Thunderwood, Aur in joint venture — New Jones Hill

The Jones Hill volcanogenic massive copper-zinc sulphide deposit north of Albuquerque in north central New Mexico will be explored by Thunderwood Resources (TSE) and Aur Resources (TSE) under a joint venture agreement.

The sulphide mineralization identified to date at Jones Hill, the companies say, consists of an upper zone containing predominantly hydrothermally altered, gold- and copper-rich, talc-chlorite schist up to 260 ft. in true thickness and a lower zone of copper- and zinc-rich massive sulphides up to 85 ft. in true thickness.

The priority exploration target will be the lightly explored lower zone, the companies say.

Massive sulphides have been intersected along a horizontal distance of 1,000 ft. and a vertical distance of 1,500 ft. in this area and the deposit remains unexplored both along strike and down plunge.

Significant intersections in this area include 2.21% copper and 3.81% zinc over a true width of 40 ft.; 0.73% copper and 4.98% zinc over 47 ft.; 1% copper and 8.42% zinc over 28.0 ft.; and 4.44% copper and 3.02% zinc over 11 ft.

The upper zone is reported to host preliminary reserves of 2.5 million tons grading 1.2% copper, 1% zinc and 0.10 oz. gold per ton.

The companies say Jones Hill has tonnage potential similar to the Jerome deposit in Arizona and Aur’s Louvicourt deposit in northwestern Quebec. To date, eight holes, all of which hit significant massive sulphides, have tested the lower zone.

A US$300,000 first-phase exploration program, involving in part the relogging of existing drill holes and about 6,500 ft. of rotary and core drilling in two deep holes, is under way. It is anticipated that the drilling portion of the program will begin in May.

Aur acquired the right to earn a 51% interest in Jones Hill from Champion Resources (VSE) by spending US$1.9 million on exploration work during a 3-year period and by purchasing, on closing of the transaction, 600,000 treasury shares of Champion together with 600,000 warrants for $200,000. Aur must spend US$300,000 on exploration work and must exercise a minimum of 150,000 warrants at 40 cents per share by the end of the year to keep its right in good standing. If Aur earns a 51% interest in the property, it has the right to earn a further 19% interest by subscribing for 100,000 treasury shares of Champion by Dec. 31, 1995, and by spending a further $1.5 million on exploration work by Dec. 31, 1996. Aur also has the right to earn a further 5% interest by arranging production financing for Champion. Thunderwood has acquired from Aur the right to earn a 25% interest in Jones Hill by making available to Aur about US$1.1 million to be spent on exploration work on the property during a 3-year period, including US$252,000 in 1993.