Teuton Resources Corp. (“TUO”) (“Teuton”) and Lateegra Resources Corp. (“LEG”) are pleased to announce results from the recently completed $900,000 drill program on the Del Norte property, situated 20 miles east of Stewart, British Columbia. Altogether 36 holes were drilled totaling 15,800 feet.
The bulk of this drilling was concentrated along the mineralized lithic tuff-mudstone contact connecting the K (Kosciuszko) zone and the LG vein areas. Including drilling completed in 2002 and 2003, this trend has now been tested by 14 drill stations at intervals along a 3,300 foot long strike length. Complete results for this drilling are shown in the accompanying table; individual drillhole collars and azimuths are shown on the attached illustration.
Drill results to date show a significant mineralized system containing silver-gold bearing mineralization hosted in near-vertically dipping, quartz-sulfide/sulfosalt vein breccia, with a majority of the intersections containing gold equivalent values greater than 0.40 oz/ton. An analysis of the silver-gold assays indicates that the average economic contribution of silver is almost identical to that of gold, using the 60:1 ratio between silver and gold prices currently prevailing. Core intervals show typical pinching and swelling associated with vein deposits.
From surface samples taken above the K zone, to the intersection at the bottom of DDH2004-34, silver-gold vein mineralization is now known to extend over a vertical range of 1,400 feet. The system is open to strike extension 3,000 feet to the south into the Del Norte Creek valley, where the NMG silver-gold geochem anomaly and the 1,150 foot long, coincident VLF-Mag-geochem “Bullion” anomaly remain to be drill tested. Although a fault appears to have displaced the favourable tuff-mudstone contact to the east in the vicinity of the E-Sh and Ext 1-3 pads, surface samples indicate LG type mineralization probably continues beyond the northern limits of the areas drilled in 2004, as well. This hypothesis will be tested by mapping, geochem sampling and geophysical surveys in 2005.
Of particular importance is the last hole of the 2004 program, DDH2004-36, which proved continuity of mineralization to within 1,070 feet of the K zone, underscoring the probability that the LG vein and K zone mineralization are part of a continuous structure (an intervening icefield precludes surface confirmation). The mineralized interval in this hole was also substantially wider than the average intervals obtained in LG vein intersections to the north, suggesting a swelling of the structure in the direction of the K zone.
Worthy of mention is a single sample taken from 8.0 feet of core near the top of DDH2004-35. This sample, located within the mudstone unit, contained fine-grained, banded pyrite with no accompanying quartz mineralization. The interval assayed 0.152 oz/ton gold and represents a different style of mineralization, possibly sedimentary exhalative in origin. The adjacent sections below and above this interval will be sampled and assayed, results expected within three weeks. As noted in previous releases, the geological environment of the K-LG mineralization , lying along a contact between mudstones and felsic pyroclastics, is broadly similar to that of the Eskay Creek property. At Eskay Creek, high-grade veins were for fifty years the focus of exploration prior to the discovery in 1989 of rich deposits of stratiform, sedex gold-silver-base metal mineralization in or near a mudstone-volcanic contact.
KOSCIUSZKO (“K”) ZONE-LG VEIN DRILL HOLE SUMMARY
|Distance N from K zone & Pad# (feet)||Drill Hole#||Dip Angle (degrees)||From (feet)||To (feet)||Core Interval (feet)||Silver (oz/ton)||Gold (oz/ton)||Gold Equiv.* (oz/ton)||0-“02-1”||2002-||-45||39.0||141.0||102.0||5.61||0.104||0.198|
|1,970–G||2003-||-56||No significant results|
|2003-||-70||No significant results|
|2004-||-65||Hole did not reach target depth due to technical problems|
|2,490–D||2004-||-55||No significant results|
|2004-||-60||Less than 20% core recovery in zone|
|2004-||-70||Less than 20% core recovery in zone|
|2004-||-75||Less than 20% core recovery in zone|
|2004-||-77.5||Did not reach target depth|
|2004-||All holes from this pad failed to reach target horizon, probably due to fault|
|12||displacement to the east.|
|*Based on silver-gold ratio of 60:1, according to prevailing silver and gold metal prices.|
Not included in the above table are eight holes drilled in the LG Vein extension area (Pads Ext1-3, see map). Analysis of drill core indicates these holes were primarily within volcanic rocks, and that the target volcanic-mudstone contact was offset to the east. Nevertheless all of the holes contain broad gold-silver-arsenic anomalous sections hosted in lithic tuffs, as well as occasional narrow goldre-test of one or two of these holes with larger diameter drill core, which should assist in improving drill recovery.
Planned 2005 Program Teuton and Lateegra management are very encouraged by the ongoing positive results from the Del Norte program. Lateegra has indicated it plans a major follow-up program in 2005 to include continued drilling along the K zone-LG vein trend (in particular between DDH2004-36 and the K zone), drilling of the Bullion and related anomalies 3,000 feet to the south, and drill testing of targets identified by surface work in the LG vein extension area to the north. Lateegra also plans to study the possibility of road access into the property along Nelson Creek , linking to a logging road network branching from Highway 37. A helicopter reconnaissance undertaken in 2004 indicates that such a road would entail approximately 7-8 miles, most of it along gently sloping topography.
Alex Walus, P. Geol., is the Qualified Person in charge of the 2004 program on the Del Norte property. Pioneer Laboratories of Richmond, B.C., an accredited facility, carried out all of the analyses on Del Norte core.
ON BEHALF OF THE BOARD OF DIRECTORS
Dino Cremonese, P.Eng.
President and Director
Teuton Resources Corp
Minvita Enterprises Ltd.
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