Honey Badger Exploration Inc.

Honey Badger Exploration Inc.

May 21, 2008 13:17 ET

Telkwa Gold Completes Airborne Survey, Begins Plans for Upcoming 2008 Drill Program over Newly Expanded Land Position in Nevada

TORONTO, ONTARIO--(Marketwire - May 21, 2008) -

THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR TO ANY UNITED STATES NEWS SERVICE

Telkwa Gold (TSX VENTURE:TKW)("Telkwa" or "the Company") is pleased to announce that it has completed an airborne magnetic and time-domain EM survey over its new Yerington West Project in the Yerington Copper Belt of Nevada. The Yerington West Project consists of Telkwa's original and expanded Blackjack Property along with the newly acquired Roulette Property, optioned from Bronco Creek Exploration (BCE) in April 2008, bringing the total combined land position to 10,500 acres or 16.4 square miles.

Preliminary results

The recently completed airborne, which covered all of the properties on the Yerington West Project, is currently being processed. A preliminary review of the unprocessed magnetic data shows, with good correlation, zones of low magnetic response interpreted as representing alteration envelopes coincident with known mineralization and target areas in the Yerington West project area.

Telkwa has utilized recent geological interpretations, which allow the development of a new exploration model of the Yerington district. These interpretations are based upon data available to Telkwa from well known researchers with a long history in the Yerington camp. A geological porphyry copper model published by Dilles and Proffett in 1995 (Arizona Geological Society Digest 20, p. 306) is particularly important as it allows structural reconstruction and restoration of un-faulted and un-rotated views of the Yerington district, which has been used to guide Telkwa's land acquisition in the area.

The Key Target... The "Fifth" Big Porphyry?

Telkwa's experts believe that a compelling target interpreted as representing a fifth dike swarm and locus of mineralization has been outlined in the vicinity of the Ludwig and Casting Copper Mines in the southern portion of the Yerington district. Extensive skarn mineralization and styles of alteration seen in the dike swarm adjacent to the Telkwa properties indicate proximity to an undiscovered porphyry copper center. Geologic interpretations demonstrate that this porphyry source would now lie out in Smith Valley to the west of the Ludwig-Casting Copper area on the Blackjack and Roulette Properties.

The raw airborne data indicate that Telkwa's application of Dilles' and Proffett's porphyry copper model is confirmed and several strong positive magnetic responses define targets that likely represent skarn mineralization. This new information will greatly aid in the target selection process and will guide further exploration.

2008 Drilling Program Planned

Permitting for drilling operations on the Roulette Property is currently underway, and a first-stage drill program is slated to follow immediately thereafter. Reverse circulation drilling will primarily be used to test the depth of overburden and sample the bedrock in the target area. These results will allow for the selection of holes to be re-entered for deepening by diamond drilling. Additional geological and alteration mapping as well as prospecting will be carried out over selected portions of the Project area. Select areas identified by this work will be surveyed with IP/resistivity.

Exploration is Active in the Immediate Area

The newly expanded Telkwa land position now puts the Yerington West property directly adjacent to the discoveries of Quaterra Resources Inc. and PacMag Metals Ltd. Telkwa's "Yerington West" Project lies within 4,900 feet and along strike of the recently announced porphyry copper discovery termed the "Gallagher Prospect" (see Quaterra's news release dated May 14, 2008). This discovery comes after the recent porphyry copper discovery by PacMag Metals at Blue Hills. Blue Hills lies 2,600 feet east of Telkwa's ground and just west of PacMag's Ann Mason deposit. The Ann Mason deposit is one of four large, well-known porphyry copper deposits in the district. (refer to Telkwa's May 5, 2008 press release for further background on "The Yerington Story - The 'Big Four' Porphyries")

The rock units which host these new discoveries also underlie much of Telkwa's Yerington west property. Modern exploration in the Yerington district is very recent after a 25-year hiatus due to low historical copper prices. The company believes that new techniques can be used in old mining camps to generate new discoveries. Michael Marchand, P.Geol., VP of Exploration said "we will leverage the results of the first modern airborne geophysical survey in the area combined with the application of a new geological model that reconstructs the porphyry copper systems that have been rotated and dismembered by mid-Tertiary Basin and Range faulting in our exploration. The two new discoveries announced in the past month shows that this old district still conceals more undiscovered porphyry systems."

Michael Marchand, P. Geol, is the designated qualified person for the technical information contained in this release.

This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

This news release is not for dissemination in the United States or to any United States new service, and does not constitute an offer to sell or a solicitation of an offer to buy the securities in any jurisdiction. The common shares of Telkwa Gold Corp will not be and have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States, or to a U.S. person, absent registration or applicable exemption there from.

SEDAR: 00008705E

Contact Information

  • Telkwa Gold Corporation - Toronto Office
    Brent Nykoliation
    Director of Business Development
    (416) 364-4986

    Telkwa Gold Corporation - Toronto Office
    J. A. Kirk McKinnon
    President and CEO
    (416) 364-4986

    Telkwa Gold Corporation - Toronto Office
    Richard Schler
    Vice President and CFO
    (416) 364-4986
    (416) 364-2753 (FAX)
    info@telkwagold.com
    www.telkwagold.com

    Telkwa Gold Corporation - Calgary Office,
    Michael Marchand, Ph.D., P. Geol.
    Vice-President of Exploration
    (403) 282-5105