Thunder Mountain Gold, Inc. (TSX-V: THM; OTCQB: THMG) (the Company), is pleased to provide an update for its South Mountain Project Joint Venture called Owyhee Gold Trust, in Owyhee County, Idaho.
South Mountain Project Developments Include:
- Underground mine development continues at an excellent pace, with the underground development focusing on enlargement of the main Sonneman level to 12 feet by 12 feet to accommodate future production. Mining in the drift has advanced 1,350 feet from the portal, and the first significant historic ore zone, the Laxey zone, was encountered in May at about the 900 foot mark. Planned underground drilling will commence once the Sonneman has been developed another 600 feet toward the DMEA zone, estimated for mid-September. The initial underground detailed drilling will target the down dip extension of this zone.
- KB Drilling from Reno Nevada was mobilized on July 22 nd and HQ core drilling from the surface commenced on the historic Texas ore zone with the goal of further defining and extending the polymetallic resource between the Texas Shaft at the surface and the Laxey level. The focus of the surface core drilling is expansion of the existing resource base, both in the historic Texas Ore Zone, and down dip on the other historic ore zones. The first hole TX13-1 was completed to a depth of 445 feet and encountered several mineralized sections within the hole, including a significant massive sulfide zone with abundant mineralization. The core sampling is proceeding and will be sent to ALS CHEMEX in Reno, Nevada for analysis.
- Approximately 15 tons of polymetallic massive sulfide was custom crushed, and shipped to FL Schmidt in Midvale, Utah for metallurgical testing and mill design work. FL Schmidt of Midvale has been engaged to provide bulk testing at their laboratory, including metallurgical optimization for metals recovery, process development, flow-sheet layout and plant design. Mine and Mill Engineering of West Jordan, Utah have been retained to provide mill engineering and design services for the South Mountain Mill design.
- The purchase of 360 acres of private ranch land was completed in July, which will accommodate the mill site and associated tailing and water storage facilities. The mill site is approximately 6 miles from the mine, providing an optimal location for mill processing. A Phase I geotechnical study of the mill site subsurface conditions has been completed by STRATA Inc. in Boise Idaho. STRATA will be engaged to complete a Phase II study commencing in August. The mill building, along with long-lead time mill components such as rod and ball mills have been ordered.
- Aerial photography and photogrammetry based on LIDAR have also been completed for the project area.
- Meetings have been held with Idaho Power in an effort to initiate and upgrade the existing power distribution to accommodate mining and milling at the Project which would require a minimum upgrade of approximately 19 miles of power line to three-phase 69 KVa. A cost and environmental analysis is also being conducted for the use of larger diesel generators in the event that an agreement with Idaho Power is not reached.
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 The South Mountain MineThe South Mountain project is located in southwest Owyhee County, Idaho approximately 70 air miles southwest of Boise, Idaho, and is 20 miles southeast of Jordan Valley, Oregon.