Strategic Review of Thunderstruck Resources

Transcription

1 Wolverton Securities Ltd. Fully Diluted Shares M Strategic Review of Thunderstruck Resources September 15, 2014 Prepared by: Rodney Stevens, PM, CFA [email protected] [email protected] S H A R E S T R U C T U R E Ticker Share Price Shares Outstanding Options March 12/17@Cdn$0.10 May 28/19@$0.05 Fully Diluted Shares EV Top Holders AWE-v Cdn$ M 0.2 M 1.04 M M Cdn$1.7 M Management 20% Doug Casey & Other Retail 80% Risk Disclosure: There are no resource estimates on any of the Companies properties and no metallurgical test work to determine if the potentially economic minerals which have been identified are recoverable. There can be no assurances that the results from the property will yield an economical resource. In addition, the grade of the precious metal can differ materially from that indicated by drilling results. Most exploration efforts do not result in the discovery of economic concentrations of minerals. Please see back page for additional important disclosures and disclaimers. Executive Summary Thunderstruck Resources Ltd. (AWE-v) is a newly listed mining exploration company which acquired a 100 percent option on a portfolio of assets in Fiji, encompassing the historically drilled Wainaleka and Nakoro base metal prospects as well as the Liwa Creek epithermal gold prospect and the Rama Creek porphyry copper-gold prospect. The purchase price is AUS$600,000 cash and 1,500,000 shares paid in stages over three years. In 1977, Anglo American drilled 26 historic (non compliant) drill holes only down to an average depth of 100 metres from surface where the mineralization remains open. The best hole at Wainaleka was hole WLK-1A, which intercepted 9.36 metres true width averaging 8.28% Zinc, 1.45% copper and g/t silver in massive sulphides. Drilling at Wainaleka also intercepted what is interpreted to be a copper stringer zone. The best hole in the copper stringer zone intercepted 31.8 metres true width averaging 0.95% copper, 0.92% zinc and 6.86 g/t silver in hole WLK-10, indicating the potential to drill two deposits which can be drilled simultaneously at Wainaleka. The historic holes have an average width of 5.4 metres, drilled over a projected strike length of 650 metres on both the massive sulphide zone and the copper stringer zone. At Nakoro, Anglo did not intercept a copper stringer zone; however, its existence is not precluded. The best holes in the massive sulphides at Naroko were hole NKD-2 which intercepted 12 metres true width averaging 12.70% zinc and 0.30% copper and hole NKD-13 which intercepted 23.2 metres averaging 5.12% zinc, 0.5% copper and 22 g/t silver. The holes drilled at Nakoro averaged 7.9 metres true thickness over an area 500 metres in length by 500 metres wide. There has been no historic drilling at Liwa Creek, however, there is enough geological evidence to suggest the potential to host a precious metal deposit similar to the Vatukoula Gold Mine which has a resource of 4.1 million ounces averaging 6.0 g/t, after having produced 7 million ounces of gold. Subject to financing, the company plans a first phase drilling program a Wainaleka, followed by Nakoro and Liwa Creek. These properties could be drilled simultaneously should further drilling continue to be merited. In the current market, there is no expected return on market cap for the Rama Creek porphyry copper-gold prospect and so it would be more appropriate for a larger joint venture partner to advance this prospect. If a significant base metal deposit can be delineated showing robust economics, potential natural acquirers of the project to advance it to production could be Lundin Mining (LUN-t), Hudbay Minerals (HBM-t) and Glencore (GLEN-lon)/Trevali Mining Corp. (TV-T). If the company were to be acquired, a natural spin out of the company could be the Liwa Creek gold prospect.

2 Page 2 T A B L E O F C O N T E N T S Executive Summary Management Overview The Wainaleka Prospect Wainaleka Historic Drill Hole Results Additional Exploration Potential at Wainaleka The Nakoro Prospect Additional Exploration Potential at Nakoro Metallurgy Liwa Creek Rama Creek Strategy Disclosures and Disclaimers

