Teuton Resources Corp. (“Teuton”) (“TUO”:TSX–V; “TFE”-Frankfurt)announces that, pursuant to a Preliminary Economic Assessment Report dated Jan. 8, 2009, Seabridge Gold Inc. proposes to construct a 21.5km underground tunnel to transport ore from its KSM deposit to a mill and tailings pond to be built northeast of Teuton’s Treaty Creek project located in northwestern British Columbia. Teuton reports that the trace of 13km of the proposed tunnel extends through the heart of its property, passing through or close to multiple mineralized zones.
Seabridge has recently initiated negotiations with Teuton regarding permission to construct the tunnel along with rights to mine any deposits found along the tunnel route. As part of the construction process, numerous geotechnical holes will be drilled and visually promising portions will be assayed. Although negotiations have been under way for six weeks, Teuton confirms that Seabridge currently has no legal interest in the Treaty Creek claims and that it has not granted Seabridge access to tunnel through the claims. Teuton further confirms that access would be granted only on terms maximizing full value to Teuton’s shareholders.
The Treaty Creek project is located directly north of and adjacent to the KSM project held by Seabridge and appears to form part of the same highly mineralized trend line. The KSM deposits contain a resource of over 43.8 million ounces gold1 and 10.6 billion pounds copper making it one of the largest undeveloped gold/copper deposits in the world. Directly east of the KSM deposits and in the same geological trend, Silver Standard Mines has outlined a resource of 18.7 million ounces gold2 in its Snowfield deposit. All quoted figures are National Instrument 43-101 compliant and are totals of measured, indicated and inferred resources.
The KSM and Snowfield deposits are found within a northerly trending, 12km long belt marked by distinctive yellow-orange-red alteration zones. Exploration of the area began in the 1960’s and continued intermittently thereafter, with the last three years seeing the most dramatic results. Since 2005-6 total gold resources have moved from about 5 million ounces to over 60 million ounces based primarily on drilling of the Mitchell and Snowfield deposits. The Treaty Creek property represents the northern continuation of this geological trend, showing the same bright alteration zones continuing for a further 10km. Significantly, drilling in 2007 of the Copper Belle, GR2 and Eureka zones on the Treaty Creek property resulted in the discovery of several holes containing mineralization with grades similar to that of Seabridge’s Mitchell deposit.
Copper Belle Zone
The Copper Belle zone is a new zone first drilled in 2007 and contains gold-copper porphyry style mineralization. Drill intersection highlights include a 76.07m interval of 0.93 g/t gold along with 8.78 g/t silver; a 46.23m interval of 0.83 g/t gold along with 6.39 g/t silver; a 17.00m interval of 4.33 g/t gold with 2.00 g/t silver; a 65.00m interval of 0.81 g/t gold with 3.80 g/t silver; and a 30.18m interval with 1.32 g/t gold and 5.93 g/t silver. Additional significant
intervals are shown in the following table:
Copper Belle Drill Highlights
| Hole |
From (m) |
To (m) |
Interval (m) |
Au (g/t) |
Ag (g/t) |
|
TC07-07 |
2.44 |
48.76 |
46.23 |
0.83 |
6.39 |
|
TC07-07 |
65.00 |
81.00 |
16.00 |
0.66 |
0.23 |
|
TC07-09 |
2.44 |
80.00 |
77.56 |
0.79 |
2.80 |
|
including |
2.44 |
41.00 |
38.56 |
1.17 |
4.40 |
|
TC07-11 |
2.43 |
73.00 |
70.57 |
0.76 |
4.91 |
|
including |
2.43 |
18.50 |
16.07 |
1.61 |
13.34 |
|
TC07-11 |
113.00 |
130.00 |
17.00 |
4.33 |
2.00 |
|
including |
113.00 |
115.00 |
2.00 |
22.60 |
5.80 |
|
TC07-11 |
213.00 |
220.50 |
7.50 |
1.12 |
36.35 |
|
TC07-13 |
4.00 |
43.00 |
39.00 |
0.72 |
3.26 |
|
TC07-15 |
2.43 |
72.50 |
70.07 |
0.66 |
6.31 |
|
including |
9.50 |
18.00 |
8.50 |
1.58 |
27.43 |
|
and |
60.00 |
64.20 |
4.20 |
1.61 |
25.58 |
|
TC07-17 |
1.82 |
32.00 |
30.18 |
1.32 |
5.93 |
|
including |
8.00 |
14.00 |
6.00 |
2.91 |
19.70 |
|
TC07-17 |
52.00 |
71.00 |
19.00 |
1.24 |
15.14 |
|
including |
64.50 |
71.00 |
6.50 |
2.93 |
42.52 |
|
TC07-19 |
2.43 |
78.50 |
76.07 |
0.93 |
8.78 |
|
including |
10.00 |
14.00 |
4.00 |
1.49 |
49.35 |
|
and |
60.00 |
68.00 |
8.00 |
3.23 |
45.48 |
|
TC07-21 |
2.43 |
43.50 |
41.07 |
1.11 |
5.88 |
|
including |
2.43 |
24.00 |
21.57 |
1.67 |
9.80 |
|
TC07-21 |
127.00 |
171.00 |
44.00 |
0.82 |
1.50 |
|
including |
147.00 |
151.00 |
4.00 |
1.50 |
3.10 |
|
TC07-21 |
191.00 |
233.00 |
42.00 |
