ("opt") Silver ("Ag"), 0.059 opt Gold ("Au"), 0.64% Copper ("Cu"), and 0.94% Lead
("Pb").
This represents a 7.7% increase to the M&I tonnage from the previous 2021 MRE, with a
18.82% Zn equivalent grade ("ZnEq"), or a 20.55opt Ag equivalent grade ("AgEq")
Inferred:
959,000 tons grading 7.56% Zn (14% increase in Zn lbs), 5.67 opt Ag (14.10%
increase in Ag ounces), 0.037 opt Au (3.3% increase in Au ounces), 0.80% Cu (14.5%
increase in Cu lbs), and 1.06% Pb (25.4% increase in Pb lbs).
This represents a 15.1% increase in the Inferred tonnage from the previous 2021 MRE
with an 17.2% ZnEq or a 19.30 opt AgEq.
The DMEA Zone in the model was extended an additional 250 feet down dip and remains
open.
Eric T. Jones, President and CEO of Thunder Mountain Gold Inc. commented, "We are pleasantly
surprised by the results of the revised MRE.
These deep surface core holes placed to determine the
downdip potential of the mineralization had a dramatic positive effect on our resource. We are currently
publishing the revised 43-101 in the coming weeks with our independent engineering firm - Hard Rock
Consulting, LLC. This new data supports previously reported results confirming the continuation of the
DMEA zone extending down-plunge, and that it continues to remain open at depth. Our experience tells
us that South Mountain has the potential to be one of the lowest cost producers of zinc, silver, and gold in
north America".
MINERAL RESOURCE ESTIMATE
This latest round of drilling completed during the late fall of 2021 proves the continuation of the down
plunge extension of the DMEA zone at depth. This zone remains open in both directions. All the of the
drill results have now been in incorporated into the updated MRE for the South Mountain deposit. The
increase in Measured and Indicated tons are the result of updated metal prices and mining costs.
Surface drilling completed in 2021 accounts for approximately 8% of the increase in Inferred tons, while
the remaining 7% increase is due to updated metal prices and mining costs.
Table 1 below provides the Mineral Resource Statement for the Project in U.S. units with details of the
modelling methodology and cut-off grades applied to the mineral resource.
Figure 1 illustrates the
principal areas where the South Mountain deposit has been expanded from the historical MRE that was
completed in 2021. The historical Technical Report for the Mineral Resource Estimate for the South
Mountain Project Owyhee County, Idaho USA Report Date: June 15, 2021 - is filed on SEDAR.
Table 1. South Mountain Mineral Resource Statement (U.S. Units)
Metallurgical
Domain
Massive Sulfide Type
Classification
Measured
Indicated
Measured +
Indicated
Inferred
Short Tons
54,000
122,000
176,000
868,000
NSR ($/sh. Ton)
343.35
370.05
361.92
307.62
Zinc (%)
11.51
11.15
11.26
8.25
Zinc (lb.)
12,300,000
27,300,000
39,600,000
143,200,000
Silver (t. oz/ sh.
Ton)
3.62
4.74
4.39
5.96
Silver (t. oz)
194,000
580,000
774,000
5,177,000
Gold (t. oz/ sh.
Ton)
0.070
0.074
0.073
0.040
Gold (t. oz)
3,800
9,100
12,900
34,700
Copper (%)
0.45
0.55
0.52
0.74
Copper (lb.)
500,000
1,300,000
1,800,000
12,800,000
Lead (%)
0.79
1.32
1.16
1.16
Lead (lb.)
850,000
3,240,000
4,080,000
20,200,000
ZnEq (%)
19.54
20.93
20.51
17.69
ZnEq (lb.)
20,900,000
51,200,000
72,200,000
307,200,000
Metallurgical
Domain
Skarn Type
Classification
Measured
Indicated
Measured +
Indicated
Inferred
Short Tons
15,000
32,000
47,000
91,000
NSR ($/sh. Ton)
196.71
149.31
164.73
166.76
Zinc (%)
0.99
0.44
0.62
1.02
Zinc (lb.)
300,000
300,000
600,000
1,900,000
Silver (t. oz/ sh.
Ton)
4.61
3.44
3.82
2.86
Silver (oz/ sh.
Ton)
70,000
109,000
179,000
261,000
Gold (t. oz/ sh.
Ton)
0.017
0.005
0.009
0.005
Gold (oz/ sh. Ton)
300
100
400
400
Copper (%)
1.12
1.12
1.12
1.41
Copper (lb.)
300,000
700,000
1,000,000
2,600,000
Lead (%)
0.27
0.07
0.13
0.04
Lead (lb.)
