Tawsho Mining Inc.
TSX VENTURE : TAW

Tawsho Mining Inc.

February 09, 2012 14:56 ET

Tawsho Mining Inc. Reports Assay Results from the Whisker Valley Trenching Campaign

TORONTO, ONTARIO--(Marketwire - Feb. 9, 2012) - Tawsho Mining Inc. (TSX VENTURE:TAW) (the "Company" or "Tawsho") announced today the results of the trenching campaign conducted at Whisker Valley, Baie Verte, Newfoundland. Channel samples of 1m width spaced 1to 1.5m along the vein returned a weighted average grade of 8.68 g/tonne over 12m exposed length; 7.26g/tonne over 10m length at the Road Showing; 3.88 g/tonne over 10m length at the New Discovery showings adjacent holes WK11-07 and grab samples with values ranging from 0 to 46.0 g/tonne in grab samples at the Kruger showing.

"We are highly encouraged by the results we have obtained from the trenching program. We now have a better understanding of fractures and veins associated with gold mineralization and their spatial orientations. The range of assay values obtained for the channel samples and grab samples collected in these trenches confirms our thinking for the region and supports our commitment to continue exploring for gold in this region" commented Gary Perkins, President and CEO of the Company.

Trenching has verified that numerous Au bearing veins are present in the region being explored and that these veins generally trend in an east-west direction with steep dips to the north on the south side of the valley. A second set of veins have ESE trends and dip at shallower angels to the S. The veins generally tend to be thin, less than 0.5 m thick, but they are not solitary, they appear to occur as widely spaced parallel veins as is evidence in drill holes WK11-07 and WK11-08 (see previous news releases).

Mineralization is associated with the presence of pyrite, galena, and to a lesser extent chalcopyrite. Hematite, chlorite and epidote appear as smears and filling in numerous fractures and locally as alteration phases in the host rock spatially associated with the Au bearing quartz veins that contain finely disseminated or stringer pyrite and galena. Quartz bearing fracture stockwork have only locally been observed to be present within more highly altered zones bearing chlorite, amorphous silica and greenish clay minerals. Overall however, in the areas studied, alteration associated with presence of gold bearing veins is not well developed but locally in small zones where pervasive hydrothermal alteration has been observed, the grab samples taken from these spots generally contain the highest gold values obtained in the region.

The individual quartz veins that have been channel sampled across a 1 meter width display a persistent distribution of gold values along their exposed lengths. The weighted average assay values range from 4 to 9 g/tonne. Within these intervals assay values >10g/tonne are always present and channel samples across a 1 m interval have assays as high as 27g/tonne. Selected grab samples in the exposed veins often contain values >15 g/tonne and as high as 55g.tonne. These results indicate that significant gold values are present in the hydrothermal fluids associated with the development of the quartz veins.

Four sites were identified during the spring 2011 drilling campaign that contained interesting gold bearing vein intersections near the surface. The gold bearing veins tended to be narrow (20 cm to 0.5m), widely spaced (> 2m) and weakly mineralized (<10 g/tonne) occasional veins returned assay grades as high as 54 g/tonne. Outcrop exposure in the vicinity of these sites however, is scarce. A trenching program was therefore undertaken to expose the mineralized rock at these sites. The objective of the program was to glean better geometric and structural understanding of these veins. These data will guide the location of holes in the next drilling campaign.

A total of nine trenches were excavated, seven of these successfully exposed bedrock and the veins, two of these, however were flooded before bedrock could be exposed and had to be abandoned. During preliminary examination and cleaning of rock exposure in the trenches, mineralized grab samples of different types were collected from a single locality, briefly described and bagged for assay analysis. Where well defined veins could be seen, the rock surface was cleaned and the vein was "channel" sampled. Chip samples were continuously collected along a channel 5 to 10 cm wide along a 1m distance across the vein in the center of this interval and equal portions of wall-rock on both sides of the vein. Along the length of the vein, channels were located at an equal distance from each other usually 1m apart in normal veins and 3 m apart in veins that were poorly exposed or lacked evidence of sulfide mineralization. The total collection of "chipped" rock fragments along each channel was bagged and submitted as a single sample for gold assaying. All grab and channel samples collected were submitted for fire assay with AA finish. The crushed rejects for those samples assaying over 1 g/tonne were resubmitted for assaying using sieve fire assay using larger pulp samples (see QA/QC discussion below). The assay results for all samples are reported in Table 1 below.

