Trelawney Mining and Exploration Inc.
TSX VENTURE : TRR
FRANKFURT : RTW

Trelawney Mining and Exploration Inc.

October 18, 2010 08:12 ET

Trelawney Intersects 139.00 Metres of 1.62 g/t Gold at the Cote Lake Deposit

TORONTO, ONTARIO--(Marketwire - Oct. 18, 2010) - Trelawney Mining and Exploration Inc. (the "Company") (TSX VENTURE:TRR)(FRANKFURT:RTW) announces additional drill results from the Cote Lake Deposit on the Chester Project located halfway between Timmins and Sudbury in northern Ontario. Highlights of the drilling program include:

Highlights:

  • Hole E10-28 – 119.50 metres of 0.92 g/t gold. Mineralization is intersected from surface. Outcrop stripping above this hole shows similar geology.
  • Hole E10-29 – 139.00 metres of 1.62 g/t gold
  • Hole E10-31 – 136.95 metres of 0.79 g/t gold
  • Holes E10-29 and E10-31 each represent a 100 and 200 metre step out along strike to the west of previous drilling.

A detailed table of results is attached.

Drilling continues to uncover wide zones of low to moderate grade gold +/- copper mineralization which are associated with brecciated intermediate to felsic, and locally mafic intrusive rocks. Mineralization occurs in the form of disseminated and fracture controlled sulfides which generally correlate to the gold values. Visible gold is commonly observed. The zones are bleached with the prevalent alteration being feldspathic and chloritic and biotitic. The mineralization and alteration envelope associated with this system remains open in both directions along strike and to depth.

Based on the results of the 31 diamond drill holes released to date on the Cote Lake Deposit, Trelawney management has the following observations regarding the Exploration Potential of this recent discovery:

  • To date Trelawney has drilled 43 holes totaling over 18,000 metres on the Cote Lake Deposit. Results for 31 of these holes have been reported this year in press releases dated January 18, March 3, April 22, May 17, June 21, September 8 and today. Mineralization at Cote Lake has now been intersected on seven sections spaced 100 metres apart (90E to 96E) and traced to depths of up to 500 metres. Mineralization is open both along strike and to depth on all sections. On the most-drilled section, 93E, the mineralized envelope currently has a width of over 400 metres in section and currently has a "V" shape in profile. These sections will be available later this week on Trelawney's website at www.trelawneymining.com.

  • Based on the aforementioned press releases the average weighted uncut grade of the intersections is 1.44 g/t Gold and if a 50 g/t factor (cut-off) is applied then the average grade would be 1.08 g/t Gold. An induced polarization survey over the Cote Lake deposit highlights a chargeability response which corresponds to the area defined by the current drilling. However mineralization has also been encountered in areas of low chargeability.

  • If mineralization can be extended along strike assuming the same dimensions as on the most-drilled section, 93E, the Company can make an estimation of the exploration potential of the Cote Lake Deposit. As noted, mineralization has been traced for a distance of 600 metres to a depth of 400 metres, which may represent the potential depth of an open pit, and widths of 400 metres on the widest section. The volume of contained rock would be approximately 96 million cubic metres. As the mineralization envelope currently occurs in a "V" shape, the volume would be one half of this or 48 million cubic metres. Mineralization may not be as strong on outlying sections as on section 93E or mineralization could extend to an additional section in each direction; the potential volume could range from 40 to 50 million cubic metres. Utilizing a specific gravity of 2.65 tonnes per cubic metre would result in an estimated range of 100 to 130 million tonnes.

  • With an average intersection grade of between 1.0 and 1.4 g/t gold our current estimate on the Exploration Potential of the Cote Lake Deposit ranges between 3.5 and 6.0 million contained ounces of gold.

  • The Exploration Potential discussed here is not a resource category. Investors are cautioned that the potential quantity and grade described as 'Exploration Potential' is conceptual in nature. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.

Greg Gibson, Trelawney's President and CEO stated, "We are very pleased with the success of this ongoing drill program and the exceptional results we have reported today. The rapid expansion of the area of known mineralization continues to demonstrate the potential of a large tonnage, multi-million ounce open-pitable gold deposit. We will continue to aggressively explore and expand Cote Lake with the aim to conduct a resource estimate in the first half of 2011."

