TerraX can earn a 100% interest in the Blackfly property over a four year period by making option payments totaling $100,000, issuing 280,000 shares and funding $179,200 of exploration and development work. 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 $10,000 will also be in effect, commencing on July 2, 2013.
As does the Hammond Reef deposit, the Blackfly property occurs on the western edge of the Marmion Batholith, which contains a number of phases, varying from tonalite to quartz diorite. Gold mineralization is associated with northeast trending lineaments traceable for up to 80 km within and along the margin of the batholith. The lineaments are thought to represent faults or shear zones. Mineralization occurs in and adjacent to quartz vein systems within the shear zone, and is associated with pyrite and alteration consisting of sericitization, saussuritization, carbonatization and chloritization.
Gold-bearing quartz and quartz-carbonate veins were discovered on the Blackfly property around 1897, but the majority of previous exploration took place between 1938 and 1949. This includes the sinking of a 14 m shaft in 1938. According to the Ontario Geological Survey, mineralization consists of pyrite, galena, and possible arsenopyrite with accessory chlorite, sericite, ankerite and epidote. Sampling by the Ontario Geological Survey produced values of 8.75 g/t Au over 0.35 m in a quartz vein and 3.44 g/t Au in wallrock. TerraX visited the property briefly in May of 2009, taking two sulphidebearing quartz vein samples which ran 2.24 g/t and 167 g/t Au respectively. Although the over-riding target for TerraX is a large, low grade gold deposit similar to Hammond Reef, the grades obtained to date from the quartz veins suggests that the property may also have potential for a smaller, higher grade deposit.
TerraX’s initial plans for the property include following up known mineralization and mapping/prospecting of structural targets. Results from a government-sponsored airborne magnetic survey, justified in part by the results of Brett Resources’ exploration, were released on July 7, 2009. This data should help TerraX develop additional targets on the property.
The technical information contained in this news release has been verified by Dr. Tom Setterfield, PhD, PGeo., Vice President Exploration, who is a Qualified Person as defined in “National Instrument 43-101, Standards of Disclosure for Mineral Properties.” Closing of the proposed transaction is subject to acceptance for filing by the TSX Venture Exchange.
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.
TerraX Minerals Inc. has entered into an option to acquire a 100% interest in the Blackfly gold property in northwest Ontario. The property consists of five claims totaling 64 claim units (~10.1 km2) located 10 km northwest of the town of Atikokan, 180 km west of Thunder Bay and 17 km from Brett Resources’ (TSX-V: BBR) Hammond Reef deposit, which contains a National Instrument 43-101 compliant resource of 141.5 Mt @ 1.05 g/t Au (approximately 4.8 Moz Au). The geology and known mineralization on the Blackfly property are similar to the Hammond Reef deposit and the Blackfly deposit appears to be along strike from Hammond Reef. The Blackfly property is 22 km west of TerraX’s recently acquired Sunbeam property (see news release of June 1, 2009).