The Road Pit Au-Showing: The gold bearing quartz veins exposed in the Road Pit is now known to have an approximate east-west trend (260 degrees - 270 degrees Az) and steep northward dips (70 -88 degrees).. The veins locally are highly fractured, breccia like and often develop a shear fracture cleavage sub-parallel to the vein strike but having much shallower dips. A greenish chlorite and red hematite veneer often coat these shear planes. At some localities in the pit, the quartz veins trends in more southeastward orientations (250 degrees - 230 degrees Az) with shallower northward dips (as low as 62 degrees north). Shallow dipping shear fractures have been observed to locally rotate the vein orientation but only slightly. Folding has been suggested but is not supported by present observations. It is possible that conjugate vein-sets may are present.

The main vein in the pit varies from 10 to 30 cm in width and contains sulfide mineralization occurring as fine disseminations or as hairline stringers within the quartz and sub-parallel to adjacent contacts where they locally develop massive concentrations up to 5 cm across. The sulfide minerals consist of variable portions of pyrite, chalcopyrite, bornite galena, traces of weakly magnetic pyrrhotite and include specular hematite and locally traces of magnetite. Highly mineralized grab samples containing galena and pyrite were found to contain Au values assaying as high as 45 g/tonne. The highly mineralized samples occur as pockets within the sheared brecciated portions of the quartz vein.

An attempt was made to extend the Road Pit vein in an eastward direction. A N-S trending trench located approximately 30m east of the pit, however deep, did not did not reach bed rock at a reasonable depth and the trench was therefore abandoned and filled.

During the 2010 drill campaign, drill hole WK-0004 located approximately 40m NW of the road pit and drilled at an inclination of 45 degrees in the direction 030 degrees Az, intersected a mineralized zone at the core interval between 10m and 11m. The first trench for the present campaign was therefore, located near this drill hole. The trenching exposed a vein 5 to 20 cm wide that is highly fractures contains disseminated and stringer sulfides and in appearance is almost identical to that seen in the Road pit. The vein occurs along the contact between fracture partially altered purplish rhyolite and a highly altered granodiorite. The numerous hairline fractures are filled with hematite, chlorite and epidote. The hydrothermal alteration in the vicinity of the vein develops a grayish green clay, chlorite and epidote the latter occurring as local concentrated masses both within the altered wall rock and the vein. The vein is more or less continuously exposed over a 25m length. The main vein trends at 245 degrees to 250 degrees Az and dips northward at 80 degrees to 88 degrees. At its eastern end of pit GPt1, the vein becomes less mineralized and splits in two directions, one vein trending in a more southward direction (~ 225 degrees Az) and the other at a more westward direction ( 270 degrees Az). Both veins appear to pinch out at their eastern margins. The main vein is mineralized with disseminated pyrite, chalcopyrite, galena, minor bornite, weakly magnetic pyrrhotite and malachite. The rock surface at the westward extends of Trench GPt1 become deeper and deeper from surface and eventually the western extent of the trench was abandoned due to flooding by ground water.

Trench GPt2 located 26 m west of the west margin of Trench GP1 again exposed the WK-0004 Au bearing vein where it continued along strike for another 11m before the trench again had to be abandoned due to water flooding. This vein trends at 260 degrees Az (compass reading of 270 degrees Az appears affected by presence of magnetite or pyrrhotite) and dips 75 degrees N. In this trench a second less mineralized and thinner quartz vein trending in a slightly southward direction occurs < 1m from the main vein. The geological setting and alteration remains the same as seen in trench GPt1. Mineralization is also similar, but galena is now more prevalent as the dominant sulfide and pyrite, chalcopyrite the less dominant sulfide compared to that in pit GPt1.