3 Page 3 Management Bryce Bradley President, CEO and Director With a strong background in Capital Markets and Investment Banking, Ms. Bradley has facilitated the structuring and financing of dozens of private and publicly traded small and micro-cap cap companies. She founded and served as President of Saltus Mercantile Corp. (now Robson Capital Partners Corp.), a merchant bank focused on capital raising and advisory services for mining exploration companies, before selling it in Prior to this she headed Capital Markets for other brokerage firms and merchant banks. Ms. Bradley serves as President of Linx Inc., a corporate development firm, consulting to mining and alternative energy companies. She received an Honours B.Sc. degree from the University of Toronto in 1996 and completed the Canadian Securities Course and Partners, Directors and Senior Officers Course. Brien Lundin Director With a career spanning four decades in the investment markets, Brien Lundin serves as president and CEO of Jefferson Financial, Inc., producer of investment-oriented events and publisher of investment newsletters and special reports. Under the Jefferson Financial umbrella, Mr. Lundin serves as publisher and editor of the Gold Newsletter. The publication has been the cornerstone of precious metals advisories since 1971 and the annual New Orleans Investment Conference, the oldest investment event of its kind. As editor of the Gold Newsletter, Mr. Lundin covers not only resource stocks, but also the entire realm of investing, from small-caps of every type to macroeconomics and geopolitical issues that ultimately affect every investor. As host of the New Orleans Investment Conference, Mr. Lundin has annually brought the giants of investing, economics and geopolitics together in intimate presentations with many of today s most sophisticated private investors. In addition to his responsibilities with Jefferson Financial, Mr. Lundin is an active investor and speculator in the mining and technology sectors. He is a co-founder, and the Chairman, of Natcore Technology (NXT.V) and a co-founder and director of Thunderstruck Resources (AWE.V) and Sojourn Ventures (SOJ.V). Dale Wallster - Director Mr. Wallster is co-founder and director of Thunderstruck Resources Ltd. He also serves as Director for several other publicly traded companies including Respect Your Universe Inc., Kivalliq Energy Corp., and Datum Ventures, Inc. Mr. Wallster previously served as President & Director of Roughrider Uranium Corp. a private mining exploration company that was acquired by Hathor Exploration Limited and subsequently sold to Rio Tinto for $650m. He received his undergraduate degree from the University of Western Ontario.

4 Page 4 Scott Hamilton, CFO Mr. Scott Hamilton serves as Chief Financial Officer of Thunderstruck Resources Ltd., Datum Ventures Inc. and Pacific Link Mining Corp. Scott Hamilton is a graduate of Malaspina College accounting program and has acted as CFO and accountant to junior mining and industrial companies. Scott also has provided services for the last 18 years, under contract to De Visser Gray LLP Chartered Accountants, for accounting and auditing for resource and small industrial companies as well as consulted on information technology matters. Overview On July 10, 2014, Thunderstruck announced a Property Option Agreement between Thunderstruck Resources Ltd. and Aljen (Pacific) Limited ( Aljen ) whereby Thunderstruck may acquire two special prospecting licenses (SPL 1416 and SPL 1425) and two prospecting license applications (CX 784 and CX 801) on the island of Viti Levu, Fiji for a total of AUS$600,000 cash and 1,500,000 shares paid in stages and conduct exploration commitments of AUS$1,500,000 as follows: CASH SHARES EXPLORATION Year 1 AUS$200, ,000 n/a Year 2 AUS$200, ,000 n/a Year 3 AUS$200, ,000 A$1,500,000 Wainaleka (SPL 1416, 30 km 2 ) is located in Southern Viti Levu. It is approximately 50 kilometres west of Suva and 20 kilometres west of Navua. The southern boundary is eight kilometres inland from the southern coast line. Nakoro, Liwa Creek, Rama Creek (SPL 1425, 148 km²) is located in the southern and central portions of Viti Levu and is approximately 50 kilometres east south east of Nadi and some 50 kilometres north east of Sigatoka. A small area adjacent to Nakoro has been applied for granting and is designated CX 784 (31km²). The application is still pending. A new application CX 801 has also been made between the current properties and the Namosi porphyry Cu-Au deposit. This km² area has potential for porphyry Cu mineralization. Licenses are in good standing as confirmed by the letters from the Fiji Mineral Resources Department to Aljen.

5 Page 5 Location of Arcadia Licenses 20 km The South east of Fiji is mountainous, with peaks up to 1300 m rising abruptly from the shore, and covered with tropical forests. Rivers and streams are numerous and generally run north-south at the Wainaleka prospect. Tropical forests dominate the area and there are virtually no people living in the region, rather the landowners live on the coast. The Nakoro prospect is also mountainous, but this area is in more of a rain shadow, with higher areas covered by grassland and creeks and rivers filled with tropical forest. Within the license areas there are numerous forestry roads. Most of these roads follow the hill top ridges. Away from the forestry roads the main access is by foot along the various rivers and tributaries. The Nakoro prospect is located in the southern and central portions of Viti Levu and is approximately 50 kilometres east south east of Nadi and 30 kilometres north east of Sigatoka. Road access within the Licence Area is somewhat limited. Access to the Nakoro Prospect is by a graded road up the western side of the Sigatoka River and then by a new bridge which crosses the Sigatoka River, then by a new road to the Nakoro village. Access to the prospect from a nearby village is by foot or horse. Access to the other properties of Rama Creek and Liwa Creek is by forestry road, horse or foot. Access to CX 784 is similar to SPL Fiji's climate is warm and tropical year-round. round. The average temperature in Fiji is 25 C (77 F), but it can climb to above 30 C (86 F) in su mmer (December and January) and drop to 18 C (64 F) in winter (July and August). In Fiji the dry season is from May to October. The drilling season would likely be from May to December.

