We finally located this place and visited there this summer. It no longer exists as a town, but it was on Lake Thelma Rd. just outside Coronation, Alberta, Canada. The old school still exists but has been moved to another location and is being used as a machine shed (the blackboards are still in it). Records for people living in this area might be found in Coronation. The newspaper, The Coronation Review, has been in existence since 1911 and we found the obituary of the ancestor we were looking for in the 1913 edition of the paper which they had on location. He was buried in the Coronation cemetery, too, as there was no cemetery in Lake Thelma. There was never more than a school and a post office. I have scanned a map that shows a location of Lake Thelma and will send it on request. Hope this helps.