80,000
40,000
120,000
70,000
ZnEq (%)
14.83
11.38
12.50
12.65
ZnEq (lb.)
4,500,000
7,200,000
11,700,000
23,100,000
Metallurgical
Domain
Total
Classification
Measured
Indicated
Measured +
Indicated
Inferred
Short Tons
69,000
154,000
223,000
959,000
NSR ($/sh. Ton)
310.88
324.73
320.46
294.21
Zinc (%)
9.18
8.95
9.02
7.56
Zinc (lb.)
12,600,000
27,600,000
40,200,000
145,000,000
Silver (t. oz/ sh.
Ton)
3.84
4.47
4.27
5.67
Silver (oz/ sh.
Ton)
264,000
688,000
953,000
5,438,000
Gold (t. oz/ sh.
Ton)
0.058
0.060
0.059
0.037
Gold (oz/ sh. Ton)
4,000
9,300
13,300
35,200
Copper (%)
0.60
0.66
0.64
0.80
Copper (lb.)
800,000
2,000,000
2,900,000
15,400,000
Lead (%)
0.67
1.06
0.94
1.06
Lead (lb.)
930,000
3,280,000
4,210,000
20,270,000
ZnEq (%)
18.50
18.97
18.82
17.21
ZnEq (lb.)
25,500,000
58,400,000
83,900,000
330,300,000
1
.
The effective date of the mineral resource estimate is October 16, 2023. The QP for the estimate
Mr. Richard A. Schwering, SME-RM, P.G., of Hard Rock Consulting, LLC. is independent of South
Mountain Mining, LLC.
2
.
Mineral resources are not mineral reserves and do not have demonstrated economic viability such
as diluting materials and allowances for losses that may occur when material is mined or extracted;
or modifying factors including but not restricted to mining, processing, metallurgical, infrastructure,
economic, marketing, legal, environmental, social and governmental factors.
3
.
Inferred mineral resources are part of a mineral resource for which the grade or quality are
estimated on the basis of limited geological evidence and sampling. Inferred mineral resources do
not have demonstrated economic viability and may not be converted to mineral reserves. It is
reasonably expected, though not guaranteed, that the majority of Inferred mineral resources could
be upgraded to Indicated mineral resources with continued exploration.
4
.
The mineral resource is reported at an underground mining cut-off of $97.50 U.S. Net Smelter
Return ("NSR") within coherent wireframe models. The NSR calculation and cut-off is based on the
following assumptions: an Au price of $1,800/oz, a Ag price of $23.50/oz, a Pb price of $1.00/lb., a
Zn price of $1.35/lb. and a Cu price of $4.00/lb.; Massive Sulfide type metallurgical recoveries and
payables of 52.25% for Au, 71.25% for Ag, 71.40% for Zn, 66.50% for Pb, and 49.00% for Cu and
a total smelter cost of $33.29; Skarn
type metallurgical recoveries and payables of 71.25% for Au,
80.75% for Ag, 51.00% for Zn, 47.50% for Pb, and 87.70% for Cu and a smelter cost of $7.24;
assumed mining cost of $65/ton, process costs of $25/ton, general and administrative costs of
$7.50/ton. Based on the stated prices and recoveries the NSR formula is calculated as follows;
NSR = (Ag grade * Ag price * Ag Recovery and Payable) + (Au grade * Au price * Au Recovery
and Payable) + (Pb grade * 20 * Pb Price * Pb Recovery and Payable) + (Cu grade * 20 * Cu
Price * Cu Recovery and Payable) + (Zn grade * 20 * Zn Price * Zn Recovery and Payable) for
each metallurgical domain.
The zinc equivalent grades were calculated as Zn Grade + (((Pb Price
* Pb Recovery and Payable) / (Zn Price*Zn Recovery and Payable)) * Pb Grade) + (((Cu Price * Cu
Recovery and Payable) / (Zn Price * Zn Recovery and Payable)) * Cu Grade) + (((Ag Price * Ag
Recovery and Payable) / (Zn Price * 20 * Zn Recovery and Payable)) * Ag Grade) + (((Au Price *
Au Recovery and Payable) / (Zn Price * 20 * Zn Recovery and Payable)) * Au Grade) for each
metallurgical domain.
5
.
Rounding may result in apparent differences when summing tons, grade and contained metal
content. Tonnage and grade are in U.S. Customary units.
Figure 1: 3D Perspective view inclined 20
0
looking north-north-east, indicating the areas of the
expanded mineral resource, with zones that are open.
