TerraX Minerals Inc. has satisfactorily completed its due diligence on the Sunbeam-Pettigrew gold property in Northwest Ontario (see our news release dated April 16, 2009), and is proceeding with the option agreement with the vendors for a 100% interest in the property, subject to a 2.5% NSR. The Sunbeam-Pettigrew property consists of 27 claims totalling 350 claim units (~55 km2), and occurs 25 km northeast of the town of Atikokan, which is in turn 180 km west of Thunder Bay. The property is 15 km from Brett Resources' (TSX-V: BBR) Hammond Reef property, which contains a National Instrument 43-101 compliant resource of 141.5 Mt @ 1.05 g/t Au (approximately 4.8 Moz Au). The Brett Resources technical report is available at www.sedar.com.
The Sunbeam-Pettigrew property occurs in the Archean Marmion Batholith, which contains a number of phases, varying from tonalite to quartz diorite. The geology and known mineralization on the property are similar to the Hammond Reef property. The property contains two northeasttrending intermittently mineralized zones: the so-called Sunbeam-Atiko Shear Zone and the Pettigrew-Jack Lake Shear Zone. Both shear zones contain significant gold occurrences, including past producers, over approximately 15 km of strike length. The majority of the previous work on the property was done around 1900; exploration activity since then has been highly intermittent, and no work has been completed since 1990. The presence of regional shear zones as controls on mineralization does not appear to have been recognized during previous exploration.
The due diligence period in the option agreement allowed TerraX to carry out site investigations in the area of old mine workings (circa 1900) and known Au showings to confirm that the property has the geological attributes for a Hammond Reef type mineralization model. During prospecting and sample collection, emphasis was placed on finding Hammond Reef style mineralization in and adjacent to quartz vein systems within shear zones, with associated pyrite and alteration consisting of sericitization, saussuritization, carbonatization and chloritization.
TerraX collected 53 samples from seven locations along the 15 km strike length of the mineralized structures on the property (four on the Sunbeam-Atiko, and three on the Pettigrew-Jack Lake). These samples displayed weak to intense alteration and shearing, and minor to 5% pyrite mineralization. These areas were consistent with the known visual mineralization associated with the Hammond Reef deposit, and the samples taken were expected to be representative of the large, low grade Au target potential on the property.
Of the 53 samples taken, 36 analyses contained measurable Au, and 24 of these were significantly anomalous (>100 ppb Au) and collectively averaged 1.0 g/t Au, with values ranging up to 3.83 g/t Au. In addition a hand sample (not assayed) collected on the property near one of the historical workings contained visible coarse-grained Au which confirmed historical reports of visible Au found on the property. These results are consistent with expected Au grade distribution in a Hammond Reef style system.
Of particular interest, seven samples taken by TerraX at the Roy Showing on the Sunbeam-Atiko structure, over an area of 60 by 40 meters, averaged 1.34 g/t Au. Historically (1898-1904) this area had mineralization exposed in underground workings, pits and trenches for 180 m along the strike of the main vein.
At the Road Showing on the Sunbeam-Atiko structure, two samples were collected grading 1.48 g/t Au in a quartz vein and 2.12 g/t Au in altered granites. This area had a drill intersection reported by Nahanni Mines Limited in 1981 of 1.8 m @ 15.8 g/t Au within a zone of 8.5 m @ 4.8 g/t Au.
On the Pettigrew showing of the Pettigrew-Jack Lake structure, six TerraX samples over a 30 by 50 meter area averaged 0.90 g/t Au. This is comparable with previous work in the Pettigrew area, including 1983 drilling by Canadian Nickel Company Ltd with reported intersections of 1.81 g/t Au over 18.5 m in borehole 57751 and 0.41 g/t Au over 27.56 m in borehole 57766. In 1987 rehabilitation of the historical underground workings (1898-1900) by Canadian Nickel resulted in wall chip assays of 0.70 g/t Au over 21 m across the strike of the mineralized zone, and an average grade from seven bulk samples of 1.33 g/t Au.
All of these results support the potential for a Hammond Reef style deposit on the property.
