VANCOUVER, BRITISH COLUMBIA–(Marketwired – March 9, 2016) – Teuton Resources Corp. (“Teuton”) (TSX VENTURE:TUO)(FRANKFURT:TFE)(OTCBB:TEUTF) has optioned to a private, arms-length company a 100% interest in two of its properties located 60km north of Stewart, British Columbia in the Golden Triangle region of northwestern British Columbia. One of the properties, the Delta, is located 7km south of Pretium Resources’ Brucejack property upon which a CDN$1 billion construction project is under way on the high-grade Valley of the Kings gold deposit set for production in 2017. The other property, the High North, adjoins to the south of Seabridge Gold’s KSM property. The properties are shown on the attached figure: http://teuton.com/wp-content/uploads/2016/01/Sulphurets-Porphyries_V5.pdf
Delta property – The property has been optioned for $1,000,000, with $100,000 payable upon signing, $100,000 a year for the next three years, and a final payment of $600,000 in the fourth year. Teuton will retain a 2.5% net smelter royalty with no provision for a buyback on the westernmost claims in the property; for those claims to the east, upon which a pre-existing royalty of 2% payable to a third party exists, Teuton will be entitled to a 1.5% net smelter royalty without a buyback.
Approximately $1.5 million has been spent to date on the Delta by Teuton and by previous optionees beginning in 1985. This work disclosed a large area in the central portion of the property marked by highly anomalous gold-silver heavy stream sediment anomalies with subsequent soil sampling identifying several clusters of +400ppb gold anomalies. Some geophysical surveying was also conducted which identified an area with potential for Eskay Creek-type massive sulfide deposits near a rhyolite-argillite contact.
Another area, further to the west features a zone discovered in 2012 returning surface grades from grab samples running from 1 to 7g/ton gold and approximately 5m wide. A hole drilled that year is thought to have intersected the downward projection of the zone, returning a 5.8m interval grading 3.0 g/t from 210.9 to 216.7m. Two other holes drilled in 2013 were sited at higher elevations near a rhyolite contact; one of them intersected two narrow sections of extremely fine-grained massive sulfide mineralization containing appreciable lead, zinc silver and gold values.
High North property – The property has been optioned for $1,000,000, with $100,000 payable upon signing, $100,000 a year for the next three years, and a final payment of $600,000 in the fourth year. Teuton will retain a 2.5% net smelter royalty on all claims with no provision for a buyback.
Rocks of the Triassic age Stuhini Group which host the large copper-gold deposits on the KSM property extend southward into the High North property. A prominent thrust fault, the Sulphurets Fault, traverses the length of the KSM property and continues southward for another 5km into the High North property. This fault is spatially related to all of the copper-gold deposits at KSM. Jeff Kyba, regional district geologist for the province of British Columbia, believes “….that it’s no coincidence the prominent fault is so close to the deposits. ‘When the Stikine was compressed, all the prospective structures bounding these old basins were slippery because of the alteration associated with the porphyries. So they were the first to fail, and became reactivated as younger, prominent thrust faults.'” [Excerpted from May 1, 2015 Edition of the Northern Miner].
Teuton owns interests in more than thirty properties in the prolific “Golden Triangle” area of northwestern British Columbia and was one of the first companies to adopt what has since become known as the “prospect generator” model. It first began acquiring properties in the Golden Triangle in 1983 and has been publically listed since 1985.
One of Teuton’s core holdings comprises ground staked in the mid-1980’s along extensions of favourable geology to the north and south of the KSM property (owned by Seabridge Gold) and the Brucejack-Snowfield property (owned by Pretium Resources). Teuton’s King Tut and Tuck properties, located south of Pretium’s Brucejack property, were optioned in 2015 to Pretium in a $1.8 million deal. Shareholders and other interested parties can access information about Teuton at the Company’s website, www.teuton.com.
The Qualified Person for this news release is D. Cremonese, P.Eng., who, as President and CEO, is not independent of the Company. Some of the data presented in this release in regard to the Delta property was taken prior to the implementation of National Instrument 43-101. It is considered historical data and therefore should not be relied upon although it is believed to be accurate.
Dino Cremonese, P.Eng., President, Teuton Resources Corp.
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