Terreno Resources Corp.

Terreno Resources Corp.

June 19, 2012 08:00 ET

Terreno Resources Corp. Releases Drill Results from Poposa

Program intersected significant zones of porphyry mineralization including 25 metres of 0.79 g/t Au and 0.12% Cu and 10 metres of 0.86% Cu

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 19, 2012) - Terreno Resources Corp. ("Terreno" or the "Company") (TSX VENTURE:TNO) is pleased to provide assay results of the recently completed 7 hole (1,108 metre) drill program on its Poposa, high sulphidation, gold-copper, project in San Juan province. The program targeted potential deep porphyry mineralization and near surface epithermal gold as identified from surface mapping and sampling with coincident geophysical anomalies. The drill program was carried out over a strike length of approximately one kilometer within the Amarillo target area (see figure 1: Drill Plan Map). Select drill highlights include:

  • PO-02 intersected quartz-feldspar porphyry with quartz-sericite-chlorite alteration and anomalous mineralization throughout most of the hole. Two separate copper zones were intersected including 24 m @ 0.14 % Cu from 24 metres and 46 m @ 0.11% Cu from 192 metres.
  • PO-03 intersected feldspar porphyry with quartz-sericite-chlorite alteration including several meaningful mineralized intervals including 25 metres @ 0.79 g/t Au and 0.12% Cu from 42 metres and 10 m @ 0.86 % Cu from 298 metres including 4 m @ 2.03 % Cu.
  • PO-04 intersected silicified sandstones and shale cut by hydrothermal breccia featuring low grade gold mineralization averaging 0.23 g/t over 77.3 metres from surface including 16 metres of 0.40 g/t from 51 metres.
  • PO-05 intersected low grade copper and gold mineralization over 55 metres grading 0.12 g/t Au and 0.11% Cu from 36 metres.
  • PO-07 intersected a post mineral intrusive breccia with mineralized quartz-feldspar porphyry fragments. Mineralization was limited to small intervals including 6m @ 0.20% Cu from 117m and 3.4m @ 0.38% Cu from 134.4m.

"We successfully accomplished several important goals in our first drill program at Poposa," commented Peter Mullens, VP Exploration. "Primarily; we intersected wide intervals of porphyry rock and associated alteration including several zones of potentially economic grades and widths. This tells us we have the right host rocks and the potential for larger zones of mineralization exists. The drilling also corroborated the results of our extensive geological and geophysical modelling which shows that we may be close to the main source of the mineralization. Given we only tested a small area with a limited amount of metres, the results support an expanded follow-up program. Our geologists will now take the summer to further interpret these results and plan our next program."

Table 1: Drill Results
Hole ID Interval (m) From (m) To (m) Au (g/t) Cu (%)
PO-01 Abandoned
PO-02 24 24 48 0.07 0.14
and 38 112 150 0.09 0.10
and 46 192 238 0.08 0.11
PO-03 25 42 67 0.79 0.12
including 8 50 58 1.32 0.23
and 10 298 308 0.27 0.86
including 4 302 306 0.61 2.03
PO-04 77.3 4.5 81.8 0.23 0.03
including 16 51 67 0.40 0.02
PO-05 55 36 91 0.12 0.11
PO-06 Abandoned
PO-07 6 117 123 0.09 0.20
including 2 119 121 0.26 0.61
and 3.4 134.4 137.8 0.21 0.38
including 1.1 136.7 137.8 0.21 0.98
* note there is insufficient data to calculate true widths of the intercepts.

About Poposa:

The Poposa project is a high sulphidation gold-copper system located in the Cordillera Frontal of Argentina in San Juan province. The project is located in the El Indio-Pascua/Lama metallogenic belt which hosts several multi-million ounces gold deposits such as Veladero, and is approximately 50 km to the south-south-east of Malbex Resources' Del Carmen project (See figure 1 for a regional location map).

Work completed in the previous field season included geological mapping, the completion of 72 trenches with continuous rock chip sampling, as well as the completion of a CSAMT survey and a 7-line, Titan 24 DCIP and MT survey. Revised geological modeling combined with the results of geophysical surveys has identified two distinct exploration targets:

  1. Near surface epithermal gold in three district areas (Colorado, Amarillo and Morro). These areas are located within several kilometres of one another and have mineralization at surface (identified through trenching), strong resistivity over significant strike and depth (identified through the Titan 24 survey) and limited historical drilling.
  2. Deep porphyry in two areas (Negro and DDH-13). The target is at depth along the unconformity with the basement and still remains to be tested. Geophysical surveys identified moderate chargeability/resistivity anomalies with coincident large aeromagnetic anomalies as potential porphyry ore shell locations in these areas.

Technical Information

Samples submitted to ALS Argentina lab were assayed by Au-ICP22 Au 50 g FA - ICP AES finish and ME-MS41 aqua region digestion methods.

Terreno's QA/QC program consists of the insertion of at least one certified reference standard, and one blank sample in every 20 samples. Two CRM, OREAS 50C and OREAS52C provided by Ore Research & Exploration were used in the QA/QC procedure. Core duplicates were inserted in selected intersections in order to check the precision of lab procedure. Core duplicates consist of 1/4 core samples where the normal half core sample to be submitted for assay is halved again by Terreno staff at camp and both samples are entered into the sample stream. Terreno has submitted 29 blank samples, 27 certified reference standards and 6 field duplicates during the recently completed drilling program. Their results demonstrate that the blank sample data indicate appropriate and consistent sample preparation procedures that minimize contamination between samples, no batch of ALS assays has been rejected and re-run due to CRM failures and reasonably acceptable variations were found in duplicate results.

The Qualified Person for Terreno's projects is Mr. Peter Mullens, who is a member of the Australian Institute of Mining and Metallurgy. Mr. Mullens has reviewed and approved the technical content of this release.

About Terreno Resources

Terreno, meaning "of the earth" in Spanish, represents the Company's focus on natural resource opportunity development in South America. Terreno has option agreements on three exploration projects in Argentina; Poposa (formerly referred to as Amarillo) in San Juan, Socompa and Trigal in Salta. All three projects boast significant alteration systems and have the potential for copper, gold and silver mineralization. For more information, please visit www.terrenoresources.com.

To view "Figure 1: Drill Plan Map," please visit the following link: http://media3.marketwire.com/docs/TNO1906_Figure1.pdf.

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.

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