6 Page 6 Forestry Road, Wainaleka, 24 June, 2013 Nakoro Landscape, 27 June, 2013

7 Page 7 Infrastructure is excellent for an underdeveloped country. There is a deep water port at Suva, only 50 km s from Wainaleka. The Queen s Highway connects Suva to within 10 km of Wainaleka. There is a hydroelectric power station at Monasavu Dam, 20 km s north east of Wainaleka. Suva Port 25 June, 2013 The Wainaleka Prospect Wainaleka and Nakoro are within range of potentially being mined by one central processing facility which could be located 10 kilometres from each area of mineralization (as highlighted in the chart of page 5). Detailed geology is known at Wainaleka which has been defined by drilling and mapping. Mineralization at Wainaleka is typical of many VMS deposits, with massive sulphides underlain by a copper stringer zone. As shown in the charts below, the VMS starts near surface and dips 40 to 70 degrees southeast. The charts which follow shows the Anglo drill hole locations and results at Wainaleka, in the VMS and copper stringer zones (as interpreted). Intercept widths are estimated to be true widths.

8 Page 8 Mineralized Zone Interpretation, Wainaleka Cross-section section at Wainaleka looking east

9 Page 9 Drill hole and Cross Section Location Plan, Wainaleka Wainaleka Historic Drill Hole Results Previous exploration work was carried out between 1969 and 1995 by four major mining and consultancy companies: Barringer Fiji Ltd, (a subsidiary of Barringer, Canada), Anglo Pacific Prospecting Limited, (a subsidiary of Anglo American Corporation), Newmont Proprietary Limited, (a subsidiary of Newmont Mining) and Placer Exploration Limited, (a subsidiary of Placer Pacific). Anglo carried out the bulk of this work. Subsequent to this, Aljen (Pacific) Limited carried out follow up work within the prospect area. It is important to note that the Anglo core has not been saved and is therefore not available for inspection, but all Anglo data is available, and Aljen's recent core samples confirm the Anglo grades and have been independently inspected.

10 Page 10 NOT NI COMPLIANT Significant Drill Intersections (1977 Anglo Drilling) - Wainaleka Massive Sulphide Prospect Hole Depth (M) Dip From To Width Zn % Cu % Ag (g/t) WLK-1A n/a WLK-1B n/a WLK-2A WLK-3 Abandoned due to wrong position of collar WLK WLK WLK WLK WLK

11 Page 11 NOT NI COMPLIANT Significant drill intersections, 1977 Anglo drilling programme - Wainaleka Cu Stringer Prospect Hole Depth (M) Dip From To Width Cu % Zn % Ag (g/t) WLK-1C WLK WLK WLK WLK Additional Exploration Potential at Wainaleka Although not tested by drilling, further potential at Wainaleka could extend along strike, while the Kula, Fritz and Echo Creek zones show potential for new mineralized zones (among other prospects shown on the following page).

12 Page 12 Interpretive Cross Section Looking West of Doubly Plunging Anticline

13 Page 13 The Nakoro Prospect Exploration work has been carried out by Barringer Fiji Ltd, Australian Anglo American Ltd, Geopacific Limited and Aljen. The bulk of previous exploration for this area relevant to the zinc massive sulphide prospect was carried out by Barringer and Anglo. The tables which follow show the Anglo drill hole locations and results at Nakoro, as interpreted, in the VMS zone. Although not demonstrated by drilling results, the Nakoro prospect may also have a copper stringer zone as well. Intercept widths are estimated to be true widths. Drill hole location map of Anglo Nakoro exploration

14 Strategic Review ew of Thunderstruck Resources Page 14 Plan Projection of Anglo Nakoro intersections Volcanic breccias at Nakoro

15 Page 15 NOT NI COMPLIANT Details of the 1975 and 1977 Nakoro Diamond Drill Hole Results Hole Depth (M) Dip From To Width Zn % Cu % Ag (g/t) NKD-1 NKD-2 NKD-3 NKD Vert Vert < <0.1 N/A 56 N/A N/A NKD-5 - NKD 11 NONE NKD-12 NKD-13 NKD-14 NKD-15 NKD-16 NKD-17 NDK NONE < N/A NDKD NKD-20 NKD N/A Additional Exploration Potential at Nakoro The mineralization appears to dip shallowly to the southeast at some 15 degrees. A significant number of Anglo holes drilled parallel to strike and missed the zone. There is also potential to outline new zones that t might be shallow dipping in the crest of an interpreted anticline and northerly dipping zones on the north side of this fold (chart which follows). This anticlinal interpretation could explain the widespread occurrence of gossan and geochemical soil anomalies alies around the prospect, with mineralization distributed along a folded contact zone. A geophysical interpretation suggests this mineralized contact could extend for an untested 8 km.

