Typhoon Exploration Inc.
TSX VENTURE : TYP

Typhoon Exploration Inc.

December 16, 2010 07:00 ET

Typhoon Exploration Inc Confirms a New High Grade Lens of 5.08 g/t Au Over 10.50 Metres at Fayolle

LAVAL, QUEBEC--(Marketwire - Dec. 16, 2010) -

Editors note: A map is included with this press release on Marketwire's website.

Typhoon Exploration Inc. ("Typhoon") (TSX VENTURE:TYP) announces that it has received a new series of assay results from drilling on its 100%-owned Fayolle property. These drill results confirm the geological model and the consistency of the gold grade which was established by the Aurizon-Typhoon tandem. Twenty-six (26) diamond drill holes out of the thirty-nine (39) to be carried out permitted the discovery of several new mineralized lenses.

Below are some noteworthy drill results from this third series:

  • FA-10-20 has intersected 5.08 g/t Au over 10.50 metres with several gold specks observed within an intensely brecciated zone, including 7.11 g/t Au over 5 metres and 4.32 g/t Au over 4 metres.
  • FA-10-21 intersected 1.31 g/t Au over 44 metres including 3.9 g/t Au over 4 metres, 3.24 g/t Au over 8 metres, 3.12 g/t Au over 2 metres and 2.06 g/t Au over 3 metres.
  • FA-10-13 intersected 2.96 g/t Au over 13 metres including 9.9 g/t Au over 1.9 metres, 4.41 g/t Au over 7 metres and 2.07 g/t Au over 3 metres.
  • FA-10-14 intersected 10.75 g/t Au over 4 metres including 23.7 g/t Au over 1.0 metre.
  • FA-10-17 intersected 6.42 g/t Au over 1.7 metres including 14.4 g/t Au over 0.70 metres.

*(see more detailed results in the table below)

These new assay results and geological interpretations were obtained from DDHs FA-10-12 to FA-10-21 which are part of a drill program initiated in July 2010 on the Fayolle Property. The drill pattern of 25 to 50 metre spacing permits the evaluation of both the continuity and geometry of the mineralization. Assay results for DDHs FA-10-22, FA-10-23 and FAX-10-01 to FAX-10-03 are expected and pending.

The intersection from hole FA-10-20 is located at the western end of the Fayolle Deposit, approximately 30 meters west of drill hole FA-10-04, which returned 112.0 g/t Au over 6.0 meters (see the attached map). This new intersection seems to confirm the mineralization model with multiple stacked sub-vertical high-grade lenses striking NNW, hosted inside an important deformation corridor trending E-W. These lenses are stacked with a general 45° east-dipping rake (see the attached cross-section). The new geological model has therefore allowed us to predict the repetition of lenses westward and upward from the main Fayolle Deposit.

The presence of additional auriferous anomalies at depth which were intersected in FA-10-20 and FA-10-21 could indicate the presence of a previously-unknown mineralized lens located west of the Fayolle Deposit, which also conforms to the geological model inside the deformation corridor.

Holes FA-10-12 to FA-10-21 were carried out within a 150 metre radius of the Fayolle Deposit in order to evaluate the new spatial distribution model of high grade and enriched gold zones along the structures which are oriented N330—N340°.

* TABLE OF DETAILED RESULTS

DDH No.
 
E
(mE)
N
(mN)
Length
Total
From
(m)
To
(m)
Length
(m)
Grade
(g/t Au)
FA-10-12 662297 5367091 330 89.0 90.2 1.2 0.6
176.0 179.0 3.0 0.5
FA-10-13 662348 5367137 343 113.0 121.0 8.0 0.5
        148.0 161.0 13.0 3.0
      including 152.1 154.0 1.9 9.9
      including 148.0 155.0 7.0 4.4
      including 158.0 161.0 3.0 2.0
        209.0 210.0 1.0 3.7
        215.0 216.0 1.0 4.5
FA-10-14 662473 5367155 453 131.0 132.0 1.0 1.1
        224.0 235.0 11.0 0.5
        259.0 260.0 1.0 4.2
      including 270.0 274.0 4.0 10.8
      including 271.0 272.0 1.0 23.7
FA-10-15 662440 5367170 501 246.0 247.0 1.0 1.1
271.0 272.0 1.0 1.1
FA-10-16 662403 5367236 462 251.7 263.1 11.4 0.4
      including 251.7 258.1 0.40 6.4
        260.1 263.1 3.0 0.6
FA-10-17 662371 5367305 444 118.0 119.7 1.7 6.4
      including 119.0 119.70 0.7 14.4
FA-10-20 662131 5367164 240 28.0 38.5 10.5 5.1
      including 28.0 33.0 5,0 7.1
      including 29.0 30.0 1.0 21.7
      including 34.5 38.5 4.0 4.3
        51.0 55.0 4.0 1.9
        85.0 90.0 5.0 1.7
        171.0 175.0 4.0 1.3
DDH No. E N Length From To Length Grade
  (mE) (mN) Total (m) (m) (m) (g/t Au)
FA-10-21 662152 5367121 306 77.0 121.0 44.0 1.3
      including 94.0 98.0 4.0 3.9
      including 94.0 95.0 1.0 13,3
      including 104.0 107.0 3,0 2.1
      including 109.0 111.0 2.0 3.1
      including 119.0 121.0 2.0 3.2
        162.5 163.3 0.8 1.1
True thicknesses are approximately 75% of the core length.
See our web site for complete drilling campaign results obtained to date.
DDHs FA-10-18 & FA-10-19 have not returned significant results

These encouraging recent results confirm the excellent potential to recognize new mineralizations elsewhere on the property and significantly increase the already-established gold resource. The geological model will be applied and followed outside of the Fayolle Deposit and along the 2.5 km long host corridor.

