Global Zinc Shortage Accelerates; Thunderstruck Resources to Explore Zinc Project in Fiji

VANCOUVER, British Columbia, Oct. 22, 2014 (GLOBE NEWSWIRE) -- The world's largest zinc mines are shutting down, propelling the spot price of zinc to a three-year high of $2,400 per metric ton.

Global zinc consumption is growing 7% a year, catalysed by an automobile industry that requires zinc to protect steel components from rust and corrosion. Supply constraints could propel the metal even higher over the coming years.

This perfect storm of growing demand and shrinking supply is likely to benefit Thunderstruck Resources (TSX-V:AWE), which has a 100% interest in a portfolio of zinc, copper, gold and silver prospects located in the mining-friendly Republic of Fiji.

Fiji has recently transitioned to democracy, and China is continuing to invest heavily in infrastructure, cultural and mining projects in the country.

"Our technical team looked at hundreds of mineral properties around the globe," says Bryce Bradley, Thunderstruck's president and CEO, in an exclusive interview. "We had a very specific set of criteria. We rejected projects that were over-priced or incurred an unacceptable level of geological or political risk."

Thunderstruck ended up with a portfolio of projects in Fiji that were drilled by Anglo America in the 1970's. Thunderstruck has access to all of the drill data.

"We're looking forward to a comprehensive drill program that will include confirming the high grade Anglo holes as well as conducting expansion drilling," stated Bradley. "We'll be following Anglo's exploration success to determine the size of the deposits, and whether they have potential to be a mine."

VMS deposits provide shareholders with exposure to an array of precious and base metal prospects with high grade intercepts of zinc, copper, gold and silver.

"The Fiji assets first landed on our plate about a year ago," stated Bradley, "the properties were spectacular but the terms were too onerous. Finally, in July 2014 we reached an agreement, for less than 10% of the initial share issuance. It is a great deal for our shareholders."

Thunderstruck will pay $600,000 and 1.5 million shares over three years for 100% of the assets.

Brien Lundin is a co-founder and director of Thunderstruck Resources. He runs the New Orleans Investment Conference which has featured influential speakers such as Ayn Rand, Margaret Thatcher and Alan Greenspan. Lundin also writes the influential Gold Newsletter. With 30 years' experience as an analyst and metal investor, he has seen everything and done everything.

"Mr. Lundin is highly respected in the world of junior mining," stated Bradley, "He is a co-founder and active board member who has been instrumental in choosing these particular assets, as he sees great potential in them."

"We looked at a lot of projects before discovering this package of properties," stated Lundin. "The Fiji assets are an interesting mix of ground-floor exploration and historic drilling. Thunderstruck has under license or application nearly 4% of the main island of Fiji. The beauty of VMS systems is that multiple metals can be found in the same deposit. So they can function as single-deposit diversification investments."

Thunderstruck has two main VMS prospects within 25 km of each other, Wainaleka and Nakoro. They could accommodate a mill in between them, and ore could potentially be shipped to smelters in China or Japan via the deep-water Port of Suva, Fiji's capital city.

Anglo completed two diamond drill programs on both VMS projects in the 1970s, but metal prices at that time didn't warrant further exploration. However, the core drilling returned significant VMS drill intercepts, including 12 meters of 12.7% zinc and 56 grams/tonne silver. The targets remain open in all directions.

Thunderstruck Resources has only 12.4 million shares outstanding, tightly held by loyal shareholders. Subject to financing, Bradley anticipates spending approximately $1 million in the next year to drill both VMS properties and combining all known data into a 3-D model providing a clear delineation of the current asset.

Bradley anticipates selling the zinc either to the Japanese or the Chinese, who have invested heavily in Fiji's mines and infrastructure such as roads and hospitals. The Chinese recently purchased Fiji's oldest and largest gold mine, Emperor, and has an interest in several others.

Thunderstruck is also preparing their highly prospective gold property at Liwa Creek for drilling, but will limit their exploration activity until the gold markets recover.

"It is very likely that we will partner with a Chinese entity somewhere down the road," confirmed Bradley, " China is buying a lot of zinc, and we are in a perfect position geologically, politically and geographically to feed that demand."

Zinc stored in the London Metal Exchange's warehouses is down 22% since the start of 2014, equivalent to only about 20 days of global production. If this trend continues, international investors will look to zinc explorers in mature mining districts, with good proximity to China.

"In the next 12 to 24 months we hope to have a resource," stated Bradley, "which would have a significant impact on the valuation of Thunderstruck."

Thunderstruck Resources Ltd.
Bryce Bradley
President, Chief Executive Officer and Director
(604) 349-8119
Bryce@thunderstruck.ca
www.thunderstruck.ca