To view an enhanced version of this graphic, please visit:
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Qualified Person Statement for the Mineral Resource Estimate
Mr. Richard A. Schwering, P.G., SME-RM, a Resource Geologist with Hard Rock Consulting, LLC, is
responsible for the South Mountain Project Mineral Resource Estimate with an effective date of October
16, 2023. Mr. Schwering is a Qualified Person as defined by NI43-101 and is independent of Thunder
Mountain Gold Inc., and South Mountain Mines, Inc. Mr. Schwering estimated the mineral resources
based on drill hole and channel sample data constrained by geologic boundaries using an Ordinary
Krige algorithm. The Geologic Model and Mineral Resource Estimate were completed using Leapfrog
Geo® Software version 2023.1.1.
Hard Rock Consulting also completed the previous resource
estimate.
ADDITIONAL CORPORATE NEWS:
The Company also reminds shareholders of its upcoming annual meeting on December 6, 2023, at 12
pm Mountain time.
Call-in and participation instructions can be found on the Company website at
www.Thundermountaingold.com
.
QUALITY ASSURANCE AND QUALITY CONTROL PROCEDURES
The project employs a rigorous QC/QA program that includes blanks, duplicates, and appropriate
certified standard reference material. All samples are introduced into the sample stream prior to sample
handling/crushing to monitor analytical accuracy and precision. The insertion rate for the combined
QA/QC samples is 10 percent or more depending upon batch sizes. ALS Global completed the
analytical work with the core samples processed at their preparation facility in Reno, Nevada, U.S.A.
All
analytical and assay procedures are conducted in the ALS facility in North Vancouver, BC.
The samples
are processed by the following methods as appropriate to determine the grades; Au-AA23-Au 30g fire
assay with AA finish, ME-ICP61-33 element four acid digest with ICP-AES finish, ME-OG62-ore grade
elements, four acid with ICP-AES finish, Pb-OG62-ore grade Pb, four acid with ICP-AES finish, Zn-
OG62-ore grade Zn, four acid digestion with ICP-AES finish, Ag-GRA21-Ag 30g fire assay with
gravimetric finish.
The technical information in this news release has been reviewed and approved by Richard A.
Schwering, SME-RM, P.G., Principal Resource Geologist, Hard Rock Consulting, LLC a "Qualified
Person" as defined by National Instrument 43-101 standards.
The South Mountain Project
The South Mountain Mine is a polymetallic development project focused on high-grade zinc, silver, gold,
and copper, and is located approximately 70 miles southwest of Boise, Idaho (See Figure 2).
The
Project was intermittently mined from the late 1800s to the late 1960s and its existing underground
workings remain intact and well maintained. Thunder Mountain Gold Inc. purchased and advanced the
project from 2007 through 2022, with expenditures into the project of approximately US$20 million.
Historic production at the Project has largely come from high-grade massive sulfide bodies that remain
open at depth and along strike. According to historical smelter records, approximately 53,642 tons of
mineralized material has been mined to date. These records also indicate average grades;
14.5% Zn,
10.6 o.p.t. Ag (363.42 g/t Ag), 0.058 o.p.t. Au
(
1.98 g/t Au), 1.4% Cu, and 2.4% Pb
were realized
(See NI 43-101 Technical Report: Updated Mineral Resource Estimate for the South Mountain
Project, dated June 15, 2021, Section 6.4 - Table 6-3 for more details. Available on the Thunder
Mountain Gold Inc. website and at www.sedar.com)
.
Figure 2. Location of South Mountain Project
To view an enhanced version of this graphic, please visit:
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Regarding Thunder Mountain Gold, Inc.
Thunder Mountain Gold Inc., a junior exploration company founded in 1935, owns interests in base and
precious metals projects in the western U.S. The Company's principal asset is The South Mountain
Mine, a historic former producer of zinc, silver, gold, lead, and copper, located on private land in Owyhee
County Idaho.
Thunder Mountain Gold also owns 100% of the Trout Creek Project - a gold exploration
project located along the western flank of the Shoshone Mountain Range in the Reese River Valley,
adjacent to and surrounded by Nevada Gold Mines, a joint operating agreement between Barrick and
Newmont Gold, Inc. private mineral lands. For more information on Thunder Mountain Gold, please visit
the Company's website at
www.Thundermountaingold.com
.
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. Generally, forward-looking statements can be identified
by the use of forward-looking terminology such as "plans", "expects", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates", "believes" or variations of such words and
phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be
taken", "occur" or "be achieved" or the negative connotation thereof.
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. Investors should
refer to THMG's Form 10-K, Form 10-Q reports, for a more detailed discussion of risks that may impact
future results. 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.
For further information, please contact:
Thunder Mountain Gold, Inc.
Eric T. Jones
President and Chief Executive Officer
Office: (208) 658-1037
To view the source version of this press release, please visit
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