Terex Resources Inc.

Terex Resources Inc.

October 12, 2006 08:00 ET

Terex Resources Inc.: Dorset Zone Yields 9.21 g/t Gold Over 9.84 ft in Wawa, Ontario

TORONTO, ONTARIO--(CCNMatthews - Oct. 12, 2006) - Terex Resources Inc. (TSX VENTURE:TRR) announces additional drill results from the ongoing exploration program on the Dorset Gold Zone located about 50 km west of Wawa, Ontario and about 80 km southeast of the Hemlo gold camp.

The best assay results to date have been received from the eastern portion of the Dorset Deformation Zone. Drill hole MC-06-51 assayed as high as 9.21 g/t gold (.27 ounces per ton) over a 3.0 metre interval (9.84 feet) within a wider zone of gold mineralization that assayed 3.26 g/t gold (0.10 ounces per ton) over 12.5 metres (41 feet). Drill hole MC-06-51 was located approximately 200 metres west of and on strike to drill hole MC-98-28 that assayed 2.99 g/t gold (0.09 ounces per ton) over a core length of 15.2 metres (49.9 feet).

The initial drill campaign was designed to test the down plunge and on strike potential of the Dorset Zone, which is under option from MetalCORP Limited (TSX VENTURE:MTC) (see News Release dated November 7, 2005). Previous drilling on this zone returned intercepts grading up to 3.74 g/t Gold (0.11 ounces per ton) over 22 metres (72.0 ft). To date every drill hole, with the exception of two, intersected the gold bearing Dorset Deformation Zone. The two holes which did not intersect the Dorset Zone intersected diabase dikes. Assay results have now been received for 16 holes, and further check assays are being performed. Significant gold values were encountered from every hole that intersected the Dorset Deformation Zone with the exception of drill hole MC-06-46 that had anomalous gold values ranging from nil to 0.199 g/t.

Final assay results for 5 holes (MC-06-47 to MC-06-51) on the easterly portion of the Dorset Zone are summarized in the following table: Note that all holes were drilled north to south at an azimuth of 180 degrees.

Hole From To Grade Core
(g/t) Length
Au (m)
MC-06-47 (-45 degrees) 123.0 128.8 0.91 5.8(i)
including 126.0 128.8 1.42 2.8(i)
MC-06-48 (-66 degrees) 41.0 50.0 0.89 9.0
including 42.0 45.0 1.54 3.0
MC-06-49 (-75 degrees) 61.0 81.5 0.60 20.5
including 70.0 81.5 0.92 11.5
" 73.0 81.5 1.10 8.5
" 75.0 80.7 1.28 5.7
" 75.0 78.0 1.88 3.0
MC-06-50 (-47 degrees) 70.0 105.4 0.90 35.4(i)
including 70.0 74.7 2.44 4.7(i)
" 86.6 96.3 0.86 9.7(i)
" 100.0 103.0 2.01 3.0(i)
" 100.0 102.0 2.80 2.0(i)
" 104.1 105.4 2.20 1.3(i)
MC-06-51 (-45 degrees) 15.3 16.1 4.67 0.8(i)
126.2 138.7 3.26 12.5(i)
including 128.4 136.6 4.71 8.2(i)
" 131.9 134.9 9.21 3.0(i)

(i) estimated to be approximate true width

All split or sawn core samples were submitted to Accurassay Laboratories Ltd., Thunder Bay, Ontario, and / or Swastika Laboratories, Swastika Ontario. All gold assaying was performed using a 30g standard fire assay with an AA finish and / or gravimetric finish.

A detailed structural study carried out on the property for Battle Mountain Canada Ltd. concluded that "the Dorset Zone is a primary, hydrothermal, stratiform, gold system with a minimum strike length of 1 kilometre which exhibits potential for significant areal extent" (Chris Beaumont - Smith, 1998). Recent airborne geophysical work suggests the Dorset Deformation Zone may have a potential strike length of about 6 kilometres.

The purpose of the drilling program is to provide sufficient drill information to outline an (NI 43 - 101 compliant) inferred mineral resource for the zone, and to further evaluate the open pit potential of the Dorset Gold Zone.

As a result of the recent assay results from the Dorset property the drilling program on the Mishibishu Property (Murgor option TSX VENTURE:MUG) will be conducted this winter. The Mishibishu Property contains more than 30 known gold occurrences, the most important of which is the Martin Zone. The geology of the Martin Zone consists of pyrite and arsenopyrite mineralization in deformed, altered and quartz veined mafic metavolcanics. This zone has been traced for over a kilometre along strike in drill holes and trenches where assay results of 5.5 g/t Au over 5 metres were obtained from previous drilling. Ground and airborne geophysical surveys suggest that the zone may continue for more than 3 kilometres along strike. The Martin Zone appears to be similar in style and orientation to the Dorset Zone which is located about 400 metres to the north.

Terex is the largest land holder in the entire camp with about 19,000 acres under its control. Terex's neighbour, gold producing Wesdome Gold Mines Ltd (TSX:WDO) holds about 16,000 acres. Terex's largest land package assembled in this area since the Hemlo rush in the 1980s. The consolidated property contains over 48 known gold occurrences attesting to the potential of the Mishibishu greenstone belt.

Terex is fully financed to complete the drilling program and management is very excited about drill testing the potential of Terex's extensive land holdings in the Wawa-Hemlo area of northern Ontario. This release has been reviewed and approved by Bob Duess, professional geologist and interim Qualified Person of the Company compliant with NI 43-101.

Statements in this press release regarding the Company's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.

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