VANCOUVER, British Columbia, Dec. 21, 2015 (GLOBE NEWSWIRE) -- Teuton Resources Corp. (“Teuton”) (TSX-V:TUO) (Frankfurt:TFE) (OTCBB:TEUTF) has optioned a 100% interest in its Fairweather property to an arms-length private company. The Fairweather is located about 55km north of Stewart, British Columbia and 10km south of Pretium Resources Brucejack property, the latter currently the subject of a CDN$1 billion construction project on the Valley of the Kings gold mine.
Government geological maps indicate that the Jurassic age rocks lying east of the McTagg anticlinorium, and which host the various gold deposits on Pretium’s property, pass southward through Teuton’s King Tut, Tuck and Delta properties and onward into the Fairweather (see map, URL is given at the end of the news release).
In 1987 geologist Ken Konkin discovered a pyritic, quartz brecciated conglomerate zone on the Fairweather which was trenched and yielded an average grade of 4.04 g/t gold over 7.0 metres. A similar zone was sampled uphill from this occurrence, returning anomalous gold values of 720, 780 and 1045 ppb (grabs). Exposure in the area was quite poor with deep overburden in places. The next year the site was revisited but limited follow-up work failed to reach bedrock. Although the zone was recommended to be tested by a series of shallow holes, such work is yet to be done. A cluster of soil geochem gold anomalies lies downhill from the occurrence. The western area of the property was visited very briefly in 2015 wherein a significant area of alteration was noted. This new area remains to be tested by sampling and geological mapping.
Terms call for cash payments totalling $350,000 to be paid over five years. The property is to be sold to a public company (“Pubco”) within six months. Teuton will also receive 700,000 shares of the Pubco over the term of the option. Teuton will retain a 2% NSR on the western portion of the property, and a 1% portion on the eastern claims (5 of the eastern claims are currently burdened with a 2% NSR in favour of a third party which obligation will be assumed by the Pubco).
The cash and shares will be paid as follows: on signing, $30,000; 250,000 shares within five days of Pubco receiving TSX-V approval for the purchase of the property; first anniversary—additional $40,000 and 50,000 shares; second anniversary—additional $50,000 and 50,000 shares; third anniversary—additional $60,000 and 50,000 shares; fourth anniversary—additional $70,000 and 50,000 shares; and, fifth anniversary—additional $100,000 and 250,000 shares.
The Qualified Person for this news release is D. Cremonese, P.Eng., who, as President and CEO, is not independent of the Company. The data presented in regard to the Fairweather property was taken while Teuton was the owner and is believed to be accurate. However, as it is considered historical data under National Instrument 43-101 it should not be relied upon.
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. This involves acquiring ground by staking, grooming it, and then optioning it out to third parties. Instead of having one or two properties to explore (work which must be financed internally), prospect generators can have interests in multiple properties because the work is carried out and financed by others. Teuton first began picking up properties in the Golden Triangle in 1983 and has been publicly 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). Both Seabridge Gold and Pretium received federal government approval for their projects within the last year.
The Sulphurets Fault, which is related to all of the copper-gold deposits on the KSM property, passes south for at least 8km into Teuton’s High North and Orion properties. Teuton’s King Tut and Tuck properties, located south of Pretium’s Brucejack property, were recently optioned to Pretium in a $1.8 million deal. The Company also owns interests in the Tennyson property on which Brigade Resources, a private Hunter Dickinson company, spent $4 million in 2012-13 drilling two porphyry copper-gold zones. Shareholders and other interested parties can access information about Teuton at the Company’s website, www.teuton.com.
“Dino Cremonese, P.Eng.”
Teuton Resources Corp.
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This news release includes certain forward-looking statements concerning the future performance of our business, its operations and its financial performance and condition, as well as management’s objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as “may”, “will”, “plan”, “expect”, “anticipate”, “estimate”, “intend” and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks and the availability of financing, as described in more detail in our recent securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward looking-statements and we caution against placing undue reliance thereon. Teuton Resources Corp. does have an ongoing obligation to disclose material information, as it becomes available.
The TSX Venture Exchange has neither approved nor disapproved the information contained herein.
TEUTON RESOURCES CORP. 202-2187 Oak Bay Avenue Victoria, BC V8R 1G1 Phone: (604) 682-3680 Fax: 682-3992 Toll Free: 1-800-879-2333 Website: www.teuton.com