Thunderstruck Resources Ltd (
TSX: V. AWE,
OTCQB: THURF,
Forum) is a Canadian junior mining company with its operations based on the island of Fiji. While not considered a mining jurisdiction, Fiji has hosted a mining industry for a full century, and the nation has a number of highly prospective geological formations.
Thunderstruck has identified and acquired three exciting prospects on the island: the Liwa Creek Gold property, and two VMS projects, Nakoro and Wainaleka. Altogether, the land packages comprise roughly 4% of Fiji's main island. Previously, Anglo American spent approximately $10 million (CAD) exploring these properties, providing AWE with a considerable volume of historical data to aid the Company in planning its exploration.
Thunderstruck recently raised $400,000 (CAD) and plans to use these funds to initiate exploration. Planned work includes sampling, mapping, and trenching at Liwa, Rama, and Nakoro. Stockhouse Publishing recently had the opportunity to delve into the Company's operations through an interview with CEO, Bryce Bradley.
- Why should anyone consider investing in Thunderstruck at this time?
Thunderstruck has purchased a large and highly prospective land package of high-grade zinc, copper, gold and silver exploration assets in Fiji. We negotiated our deal at the bottom of the market, on very favourable terms. We’ve purchased two proven, high-grade zinc/copper discoveries, as well as a copper porphyry target and a gold epithermal target, complete with drill data and core.
Anglo American spent approximately Cdn$10 million in today’s dollars drilling these assets in the 1970s. Anglo returned high-grade intercepts that averaged 7% zinc and 1%-2% copper over mineable widths. With a market cap of only Cdn$2.5 million, Thunderstruck affords investors an early entry point into these discoveries, plus the potential that lies ahead.
- What sets Thunderstruck apart from the competition?
Thunderstruck successfully navigated the lengthy resource sector bear market and emerged with a very tight share structure of just 31 million shares outstanding. Additionally, the Company also took advantage of the battered resource sector to acquire our suite of Fijian assets for a small fraction of the money Anglo spent in their exploration programs. With improved market conditions, a recent increase in commodity prices and the new momentum surrounding exploration, Thunderstruck is poised to capitalize on the fresh market interest.
- Why Fiji? What are the pros and cons of doing mineral exploration there?
Admittedly, mining isn’t the first thing that comes to mind when you think of Fiji. We looked at dozens of projects worldwide, but jumped on these assets because their technical merits couldn’t be ignored. Once we confirmed their potential, we looked into Fiji itself, and discovered that it is a very mining-friendly, stable jurisdiction with a long history of exploration. The proximity to China and Japan has attracted considerable investment from those countries, as well as Australia.
From a geological standpoint, Fiji is located on the Pacific Ocean’s Ring of Fire, which hosts some of the most prolific mines in the world, and it is argued that Fiji is one of the last under-explored countries on this key feature. Since the island’s potential was discovered early last century, it has attracted more and more global investment, such that the country now offers all the infrastructure necessary for mining operations, such as a deep-water port, paved roads and hydro-electric power.
- What kind of track record does Fiji have in terms of actual mine production?
Fiji has been in the mining and exploration industry for a century. In just the area of Thunderstruck’s properties, the Vatakoula gold mine has produced 7 million ounces of gold so far, with another 4 million ounces left. A Chinese group controls a bauxite mine from which they direct ship ore to China, and an iron ore mine is also operating.
A number of other projects are in development throughout the main island of Fiji.
- What is the focus of your exploration efforts in Fiji?
With two proven discoveries on our Nakoro and Wainelaka projects, as well as exciting drill and sampling results from other prospects, our initial efforts will be focused on confirming and expanding prior results.
The good news is that this can be done very affordably. We’re undertaking mapping and sampling programs on our highest-priority targets now to better understand them and pin-point drill targets. But in fact, our initial drill targets are already fairly obvious, as we need to confirm some of the past results and begin stepping out along the identified trend.
We will continue to entertain joint venture offers to fund these programs while retaining a significant undiluted position in each prospect. But even in advance of any potential deal, we can gain some valuable drill information by using our small man-portable Winkie drill.
So investors can expect to enjoy considerable news flow going forward.
- What has been your major accomplishment so far this year? What are your priorities for the balance of 2016 and into 2017?
Without question our major accomplishment this year has been the successful purchase, after three years of negotiating, of our zinc, copper, gold and silver assets in Fiji. Our purchase price was only 1.5% of what Anglo spent drilling and exploring on these assets in the 1970s.
Our priority for the rest of 2016 is to get as much work done on the ground as possible before the rainy season in December, then analyze the data so we can pin point drill targets and mobilize a more comprehensive program in March 2017.
- Now that you have acquired 100% interest in the portfolio of Fijian properties, how are you fixed financially in terms of your ability to move forward on your key projects?
We raised Cdn$400,000 in August, which was allocated to pay the vendor and to commence our Q4 exploration program. This will include sampling, mapping and trenching at Liwa, Rama and Nakoro. We’ll be raising more funds in the coming months, and will be seeking partners so as to not dilute our tight share structure.
- Who are the strategic shareholders in Thunderstruck right now?
Thunderstruck is lucky to have a number of quality shareholders. Key stakeholders include asset managers and newsletter writers like Adrian Day, Doug Casey and Thom Calandra, as well as other loyal accredited, private individuals. Management owns approximately 20%, and have participated in every financing. Brien Lundin, who writes Gold Newsletter and hosts the annual New Orleans Investment Conference, is a director and co-founder, and has recently been appointed Chairman of the Board.
- Who are the key players on your management team and what do they bring to the table in terms of helping you to achieve your strategic goals?
I’m a co-founder, director and major shareholder, and the person who generally steers the ship and raises the capital necessary for our endeavours.
On the ground, our in-country manager, Bill Brook, has been a critical part of our team with several geological accomplishments to his credit. He understands our properties well, as he explored them in the 1980s before discovering Tuvatu, Lion One’s (LIO-TSXV) 787,000-ounce gold resource to the northwest of our assets, which is now in development. He has a local crew that is leading our exploration efforts, some of whom worked with Anglo on the original drilling of our assets.
- Do you have any plans to raise any further money in the near future? If so, how do you plan to do that?
We are very mindful of preserving our current, tight share structure, so we’re only considering small raises at this time. We’ve had no problem filling these opportunities from our loyal shareholder base, but will consider new investors if they bring strategic benefits.
We believe that following up on our previous discoveries will allow us to build value quickly, and therefore raise larger sums at higher prices. So, for the time being, we’re taking baby steps on the financing front.
For more information please refer to our October 18, 2016
press release.
FULL DISCLOSURE: Thunderstruck Resources Ltd is a paid client of Stockhouse Publishing.