Teuton Resources Corp. (“TUO”) (“Teuton”) is pleased to announce that negotiations have led to the reinstatement of the option agreement between Teuton and Heritage Explorations Ltd. (“Heritage”) with respect to the Bonsai property, located 7 kilometers west of the Eskay Creek mine in northwestern British Columbia. Heritage is now owned 100% by St. Andrew Goldfields Ltd.
Option terms have been revised so that Heritage will be required to expend $2.4 million on the Bonsai property prior to March 31, 2009 in order to earn a 50% interest. Total remaining cash payments to Teuton amount to $170,000, including $35,000 received concurrent with the signing of the revised agreement. To keep the option in good standing beyond Dec. 31, 2005 , Heritage must spend at least $300,000 during the current field season. Of this, as a firm commitment, Heritage is required to drill a minimum of six holes.
The primary target of the 2005 work will be a 600 m long geophysical anomaly identified through an AeroTEMII survey, in a previously unexplored portion of the Bonsai property. Drill pads are currently being constructed by a Heritage crew and drilling is expected to commence within the next ten days.
A cursory surface examination of the target area was recently undertaken. Because the geophysical anomaly is interpreted as being caused by a conductor located 50 metres or more below surface, direct sampling was not possible. Although the area immediately above the anomaly could not be seen, the rocks just to the west were examined. These are sediments hosted by felsic and mafic volcaniclastics. The sediments are siliceous and pyritic with an azimuth and dip of 20/70, spot on the modelled conductor’s orientation. The overall setting is permissive of a volcanogenic massive sulphide (VMS) environment. Mr. Warren Bates, P. Geo, is the qualified person employed by Heritage on the Bonsai project. He has over twenty years experience in the exploration industry
ON BEHALF OF THE BOARD OF DIRECTORS
“D. Cremonese”
Dino Cremonese, P.Eng.
President and Director
Teuton Resources Corp
Minvita Enterprises Ltd.
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