The New Discovery Showing: The New Discovery showing was first identified during 2011 drill campaign. Drill hole WK11-07 intersected five Au bearing veins, 0.2 m to 0.5 m thick within a 10 m interval occurring between 62 m – 72m. Individual veins assayed between 2 g/tonne and 14 g/tonne Au. Drill hole WK11-08 also intersected five Au bearing veins 0.1 m to 0.25 m thick within a 10 m interval occurring between 32 m – 42m. These veins assayed between 2 g/tonne and 41 g/tonnes. The first trench targeted to expose these veins was located ~30 m N of hole WK11-07 based on the assumption that the new discovery veins dipped steeply north or were vertical. This trench was abandoned early because the ground proved unsuitable for trenching.

Trench GPt3 was located on higher ground 200 m NW from drill hole WK11-07 where it exposed granodiorite bedrock. The granodiorite was highly fractured and slightly chloritized. Although the fractures commonly contained epidote and red hematite, only three narrow (<5 cm) barren quartz veins were noted. These veins trend WNW and dip shallowly (<60 degrees) to the south. Each of the veins was, however, sampled.

Trench GPt4 was located 115m west of trench GPt3 a short distance from outcrop of granodiorite containing several thin quartz veins that were said to have contained gold mineralization. The trench exposed two quartz veins, 7 and 20 cm thick within a highly chloritized zone 1 to 2 m thick. The veins and the host rock contain numerous hematite and epidote filled fractures. Numerous chloritized lenses within the quartz veins and silicified margins to the veins contain concentrations of pyrite both as finely disseminated masses and coarse cubic crystals. Minor chalcopyrite was also noted in these sulfide rich stringers. Two vein sets were observed one trending 058 degrees Az and dipping 58 degrees to the south, the other 075 degrees Az dipping 78 degrees south.

The Kruger Showing: Mineralization at the Kruger showing is exposed on the south faces of a rounded granodiorite outcrop, and consist of disseminated chalcopyrite, pyrite and molybdenite that occupy fractures that develop epidote and red hematite rich alteration margins. A trench at the base of the outcrop also exposed strongly fractured, altered and mineralized granodiorite containing massive to disseminated chalcopyrite, pyrite, molybdenite, galena and less commonly, in patches, finely disseminated granular magnetite. Mineralization is fracture controlled. The trench was extended in a southerly direction. A few metres from the outcrop, several quartz veins 10 to 20 cm thick were noted within pervasively chloritized granodiorite within which alteration is seen to spread away from the fractures and veins into the wall rock. Numerous hematite and/or epidote filled fractures develop fine quartz stockwork and contain lenticular clumps and disseminated masses of coarse grained pyrite, that locally develop coarse pyrite cubes up to 2 cm in size. The thicker quartz veins at the Kruger generally strike at 080 degrees Az and dip of 75 degrees to the south.

The Nest Showing: The Nest showing is situated approximately 900 m N50E from the Kruger showing. Trench GPt6 excavated at the edge of a rounder granite outcrop exposed a stockwork of numerous small quartz veins that contain irregular concentrations of galena as larger cubic crystals, minor disseminated pyrite and chalcopyrite and irregular patches containing finely granular magnetite. The vein stockwork structure resemble those seen at the Kruger Showing, the mineralize portions contain, with the exception of molybdenite, the same minerals as those observed at Kruger. Locally, in small patches almost massive concentrations of sulfide were observed to form irregular lenticular lenses. Persistent vein structures are rarely observed at the Nest showing and those that have been observed are thin (< 2 cm) short (few metres) and generally trend 075 to 080 degrees Az with shallow southward dips.

