Teuton Resources Corp. (“TUO:TSX-V”) (“Teuton”) and Minvita Enterprises Ltd. (“MVE:TSX-V”) (“Minvita”) are pleased to announce that Canasia Industries Corporation (“CAJ.H:TSX-V’) (Canasia) has entered into an option to acquire a 50% interest in Teuton and Minvita’s jointly-owned Clone gold property, situated in the Stewart Mining Camp of northwestern British Columbia.
The Letter Agreement provides that, in order to earn its 50% interest in the Clone property, Canasia will make staged cash payments totaling $120,000, issue 200,000 shares, and undertake exploration expenditures of $1,800,000 over the five year term of the option. Option cash and share payments will be divided equally between Teuton and Minvita. Full particulars will be announced upon the signing of the formal option agreement. The acquisition is subject to regulatory approval.
Teuton-Minvita will act as operator during the term of the option
Clone Property-Previous Exploration
The Clone property is located 12 miles southwest of Stewart , British Columbia , within the highly mineralized Stewart Complex of volcanic and sedimentary rocks. Famous mines within this Complex include the currently producing Eskay Creek Mine, one of the highest grade gold-silver mines in North America , and the formerly producing Premier gold mine.
More than $3 million dollars have been spent in exploration on the Clone property to date, mostly between 1995-98. This work was largely funded through a private placement in Teuton-Minvita by Homestake Mining Canada and Prime Resources, at that time co-owners of the Eskay Creek mine.
Exploration of the Clone property began in 1995 with the discovery of several gold and gold-cobalt bearing shears along a 2 mile long, northwest trending mineralized system exposed by retreating snow and ice at the head of Sutton Glacier. The southeastern end of the system, called the Main Zone, has been the most heavily explored. Here five sub-parallel shears, exposed over strike lengths of up to 1,600 feet, returned exceptional gold values from surface trenching. A selection from 81 trenches follows:
Over 140 holes were drilled into the Main Zone from 1996 to 1997. A partial list of drill intercepts is included below:
|Selected Intercepts from the 1995-1996|
|Drilling on the Clone Property|
|Drill Hole||Interval (feet)||Gold (oz/ton)|
Although many good to excellent intercepts were obtained during the 1995-97 drilling, these results tended to be erratic due to the difficulty of following gold-bearing shoots down plunge within the shear zones. This problem was addressed by a structural study undertaken in 1998 which has greatly increased understanding of the controls for the gold-bearing mineralization. During the same year, a preliminary resource estimate for the Main zone was calculated using several methodologies, but none of these established a resource large enough to be economically viable.
Note: The historical exploration data set out above was collected prior to the inception of National Instrument 43-101, nevertheless, management of Teuton-Minvita is confident that the work was carried out carefully and in accordance with standard industry practice, and as such can be relied upon.
In 2003-4 the Clone property was under option to Lateegra Resources Corp. during which time a small drill program was carried out in the Main and C-2 zone areas. The Main zone results, including DDH #CL03-2 which returned a drill intercept of 27.8 feet grading 2.357 oz/ton gold (see News Release dated Dec. 9, 2003) were consistent with previous drilling. A secondary zone, the C-2 area, consisting of a set of narrow shears striking perpendicular to the Main Zone trend, was drill tested for the first time but results were not significant.
Planned Airborne Geophysical Program Canasia plans a $150,000 helicopter-borne, EM and Magnetometer survey along the 2 mile trend of the gold and gold-cobalt shears on the Clone property. Start of the program is scheduled for early 2006 but will depend on availability of the airborne system and completion of a financing.
It is anticipated that Aeroquest’s state-of-the-art time domain (AEROTEM II) EM system, successfully used in 2005 on other Teuton properties (Del Norte-Sabina Silver option; Treaty Creek/Bonsai-St. Andrew Goldfields option, Leduc Silver-Bell Resources option) and Teuton-Minvita properties (Konkin Silver, Silver Bell), will be employed. This new system has the advantage of detecting conductive bodies at much greater depths and with much greater sensitivity than prior technology.
The rationale for the airborne program is to seek out mineralized zones of dilation (widening) in the shears, at depth. Assuming grades are comparable to those found elsewhere on the property, discovery of such zones would materially enhance the economics of the property.
Contingent upon the successful location of new targets, a next phase consisting of diamond drilling is planned.
D. Cremonese, P.Eng., is the Qualified Person for Teuton Resources Corp. and Minvita Enterprises Ltd., in regard to data presented in this News Release.
ON BEHALF OF THE BOARD OF DIRECTORS
Dino Cremonese, P.Eng.
President and Director Teuton Resources Corp
Minvita Enterprises Ltd.
We Seek Safe Harbour
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