Significant Au Analyses from TerraX Sampling
|Structure||Grade (g/t Au)||Description|
|Sunbeam-Atiko||3.83||highly altered granite, green mica, carbonate, 3-5% coarse-grained py.|
|2.79||quartz with minor sericite, 4% coarse-grained pyrite|
|2.12||Altered pink-green granite, 2-3% coarse-grained py|
|1.49||granite with iron carbonate, sericite, 4% py|
|1.48||Altered quartz vein selvage, pale green mica, 2-3% coarse py cubes|
|1.18||Quartz vein, green mica, brown carbonate, minor py|
|0.87||highly altered granite, green mica, hematite, carbonate, quartz, minor py|
|Pettigrew-Jack Lake||3.42||Quartz vein with 2% galena, 2% py|
|0.98||Sheared, green granite, hematite clots, 3-5% py cubes|
|0.84||Sheared, altered and oxidized granite, hematite, minor py|
Activation Laboratories Ltd. (Actlabs) carried out the sample analysis in their Thunder Bay, Ontario facility. Samples were subjected to Actlabs' RX2 sample preparation which consists of crushing the entire sample to a nominal 10 mesh (1.7 mm) size, and pulverizing a 100 g subsample to 150 mesh (105 mm). A 50 g sub-sample of the pulverized sample was subjected to Actlabs' 1A2-50 analysis (Fire Assay with AA finish) and any analysis over 3000 ppb was reassayed using Actlabs' 1A3-50 analysis (Fire Assay with gravimetric finish).
Initial work programs at Sunbeam-Pettigrew will include property-wide mapping and prospecting of the two main structural targets, and possibly wide spaced soil geochemistry to help define anomalous areas. This will be followed by ground geophysical surveys and stripping and trenching of prospective showings to help define structural controls and areal extent of the Au mineralization.
The discovery of the Rubble showing (up to 48.6 g/t Au grab sample) during staking in 2008 attests to the strong possibility of finding additional mineralization at surface on the property. Results from a government-sponsored airborne magnetic survey, justified in part by the results of Brett Resources' exploration, will be released in the next several months. This data should help TerraX develop additional targets on the property.
The option agreement on the Sunbeam-Pettigrew property was subject to a due diligence period that expired on May 30, 2009. TerraX can earn a 100% interest in the property over a three year period by making option payments totalling $210,000 (of which $50,000 has now been paid), issuing 600,000 shares (of which 100,000 shares have been issued, subject to a hold period expiring on September 29, 2009), and funding $450,000 of exploration and development work, of which $150,000 must be spent in the first year. The vendors will retain a 2.5% NSR, 1% of which can be purchased by TerraX for $1,000,000. An annual pre-production royalty of $20,000 will also be in effect, commencing on April 15, 2013.
The work program at the Sunbeam-Pettigrew property was designed and conducted by Tom Setterfield PhD, P. Geo., and Joseph Campbell, P. Geo., who are qualified persons as defined under National Instrument 43-101. They are responsible for all aspects of the work including the quality control/quality assurance program. All samples collected were delivered directly to Activation Laboratories Ltd. Actlab's quality control system complies with ISO/IEC 17025 and CAN-P-1579.
The technical information contained in this news release has been verified by Dr. Tom Setterfield, PhD, P. Geo., Vice President Exploration, 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, P.Geo
Neither the 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.
Certain statements contained in this press release may be considered as "forward looking". Such "forward looking" statements are subject to risks and uncertainties that could cause actual results to differ materially from estimated or implied results. These forward-looking statements are identified by their use of terms and phases such as "believe,' "expect,' "plan,' "anticipate" and similar expressions identifying forward-looking statements. Investors should not rely on forward-looking statements because they are subject to a variety of risks, uncertainties and other factors that could cause actual results to differ materially from the Company's expectations, and the Company does not undertake any duty to update forward-looking statements. These factors include, but are not limited to the following: the Company's ability to obtain additional financing, geological, mechanical or difficulties affecting the Company's planned geological work programs, uncertainty of estimates of mineral potential of properties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.