Controlling 4 Distinct Fiji Discoveries: Thunderstruck
Thunderstruck Resources controls four distinct discoveries - in gold, silver, copper and zinc - that have been frozen in time for over four decades.
This may be the last undiscovered discovery play in today’s red-hot mining market.
But now, with drill programmes about to begin on two of its projects, the window to beat the market into this story is closing fast.
Recent share price reactions to good drill results (and even to the mere anticipation of good results) prove we’ve officially entered a secular bull market for gold.
Recent examples
Consider just three recent examples of this trend:
■A development-stage junior in Ontario, Canada, rises 33 per cent in two trading days on news of high-grade results from drilling to expand its existing underground resource
■A silver-gold explorer drilling an historic Mexican silver district wows the market with uber-highgrade assays and spikes 240 per cent over the next two trading days.
■A gold explorer in southeast
Alaska with a just-started drill programme announces a financial injection from a high-profile investor, and sees its shares jump more than 75 per cent in less than a week
Such are the gains that are possible when the drills begin to turn on high-potential projects in a gold bull market.
But, as you can tell from the speed of the market reaction, the gains in this environment go to the swift, and to the prescient.
That said, there are still opportunities to stake positions in undervalued drill-hole speculations — if you know where to look.
Precious and base metal
And while much investor attention has been focused on high-profile jurisdictions like Mexico and British Columbia, Thunderstruck Resources has quietly built an impressive precious and base metal portfolio in Fiji.
Now, thanks to a successful financing and a financial commitment from a key joint venture partner, Thunderstruck is about to begin drill programmes on two of its four projects in the country.
The programme on its gold project, in particular, has the potential to be a game-changer for the company, while the program on its joint-ventured base metal project provides a key valuation backstop. Simply put, this company offers investors a drill-hole play that the market, to date, has overlooked.
But given the recent profits that similar drill programmes have generated, odds are very good that investors will find their way to Thunderstruck sooner rather than later.
A “New” metals district emerges
Located along the Pacific “Ring of Fire” that is home to many of the world’s most largest gold and copper deposits, Fiji has a long history of mining.
Vatukoula mine on the north end of Viti Levu, produced more than 7 million ounces of gold over an 80year mine life.
And it’s still going strong. Meanwhile, the Namosi project on the southeast end of Viti Levu is home to one of the world’s largest undeveloped copper-gold resources (52 million ounces gold-equivalent).
Within this metals-rich region, Thunderstruck has managed to consolidate a land-package that includes the Korokayiu (zinc-copper), Liwa (gold), Rama (copper-gold) and Nakoro (zinc-copper) projects.
This collection of projects was originally discovered in the 1970s by mining major Anglo Pacific. Now, after 40 years that saw mostly sporadic, small-scale exploration by subsequent operators, these projects are exploding onto the scene in the midst of an emerging, redhot metals and mining market.
In short, with two separate drill programmes poised to begin, Thunderstruck stands as one of the last “undiscovered discovery” stories just as the gold bull market kicks into high gear.
High-Grade Zinc-Copper Joint Venture Backstops The Value
Thanks to Thunderstruck’s joint venture with Japan Oil, Gas and Metals National Corporation (JOGMEC) JOGMEC, the Korokayiu project provides a key backstop to the gold upside that its nearby Liwa project offers.
Anglo originally discovered the high-grade volcanic massive sulphide (“VMS”) zinc-copper mineralization in 1977, outlining a small high-grade resource in 1980.
But then Anglo simply left.
Back then, porphyry projects were all the rage and even highgrade VMS projects didn’t get any respect.
Only later did subsequent discoveries prove how valuable VMS deposits could be.
So for over four decades, this discovery was left virtually ignored.
The deal
But here’s the deal - The nearsurface deposit remains open along strike and at depth, and the vast majority of the currently known mineralization lies within 100 meters of surface.
Prior work on Korokayiu has outlined more than 15 kilometres of potential strike on the property, over no less than eight distinct targets, so far.
Thunderstruck optioned the project in 2019 in a deal that will allow JOGMEC to earn a 70 per cent interest in exchange for C$3.5 million (FJ$5.54 m) in expenditures.
The major spent C$1.2 million (FJ$1.9m) last year on a programme that included drilling and has committed to spending another C$1.3 million ($2.05m) in 2020, a budget that will also fund another round of follow-up drilling at Korokayiu.
Follow up
Consider what that programme will be following up on - last year’s drilling was highlighted by Hole 17, which cut 13.8 per cent zinc, 2.94 per cent copper, 114 g/t silver, and 1.08 g/t gold over 11 metres.
This year’s programme will consist of a minimum of 1500 meters and will attempt to expand the known high-grade mineralisation on the Wainaleka target and test for extensions toward the Echo Creek and Kove Kove targets.
This programme, funded fully by its joint-venture partner, has the chance to provide important results of its own for Thunderstruck.
“Free” gold exploration
With Thunderstruck’s current value fully supported by its JOGMEC JV at Korokayiu, investors who buy AWE in advance of its upcoming drill programme at Liwa will essentially get its substantial gold exploration upside for “free.” Past surface work has generated four high-profile targets on Liwa, extending over more than three kilometres in strike and open in all directions.
Those targets — Jensen’s, Liwa Ridge, Lower Vatuvatulevu and Gun — have been clearly outlined by soil surveys, sampling and trenching.
Highlights from the work on these targets include 15 metres of 1.9 g/t gold and 5.5 metres of 2.0 g/t from a 1989 trenching effort.
High-grade samples include 55 g/t gold (Jensen’s), 11.1 g/t gold (Liwa Ridge) and 44.1 g/t/ gold and 1,205 g/t silver (Lower Vatuvatulevu).
Clearly, there’s a lot of smoke at surface on Liwa.
But that’s not all.
Geophysical survey
A geophysical survey conducted last year confirmed significant anomalies to 300 metres depth below all four targets.
In short, the targets are welldefined and the depth potential on them is significant.
If the upcoming 2,200-metre drill programme confirms that these high grades extend at depth, Thunderstruck could make big headlines in this red-hot junior mining market.
A Rapidly Closing Window Of Opportunity
Again, because of their reputation for delivering quick profits in the current environment, undervalued drill-hole speculations like this are hard to come by.
With the drills at Liwa expected to start turning in August and the programme at Korokayiu providing that all-important backstop, Thunderstruck offers a compelling risk-reward profile, and an equally compelling entry price.
Given the massive numbers of generalist investors that are now rotating into the gold space, the company offers a bargain that likely won’t last for long.
Drilling programme
Simply put, Thunderstruck’s drilling programme at Liwa is a downside-protected opportunity — a “golden ticket,” if you will — that could see good news from the drill bit turn into instant profits.