Thundermin nabs Duck Pond

Junior Thundermin Resources (THR-T) has reached a deal with Noranda (NOR-T) to acquire the Duck Pond polymetallic property in central Newfoundland.

Comprising 11,796 ha and situated 30 km southeast of the past-producing Buchans deposit, Duck Pond contains four volcanogenic massive sulphide deposits. The combined resource is estimated at 6 million tonnes averaging 3.37% copper, 1.12% lead and 6.41% zinc, as well as 60.04 grams silver and 0.87 gram gold per tonne.

To earn a 100% interest, Thundermin must spend $1.4 million on exploration by mid-2000 and pay Noranda $500,000 in cash by mid-2003. Also, a one-time payment of $3 million is required if commercial production is achieved, followed by a 2% net smelter return royalty.

Noranda can back-in for a half-interest if property resources surpass a predetermined amount. The major would be required to complete a feasibility study and arrange development funding.

Thundermin plans to carry out drilling, as well as re-log core and conduct metallurgical tests.

The deal’s closing also releases Thundermin warrants to certain shareholders. Those who held equity in Thunderwood Resources, one of two companies that merged in November 1998 to form the new Thunderwood, will receive one warrant for every six shares they held. A warrant can be exchanged into one share until mid-2000 at 25 cents per share.