Teuton Resources Corp. (“TUO”) (“Teuton”) announces that Lateegra Resources Corp. (“LEG”) (“Lateegra) has entered into an option to acquire a 50% interest in Teuton’s Del Norte gold-silver 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 Del Norte property, Lateegra will make staged cash payments totaling $200,000, issue 100,000 shares, and undertake exploration expenditures of $2,500,000 over the five year term of the option. Full particulars will be announced upon the signing of the formal option agreement. The acquisition is subject to regulatory approval.
The Del Norte property is located 34 kilometers east 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.
Del Norte Property
2002 Discovery—“Kosciuszko Zone”
Discovered during 2002 at the edge of a wasting icefield, the Kosciusko zone has an observed strike length of approximately 50 metres. It strikes roughly north-northwest and has a width varying from 3 to 10 metres. Continuation of the zone to the north (downhill) is obscured by a large snow/icefield, to the south (uphill) by precipitous terrain.
A 2002 chip sample across the northern end of the zone returned a 10 meter width with a weighted average grade of 0.179 oz/ton gold and 18.4 oz/ton silver. The gold equivalent value (at 70:1 gold-silver ratio) is 0.442 oz/ton. Three holes drilled in 2002 from a single location all intersected the Kosciuszko zone at depth. Results are summarized below:
|Drill Hole||Interval (ft)||Length(metres)||Length(feet)||Gold(oz/ton)||Silver(oz/ton)||Gold Equiv.*(oz/ton)|
|*Based on 70-1 ratio between current gold and silver prices.|
The three intersections have true widths estimated from 8.5 to 10.0 metres.
Approximately 550 meters north-northwest of the Kosciuzsko zone, surface chip samples taken from a vein structure (“LG” vein) returned the following results:
|Distanc from Kosciuszko Zone to NNW (metres)||Sample Width (metres)||Gold (oz/ton)||Silver (oz/ton)||Gold Equiv.*(oz/ton)|
Both the Kosciuzsko zone and the LG vein have similar sulphide mineralogy, but because of an intervening 550 meter long snowfield it is not possible to determine whether the two are connected. The LG vein lies directly along the contact between sediments and neighbouring feslic volcanics, whereas the Kosciuszko zone is located east of the contact within the sediments.
2003 Exploration Results to Date
Work by Teuton personnel in 2003 has concentrated on prospecting an area extending 5 kilometers north and 5 kilometers south along strike of the Kosciuzsko zone. This work has resulted in the discovery of four new prospective zones, in addition to two discovered late in the 2002 season. Preliminary assay results have been received from the first two zones, both of which returned anomalous values from float boulders, several in excess of 1.0 oz/ton gold. In the two most recent zones to be discovered, abundant mineralization was located both in float boulders and in place. The last of these appears particularly promising: several en echelon veins and shears hosted in sediments with widths up to 1.0 meter and replacement bodies with widths up to 3.0 meters contain massive sulfide mineralization comprised mainly of pyrite, galena and sphalerite. Assay results from surface samples are pending.
Lateegra will be carrying out a minimum 1,000 meters of drilling on the Del Norte property in 2003. To this end, Falcon Drilling of Prince George, BC, has been contracted to carry out a drill program on the Del Norte to commence in early September. Planned drill targets are the Kosciuszko zone and its projected extensions, the LG vein, and such other targets as are developed by the ongoing surface program.
ON BEHALF OF THE BOARD
Dino Cremonese, P.Eng.
President Teuton Resources Corp
Minvita Enterprises Ltd.
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