16 Page 16 Possible SW plunging anticline and partly drill mineralized zone Metallurgy There has been no metallurgical testing on any of the projects, however arsenic levels appear to be moderate and that it should not be a deleterious problem for any concentrate produced, being around 200 ppm in massive sulphides.

17 Page 17 Liwa Creek Exploration at Liwa Creek is very encouraging. There is enough geological and geochemical data to indicate that this is a very attractive and unexplored area in an epithermal gold-silver environment. Data suggests that this area deserves considerable further work and has excellent potential to host precious metal deposits which could be similar to other known gold deposits on the island such as the high grade Vatukoula Gold Mine (7million ounce production) or the Tuvatu Gold Deposit which has an indicated and inferred resource of 905,000 oz Au. The original sampling at the Liwa Creek Gold Prospect produced an assay of 8.4 g/t Au and 93 g/t Ag from a siliceous, pyritic rock sample taken by Amoco Minerals Fiji Ltd. in the 1970s. Subsequent soil sampling and trenching conducted in the 1980s by Geopacific Limited outlined a 50-metre by 250-metre anomaly with soil samples assaying up to 9.6 g/t Au and chip sampling from trenches showing 15 metres of 1.9 g/t Au, and 5.5 metres of 2.01 g/t Au. More recently, Aljen has shown the potential for a regional target area by locating other areas having anomalous gold, including a chip sample assaying 5.7 g/t Au over 7 metres. Mineralization is associated with silica ledges, high and low sulphide veins, and steep siliceous zones, all typical of epithermal gold systems. Rama Creek Exploration at Rama Creek has shown that there is a Cu-Au porphyry system reflected in zonal alteration patterns, metal zonation from a central copper zone to an outer shell of silver. At this stage, there are sub-economic grades of 0.22% copper and 0.16 g/t Au outlined, but very good thicknesses of more than 200 metres. This includes a near surface interval of % Cu and 0.25 g/t gold. Low grades are not uncommon at the margins of good porphyry systems, and the current drilling is certainly not enough to decide the value of this project. Any deposit could be similar to the nearby Namosi deposit, owned by Newcrest Mining Ltd. (NCM-au), which hosts 2.2 billion tonnes at 0.34% copper and 0.11 g/t gold.

18 Strategy The company may re-drill the 26 historic holes drilled by Anglo on both Wainaleka and Nakoro, down to an average depth of 200 metres, plus drill another 25 holes to potentially expand the mineralized zones further in a Phase 1 drilling program. Also during Phase 1, surface work can be done at the Liwa Creek epithermal gold prospect to prepare for a first pass drilling program in Phase 2. From a share dilution perspective, the Rama Creek Cu porphyry prospect should be left to a larger company to drill by way of joint venture since it is not expected to have a positive return on market cap in the current market environment. Page 18 Subject to financing, the company plans a first phase drilling program a Wainaleka, followed by Nakoro o and Liwa Creek. These properties could be drilled simultaneously should further drilling continue to be merited. In the current market, there is no expected return on market cap for the Rama Creek porphyry copper-gold prospect and so it would be more appropriate for a larger joint venture partner to advance this prospect. If a significant base metal deposit can be delineated showing robust economics, potential natural acquirers of the project to advance it to production could be Lundin Mining (LUN-t), Hudbay Minerals (HBM-t) and Glencore (GLEN-lon)/Trevali Mining Corp. (TV-T). T). If the company were to be acquired, a natural spin out of the company could be the Liwa Creek gold prospect.

19 Page 19 Disclosures and Disclaimers The opinions expressed in this publication are the opinions of the author and not of Wolverton Securities Ltd. ( WSL ). The author is a registered Investment Advisor. The author, WSL, its directors, officers, employees, agents or subsidiaries, or family members of affiliates of any of the foregoing, may in the past, present or future have positions and/or trade in securities of the company discussed in this publication (the Company ). At the time of this publication the author does not own securities of the Company. The information contained in this publication was obtained from sources believed to be reliable but the accuracy and completeness of it are not guaranteed, and none of the author, WSL, its directors, officers, employees, agents, subsidiaries or affiliates assumes any responsibility for such information or for this publication. The author has not visited the property. The information in this publication is given as of the date indicated, and no obligation whatsoever is assumed by any person to update such information upon further developments or for any other reason. This publication is intended for general information purposes only and is not intended as investment, financial, legal, tax or other advice. This publication does not constitute a research report or research, and the author is not a WSL research analyst or research associate. This publication is not an offer or solicitation to sell or buy any of the securities mentioned. This publication is intended for distribution only in those jurisdictions where WSL and the author are registered as an advisor or dealer in securities. Any distribution or dissemination of this publication in any other jurisdiction is strictly prohibited.