To view Table 1: Fire Assay Values From Samples Collected in Trenches Exposing Mineralized, please see the following link: http://media3.marketwire.com/docs/209taw_table.pdf

Quality Assurance/Quality Control:

Tawsho Mining Inc. is implementing the standard QA/QC protocol for its exploration and diamond drilling of its Whisker Valley Project by the drilling contractor Baker's Construction Ltd of Baie Verte NL. NQ core size has been used to provide adequate sample size for each sample being submitted for analysis and if necessary to enable the possibility for undertaking additional petrographic and step-down sampling if required. In the field, core was picked up by one of Tawsho's designated personnel or the driller and transported to a secure Core Shack. During logging, in addition to noting core recovery parameters, geologic attributes including lithology, alteration, quartz veining, presence and identification of sulfide and oxide mineralization along with other geologic parameters normally associated with mineralization were noted and recorded. Core intervals are marked on basis of selected geological parameters, and those intervals showing veining or mineralogical characteristics that may be indicative of mineralization are selected for splitting and assaying. Prior to splitting, all core was photographed and individual sample intervals submitted for analysis were photographed in more detail. Core splitting is done with a diamond core saw and ½ of the drill core is submitted to Eastern Analytical Laboratory in Springfield, NL. The remainder of the core is stored on the grounds of Barker's Construction Ltd. adjacent to the Core Shack.

Conventional fire assay sample preparation consists of crushing the selected core sample such that 75% crushed material passes -10 mesh (2 mm) screen and which is split to a 300 gram sample that is pulverized so that plus 90% of the sample (pulp) passes 200 mesh (.075mm). From this pulverized sample a 30 gram sample is taken for standard fire assay for gold with AA finish. Samples returning gold values over 1 ppm are resubmitted for fire assay with gravimetric finish. Following completion of fire assaying, 30 g of the pulp samples are geochemically analyzed for multi-elements using 4-acid digestion followed by ICP analysis with OES finish (Inductively coupled plasma optical emission spectroscopy). Tawsho also inserts gold standard samples, blank samples and duplicate samples into the sample stream at a rate approximating 10% of total original samples. Samples are normally transported by a Tawsho employee by truck from the Property to the analytical laboratory. Chain of custody protocols require signatures and the maintenance of logs and receipts each time the samples are picked up from or delivered to a new location. When utilizing commercial transportation, all shipping sacks are sealed with a numbered tag, the removal of which is recorded upon receipt by Eastern Analytical Laboratory Inc. Check analyses are conducted on a regular basis by resubmitting the crushed reject as a separate duplicate sample to Eastern Laboratory.

All sample intervals where free gold is visually observed are automatically submitted for fire assay analysis using the metallic screen finish. The screen +150 mesh screen oversize portion is assayed in total and the screen undersize is fire assayed in duplicate using a gravimetric finish. All other samples are analyzed by conventional fire assay using a 30 gram sample with ICP-AES finish.

This press release was prepared by Edward Procyshyn P. Geo., who is the qualified person as defined by NI 43-10, and reviewed by Gary Perkins.

ABOUT TAWSHO MINING INC:

Tawsho is a mining exploration company focused on the acquisition, exploration and development of gold resources and advanced stage gold exploration projects. The Corporation is presently developing its Chevrier project ( comprised of 557 claims, covering an area of 9542 hectares, or 95.4 sq. km) in the Chibougamau region of Quebec and its Whisker Valley project (comprised of 870 claims, covering an area of 21,875 hectares, or 218.8 sq. km) in Baie Verte, Newfoundland. Tawsho currently has approximately 22 Million shares outstanding.

Forward-looking statements provide an opinion as to the effect of certain events and trends on the business. Certain statements contained in this news release constitute forward looking statements. The use of any words such as "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe" and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on current expectations and various estimates, factors and assumptions and involve known and unknown risks, uncertainties and other factors. Forward-looking information includes, but is not limited to, statements with respect to the development potential of the Corporation's properties; the estimation of mineral reserves and mineral resources; conclusions of economic evaluation; the realization of mineral reserve estimates; success of exploration activities; mining or processing issues; government regulation of mining operations; and environmental risks. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Readers are cautioned not to place undue reliance on these statements as the Corporation's actual results, performance, or achievements may differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements if known or unknown risks, uncertainties or other factors affect the Corporation's business, or if the Corporation's estimates or assumptions prove inaccurate. Therefore, the Corporation cannot provide any assurance that forward-looking statements will materialize. The Corporation assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or any other reason except as required by applicable securities laws.

Neither the TSX Venture Exchange nor its Regulations Services Provide (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

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