CALGARY, ALBERTA--(Marketwire - Jan. 11, 2013) -Teras Resources Inc. ("Teras" or the "Company") (TSX VENTURE:TRA) (OTCQX:TRARF): Teras is pleased to provide its shareholders with a corporate update on the Cahuilla project and other recent developments within the Company.
Teras announces that it will file the Mine Development Associates (MDA) National Instrument 43-101 report entitled "Technical Report on the Cahuilla Project Gold and Silver Resources, Imperial County, California" dated November 27, 2012 on January 11th, 2013. For the purposes of this press release, Teras has converted the Indicated and Inferred gold/silver resource tables from imperial to metric units which are shown below:
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The Company would also like to note that some of the statements made in the press release dated November 30, 2012 were slightly different than stated in the Technical Report; therefore interested parties should reference the published NI 43-101 report directly. These differences are not material.
With respect to field activities, Teras has initiated an aggressive exploration and development program for the Cahuilla project in 2013. The Company has engaged Zonge International, Inc. of Reno, Nevada to conduct extensive geophysical surveys at Cahuilla with the following objectives. Primarily, the geophysical program is being designed to focus on identifying deeper high-grade feeder structures that may represent the source of the many surface high-grade veins and widespread disseminated precious metal mineralization. Zonge has been directly involved in discovering many of these higher-grade feeder zones or structures at other epithermal gold/silver deposits similar to Cahuilla.
Secondly, geophysics will be used to search for additional shallow disseminated gold/silver mineralization and high-grade vein targets that are located outside of the current mineral resource boundaries. Lastly, Teras will begin a comprehensive exploration program that will seek to find new targets that occur beneath shallow pediment cover, which is prevalent throughout the southern and eastern portions of the project.
Zonge is currently in the process of reinterpreting historical geophysical data with more modern, specialized evaluation techniques that should provide an excellent guide to the detailed planning and implementation of the new geophysical surveys that will begin later this month.
Drilling is scheduled to begin in the first quarter 2013 with purpose of expanding the current NI 43-101 resource and further identify high-grade precious metal zones. Drilling will initially be conducted on the northeast and southeast portions of the project area outside of the current resource. In these areas, wide-spaced historical drilling has returned anomalous to ore-grade gold values. Once the geophysical surveys are complete, drilling will be focused on testing potential high-grade feeder zones. Detailed mineralogical and structural investigations are also in progress.
In other news, Teras has relinquished the Spanish Canyon project in Nye County, Nevada to the underlying owner Mountain Gold Exploration, LLC. Spanish Canyon is a grass roots generative exploration project and the Company has elected to focus its efforts and expenditures on advancing its flagship Cahuilla project. Teras has made this decision based results received in December 2012 from the work performed in 2011 and 2012.
The Company has also leased its Golden Jubilee property in Madison County, Montana to the same company who purchased Teras' Watseca property. Teras will receive a 3% net smelter royalty on all ore produced from the Golden Jubilee once in production. The lessor has the option to purchase 2% of the royalty for a cash payment of $2 Million dollars. The lessor has a drill program planned for the spring of 2013. The lessor has a minimum work commitment of $50,000 per year to maintain the lease in good standing.
The scientific and technical information in this press release was prepared and approved by Dennis J. LaPoint, a Registered Member of SME, who is a Qualified Person under National Instrument 43-101 and a Director of Teras Resources Inc.
The Company is focused on developing its Cahuilla project located in Imperial County, California. The project encompasses an area of at least 3 km by 1.5 km and demonstrates the potential for a large-scale, bulk mining operation consisting of altered and mineralized sedimentary and volcanic host rocks with numerous sheeted high-grade quartz veins. Teras filed a NI 43-101 compliant technical report with an indicated resource of 1 million plus ounces of gold and 11 million plus ounces of silver on its Cahuilla project (70.148 million tons at an average grade of 0.015 ounces per ton gold and 0.17 ounces per ton silver with a cutoff of 0.008 ounces per ton gold). The Company has an aggressive plan to increase the resource and develop the project for future mining operations.
This press release may contain "forward-looking information" within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein may be forward-looking information. Generally, forward-looking information may be identified by the use of forward-looking terminology such as "plans", " expects" or "does not expect", "proposed", "is expected", "budgets", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases, or by the use of words or phrases which state that certain actions, events or results may, could, would, or might occur or be achieved. In particular, this press release contains forward-looking information regarding: the potential of the Cahuilla Project; the potential of geophysical programs on the Cahuilla Project; the potential to expand the resource, to identify new targets and to identify high grade zones and structures; the timing of and potential of drilling and exploration programs, surveys, studies and developments; and the potential for finding high grade deposits. This forward-looking information reflects the Company's current beliefs and is based on information currently available to the Company and on assumptions the Company believes are reasonable. These assumptions include, but are not limited to, the actual results of exploration projects being equivalent to or better than estimated results in technical reports or prior exploration results; future costs and expenses being based on historical costs and expenses, adjusted for inflation; continued success in drilling and exploration programs and geological and geophysical studies at the Cahuilla project; successful studies in mining techniques and metallurgy; commodity prices continuing at today's prices or rising; obtaining the necessary funding to carry out recommended work programs, exploration and studies; and continued success in obtaining permits.
Additional assumptions can be found in the Company's disclosure documents on the SEDAR website. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: the early stage development of the Company and its projects; general business, economic, competitive, political and social uncertainties; commodity prices; the actual results of current exploration and development or operational activities; competition; changes in project parameters as plans continue to be refined; accidents and other risks inherent in the mining industry; lack of insurance; delay or failure to receive board or regulatory approvals; changes in legislation, including environmental legislation, affecting the Company; timing and availability of external financing on acceptable terms; conclusions of economic evaluations; and lack of qualified, skilled labour or loss of key individuals. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.