Terra Ventures Inc.
TSX VENTURE : TAS

Terra Ventures Inc.

August 05, 2009 18:39 ET

Terra Ventures Inc.: Hathor's Summer Drill Program Discovers Two New Alteration Zones at Midwest NorthEast Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 5, 2009) - Terra Ventures Inc. (TSX VENTURE:TAS) is pleased to provide an update on the Midwest NorthEast Uranium property in which Terra owns a 10% production carried interest.

In a press release dated August 5, 2009, Hathor reported: Hathor Exploration Limited (HAT: TSX-V) is pleased to announce an update on the summer exploration program at its 90%-owned Midwest NorthEast property, northern Saskatchewan. To date, twenty-two diamond drill holes have been completed, ten from the land-based drill rig, six from the barge-based drill and six from the land based reconnaissance drill.

These drill holes have discovered two new alteration zones, one of which is approximately 1.2 kilometres from the Roughrider Zone. The alteration zones have similar characteristics to the alteration identified in MWNE-08-10, which led to the discovery of the Roughrider Zone.

The first zone is located on-land about 200 m eastwards from the closest mineralization on the Roughrider Zone. This alteration, identified in drill hole MWNE-09-147, is characterized by a wide zone of intense bleaching and strong limonitic alteration of the sandstone from 170 m depth to the unconformity (approximately 231 m vertical depth). The lower nineteen metres of this alteration zone is further characterized by extreme core loss (up to 95 %), intense desilicification, variable amounts of visible argillization and the presence of secondary hematite from 212 m to the unconformity. The basement geology comprises a thin (approximately 5 m) skin of pelitic gneiss overlying a thick (approximately 15m) quartz-flooded pegmatite, which grades into Archean granitic to granodioritic orthogneiss. While no elevated radioactivity was identified in the remaining 5-20 % of drill core, which is manifest as detrital quartz clasts, the down-hole gamma probe identified a zone of elevated radioactivity that coincides with the zone of near total core loss. This drill hole is close to the centre of a NW-SE trending gravity low that was identified during the latest ground gravity survey. This gravity low may represent either a brand new alteration zone or an apparent dextral offset to the Roughrider Zone, such as that seen between the main Roughrider Zone and the south-west extension around drill hole MWNE-09-116 that intersected up to 84 weight % U3O8.

The second new zone of alteration, located on-land ca. 1.2 km from Roughrider Zone, is identified in 4 drill holes (MWNE-09-502 to MWNE-09-505). This alteration is characterized by a pervasive zone of strong to intense bleaching and variable limonitic alteration from approximately 160 m to the unconformity (about 195 m vertical depth). Within this zone, widespread variable amounts (20-80 %, but locally reaching 100 %) of core loss and desilicification are present. Secondary hydrothermal hematite and argillization are dispersed throughout the zone. The basement, which is mainly composed of granitic gneiss and pegmatite displays variable bleaching (weak to strong) and minor argillization that extends for up to 15 m past the unconformity, with weaker bleaching for a further 20 m in depth. No typical palaeoweathering profile is present in these drill holes. This new alteration zone is located on the eastern margin of a magnetic high that is interpreted on the basis of seismic and drilling as a thrust slice of Archean orthogneiss. The observed associated magnetic low, which trends NE-SW along a lake, may represent an over-thrusted Wollaston Group package. The highly-altered nature of these holes is highlighted by the fact that two of the four holes that intersected this alteration were lost shortly after intersecting alteration due to bad ground conditions.

