Thundelarra Ltd.: Garden Gully: Further Promise at Transylvania

Perth, Feb 20, 2018 - Thundelarra (ASX:THX) (OTCMKTS:TLXPF) is pleased to provide an update on the recent diamond and reverse circulation drilling at the other prospects, including Transylvania and Battery, that form part of our exciting Garden Gully gold project near Meekatharra, a well-established and proven gold production centre in Western Australia's Murchison Province.

- 20 reverse circulation ("RC") holes drilled for 3,843m advance

- 1 diamond ("DD") tail drilled for 179m advance

- Drilling tested targets at four Garden Gully prospects

- New significant intersections at Transylvania (downhole widths):

o 3m at 8.3 gpt Au from 68m in TGGRC123; within

o 8m at 3.3 gpt Au from 67m

- New significant intersections at Battery (downhole widths):

o 4m at 2.6 gpt Au from 52m in TGGRC137; within

o 6m at 1.9 gpt Au from 52m

- Previously announced intersections at Transylvania

o 2m at 4.4 gpt Au from 108m in TGGRC044; within

o 7m at 1.3 gpt Au from 107m

o 2m at 6.1 gpt Au from 106m in TGGRC022; within

o 6m at 2.8 gpt Au from 103m

- Previously announced intersections at Battery

o 4m at 3.3 gpt Au from 164m in TGGRC053; within

o 8m at 2.0 gpt Au from 164m

Evaluation of new data from drilling at Transylvania, Battery, South Crown and Granite Well continues to support the possible existence of a large mineralised system at depth beneath Garden Gully, acting as a single source for the mineralisation at these prospects and at Lydia and Crown Prince. Next drilling programmes will work towards delivering maiden resources at both the Crown Prince and the Lydia prospects and at identifying new mineralised structures to contribute to the Garden Gully project's inventory.

Results from over 26,000m drilled in 141 holes (23,556m RC; 2,523m DD) since mid-2016 continue to support the potential for a major new gold discovery at Garden Gully, located in one of Western Australia's most productive gold provinces.

Collar locations and surface traces for each hole drilled at Garden Gully's prospects in the latest programme (other than those already reported at Lydia and Crown Prince in ASX announcements dated 17 January 2018 and 08 February 2018) are given in Table 1 and Figures 3 and 4 (see link below). These 20 RC holes and 1 DD tail tested targets at the Transylvania, Battery, South Crown and Granite Well prospects (see Table 1, Figures 3 and 4 in link below). Three of the RC holes had to be abandoned before reaching the target zones due to difficult ground conditions.

The latest exploration drilling programme at Thundelarra's Garden Gully Project delivered a total advance of 11,648.9m in 55 holes, comprising 9,710m advance in 44 RC holes, of which eight were pre-collars finished with diamond tails; and 1,938.90m advance in the 11 DD holes.

TGGRC107 targeted southern extensions of a narrow gold intersection reported from a historical air core drill line drilled within the currently excised townsite area at the South Crown prospect. Low level of gold anomalism was intersected: 6m at 0.3 g/t Au from 145-151m. The hole was abandoned due to broken ground and water ingress before the target depth could be reached.

At the Battery prospect (see Table 1, Figures 3, 4 in link below) TGGRC119 targeted the south/south-westerly steep plunging mineralised shoots within the main shear zone. It intersected wide zones of arsenic and gold anomalism. Best intersections were 1m at 3.5 g/t Au from 107m within 7m at 1.0 g/t Au from 101m; and 2m at 1.2 g/t Au from 36m down hole. (see Table 2, Appendix 1 in link below).

TGGRC120 was drilled to close off the arsenic trend at the south-western end of the Battery trend (see Figure 5 in link below). The hole intersected a magnetic Proterozoic gabbro dyke before transecting a strongly deformed ultramafic sequence, but no indications of potential gold anomalism were observed and consequently no samples were submitted for assay.

TGGRC121 at Transylvania was drilled at a steeper angle behind previous hole TGGRC022 to follow up the down dip extension of gold mineralisation intersected in that hole (6m at 2.8 g/t Au from 103-109m, including 2m at 6.2 g/t Au from 106-108m: ASX report dated 14 September 2016). The hole did not intersect any geological or structural features indicating the possible presence of gold anomalism and so no samples were submitted for assay.

Evaluation of the findings from TGGRC121 led to the decision to drill north-westerly instead and TGGRC122 successfully intersected gold mineralisation hosted by sheared mafic schists within the weathering profile (3m at 2.3 g/t Au from 27-30m down hole). Hole TGGRC123 was then drilled behind TGGRC122 and intersected high-grade gold mineralisation down dip: 3m at 8.3 g/t Au from 68-71m within 8m at 3.3 g/t Au from 67-75m down hole. This mineralisation defined a new sub-vertical mineralised shear (see Figure 6 in link below).

TGGRC124 was drilled north-easterly on the northern end of the Transylvania mineralised shear (see Figure 5 in link below). It targeted the potential for along-strike extensions of the mineralisation intersected in the previous TGGRC024 and TGGRC044 (ASX reports 14 September 2016, 08 February 2017). Low grade primary gold mineralisation was intersected between 154-163m (see Appendix 1 in link below).