0.49 |
1.30 |
|
TC07-21 |
295.00 |
309.00 |
14.00 |
0.50 |
0.80 |
|
TC07-21 |
363.00 |
379.00 |
16.00 |
0.51 |
1.80 |
|
TC07-21 |
467.00 |
469.00 |
2.00 |
4.65 |
6.00 |
|
TC07-23 |
5.00 |
70.00 |
65.00 |
0.81 |
3.80 |
|
including |
25.00 |
46.00 |
21.00 |
1.21 |
8.39 |
|
and |
30.00 |
34.00 |
4.00 |
1.64 |
27.89 |
|
TC07-23 |
140.00 |
212.75 |
72.75 |
0.72 |
20.83 |
|
including |
140.00 |
153.00 |
13.00 |
1.73 |
103.51 |
|
TC07-23 |
233.00 |
267.00 |
34.00 |
0.49 |
7.88 |
|
including |
233.00 |
235.00 |
2.00 |
3.80 |
123.00 |
|
TC07-30 |
3.04 |
48.50 |
45.46 |
0.81 |
18.70 |
|
including |
23.00 |
24.75 |
1.75 |
1.29 |
70.17 |
|
including |
46.50 |
48.50 |
2.00 |
2.75 |
104.3 |
GR2 Zone
The GR2 zone has a volcanogenic massive sulphide (VMS) style of mineralization, with similar characteristics to the Eskay Creek deposit located 30 km to the northwest. Drill intersections from 2007 revealed polymetallic mineralization containing values in gold, silver, copper, lead, zinc, arsenic and antimony. Highlights include a 6.80m interval of 1.40 g/t gold with 93.95 g/t silver, 0.27 per cent copper, 4.41 per cent lead and 2.59 per cent zinc, a 16.0m interval of 0.955 g/t gold, a 12.0m interval of 1.37 g/t gold and a 1.27m interval of 340.0 g/t silver, 0.63 g/t gold, 0.10 per cent copper, 4.61 per cent lead and 4.26 per cent zinc.
The Treaty Creek property is currently under option to American Creek Resources under terms whereby American Creek can earn a 51% interest by expending $5 million over 3 years, ending in March of 2010. Alternatively American Creek could earn a 60% interest by financing the property to the feasibility stage.
Dino Cremonese, P.Eng., president and chief executive officer of Teuton, stated: “Teuton has held a 100% interest in the Treaty Creek property since 1983. Since that time the property has been explored by various parties under option with some $8 million spent to date. Recent events at the Mitchell and Snowfield deposits just to the south of us and in similar geology have been highly encouraging. We believe that potential to find similar deposits within the numerous alteration zones that occur at Treaty Creek is excellent. As well, construction of the tunnel through our property that has been proposed by Seabridge Gold should enhance the viability of our known zones and is very likely to lead to further discoveries.”
Dino Cremonese, P.Eng., is the qualified person for the purposes of National Instrument 43-101 for the Treaty Creek project and has verified and approved the contents of this news release.
1 KSM Deposits at 0.5g/t Equivalent Gold Cut-off Grade
|
Deposit Name |
Resource Category |
Tonnes (000) |
Gold (g/t) |
Copper (%) |
Gold |
Copper |
|
Mitchell |
Measured |
579,272 |
0.66 |
0.18 |
12,292 |
2,298 |
|
Mitchell |
Indicated |
930,603 |
0.62 |
0.18 |
18,550 |
3,692 |
|
Mitchell |
Inferred |
514,878 |
0.51 |
0.18 |
8,442 |
1,589 |
|
Sulphurets |
Indicated |
74,655 |
0.75 |
0.18 |
1,798 |
388 |
|
Sulphurets |
Inferred |
33,636 |
0.62 |
0.18 |
675 |
147 |
|
Kerr |
Indicated |
206,272 |
0.25 |
0.18 |
1,651 |
2,037 |
|
Kerr |
Inferred |
51.387 |
0.21 |
0.18 |
352 |
506 |
|
TOTAL |
|
|
|
|
43,760 |
10,657 |
2 Snowfield Deposit at 0.5g/t Equivalent Gold Cut-off Grade
|
Deposit Name |
Resource Category |
Tonnes (000) |
Gold (g/t) |
Copper (%) |
Gold Ounces (000) |
Copper Pounds (Millions) |
|
Snowfield |
Measured |
31,900 |
1.49 |
0.033 |
1,528 |
23 |
|
Snowfield |
Indicated |
102,800 |
0.86 |
0.072 |
2,834 |
163 |
|
Snowfield |
Inferred |
661,800 |
0.67 |
0.137 |
14,276 |
1,999 |
|
TOTAL |
|
|
|
|
18,638 |
2,185 |
ON BEHALF OF THE BOARD OF DIRECTORS
TEUTON RESOURCES CORP.
“Dino Cremonese, P.Eng.”
Dino Cremonese, P.Eng.
President
This news release includes certain forward-looking statements concerning the future performance of our business, its operations and its financial performance and condition, as well as management’s objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as “may”, “will”, “plan”, “expect”, “anticipate”, “estimate”, “intend” and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks and the availability of financing, as described in more detail in our recent securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward looking-statements and we caution against placing undue reliance thereon. Silver Grail Resource Ltd. And Teuton Resources Corp. do have an ongoing obligation to disclose material information, as it becomes available.
The TSX Venture Exchange has neither approved nor disapproved the information contained herein.
