Thunder Mountain Gold Options to Buy Prospective Cobalt/Gold Property in Idaho

Thunder Mountain Gold, Inc. (OTC Bulletin Board: THMG; TSX-V: THM), a U.S.-based exploration company focused on discovering and defining high grade, high quality precious and base metal resources, announced today that it has optioned a prospective cobalt/gold property in the Idaho Cobalt Belt Trend, located 15 miles southeast of Formation Metal's cobalt project in Lemhi County, Idaho.

The cobalt/gold CAS claims are in the Iron Creek Mining District of the Idaho Cobalt Belt. It consists of 46 unpatented lode claims located on U.S. Forest Service managed lands. The property has had extensive geophysical work completed from 2003 through 2006, plus 19 drill holes in some of the anomalous zones.  

Under the terms of the option, the Company has until July 31, 2011 to finalize an agreement on the property to acquire 100% interest in the property. Financial terms have not been disclosed.

Jim Collord, President and CEO of Thunder Mountain Gold Inc. commented, "This property has the potential to add significant value to our portfolio of properties, with cobalt and gold mineralization similar to Formation Capital's proposed mine, and the Blackbird Mine along the same trend. Our objective with this property would be to advance the potential of the mineralization and to understand the significance of any of the possible rare earth elements."

Thunder Mountain Gold will immediately begin reviewing the existing core sample pulps to verify the results above, and to look for the occurrence of rare earth elements. The Company will conduct more detailed surface work (particularly trenching) and additional exploration of specific targets early next field season and upon completion of an agreement with the owner of the claims.

Qualified Person – G. Peter Parsley, Professional Geologist, is the Qualified Person as defined by National Instrument 43-101 responsible for the technical data reported in this news release.

Source:

Thunder Mountain Gold, Inc.

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