Mineralization is hosted by strongly brecciated, altered and deformed ultramafic rocks and by dykes of varied composition, but generally intermediate and bordered by breccias zones as described above. Grade can generally be correlated with the intensity of brecciation and quartz-carbonate flooding. Alteration is characterized by carbonates and fuchsite in ultramafic rocks and by hematite in dykes. Gold is mostly observed as free grains up to a millimeter in size, as fracture-filling and veinlets in both host rocks, which seems to confirm the bimodal model of the auriferous mineralisation.

2010 DRILLING CAMPAIGN SUMMARY

The drilling strategy developed by Typhoon Exploration Inc. and Aurizon Mines Ltd. was planned in order to recut the NNW gold bearing structures. According to this new strategy, this drill pattern will give us a better comprehension of the relation between the family of dykes and the auriferous mineralization within the deformation corridor.

To date, 26 diamond drill holes out of 39 have been completed for the first phase of exploration work under the supervision of Mr. Daniel Gaudreault Eng. Geo. from Geologica Groupe-Conseil Inc. and Mr. Robert Gagnon P. Geo. from Typhoon Exploration Inc. The allocated budget for the current 15,000 meter campaign is $3 million.

QUALITY CONTROL

All drill cores are oriented using Fordia's "Corientr" tool in order to measure their geological structures. Cores are sawn in half, with one part kept as a control and the other being analysed. Assays are performed with standard fire assay procedures and atomic absorption finish. Certified reference material, duplicates and blanks are inserted in the sample sequence for quality control. Primary assaying are performed by ALS Chemex of Val d'Or. The rejects for all samples returning >10 g/t Au are completely pulverized and re-assayed.

Additional information

The attached sketches show the geological context of the Fayolle Property, the position of the drill holes mentioned in this press release and a schematized section of the Fayolle Deposit.

CONDITIONS OF THE FAYOLLE PROJECT AGREEMENT

Aurizon Mines Ltd. can acquire 50% of the Fayolle Project, subject to a 2% royalty, in exchange for work valued at $10 million and a private placement of $2 million. Aurizon can increase its share by 15% (for a total interest of 65%) by either delivering a feasibility study or investing an additional $15 million toward the project (for a total of $27 million).

CORRECTION

In the news release from November 2nd, 2010, the drilling results table should have read FA-10-08: 11.4 g/t Au over 8.0 meters from 109.0 to 117.0 meters instead of 8.8 g/t Au over 11.0 meters from 109.0 to 120.0 meters.

ABOUT TYPHOON EXPLORATION INC.

Typhoon targets Quebec's excellent mineral potential and favourable investment climate for the development of new world-class gold deposits. Typhoon is proud to count on reputable partners, such as Aurizon Mines Ltd. (www.aurizon.com). Their support, as well as that of its investors (which hold the 19,031,752 shares currently in circulation), contributes greatly to the success of the company.

Mr. David Mc Donald, President and CEO of Typhoon Exploration Inc., states "We are enthusiastic about the drill results we've obtained because they confirm our vision that the zones currently being drilled validate the continuity of the mineralization and indicate to us that the Fayolle Project could show a drastic resource increase".

The Fayolle Property contains inferred mineral resources totaling 113,000 ounces of gold at a grade of 1.6 grams of gold per ton (2,191,100 tons) using a cutoff grade of 0.5 grams per ton (Reference: «Mineral Resources Evaluation of the Fayolle Gold Deposit / 43-101 Technical Report» dated February 21, 2007, available on SEDAR).

Mr. Robert Gagnon, P. Geo. (OGQ), Technical Advisor, a Qualified Person as defined by National Instrument 43-101 and Mr. Daniel Gaudreault Eng., Geo (OIQ) supervised the preparation of the information in this news release.

The common shares of Typhoon Exploration are listed on the TSX Venture Exchange under the symbol "TYP".

Forward-Looking Statements

This news release contains statements that constitute "forward-looking information" or "forward-looking statements" within the meaning of applicable securities legislation. This forward-looking information is subject to numerous risks and uncertainties, certain of which are beyond the control of Typhoon. Actual results or achievements may differ materially from those expressed in, or implied by, this forward-looking information. No assurance can be given that any events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits that Typhoon will derive therefrom. Forward-looking information is based on the estimates and opinions of Typhoon's management at the time the information is released and Typhoon does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws. Neither 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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