Teuton is the largest landholder in British Columbia’s famous “Golden Triangle”, soon to become one of the world’s foremost mining districts. It controls favourable geological extensions both to the north and the south of Pretium Resources’ and Seabridge Gold’s Brucejack-Snowfield and KSM properties, respectively, home of world class resources of gold and copper. Currently with thirty plus properties, Teuton continues to search for outstanding prospects, particularly in zones of glacial metlback. Teuton was one of the first companies to use the property generator model, which preserves shareholder equity by reducing dilution.
July 29, 2014, Vancouver, BC: Teuton Resources Corp. (“Teuton”) (“TUO”-TSX-V) (“TFE”-Frankfurt) (“TEUTF”—OTCBB) has agreed to complete a private placement to raise proceeds of up to $780,000. It has been agreed that the offering will comprise up to 6,000,000 units.Read More
The Golden Triangle lies along a belt of volcanic and sedimentary rocks stretching from Alice Arm north to the Telegraph Creek area, some 250 miles. Past producers include Anyox, the Premier Mine, Granduc and Eskay Creek. Many of these mines were “firsts” in their day. The Premier mine was the greatest dividend-paying gold mine in North America in the 1920’s. The Eskay Creek mine was the richest gold and silver bearing VMS deposit in the world.
The region is now beginning to come into its own. The Red Chris mine is beginning commericial production near the town of Iskut while to the west many companies are finding and developing large deposits of porphyry copper-gold. The most famous sub-district is the Sulphurets, host to vast resources of gold and copper currently being explored by Pretium Resources and Seabridge Gold. Pretium’s Valley of the Kings deposit is now the largest high-grade gold deposit in the world. Seabridge Gold’s Mitchell and Deep Kerr deposits are world-class deposits in their own right. The Mitchell, along with its faulted off upper portion the Snowfield (owned by Pretium), is the second largest undeveloped porphyry copper-gold deposit in the world. The Deep Kerr, recently found by Seabridge and still being developed, is already among the ten largest higher-grade copper-gold deposits in the world.
This region is being helped along by a joint provincial/federal decision to fund construction of a powerline into the heart of the area. This powerline is now almost complete and an extension from it services the Red Chris mine. Eight mineral deposits currently being developed within the Golden Triangle are slated for production within the next five years.
Teuton’s High property borders to the immediate south of Pretium’s Brucejack and Seabridge Gold’s KSM properties. The Sulphurets fault, key to many of the Seabridge copper-gold deposits, extends for 8km into the High and adjoining Orion property (also owned by Teuton). Similarly, the Brucejack Fault, spatially related to the many gold deposits currently being explored by Pretium, extends into the High. A one-hole drilling program undertaken in 2012 on the newly discovered King Tut zone located just south of the Pretium-Teuton border on the High property resulted in an intersection running 222m of 0.88 g/t gold. This intersection compares well with the average intersections obtained in the first ten holes drilled by Pretium into their Bridge deposit, located less than 2km to the north. Numerous gossanous zones lying just to the southwest of the King Tut (on Teuton ground) remain to be fully investigated. All alteration zones close to the Sulphurets and Brucejack faults are to be investigated in 2014.
Drilling by Teuton in 2011 disclosed extensive porphyry-style copper-gold mineralization on the Tennyson property, situated 6km west of the end of the Granduc mining road and 40km north of Stewart, BC. The property was optioned to Brigade Resources in 2012, a private Hunter Dickinson company (Hunter Dickinson is a leader in development of porphyry deposits in North America). In 2013, the company sold its remaining interest in the Tennyson to Brigade for $500,000 and $6.5 million in subscription receipts of Brigade. Brigade carried out a 16-hole, multi-million drilling program in 2013 on the Tennyson, expanding the known porphyry occurrence in the northwest area of the Tennyson gossan and finding a second occurrence to the southeast. Brigade subsequently informed Teuton that it did not wish to carry out further work on the prospect. Negotiations are under way which will see a return of the property to Teuton in consideration for Teuton relinquishing the $6.5 million in subscription receipts.
