Terrax's president, Joe Campbell, states "TerraX is confident that the Stewart property has potential to host a major porphyry Cu-Au deposit. This initial 5 hole drill program, while only testing a small portion of the property, has greatly increased our knowledge of this very large hydrothermal system. Three dimensional modeling is now underway using this new information which will result in better defined targets for a follow-up drill program in 2012."
Three holes (ST11-01, 02 and the top of ST11-05) tested the edges of the hydrothermal system as defined by anomalous chargeability. In all three cases, long intervals (up to 585 m in hole ST11-02) of pervasively altered rock with 1 to 10% pyrite were encountered. Mineralogical analysis with a Terraspec instrument confirmed that the zones are dominated by varying amounts of pyrophyllite, illite, dickite and alunite, all of which are common in porphyry to epithermal environments. The margin of the system typically contains felsic volcanic rocks, although hole ST11-01 contains 185 m of strongly altered quartz diorite and ST11-02 contains over 200 m of a fine-grained, interpreted intrusive rock. Zones of intense quartz veining (stockworks) are locally present.
Three holes (ST11-03, 04 and the bottom of ST11-05) tested what had been interpreted to be the core of the system. These holes encountered mostly mafic volanics and intrusions, as well as several different types of intermediate porphyritic intrusions. Most mafic rocks have undergone patchy epidote-silica alteration and zones of intense alteration up to 15 m wide separated by less altered rocks. The intense alteration includes silica, illite, chlorite, pyrite and locally minor chalcopyrite. Stringers of quartz and pyrite and/or chalcopyrite are present. Hole ST11-03 contains 130 m of silicified mafic volcanics with small amounts of native copper and probable hydrothermal magnetite. The absence of potassic alteration (potassium feldspar and/or biotite) in the drill core suggests that the core of the hydrothermal system was not intersected by TerraX's drilling.
The best assay results are from the previously reported (October 31, 2011 news release) hole ST11-01 which intersected 111 m @ 0.13 g/t Au and 0.05% Cu and 18.03 m @ 0.11 g/t Au and 0.06% Cu, with anomalous Ag, and Zn. Hole ST11-02, the easternmost hole, contained several short intervals of anomalous Au (up to 118 ppb) and an anomalous Zn intersection of 109.78 m @ 0.02% Zn. Hole ST11-03 contains an intersection of 2.35 m @ 0.08% Cu associated with local chalcopyrite stringers, but no other significant metal anomalism. Hole ST11-04 contains short intervals of anomalous Cu as follows: 3.2 m @ 0.07% Cu associated with quartz-chalcopyrite veinlets; 0.6 m @ 0.24% Cu associated with quartz-pyrite-chalcopyrite veinlets, and 0.56 m @ 0.20% Cu associated with a semi-massive pyrite vein. Hole ST11-05 contains 1.07 m @ 0.08% Cu and 0.80 m @ 0.07% Cu, both associated with structurally controlled illite-pyrite alteration in mafic volcanics.
While TerraX's drill program failed to intersect the porphyry core it has provided valuable information on the three dimensional characteristics of the large hydrothermal system present at Stewart. Intervals of pervasive phyllic/advanced argillic alteration with 1-10% pyrite more than 500 m long have been encountered on the margin/top of the system, while other parts of the system contain several porphyry intrusions as well as hydrothermal magnetite, epidote, chlorite and silica, with stringers of pyrite and/or chalcopyrite and local native copper. The mineralized porphyry core has not as yet been intersected, but the presence of porphyry intrusions and quartz-sulphide veinlets are considered encouraging. Ongoing detailed interpretation of the magnetic data suggests that the core of the system may lie immediately south of the area tested by drilling. The lack of anomalous molybdenum (Mo) in any TerraX drill holes, coupled with the Au-Cu-Mo soil anomaly defined by TerraX in the southwestern part of the alteration system (TerraX news release May 9, 2011), likewise suggest a south/southwest vector toward the center of the system, as indicated on project maps available on our web site.
TerraX remains confident in the potential of the Stewart property and plans to construct and review a three dimensional model of all available data (geology, geophysics, geochemistry, alteration mineralogy and drilling) prior to initiating a second drill campaign on the Stewart property in mid-2012. The eastern portion of the porphyry-epithermal system has not been geophysically surveyed, and the Forty Creek epithermal showing (grab samples of 13.3 and 59 g/t Au and 670 and 2290 g/t Ag) still needs to be followed up with geophysics and drilling. Prior to this work, TerraX plans to test newly defined drill targets on its Sunbeam-Pettigrew and Central Canada gold properties near Atikokan in the first quarter of 2012.
The Stewart property is comprised of 242 claims totaling 60.5 sq. km, located 30 km north-northeast of the town of Marystown on the Burin Peninsula. For more information on Stewart and TerraX's other properties, please visit our website at www.terraxminerals.com.
All drill core from the 2011 drill program at Stewart was logged, split and sampled at a secure core facility in Marystown. Samples were collected from this facility by a shipping company for onward transportation to the Actlabs facility in Fredericton. Actlabs is an ISO/IEC 17025 accredited analytical laboratory. Gold analysis was by fire assay with AA finish; other elements of interest (silver, copper, molybdenum, zinc etc) were obtained by ICP. Analytical accuracy and precision are monitored at the laboratory by the analysis of reagent blanks, reference material and replicate samples. Quality control is further assured by the use of international and in-house standards. TerraX routinely inserts blanks and certified standards into the sample stream in order to independently assess analytical accuracy.
The technical information contained in this news release has been verified by Dr. Tom Setterfield, P.Geo., who is a Qualified Person as defined in "National Instrument 43-101, Standards of Disclosure for Mineral Properties."
On behalf of the Board of Directors
"JOSEPH CAMPBELL"
Joseph Campbell, P.Geo
President
Contact: Paradox Public Relations
Phone: 514-341-0408
Toll Free: 1-866-460-0408
Phone: 514-341-0408
Toll Free: 1-866-460-0408
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This news release contains forward-looking information, which involves known and unknown risks, uncertainties and other factors that may cause actual events to differ materially from current expectation. Important factors - including the availability of funds, the results of financing efforts, and the results of exploration activities - that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time on SEDAR (see www.sedar.com). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
