This sampling reported today was completed by two senior geologists provided by Virginia Mines Inc. during mapping of a 1.3 km (N-S) x 650 m (E-W) area immediately west of Homer Lake in the northern part of the YCGP, with 99 grab and chip samples collected for assay and an additional 14 samples collected for whole rock analysis. Assay results ranged from below detection to 6.61 g/t gold, below detection to 357 g/t silver, 3 ppm to 1.51% copper, 9 ppm to 7.02% zinc, and 5 ppm to >20% lead. Two metal domains are apparent: a gold +/- copper domain to the west and a gold-silver-lead-zinc domain to the east.
These 113 samples complement the 150 grab and chip samples assayed in 2013 and the four holes drilled by TerraX in early 2014. Collectively, this information produces a preliminary picture of this prospective area which contains widespread mineralization. Of the 249 samples assayed, 102 contain Au >0.25 g/t, 46 contain Au >1 g/t; 142 samples contain in excess of 5 g/t Ag and 53 have more than 40 g/t Ag; 100 samples have more than 0.25% Pb of which 57 have more than 1%; 56 samples have >0.25% Zn and 30 have >1% Zn. Cu anomalism is much more restricted, with only 7 samples having >0.25% Cu. Maps showing the distribution of mineralization at Homer Lake are available on our website at www.terraxminerals.com.
Detailed mapping of the predominantly mafic stratigraphy reveals alternating massive and pillowed facies, defining a northwesterly trend which is probably the approximate stratigraphic trend. The mafic rocks have been intruded by a north-northeast trending quartz porphyry interpreted by the Virginia geologists as a variably sericitized and chloritized subvolcanic intrusion. Mineralization occurs in bands within and along the edge of the quartz porphyry, associated with subparallel structures, and in northwest features along possible flow and sill contacts.
A strong metal zonation is apparent, with two discrete domains separated by a northeast trending lineament that does not contain any outcrops. This lineament also separates dominantly massive flows in the west from pillowed and massive flows in the east, and is interpreted by Virginia geologists as a major fault. All of the >0.25% zinc values, all but one of the >0.25% lead values and the vast majority of the >40 g/t silver values occur in the eastern domain. The two >1% copper values occur in the western domain. Anomalous to ore grade gold is evenly distributed between the two domains; the result is a gold-copper domain in the west and a gold-silver-lead-zinc domain in the east. These domains were tested by two drill holes each in April, 2014, prior to their recognition. Holes TNB14-001 and 002 tested an electromagnetic anomaly in the western domain. The anomaly was determined to be caused by pyrrhotite and lesser chalcopyrite stringers. By contrast, holes TNB14-003 and 004 were drilled under the main trench in the eastern domain. These holes intersected high grade polymetallic zones surrounded by lower grade, but still polymetallic, mineralization. The best result was from hole TNB14-004, which returned 3.42 m @ 3.41 g/t Au, 69.3 g/t Ag, 3.67% Pb and 3.17% Zn within a wider zone of 71.15 m @ 0.25 g/t Au, 14.0 g/t Ag, 0.73% Pb and 0.57% Zn (see news release of May 12, 2014).
TerraX thus has two distinct targets at Homer Lake: i) a gold-copper target in the west, with known mineralization associated with pyrrhotite and chalcopyrite stringers and an electromagnetic signature; and ii) structurally controlled gold-silver-lead-zinc mineralization in the eastern part of the area. The high grade structural target is enhanced by the presence of a lower grade envelope of mineralization. Both targets have good size potential. The origin of the two mineralization styles has not yet been determined, but both are considered worthy of further drill testing.
Joe Campbell, President of TerraX states "The Homer Lake mineralization has now been traced at surface over a strike length of approximately 1.5 km and has been intersected by TerraX drilling to 150 m vertical depth from surface, in historical drilling to >300 m vertical depth, and mineralization remains open down-dip from this drilling. The nature of the mineralization remains unclear (synvolcanic or epigenetic), but the large areal extent and high polymetallic grades provides us with an excellent base metal target to supplement the numerous gold targets that are the primary focus of TerraX's exploration on the YCGP."
Sampling included insertion of certified standards and blanks into the stream of samples for chemical analysis. Samples were prepared at ALS Chemex's laboratory in Yellowknife and shipped to their Vancouver facility for gold and ICP analysis. ALS is a certified and accredited laboratory service. It should be noted that, due to their selective nature, assay results from grab samples may not be indicative of the overall grade and extent of mineralization in the subject area. Technical information contained in this news release has been approved by Tom Setterfield, Vice President Exploration of TerraX, who is a Qualified Person as defined in "National Instrument 43-101, Standards of Disclosure for Mineral Projects."
About the Yellowknife City Gold Project
The Yellowknife City Gold Project encompasses 9,349 hectares of contiguous land immediately north of the City of Yellowknife in the Northwest Territories and includes TerraX's wholly-owned Northbelt property acquired in February 2013.
The project lies on the prolific Yellowknife greenstone belt, and covers 15 km of strike length on the northern extension of the shear system that hosts the high-grade Con and Giant gold mines. The project is host to multiple shears that are the recognized hosts for gold deposits in the Yellowknife gold district and contains innumerable gold showings and historic high grade drill results. Since January 2013, TerraX has consolidated the project area by acquiring and optioning numerous properties, including: Northbelt, Goodwin, Ryan Lake, Walsh Lake, and U-Breccia, as well as staking additional contiguous lands. Being all-season road accessible and within 15 km of the City of Yellowknife, YCPG is close to vital infrastructure, including: supplies, service providers, power, water, and skilled tradespeople.
For more information on TerraX and the Yellowknife City Gold Project, please visit our web site at www.terraxminerals.com.
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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, the completion of due diligence 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.