Teras Significantly Advances Cahuilla with Technical Studies Update
Calgary, Alberta--(Newsfile Corp. - May 19, 2016) - Teras Resources Inc. (TSXV: TRA) ("Teras" or the "Company"): Teras is pleased to announce that the Company has completely reinterpreted the geology and style of precious metal mineralization at its Cahuilla gold/silver deposit located in Imperial County, California. For further information on the Cahuilla project refer to the NI 43-101 technical report entitled “Cahuilla Property 43-101 Technical Report,” filed with Sedar on November 27, 2012.
Cahuilla was previously thought to be a large low grade disseminated epithermal system with discreet high grade veins occurring within the lower grade mineralized halo. However, the detailed technical studies that were recently conducted using new data and the detailed core logs as reported in the March 31, 2016 news release clearly demonstrate that the gold and silver are hosted in a series of higher grade, sheeted veins that occur throughout the entire project area.
Teras’ more advanced comprehensive geologic model in combination with the new and refined geologic interpretations from core logs have revealed that the majority, if not all precious metal mineralization, is hosted in sheeted veins that appear to be associated with major structures recognized throughout the gold/silver deposit area. In areas where the sheeted veins are concentrated, significant thicknesses of sub-vertical, higher grade mineralization occur as observed in some of the recently completed angled diamond drill holes. An example of the sheeted veins is shown in the core photo below (296’ to 305’ @ 2.74 gpt gold and 701.0 gpt silver):
Core Photo
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The Teras technical team and advisory board have also recognized the existence of new, large gold/silver targets throughout the western project area. Three dimensional interpretation of the new geologic model has identified many significant large scale faults which appear to control precious metal mineralization to the west of the existing resource where much of the ground surface is covered by shallow alluvial gravels. These latest structural interpretations have delineated an extensive target area (green outline) shown below that has very sparse drill coverage and measures almost twice the size of the existing resource area (red outline):
Geophysics Photo
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The following illustration (tilted 90 degrees to the left relative to the previous map) distinctly shows the new target area in relation to the existing precious metal resource. The underlying map clearly displays geophysical resistors beneath the newly discovered major fault zones. The significance of the newly identified faults especially where intersections occur that are associated with strong geophysical resistors typically indicate the major pathways and potential feeder zones for precious metals. The brighter blue angular feature within the target area represents the Modoc Fault. The recently defined major faults are shown in darker blue and purple solid and dashed lines.
Surface Photo
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The new major faults and fault intersections shown above are defined by distinctive sharp contacts between geophysical resistors and conductors in conjunction with detailed historical surface geologic mapping. Notably, the western portion of the resource extends into the new target area where significant drilling has been completed. Many drill holes in the west target area are mineralized; however the drill density is insufficient to define a gold/silver resource. The vast majority of gold/silver at Cahuilla is hosted in silicified rock or geophysical resistors, and the western target area is clearly underlain by a large resistor, which is interpreted to signify silicified rocks.
Peter Leger, President and CEO of Teras Resources commented, “Our technical team’s newly refined and enhanced geologic model as interpreted from our comprehensive technical studies has completely rebranded the Cahuilla project as a sub-vertical sheeted vein system. This new interpretation is instrumental and sheds an entirely new light on our exploration philosophy and potential. Our primary objective remains the same; significantly increase the grade and tonnage of our precious metal resource. We are excited to build upon this newly discovered information and apply the new model and understanding of Cahuilla to create new opportunities for Teras as we move forward.”
About Teras
Teras is focused on developing its Cahuilla project located in Imperial County, California. The project encompasses an area of at least 3 km by 1.5 km and Teras believes that the Cahuilla project has the potential to develop into a mining operation consisting of altered and mineralized sedimentary and volcanic host rocks with numerous sheeted high-grade sheeted quartz veins. Teras filed a NI 43-101 technical report with an indicated resource of 1.0 million ounces of gold and 11.9 million ounces of silver on its Cahuilla project (70 million tons at an average grade of 0.015 ounces per ton gold and 0.17 ounces per ton silver with a cut-off of 0.008 ounces per ton gold) and inferred class of 10 million tons grading 0.011 opt gold and 0.10 opt silver. Gold equivalent ounces are 1.2 million ounces in indicated class and 130,000 ounces in inferred class using a ratio of 55 silver ounces to 1 gold ounce.
Dale A Vitone P. Eng., registered with the Association of Professional Engineers of Ontario, Alberta and Northwest Territories and a director of Teras, is the Company's nominated qualified person responsible for monitoring the supervision and quality control of the programs completed on the Company's properties. Mr. Vitone has reviewed and verified the mining scientific and technical information contained in this news release.
For further project and corporate information, contact:
Teras Resources Inc.
Peter Leger, President
(403) 262-8411
(403) 852-0644
Email: pleger@teras.ca
Website: www.teras.ca
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy of accuracy of this news release.
This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein may be forward-looking information. Generally, forward-looking information may be identified by the use of forward-looking terminology such as “plans”, “ expects” or “does not expect”, “proposed”, “is expected”, “budgets”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases, or by the use of words or phrases which state that certain actions, events or results may, could, would, or might occur or be achieved. In particular, this press release contains forward-looking information regarding: the Cahuilla project, the development and advancement of the Cahuilla project, the development of the geologic model in respect of the Cahuilla project, the development of further drill plans in relation to the Cahuilla project and the potential of the Cahuilla project to develop into a mining operation; and the completed core drilling program including further analysis of the core drilling program, the evaluation of the core drilling program and its impact on the Company’s existing NI 43-101 technical report. This forward-looking information reflects the Company’s current beliefs and is based on information currently available to the Company and on assumptions the Company believes are reasonable. These assumptions include, but are not limited to, the actual results of exploration projects being equivalent to or better than estimated results in technical reports or prior exploration results, future costs and expenses being based on historical costs and expenses, adjusted for inflation, the ability of the Company to obtain acceptable financing, market acceptance of its exploration programs and projects; consistent and favorable commodity prices; and regulatory acceptance of the Company’s geologic models . Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: the early stage development of the Company and its projects; general business, economic, competitive, political and social uncertainties; commodity prices; the actual results of current exploration and development or operational activities; competition; changes in project parameters as plans continue to be refined; accidents and other risks inherent in the mining industry; lack of insurance; delay or failure to receive board or regulatory approvals; changes in legislation, including environmental legislation, affecting the Company; timing and availability of external financing on acceptable terms; conclusions of economic evaluations; and lack of qualified, skilled labour or loss of key individuals. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.