Two other holes drilled south-westerly within the same area at Transylvania (see Figures 4, 5 in link below) both intersected surficial gold mineralisation: 8m at 1.5 g/t Au from 28-36m down hole in TGGRC126 and 8m at 0.8 g/t Au from 32-40m in TGGRC127.

These results at Transylvania suggest an easterly dip of this new mineralised shear or most likely an inferred fold nose structure (see Figure 7 in link below).

TGGRC128 was drilled on the southern part of the shear and returned only narrow, low grade gold values from 36-38m (see Appendix 1 in link below). TGGRC130 (see Figures 4, 5 in link below) was drilled on the north-eastern border of the Transylvania prospect and tested a strong chargeable feature. It intersected a sulphidic black shale package with no significant gold or base metals anomalism.

TGGRC135 and TGGRC136 were drilled on the southern and northern extremities of the inferred shear zone (see Figures 4, 5 in link below). Neither hole intersected any geological or structural features indicating the possible presence of gold anomalism and so no samples were submitted for assay.

On the southern border of the Transylvania tenement, two scissor holes were drilled under a high arsenic ferruginous breccia outcrop (TGGRC132 and TGGRC133). Both holes intersected low arsenic levels, but no elevated gold values were encountered.

TGGRC134 (see Figure 3 in link below) targeted a low resistive zone identified during an earlier IP survey. A package of black shales was intersected but returned no significant gold anomalism.

Several holes were drilled north-westerly along the main mineralised trend at Battery Prospect, testing for potential high gold grades (see Figures 4, 5 in link below). TGGRC137 intersected good gold grades in the weathering profile, including 4m at 2.6 g/t Au from 52-56m down hole within 6m at 1.9 g/t Au from 52m-58m down hole (see Table 2 in link below). However, the hole was abandoned at 137m due to difficult ground conditions - very high clay content was continually clogging the hammer.

TGGRC138 collapsed at 11m and was abandoned. It was re-collared several metres away and re-drilled as TGGRC139, targeting at depth a potential VHMS mineralised system which has an anomalous base metals gossan outcrop. The hole was terminated at 275m after encountering no geological indications of gold or base metal anomalism, and it intersected no black shales. The hole was not sampled for formal assay.

TGGRC140 was drilled on the southern part of the Battery shear. It did not intersect the inferred shear, encountering no mineralisation to the depth of 207m. Visual logs and on site interpretation suggests that the hole may have been drilled within the hanging wall of the main structure.

At the Granite Well prospect, a 178.6m diamond tail was drilled from a 257m RC pre-collar to a total depth of 435.6m (TGGRCDD133: see Figure 3 in link below). The main target was to test the deep, westerly dipping conductor which previous RC drilling attempts had not been able to reach. The RC pre-collar deviated slightly and the diamond tail followed a similar trend. A mixture of felsic and mafic volcaniclastic rocks was intersected, but no reasonable explanation of the geophysical feature was found. The hole was cased and a DHTEM survey will be undertaken to investigate the possible presence of the potential off-hole mineralised conductor indicated from geophysical surveys.


Conclusions.

This Garden Gully drilling programme has tested multiple targets and concepts and improved our understanding of the mineralisation at Crown Prince, Lydia, Transylvania, Battery and Granite Well prospects. It has extended known mineralisation and identified new mineralised structures. Lydia continues to grow and remains open at depth and to the north and south. Our first exploration of Crown Prince has confirmed the presence of high grade gold mineralisation at least 130m vertically below the deepest previously demonstrated mineralisation and it remains open. Transylvania is giving indications of possible repetitions of the mineralisation styles and structural settings now identified at Crown Prince and at Lydia.

The Garden Gully results to date are an unqualified success and continue to demonstrate that the project holds the potential for a significant new body of gold mineralisation in this proven gold province around Meekatharra.

The next phases of work will focus on advancing the Lydia and Crown Prince prospects towards the definition of maiden resources. We will also continue to evaluate the as yet untested parts of the extensive Garden Gully project area for further repetitions of the structures and mineralisation settings we have identified to date. The evidence so far continues to point towards these individual prospects comprising elements of a much larger mineralising system at depth.

Thundelarra began exploration at Garden Gully in mid-2016 and continues to explore the project aggressively. To date over 26,000m of drilling has been completed in 141 holes, comprising 23,556m of RC and 2,522.6m of diamond as we test the unquestioned potential of the exciting Garden Gully project, located in one of Western Australia's most productive gold provinces.


About Garden Gully.

Thundelarra's wholly-owned Garden Gully project comprises 15 granted Prospecting Licences and 2 granted Exploration Licences covering about 78 square kilometres, located in Western Australia's Murchison region about 20 kilometres north-west of the town of Meekatharra.

To view tables and figures, please visit:
http://abnnewswire.net/lnk/8RB0GHRW


About Thundelarra Ltd

Thundelarra Ltd (ASX:THX) is primarily an Australian gold exploration company. Gold, either in stand-alone geological settings or in association with copper, is our principal target. Copper remains an important focus too. Our portfolio also boasts prospects with discovery potential for base metal (nickel, zinc, silver, lead), uranium and graphite mineralisation. We are active in Western Australia (WA) and the Northern Territory (NT).



Contact

Thundelarra Limited
Mr Tony Lofthouse, Chief Executive Officer
T: +61-8-9389-6927
E: info@thundelarra.com.au
W: www.thundelarra.com