Treaty Creek Property
The Treaty Creek property sits northeast, and along geological trend of, Seabridge Gold’s KSM gold-copper property, home to two world-class porphyry copper-gold deposits (the Mitchell and the Deep Kerr) and north of Pretium Gold’s Snowfield-Brucejack property. Like the KSM and Snowfield-Brucejack properties, the Treaty Creek property is marked by abundant, large alteration zones (gossans) which can be seen from miles away and are conspicuous because of their bright yellow, orange and red colours. The central Treaty gossan, hosting the Eureka zone, is considered by many to be the largest of its kind in the region. In 2009, the last year any major work was carried out on the property, Hole #14 into the western portion of the Copper Belle zone returned an intersection grading 241m of 0.80 g/t. A magnetotelluric survey by Quantec Geoscience completed in 2012 disclosed a major anomaly (“Zone A”) near the end of this hole, which bottomed in mineralization. There is significant potential in the immediate area for location of a porphyry deposit similar to those currently being developed on the adjoining KSM property.
The property has been under option to third parties several times since first staking in 1984. Teuton has been in litigation with the last optionee, American Creek Resources, for the past three years. Recently, the Supreme Court of British Columbia held that American Creek is entitled to an order that Teuton forthwith transfer to American Creek legal title to TUO’s mineral claims known as the Treaty Creek Property and that American Creek will henceforth hold an undivided 49% interest in those mineral claims in trust for Teuton. Teuton has appealed the Court’s decision.
Del Norte Property
The Del Norte-Midas property was staked to cover three gold-bearing streams which flow west-east into the White River. Placer streams are relatively rare in the Stewart region but when they occur they are generally associated with major mineral deposits. As an example, Sulphurets Creek is a known placer stream and drains the area hosting the major KSM, Snowfield and Brucejack gold deposits of Seabridge Gold and Pretium Resources (over 70 million ounces of gold in reserves/resources to date). Bitter Creek, another placer stream, drains the Red Mountain gold deposit.
The Del Norte property spans a 12km long, north-south trending expanse covering a northerly-trending contact zone between volcanic and sedimentary rocks related to multiple zones of gold-silver mineralization. Portions of the property are underlain by rocks broadly similar to those hosting the rich, silver-gold Eskay Creek mine 50 miles to the northwest. A large, unexplained EM anomaly flanks the LG vein gold-silver system which has been explored by more than 60 holes.
Sabina Silver completed a $3.5million option agreement in 2007 earning a 50% interest in the property. Teuton owns the remaining 50% interest, except for the Midas portion of the claims which are owned 25% Teuton, 25% Silver Grail.
Teuton was one of the first companies to adopt what has since become known as the “prospect generator” model. This involves acquiring ground by staking, grooming it, and then optioning it out to third parties. One generally gives 50 to 60% of the property to the optioning party, but this is a calculated trade-off which allows preservation of capital….capital which can then be used to acquire more ground which can in turn be farmed out. Instead of having one or two properties to explore, work which must be financed internally, prospect generators can have interests in multiple properties because the work is carried out and financed by others.
Teuton has been publically listed since 1985. In the intervening 29 years it has diluted its equity to only 60 million shares, a little over 2 million shares a year. Many TSX companies reach 100 million shares in their first 4 to 8 years and then need to be rolled back (reverse split). Teuton has never suffered a rollback.
Create multiple opportunities to find a mine by staking, and then optioning out, properties situated in highly prospective mineralized belts such as the Golden Triangle. Keep administrative costs as low as possible and put the dollars into the ground.
2014 continues to be a challenge for exploration companies—companies are trading at record low prices and capital is difficult to raise. However, in any downturn there is also opportunity. We will focus on our high potential targets in 2014, such as the High, Tennyson and Orion claims, with a view to developing an outstanding drill target.