The land-based drill rig, which was trying to intercept at an acute angle, the main mineralized body of the Roughrider Zone, has had variable success. The Company anticipated that this would be a program with high technical risk because a one-degree deviation in a -45 degree hole can lead to a variation of about 10 metres in the location of the unconformity pierce-point. Of the eleven drill holes, one hole (MWNE-09-146) was abandoned shortly after the casing due to severe deviation, two drill holes (MWNE-09-133 and MWNE-09-137) intersected intervals of off-scale (greater than 9,999 cps) radioactivity (up to 1.5 metre core length) within a broader zone of weaker radioactivity. Three drill holes (MWNE-09-132, MWNE-09-140, MWNE-09-142) hit short intervals of weak radioactivity up to 2,000 cps. Three drill holes (MWNE-09-134, MWNE-09-135, MWNE-09-144) did not intersect any anomalous radioactivity (greater than 500 cps). Drill hole MWNE-09-147 has tested the newly discovered alteration system #1 described above. Of the ten holes completed, all ten intersected variable amounts of alteration both within the sandstone and basement package of rocks. This alteration is visually similar to that intersected in a number of the drill holes within the Roughrider Zone. These areas will have to be tested in winter 2010 from a more conventional angle with respect to the mineralized structure.

The barge-based drill, which is limited to vertical (-90 degree) drill holes, has completed six drill holes. Two drill holes MWNE-09-136 and MWNE-09-138 tested for the SW extension of the unconformity mineralization seen for example in MWNE-09-94. While neither of these drill holes intersected anomalous radioactivity, both showed elevated radioactivity, and alteration in both the lower sandstone and upper basement that is typical from other holes within the Roughrider Zone. Four widely-spaced drill holes (MWNE-09-139, -141, -143 and -145) targeted the "horse-shoe" area located between MWNE-09-94 and MWNE-09-125. Drill hole MWNE-09-139 intersected short (0.2 m) intervals of off-scale radioactivity (greater than 9,999 cps) within a broader zone (4 m) of weaker radioactivity within the basement. Drill hole MWNE-09-141 intersected short intervals (up to 0.4 m) of weak radioactivity (2,500 cps) within the basement. Drill hole MWNE-09-143 did not intersect any anomalous radioactivity in the sandstone or basement. Drill hole MWNE-09-145 intersected elevated to slightly anomalous radioactivity within the basement. All four of these drill holes intersected alteration that is typical from other holes within the Roughrider Zone, including pervasive bleaching, limonitic alteration, secondary hydrothermal hematite, argillization and fracturing in the lower sandstone and upper basement.

The land-based reconnaissance drill tested a magnetic anomaly to the east side of the peninsula with two holes. These two holes did not intersect favourable alteration, structure or basement lithologies. The other four drill holes (MWNE-09-502 to 505) have tested the newly discovered alteration system #2 described above.

Samples will be analyzed for U3O8 at the Geoanalytical Laboratories of the Saskatchewan Research Council (SRC). The facilities used for the analysis operate in accordance with ISO/IEC 17025:2005 (CAN-P-4E). The mineralized samples will be analyzed using ISO/IEC 17025:2005-accredited U3O8 method. All samples are also being analyzed for a suite of other elements including nickel, cobalt, copper and lead. These results will be released upon receipt of all results.

Terra Ventures Inc. owns a 10-per-cent production carried interest in the Midwest NorthEast property.

Benjamin Ainsworth., P.Eng., a qualified person as defined by National Instrument 43-101, has reviewed and approved the technical disclosure contained in this news release."

Terra Ventures is a junior exploration company focused on acquiring and developing quality uranium projects which have world class potential. The Company is dedicated to building shareholder value by acquiring strategic uranium properties in this period of strengthening global demand for uranium supply. The Company's combination of strategic land positions, advanced stage projects and no risk carried interest projects - combined with technical expertise and management's fundraising ability - are the foundation for growth in the uranium business.

On behalf of the board of directors of TERRA VENTURES INC.

Gunther Roehlig, President

This News Release contains forward-looking statements. Forward-looking statements are statements which relate to future events. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expects", "plans", "anticipates", "believes", "estimates", "predicts", "potential" or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.

While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested herein. Except as required by applicable law, the Company does not intend to update any of the forward-looking statements to conform these statements to actual results.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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