Teras Resources Inc.

Teras Resources Inc.

December 08, 2010 09:01 ET

Teras Resources Inc. Reports Drill Results at the Cahuilla Project

CALGARY, ALBERTA--(Marketwire - Dec. 8, 2010) - Teras Resources Inc. ("Teras" or the "Company") (TSX VENTURE:TRA): Peter Leger, President and Chief Executive Officer of Teras is pleased with the results from the first diamond drill hole completed at the Cahuilla gold-silver project in Imperial County, California The Cahuilla Project is a large epithermal, paleo-hot springs system hosting multiple bonanza-grade veins that occur within an extensive body of disseminated gold-silver mineralization. For further information on the Cahuilla project see the NI 43-101 Technical report entitled "Cahuilla property 43-101 technical report", dated October 25, 2007 prepared by Todd Wakefield, MAusIMM of AMEC E&C services filed on Sedar on November 15, 2007.

The Company has completed three diamond drill core holes totalling 1,356 feet. The holes were drilled within one of the main historical mineralization areas and spaced approximately 100 meters apart to evaluate and substantiate existing gold plus silver mineralization. The major purpose of obtaining this new drill data is to calculate a NI 43-101 compliant resource.

The first core hole, CAH – 111, was drilled to a depth of 587 feet and anomalous gold and silver mineralization was encountered from 34 feet to the bottom of the hole. Significant intercepts include (feet):

From To Thickness (feet) Gold (grams/ton) Gold (ounce/ton)
153.0 206.0 53.0 0.82 0.024
223.0 235.0 12.0 1.13 0.033
247.0 275.8 28.8 0.89 0.026
296.0 305.9 9.9 4.35 0.127 and 0.80 Silver
Including 2.6 8.73 0.255  
310.5 329.1 18.6 0.82 0.024
350.8 368.0 16.2 0.68 0.020
393.0 414.0 21.0 0.92 0.027
509.0 538.0 29.0 0.79 0.023 and 1.28 Silver
Including    6.0 121.3 Silver 3.54 Silver

Evaluation of assay results for the first hole shows that there are significant amounts of silver in many of the mineralized zones. The historical mineralization was estimated for gold only and did not include silver, which will be a favorable addition to the mineral model. The associated down-hole geochemistry is also positive and indicates that the epithermal system is very clean as demonstrated by the anonymously low mercury, arsenic and antimony values.

The purpose of the first hole was to drill at an angle within the mineralization area that passed through older vertical reverse circulation drilling to better evaluate the continuity of precious metal mineralization as well as the down-hole geochemistry. The second and third diamond drill holes were vertical and twinned TM – 41 and TM – 59 which were drilled by the Torres Martinez Tribe in the early 1990's. The Company will use this data to compare with historical drill results and confirm assay information that was utilized in the 1996 Mine Development Associates report. 

Samples from the second and third holes are currently being prepared for assay and will be delivered to Inspectorate Laboratories in Reno, Nevada in December. The Company is planning to resume Phase 1 drilling in the first quarter of 2011. The primary objective of Teras, and its partner, Consolidated Goldfields Corporation, continues to focus on expanding the current mineral model to obtain a NI 43-101 Compliant resource and evaluate the development of both a high grade underground and large open pit mining operation.

Thomas E. Callicrate B.Sc., Professional Geologist, Vice President of Exploration of the Company, is the Company's nominated qualified person responsible for monitoring the supervision and quality control of the programs completed on the Company's properties "Diamond drill core is logged and sampled by Company personnel at the Cahuilla project. The core (HQ) is cut in half using a diamond saw with one half bagged and submitted for assay and the remaining half sample retained and archived in a secure facility. A strict QA/QC program is followed that includes mineralized standards, blanks and duplicates for each batch of samples. Samples are shipped by secure truck to Inspectorate America Corporation, Reno, Nevada, an accredited assay facility established in 1927. The laboratory is certified to conduct gold analyses utilizing instrumental or gravimetric finish". Mr. Callicrate has reviewed and verified the technical information contained in this news release through his knowledge and experience with the Cahuilla project.

About Teras

Teras' vision is to acquire and advance properties with established technical merit. Teras' exploration work will be focused on exploration programs with the goal of proving resources with a NI 43-101 compliant resource report.

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", "goal" 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. 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, and future costs and expenses being based on historical costs and expenses. 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.

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.

Contact Information