Trelawney Mining and Exploration Inc.

Trelawney Mining and Exploration Inc.

December 01, 2010 16:22 ET

Trelawney Provides Chester Project Exploration Update

TORONTO, ONTARIO--(Marketwire - Dec. 1, 2010) - Trelawney Mining and Exploration Inc. (the "Company") (TSX VENTURE:TRR)(FRANKFURT:RTW) releases the results of the summer field exploration program on the Chester Project located halfway between Timmins and Sudbury in northern Ontario. 

This update summarizes exploration activities undertaken on the project which exclude the ongoing diamond drilling program on the newly discovered Cote Lake Deposit and the underground development on the Chester 1 Deposit.

A summer program of mapping and sampling was conducted on the Chester Project using 3 crews of geologists and prospectors. The aim of this program was to review the results of previous exploration on the property as well as to prospect for new gold showings. Over 1000 samples were collected from throughout the property with over 53 samples grading over 1 g/t gold and the highest being 127.30 g/t gold. The sampling program identified over twenty gold showings, five of which are new gold occurrences. 

Highlights of the summer exploration program include:

Cote Lake Deposit – 2 zones of Breccia Mineralization discovered

Two zones of breccia mineralization related to the Cote Lake Deposit were discovered. These two areas were stripped and washed prior to mapping and sampling. From these a total of 325 grab and channel samples were taken. The north breccia zone outcrop covers an area of about 10 by 20 metres. Twenty samples from the breccias zone averaged 1.09 g/t gold. The south breccia zone outcrop covers an area of approximately 45 by 20 metres; a total of 212 grab samples taken from a 2-metre grid pattern averaged 1.41 g/t gold; additional results are pending. The gold mineralization sampled in the south breccia zone outcrop corresponds to the upper section of hole E10-28 drilled directly under the outcrop which intersected 68.00 metres of 1.02 g/t gold. The results of the outcrop sampling indicate the possibility of higher grades when larger samples are collected.

Gomac Zone – High Grade Gold Mineralization

High grade gold mineralization was confirmed in grab sampling and drilling in the Gomac Zone. The highest grade sample from the summer was returned from the historic Gomac Zone where a grab sample returned 127.30 g/t gold. The Gomac Zone is located approximately 300 metres north of the Chester 1 underground development and within easy access from these mine workings. An exploration drill program is currently underway on this zone where 7 holes have been completed. Results from the first 4 drill holes are as follows:

  From To Length Gold (g/t)
Hole (m) (m) (m) uncut
CM10-07 201.50 202.50 1.00 21.41
  261.60 262.05 0.45 20.22
CM10-08 57.00 57.68 0.68 1.40
  121.10 121.75 0.65 9.52
  260.50 261.00 0.50 1.14
  261.60 262.50 0.90 2.13
CM10-09 22.50 23.00 0.50 15.58
  39.13 39.60 0.47 1.08
  165.50 166.00 0.50 1.16
  200.50 200.94 0.44 1.26
CM10-10 49.87 50.35 0.48 2.64
  314.80 315.15 0.35 6.01
  367.40 367.81 0.41 2.07

Several other historical showings also returned results greater than 10 g/t gold including those from the Chester 3 – Jack Rabbit zones, the Chester 2 – Young Shannon zone and the Chester 2 - A zone. Three of the new showings discovered also returned gold values in excess of 5 g/t.

Greg Gibson, Trelawney's President and CEO commented, "The summer program demonstrates the significant gold potential of the Chester Project. We are confident that the numerous historical and new gold showings indicate that Trelawney has only scratched the surface exploring this property and that with continued exploration, new showings and economic deposits will be identified."

The winter 2011 expansion and exploration drill program will be increased to five diamond drill rigs to better define the extent of the Cote Lake Deposit and to explore other targets on the 1,700 hectare (4,200 acre) Chester Property. Another significant exploration program is also planned for next summer to expand on the results from 2010. Geophysical surveys, consisting of magnetic and Induced Polarization surveys are ongoing and planned for the winter covering various portions of the property.

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 geological samples. 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.

Trelawney has entered into an agreement to purchase a 21.62% undivided interest in leased mining Claim 266 (which comprises part of the Chester Project), consisting of 11 standard one-unit claims, in consideration of 500,000 common shares of Trelawney. Trelawney has an option to acquire 92.5% of the balance of the interest in Claim 266.

In addition, Trelawney has entered into an asset purchase agreement to purchase confidential geological data with respect to the Chester Project in consideration of the issuance of an aggregate of 300,000 common shares of Trelawney. 

Both transactions are subject to receipt of regulatory and corporate approvals, including approval of the TSX Venture Exchange. The securities to be issued in connection with the transactions will be subject to a four-month hold period from the date of issuance.

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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