The first drill hole was collared on the Northbelt Property of the YCGP. Northbelt is the strike extension of the geology which hosted the previously producing Con and Giant gold mines, which together mined over 13M oz of gold. This marks the first drilling on the Northbelt since 1996, a period of 18 years.
TerraX's first drill campaign will total approximately 6,000 m of drilling and test three initial target areas; the Barney Shear, which is the extension of the Con/Giant shear system; the Crestaurum Zone, which is a high grade zone with nearly 200 historical drill intersections; and the Homer Lake base metal/precious metal target at the north end of the property The first drill hole will be collared at Homer Lake to target a buried conductor identified by airborne surveys in 2013 that has never been drill-tested This target area is within 500 m of a previously established ice road which makes winter access easier and with much less environmental impact than overland access in summer conditions. TerraX expects to be able to take advantage of 6-8 weeks of ice road use before spring breakup. Although Crestaurum and the Barney Shear are currently TerraX's highest priority gold targets, the logistics associated with Homer Lake access dictate that it be drilled first.
Homer Lake is not a traditional gold target as would be expected in a major gold belt like the Yellowknife Gold Camp. It was originally discovered from surface prospecting in the 1930s and six mineralized structures were delineated during reconnaissance prospecting by TerraX in the Homer Lake area in 2013. One structure has been traced by TerraX for 1,200 m and has chip sample results of 7 m @ 0.50 g/t Au, 90.2 g/t Ag, 4.25% Pb and 0.89% Zn. A parallel structure sampled by TerraX graded 5 m @ 1.54 g/t Au, 95.5 g/t Ag, 3.13% Pb and 1.59% Zn. A grab sample by TerraX from a third structure graded 0.60 g/t Au, 529 g/t Ag, >20% Pb, and 9.44% Zn. Historical reports of drilling on another structure included 6.10 m of 2.54 g/t Au, 204.0 g/t Ag, 10.82% Pb, 6.03% Zn and 0.55% Cu in hole 38-02; this intersection was less than 50 m below surface. (This drill result is historical in nature, has not been verified by TerraX, and should not be relied upon.)
In July 2013 TerraX carried out an airborne electromagnetic (EM) survey which revealed a 1.2 km long, north-trending conductor at the Homer Lake target, 400 m of which is highly conductive. The source of this conductor is buried and 3-D modeling indicates a top of the conductor at approximately 110 meters below surface, with a steep westerly dip. None of the known surface mineralized zones mentioned above were conductive in the 2013 EM survey, and the buried conductor has never been tested by drilling. This conductor will be the target of this initial 750 m drill program planned at Homer Lake, following which the drill rig will be moved to south end of the property to commence drilling at Barney and Crestaurum, where TerraX reported assay results from re-logging and sampling of core from historical drill holes that included 28.32 m @ 2.97g/t Au on the Barney Shear Zone (news release of August 14, 2013) and 5.00 m @ 62.90 g/t Au from Crestaurum (news release of October 2, 2013).
TerraX will be providing updates on activities in the coming months as we carry out our advanced exploration plans. All users of the trails, mining roads and ice roads are reminded to act safely and responsibly and keep an eye out for other recreational, traditional and industrial users and hazards.
About the Yellowknife City Gold Project
The Yellowknife City Gold Project encompasses approximately 8,400 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 Northbelt gold property encompasses 3,562 hectares on the prolific Yellowknife belt, all within 15 km of the city of Yellowknife, and covers 13 km of strike on the northern extension of the geology that contained the Giant (7.8 Moz) and Con (5.5 Moz) gold mines. The Northbelt property is host to multiple shears that are the recognized hosts for gold deposits in the Yellowknife camp and it contains innumerable gold showings and historic high grade drill results.
TerraX has carried out a strategy of acquiring prospective ground adjacent to Northbelt and in October 2013 entered into an option agreement whereby it can acquire a 100% interest in the Walsh Lake gold property, which is contiguous with and immediately east of Northbelt. The Walsh Lake property consists of seven leases and five claims totaling 6,659 acres (2,695 hectares). TerraX has also staked and acquired ground to the west of Northbelt to cover prospective geology that is on strike from Northbelt structures.
For more information on the Yellowknife City Gold Project, please visit our web site at www.terraxminerals.com.
On behalf of the Board of Directors
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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.