Teras Resources Inc.

Teras Resources Inc.

October 01, 2013 07:00 ET

Deep Diamond Drill Core From the Cahuilla Gold/Silver Project Excite Teras' Technical Team

CALGARY, ALBERTA--(Marketwired - Oct. 1, 2013) - Teras Resources Inc. ("Teras" or the "Company") (TSX VENTURE:TRA)(OTCQX:TRARF): Teras is pleased to report progress of the Company's second deep diamond drill hole, CAH-304, at the Cahuilla gold/silver project in Imperial County, California. Furthermore, the reverse circulation drill has finished pre-collaring and casing the third deep core hole, CAH-305, to 286.5m (940') and is currently drilling in the far northeast project area with the objective of expanding the near surface disseminated and high grade vein precious metal resources.

The original plan for CAH-304 was to pre-collar the hole to approximately 305m (1,000') and then continue with the diamond drill. However, the reverse circulation drill intersected very strongly silicified and veined fanglomerate beginning at 61.0m (200') which became exceedingly hard and broken at 176.8m (580'). CAH-304 is located in an area where many historic drill holes were lost in highly faulted, silicified and strongly mineralized ground at approximately this same depth. As a result, the Company determined that the hole should be cased and diamond drilling initiated at 176.8m to obtain better quality samples and more precise geologic data in this relatively untested area at depth.

CAH-304 was targeted to test a substantial geophysical anomaly along a major mineralized fault structure where strongly silicified, heavily veined and mineralized fanglomerate extends to the bottom of many drill holes that were terminated as a result of difficult ground conditions. The drill successfully navigated through this zone and encountered the highly silicified and veined rock, which is characteristic of this major structural zone, for 201.2m (660') to a depth of 262.1m (860'). An example of this exceptionally altered core is shown below:

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/tra1001-F1.pdf.

The multiple episodes of veining, brecciation and intense silicification are very apparent in the core and the Company feels that this new geologic information is especially valuable since the favorable alteration, which is commonly an excellent gold/silver host rock, extends far below the existing gold/silver resource.

CAH-304 is situated near the original 1992 historic Cahuilla discovery hole, TM-28, that contained 73.2m @ 3.8 g/t gold (240' @ 0.112 oz/t) from 25.9 to 99.1m including 13.7m @ 12.30 g/t and 4.6m @ 10.8 g/t (35' @ 0.357 and 15' @ 0.315 oz/t), yet the hole was only drilled 146.3m (480') deep. Teras also drilled CAH-130 in this general area in 2011 which intersected 97.5m @ 1.85 g/t (320' @ 0.054 oz/t) from 24.4 to 121.9m including 9.1m @ 10.3 g/t and 1.5m @ 28.6 g/t (30' @ 0.300 oz/t and 5' @ 0.836 oz/t). This hole was terminated early as a result of difficult ground conditions at 169.2m (555') in 3.1m @ 1.71 g/t (10' @ 0.050).

Reverse circulation drill samples are being collected by Mr. Paul Stubble, Project Geologist and Manager, split on site, placed in sample bags and delivered to Inspectorate Laboratory in Reno, Nevada for gold/silver analysis. In addition, the Company collects separate splits of each reverse circulation sample at the drill which are retained for future cross-check assays. Core samples are also collected on site, placed in boxes, photographed, split in half by a rock saw and one half will be analyzed by Inspectorate. Sample blanks and certified standards will be inserted into the sample stream at random intervals for quality control purposes.

Peter Leger, President and CEO of Teras Resources, commented, "Our Cahuilla technical team is especially excited about the exceptionally long intercept of very strongly altered and veined fanglomerate in CAH-304 that persists to a much greater depth than previously known. This type of alteration commonly hosts high grade precious metal mineralization and we are again looking forward to the assay results, which may conceivably result in significant increases in our gold/silver resources. We are planning to core drill CAH-304 to a depth of 610m (2,000') hoping to encounter silicified and veined rock at the depths we observed in CAH-303 to further enlarge this already extensive, precious metal-rich epithermal system."

Dale A Vitone, P. Eng., registered with the Association of Professional Engineers of Ontario, Alberta and Northwest Territories and a Director of Teras, is the Company's nominated qualified person responsible for monitoring the supervision and quality control of the programs completed on the Company's properties. Mr. Vitone has reviewed and verified the technical information contained in this news release.

About Teras

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 1.2 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 cut-off of 0.008 ounces per ton gold). The Company has an aggressive plan to increase the grade and tonnage of the resource and develop the project for future mining operations.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy of accuracy of this news release.

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.

Contact Information