Teuton Resources Corp. (“TUO-TSX-V”, “Teuton”) is pleased to announce that it has optioned its silver-gold, Del Norte property and adjoining Midas property (collectively the “Property”) located in the prolific Stewart-Eskay Creek mineral belt, to Sabina Resources Limited (“SBB-TSX-V”, “Sabina”). Sabina is a well-funded company with an emerging silver focus.
Abraham Drost, P. Geo., President of Sabina, states: “Sabina is now fully financed with over $6 million in cash and over $9 million in liquid thirty party share capital. Concurrent with this transaction, Sabina has applied to the TSX-Venture Exchange to change the name of the company to Sabina Silver Corporation. The company’s new mandate will be to grow its silver portfolio. Currently, Sabina owns a 100% interest in the Hackett River Project that contains a NI 43-101 compliant indicated resource in excess of 140 million ounces of silver, making it one of the largest silver deposits in the Western Hemisphere. Sabina’s objective is the addition of shareholder value through prudent financial management and active exploration and project development to production.”
Teuton is currently drilling the Del Norte property and nine holes have been completed to date. Results from this program will be released after assay results are in hand. Concurrently, Teuton is conducting an airborne survey over the Property using Aeroquest Survey’s sophisticated AeroTEMII system. Sabina has agreed to refund Teuton’s 2005 expenditures to a maximum of $500,000, which will then qualify as Sabina’s 2005 work commitment.
A total of 36 holes totaling 15,800 feet were drilled in 2004 out of 46 drill holes since 2002.A drill indicated mineralized system is present over a known strike length of 1.2km withadditional undrilled surface mineral occurences along strike possibly extending this to over 2km. The system contains silver-gold bearing lead-zinc mineralization hosted in a nearvertically dipping, quartz-sulfide/sulfosalt vein breccia, with a majority of the intersections containing gold equivalent values greater than 0.40 oz/ton. Previous work in the current “K” Zone area of interest intersected 18.4 oz/ton silver and 0.177 oz/ton gold over 33 feet (10m) where exposed on surface and up to 9.09 oz/ton silver and 0.223 oz/ton gold over 76.8 feet in drill core (Teuton News Release, Oct. 20, 2004).
The bulk of historical drilling was concentrated along a mineralized lithic tuff volcanic and black sediment/mudstone contact. The geological environment of mineralization is broadly similar to that of the rich Eskay Creek Mine. At Eskay Creek, high-grade veins were the focus of exploration prior to the discovery in 1989 of rich deposits of stratiform, sedex goldsilver- base metal mineralization at or near a mudstone-volcanic contact. Sabina President, Abraham Drost, P.Geo., states “Sabina believes that the Del Norte Property demonstrates the potential to host similar bonanza silver and gold mineralization”.
Under the terms of the option agreement, Sabina can vest a 50% interest in the properties by making cash payments and exploration expenditures as follows:
Cash Payments ($C) of:
i) $90,000 cash on signing; ii) $60,000 on or before June 1, 2006; iii) $90,000 on or before June 1, 2007.
Exploration Expenditures ($C) of:
i) $500,000 before Dec. 31, 2005;
ii) additional $500,000 before Dec. 31, 2006;
iii) additional $500,000 before Dec. 31, 2007;
iv) additional $1,000,000 before Dec. 31, 2008.
Sabina shall have the right to accelerate Expenditures in its sole discretion. Subsequent to Sabina earning its 50% interest in the Property, Sabina shall operate and shall have the right to acquire on 60 days’ notice to Teuton an additional 15% interest in the Property from Teuton, by completing a Feasibility Study in relation to the Property. The parties would then proceed on a joint venture basis.
Lateegra Resources Corp. (“LEG:TSX-V’) will retain a 1% NSR in the Del Norte Property on completion of Sabina’s earn-in, payable from Sabina’s share of the Property. Minvita Enterprises Ltd. (“MVE: TSX-V”), which currently owns the Midas property jointly with Teuton, will retain certain participation rights after Sabina vests its interest.
ON BEHALF OF THE BOARD OF DIRECTORS
Dino Cremonese, P.Eng.
President and Director
Teuton Resources Corp
Minvita Enterprises Ltd.
The TSX Venture Exchange has neither approved nor disapproved the information contained herein
This news release contains certain “Forward-Looking Statements” within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company’s expectations are disclosed in the Company’s documents filed from time to time with the British Columbia Securities Commission and the United States Securities & Exchange Commission.