The expansion and exploration drill program continues with two rigs defining the extent of the Cote Lake deposit and a third rig exploring other targets on the 1,700 hectare (4,200 acre) Chester Property.

A drill plan and sections of the drill holes for which assays are reported will be available on Trelawney's website (www.trelawneymining.com) within the week.

Cote Lake Deposit Drilling Results:

Section Hole From To Length Gold (g/t) Au cut Grade Oz/t Gold
(m) (m) (m) Uncut cut to 50g/t* uncut
94+00E E10-08 ext 275.00 276.00 1.00 6.53   0.19
    320.00 323.10 3.10 1.48   0.04
    349.85 350.50 0.65 5.99   0.17
    436.00 437.50 1.50 8.11   0.24
    444.00 450.00 6.00 1.22   0.04
    536.00 536.50 0.50 3.61   0.11
94+00E E10-09 ext 302.00 316.00 14.00 1.18   0.03
    532.00 533.00 1.00 52.16 50 1.52
    600.00 601.00 1.00 2.75   0.08
93+00E E10-11 ext 340.75 342.60 1.85 3.42   0.10
94+00E E10-12 ext 217.60 221.00 3.40 4.86   0.14
    370.00 390.12 20.12 1.34   0.04
92+00E E10-28 9.00 128.50 119.50 0.92   0.03
  incl 9.00 77.00 68.00 1.02   0.03
91+00E E10-29 146.59 147.48 0.89 1.89   0.06
    157.00 158.00 1.00 1.21   0.04
    238.50 239.00 0.50 1.57   0.05
    251.00 252.00 1.00 2.67   0.08
    377.50 378.37 0.87 1.17   0.03
    394.00 585.00 191.00 1.27   0.04
  incl 394.00 533.00 139.00 1.62   0.05
93+00E E10-30 202.50 204.26 1.76 2.17   0.06
    240.00 241.00 1.00 3.36   0.10
    254.50 255.00 0.50 4.83   0.14
    262.00 263.00 1.00 7.56   0.22
    288.25 291.64 3.39 5.96   0.17
    301.76 303.00 1.24 1.30   0.04
90+00E E10-31 17.00 18.00 1.00 2.50   0.07
    60.00 61.00 1.00 1.16   0.03
    192.00 195.40 3.40 1.09   0.03
    248.00 248.50 0.50 1.43   0.04
    287.50 288.70 1.20 3.40   0.10
    293.60 294.45 0.85 20.59   0.60
    434.00 434.65 0.65 1.36   0.04
    493.50 629.45 136.95 0.79   0.03
Notes:
 - True widths of intersections are unknown at this time 
 - Only intervals with assays cut to 50 g/t gold are shown
 - Intervals are graded with a lower cut of 0.40 g/t with internal waste and low grade material within graded zones of up to 20 metres in length

Trelawney Mining and Exploration has implemented a Quality-Control, Quality Assurance program to ensure best practice principals are being applied in the sampling and analysis of the drill core. Samples are crushed to -8 mesh then a 1,000 gram subset of each sample is pulverized to 90% passing -150 mesh. Assays have been completed using a standard fire assay with a 30 gram aliquot and an AA finish. For samples that return values of between two to five grams per tonne gold, another pulp is taken and fire assayed with a gravimetric finish. Samples returning values greater than five grams per tonne are re-analyzed by pulp metallic analysis. NQ size drill core is saw cut, and half the drill core is sampled in standard intervals. The remaining half of the core is stored in a secure location. The drill core is transported in security-sealed bags to the Accurassay prep lab in Sudbury, Ontario by Trelawney personnel. Accurassay is an ISO/IEC 17025 certified Laboratory by the Standards Council of Canada. In addition to quality assurance controls at the laboratory, blanks and certified standards have been inserted into the sample stream at random intervals.

David Beilhartz, Vice President, Exploration for Trelawney Mining and Exploration, a Qualified Person under NI 43-101, has prepared or supervised the scientific or technical information for the property and verified the data disclosed in this press release.

Trelawney is a Canadian junior mining and exploration company with a strategic focus on "Quality Ounce" gold deposits. The Company's current focus is directed towards the development and continued exploration of its newly acquired Chester Project, located in Chester Township 20 kilometres southwest of Gogama, Ontario.

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.

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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