With Newmont’s private mineral package covering about 9,565 acres added to the 60 unpatented mining claims staked in 2007 by Thunder within the 30 square mile area of influence, the Trout Creek project has been significantly expanded.
The exploration area is situated on the Eureka-Battle Mountain trend in the Reese River Valley to the east of Newmont’s operating Phoenix mine and past producing Cove-McCoy mines.
Under the agreement, Thunder is responsible for conducting the exploration program and is obligated to expend a minimum of $150,000 over the next two years, with additional expenditures possible in future years.
Conducting drilling on Newmont lands is part of the work commitment, but the agreement can be terminated after the minimum expenditure commitment has been made.
The deal outlines the terms of a joint venture if the company’s program is successful in which Newmont can earn up to 70% of the project by expending 150% of Thunder’s expenditures up to the point that Newmont decides to form a joint venture.
If Thunder defines economic mineralization and Newmont decides not to joint venture, then Thunder can obtain ownership of any or all of the Newmont lands within the area of influence and Newmont would retain 3% of net smelter returns as royalty interest.
The work plan for 2011 and 2012 is to conduct additional geophysics that will help define important structural trends under the gravels, depth to bedrock and other important features of the valley fill.
Interpretation of the geochemical and drill data provided by Newmont, in conjunction with the geophysics, will help guide the drilling program to be done over the next couple of field seasons.
Thunder is an exploration company focused on discovering and defining high grade precious and base metal projects.
