Tarsis Resources Ltd.

Tarsis Resources Ltd.

August 16, 2012 09:00 ET

Tarsis Optionee Reports Diamond Drill Results From White River, Yukon

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 16, 2012) - Tarsis Resources Ltd. (TSX VENTURE:TCC) ("Tarsis" and "the Company") is pleased to announce that it has received partial results from diamond drilling at its White River property (the "Project"), located in south-western Yukon from project optionee Driven Capital Corp. (TSX VENTURE:DVV) ("Driven"). Driven is funding the 2012 exploration program as part of its commitment to earn a 60% interest in the project.

First phase diamond drilling at the Project is now complete and 1,327 meters were drilled in seven holes.

Five holes were drilled in the HG Zone with depths ranging from 126 to 210 meters while two holes were drilled in the Cool Zone. All holes were drilled at minus 45 degrees dip. Driven have announced results from the first four holes drilled in the HG Zone and results for the remaining three holes will be announced in due course.

All drill holes encountered multiple, well-developed shear zones from 1 to 40 meters in drill thickness and mineralized by combinations of quartz-feldspar veining, pyrite-arsenopyrite-chalcopyrite veining and breccia, carbonate ± sulphide veining and breccia, limonitic fracture networks and gossans, present in complex, multiple cross-cutting relationships. These shear zones are believed to be steeply dipping with an en-echelon geometry showing good continuity along strike from hole to hole. Vein density increases dramatically where these high angle shear zones intersect brittle cherty metasediments, providing potentially large volume host units with low angle geometries.

About half of the shear zones intercepted by drilling can be correlated with trench exposures and surface lineaments, while the other half are blind with no surface geologic or geochemical indications. The presence of these blind zones is very encouraging and suggests that the degree of structural preparation and hydrothermal fluid flow is greater than initially thought.

Poor core recovery to total loss of core, in intervals from 1.0 to 3.0 meters in drill thickness, was encountered within one or more shear zones in each drill hole due to the high degree of fracturing, strong surface oxidation/weathering and presence of clay-rich gouge. Since these intervals of missing geologic and assay data occur within some of the mineralized shear zones, drilling was not completely successful in testing the near surface mineralized zones.

Although a high density of veining is present in drill core, only three holes contain strongly elevated gold values within five separate shear zones, ranging from 1.16 to 3.68 g/t gold restricted to single intervals 0.38 m to 1.41 meters in thickness.

Hole WRDH-3 contains an average of 0.36 g/t gold over 15.60 meters with numerous missing intervals resulting in approximately 70% overall core recovery. All gold mineralized zones contain highly elevated arsenic in excess of 10,000 ppm and bismuth up to 1,250 ppm. This arsenic-bismuth signature occurs as a halo up to 7.85 meters thick around anomalous gold and resembles that observed in surface sampling and soil geochemistry.

Elevated silver up to 30 g/t and copper up to 0.42% are also present. True thicknesses of all zones are unknown at this time, however all shear zones intersected are believed to be steeply dipping.

The presence of a high density of complex, multi-episodic veining, well-developed structural preparation and the abundance of blind mineralized zones in drilling indicate the presence of a large and vigorous hydrothermal system.

All assays were carried out by ALS Canada Ltd., with sample preparation in Whitehorse and analysis in North Vancouver. Gold and silver were analyzed by 30 g fire assay with gravimetric finish; thirty-five-element ICP analysis with four-acid digestion was also conducted. Driven plan to carry out check assays of certain core samples using fire assay with atomic absorption finish, at Acme Analytical Laboratories (Vancouver) Ltd.

Marc G. Blythe, President and CEO, commented that "While the initial assay results from diamond drilling at White River are disappointing, our optionee is encouraged by the geologic environment and intends to continue exploring the property."

Option Agreement

Under the terms of the option agreement, Driven can earn a 60% interest in the Project by completing the following commitments before January 15, 2016:

  • Making cash payments to Tarsis of $400,000 ($50,000 received)
  • Issuing two million Driven shares to Tarsis (250,000 received)
  • Completing $4.25 million in exploration expenditures on the Project

Tarsis will retain a 2% NSR royalty on any minerals produced from the Project, half of which may be purchased for $2 million by Driven.

Once earn-in obligations have been completed, a joint venture will be formed to operate the Project.

The technical information contained in this press release was prepared by Mr. Marc G. Blythe, P.Eng., the President and CEO of Tarsis Resources Ltd. Mr. Blythe is a Qualified Person as defined by NI 43-101.

About Tarsis Resources

Tarsis is an exploration company following the prospect generator business model. The Company acquires prospective exploration projects through its own grass roots generative exploration, and vends or options out projects to partners for advancement.

On behalf of the Board,

Marc G. Blythe, P.Eng., MBA., President and Chief Executive Officer

This news release was prepared by Company management, which takes full responsibility for content. 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 or accuracy of this release.

Contact Information

  • Tarsis Resources Ltd.
    Marc G. Blythe, P.Eng., MBA.
    President and Chief Executive Officer
    (604) 689-7644

    Tarsis Resources Ltd.
    Mark T. Brown, C.A.
    Chief Financial Officer
    (604) 687-3520