Teuton Resources Corp. (“Teuton”) (“TUO”-TSX-V) (“TFE”-Frankfurt) is finalizing its plans for the 2010 season in the Golden Triangle region of northwestern British Columbia. Early indications are that more than $100 million will be spent by various parties exploring multiple deposits within the region. At least $80 million of this will be spent on properties where Teuton Resources Corp. holds key adjoining land. The various areas within the Golden Triangle where the Company has properties are as follows:
Red Chris area
Imperial Metals, owner of the Red Chris property, plans to spend $27 million on its ground in 2010. There are currently 4 drills turning on the property with two more scheduled to join in shortly. In November of 2009, Imperial reported an outstanding intersection that ran 152.5m of 4.12% copper and 8.83 g/t gold from an intercept beginning 520m downhole. This hole is one of the richest in terms of length and grade to be drilled in British Columbia since the Eskay Creek discovery in 1989.
Teuton owns a large group of claims adjoining 3km south of this discovery, with one block representing the closest in of all third party properties. Another group of claims is owned to the north. The Company has decided to option out all of its Red Chris area claims (see Fig. 1).
Seabridge Gold, owner of the KSM property, plans to spend $17.5 million on its ground in 2010. Previous work has established three gold-copper deposits with the largest, the Mitchell, having proven reserves containing 11.7 million ounces of gold and 2.1 billion pounds of copper (570.7 tons at 0.64 g/t gold and 0.17% copper) and probable reserves containing 14.5 million ounces of gold and 2.7 billion pounds of copper (764.8 million tons at 0.59 g/t gold and 0.16% copper). It is currently the largest undeveloped gold-copper deposit in Canada.
The 2010 work at KSM will include drilling of the Iron Cap zone, which lies about 2km northeast of the Mitchell. Seabridge’s geologists believe that this new zone (the Iron Cap) has the potential to host 250 to 500 million tonnes of mineralized material at grades similar to the Mitchell zone. Significantly, the Iron Cap lies only 1km southwest of the border between Seabridge Gold’s claims and Teuton’s extensive Treaty Creek property (see Fig. 2). Drilling in 2009 by American Creek Resources, optionee of the Treaty Creek property, identified two favourable zones in geology broadly similar to that of the KSM property. In the Copper Belle zone, drillhole CB-14 ran 241 metres of 0.80 g/t gold from 114 to 355.7m. In the GR-2 zone, hole GR2-09-07 ran 14.5 metres of 5.44 g/t gold. American Creek has not yet disclosed its plans for Treaty Creek in 2010.
Silver Standard Resources, owner of the Snowfield-Brucejack property, has made plans to spend $17 million in 2010. A preliminary assessment based on the Snowfield deposit was announced in June of 2010 and envisioned a 23 year mine life operating at 120,000 tonnes per day. Grade of the deposit was summarized as a measured resource of 136.9 million tonnes at 0.94 g/t gold and 0.11% copper, an indicated resource of 724.8 million tonnes at 0.67 g/t gold and 0.12% copper, and an inferred resource of 948.9 million tonnes at 0.33 g/t gold and 0.07% copper.
In the Brucejack area at the south end of the property, Silver Standard has identified several zones including the new Bridge deposit which was successfully drilled in 2009. One of the holes, SU-21, intersected 589m of 0.99 g/t gold. The zones within the Brucejack area appear to be related to the Brucejack fault which travels south into Teuton’s High property (see Fig. 3). The High property begins 1.25km south of the Bridge deposit and continues southward for another 7km. Teuton intends to explore the High property in 2010 by reconnaissance sampling and possibly drilling.
Bravo Gold plans follow-up exploration of $6.5 million on its Homestake property in 2010, which adjoins due east of Teuton’s Fiji property (jointly owned with Silver Grail Resources). A 2010 estimate for the main Homestake deposit was reported to contain an indicated resource of 888,000 tonnes grading 6.69 g/t gold and an inferred resource of 1,140,000 tonnes grading 5.02 g/t gold. The Homestake Silver deposit, to the south, has an inferred resource of 1,200,000 tons grading 4.25 g/t gold.
In 2009, Bravo Gold conducted an airborne geophysical survey over its property which identified several new, untested exploration targets. One of these zones straddles the border with Teuton and Silver Grail’s Fiji property (see Fig. 4) and will be examined by Teuton personnel in 2010. Another lies just to the east of the boundary with Teuton in the northwest corner of the Homestake property. Teuton plans to drill other targets within its Fiji claim in 2010 and has received all government permits to that end.
The BA property which hosts silver-lead-zinc mineralization within an extensive rhyolite-dacite unit is owned by Mountain Boy and is now under option to Great Bear Resources. Great Bear plans to spend $5.3 million on the BA ground in 2010. Adjoining on the south side is Teuton’s Stamp property which has been optioned out to Decade Resources. A favourable horizon passes south from the BA property into the Stamp claims (see Fig. 5).
Decade is currently flying an airborne geophysical survey over the Stamp claims and will be following that up with ground work and possibly drilling in 2010.
Red Cliff area
Owned by Decade and Mountain Boy. Drilling is currently underway estimated to cost between $2-3 million. Some of this work will be on the Silver Crown claim optioned by Decade from Teuton and Silver Grail. The Silver Crown claim lies between 200 to 400 meters north and along trend of Decade-Mountain Boy holes drilled in 2009 which ran 32.5m of 7.5 g/t gold and 24.7m of 20.87 g/t gold. Teuton and Silver Grail own several other blocks within the region which are available for option (see Fig. 6).
Clone, Silver Leduc and Bonsai properties
Bonsai property to Canasia Industries, Bell Copper and Copper Creek Resources, respectively. The Clone property 2010 budget has not yet been established by Canasia but will be reported when available. Drilling in 2009 of the Clone encountered several excellent gold intersections including one which ran 12.8m of 44.75 g/t gold. As for the Silver Leduc property, it will be part of a $3 million, 2010 program by Castle Resources which has optioned both the Granduc core claims and the Silver Leduc from Bell Copper. Plans for the Bonsai property will be announced when available.
This property is 100% owned by the Company and is located at the head of Berendon Glacier, approximately 30km north of Stewart, BC. Past exploration has identified epithermal gold and porphyry copper-gold mineralization. A new zone was discovered in 2009 and was tested by two holes. One of these ran 19.8m of 2.0 g/t gold.
Permits are in place and both a helicopter contract and drill contract have been signed. The Company plans to begin work on the Tennyson property in August of 2010.
The Qualified Person for the purposes of this news release is D. Cremonese, P.Eng. D. Cremonese, P.Eng. has not independently verified all of the technical information mentioned in this news release with regard to the Red Chris, KSM, Snowfield-Brucejack, Homestake, BA and Red Cliff properties, but has relied on published news releases, websites and other sources.
“Dino Cremonese, P.Eng.”
Teuton Resources Corp.
If you would like to be added to Teuton’s news distribution list, please send your email address to email@example.com.
This news release includes certain forward-looking statements concerning the future performance of our business, its operations and its financial performance and condition, as well as management’s objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as “may”, “will”, “plan”, “expect”, “anticipate”, “estimate”, “intend” and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks and the availability of financing, as described in more detail in our recent securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward looking-statements and we caution against placing undue reliance thereon. Teuton Resources Corp. has an ongoing obligation to disclose material information, as it becomes available.
The TSX Venture Exchange has neither approved nor disapproved the information contained herein.