October 17, 2006 18:58 ET

Tyler Expands Bahuerachi Deposit With 59.15 Meters Grading 0.59% Copper, 9.2 G/T Silver and 0.87% Zinc, Including 16.8 Meters Grading 1.0% Copper, 15.4 G/T Silver and 2.37% Zinc at Bahuerachi

CALGARY, ALBERTA--(CCNMatthews - Oct. 17, 2006) - Tyler Resources Inc. (TSX VENTURE:TYS) is pleased to announce the continued expansion of the Bahuerachi Deposit to the north with drill results from its ongoing drill program in Mexico.

Data from 1 additional drill hole north of the Main Zone expanding the main Bahuerachi Deposit has been received (BAH-96), as well as results from widely spaced scout RC drilling in the North Porphyry Lobe and first pass core drilling at Colome.

The exploration program is ongoing with 3 drill rigs, currently focusing on expanding the Bahuerachi Deposit, Mexico's 4th largest mineralized porphyry system as defined by Tyler's recently released independent resource estimate. Current expansion plans includes continued drilling to the north in areas of new high grade mineralization as outlined in drill hole #96, as well as infill drilling of mineralized sediments which have not to date been included in the resource estimate calculations.

Results for drill hole BAH-96 are presented in the following table and discussed below. A geological cross section for the drill hole reported is posted with the news release on our website at www.tylerresources.com. Drill hole collar locations are shown at http://www.ccnmatthews.com/docs/1017tysmap.pdf.

Significant intervals for drill hole BAH-96

Hole # From To Interval Copper Gold Silver Zinc Mo Rock
(m) (m) (m) (%) (g/t) (g/t) (%) (%) Type
BAH-96 183.5 214 30.5 0.20 0.02 3.26 trace 0.009 Sediments
and 258 329 59.15(1) 0.59 0.05 9.18 0.87 0.005 sediments
including 283 299.8 16.8 1.00 0.11 15.41 2.37 Trace Skarn
and 393.4 410 16.6 0.81 0.1 8.23 0.21 0.003 Skarn

(1) Excludes 11.85 meters of unmineralized dykes
All holes are interpreted to be testing true widths of

Of particular note in drill hole BAH-96 are the increased thicknesses of skarn with polymetallic mineralization compared to sections to the south, the significant increase in the presence of zinc mineralization, and the consistent increase of grades with depth along this section. The Company is pleased by the presence of previously unrecognized high grade mineralization going north, and the potential it represents to increase the main Bahuerachi Deposit.

North Porphyry Lobe RC Drilling and Colome Drilling

Results for RC drill holes 49, 50, 51 and 52 have been received. These holes are part of a wide spaced scout drilling fence across the center portion of the North Porphyry Lobe. Geometry of the mineralized units as revealed by core drilling in drill holes BAH-96 and BAH-101 (see drill section) have now revealed that these drill holes did not reach a depth sufficient to test the expansion of the Main Zone to the North. Two of the holes did identify near-surface zones of anomalous gold--silver and zinc mineralization respectively (RC-50, 18.24 to 22.8 meters, 0.18 g/t gold and 13.6 g/t silver over 4.56 meters and RC-51, 98.8 to 132.24 meters, 0.16% zinc and 2.39 g/t silver over 33.44 meters). RC-49 and RC-52 did not intersect significant composite intervals of mineralization.

Six short core holes (Bah-95, 97, 98,99, 100 and 102) were drilled as a first pass testing of the Colome Skarn system where previous surface mapping and sampling had outlined various mineralized skarn occurrences. All of the holes intersected various skarn units and sulphide bearing bleached marble. Assay results indicates the presence of widespread low-grade near surface polymetalllic mineralization. Of note are BAH-95: 9.17 to 22 meters, 0.15% zinc and 1.87 g/t silver over 12.83 meters, BAH-97: 14 to 16 meters, 2.68% zinc and 3.5 g/t silver over 2 meters, BAH-98: 20.9 to 25.5 meters, 0.5% zinc and 4.5 g/t silver over 4.60 meters, BAH-100: 57 to 59 meters, 1.24% zinc, 4.7 g/t silver, 0.31% lead and 0.14% copper over 2 meters and BAH-102:17.8 to 22.0 meters, 0.65 g/t gold over 4.2 meters. High grade ore shoots, which were the subject of historical underground mining in this area, were not intersected either due to a different geometry than targeted, or due to a potentially discontinuous nature of the ore shoots. Further surface work will be conducted as time allows to ascertain whether the target should be reassessed with different drilling orientations in a later follow up campaign.

Field Update

Drilling is ongoing with 3 rigs operating in the Main Zone, targeting additional tonnage accretive to the initial resource estimate (BAH-105, RC-63) as well as aiming to upgrade certain areas in terms of resource classification from the inferred to indicated category (BAH-103).

Results currently outstanding include drill holes RC-53, 54, 55, 56, 57, 58, 59, 60, 61, 62 and core holes 101 and 104 (see attached location map).

Results are currently being compiled from surface work and surface sampling at numerous known and newly discovered mineralized systems peripheral to the Main Zone Porphyry, and will be released once the compilation work is complete.

A new Corporate Presentation with updated material from the resource estimate 3D model and block model is currently being finalized and is expected to be posted on the Company's website by Wednesday, October 18th.

About Tyler

Tyler Resources is a junior exploration company focused on base and precious metals exploration in Mexico. Tyler's primary project is the Bahuerachi property, which hosts Mexico's fourth largest mineralized porphyry system. The Company is now in the advanced stage of a 35,000 meter combined diamond and reverse circulation drilling program scheduled to be completed during 2006, making it one of the most active Canadian junior exploration companies operating in Mexico.

All assay work was performed by ICP at ALS-Chemex labs of Vancouver, with gold done using standard fire assay methods. All samples sent to the lab are sealed with security tags for delivery to ALS-Chemex. Duplicate samples as well as standards and blanks are inserted in each batch of samples delivered to the laboratory and then checked to ensure proper quality assurance and quality control (QA/QC).

The Qualified Person responsible for the design and implementation of the Field Program as well as the preparation of this news release was J. P. Jutras, P.Geol., and President of the Company. The work program is being carried out with the participation of Dr. Shane William Ebert, Ph.D, P.Geo, Vice President and Director, Dustin Rainey, B.Sc Geology, Grant Couture, M.Sc Geology, Paul Turnbull, B.Sc, P.Geol and Cornell McDowell, B.Sc Geology, consultants to the Company.

Jean Pierre Jutras, President/CEO/Director

Cautionary language:

This news release uses the terms "inferred resources" and "indicated resources". The Company advises investors that although these terms are recognized and required by Canadian securities regulations (under National Instrument 43-101 Standards of Disclosure for Mineral Projects), the US Securities and Exchange Commission does not recognize these terms. Investors are cautioned not to assume that any part or all of the mineral resources in these categories will ever be converted into reserves. In addition, "inferred resources" have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, or economic studies except for a "preliminary assessment" as defined under National Instrument 43-101. Under US rules, Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable.

Except for the historical and present factual information contained herein, the matters set forth in this news release, including words such as "expects", "projects", "plans", "anticipates" and similar expressions, are forward-looking information that represents management of Tyler's internal projections, expectations or beliefs concerning, among other things, future operating results and various components thereof or the economic performance of Tyler. The projections, estimates and beliefs contained in such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause Tyler's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, those described in Tyler's filings with the Canadian securities authorities. Accordingly, holders of Tyler shares and potential investors are cautioned that events or circumstances could cause results to differ materially from those predicted. Tyler disclaims any responsibility to update these forward-looking statements.

The TSX Venture Exchange has neither approved nor disapproved of the contents of this press release.

Contact Information

  • Tyler Resources Inc.
    Jean Pierre Jutras
    (403) 269-6753
    (403) 266-2606 (FAX)
    Website: www.tylerresources.com