METALCORP & TEREX SIGN AGREEMENT ON DORSET GOLD PROPERTY
Toronto, ON November 07, 2005
FSC / Press Release
METALCORP & TEREX SIGN AGREEMENT ON DORSET GOLD PROPERTY
Toronto, Ontario CANADA, November 07, 2005 /FSC/ - Terex Resources Inc. (TSX - VX: TRR), and MetalCORP Limited (TSX-V: MTC) are pleased to announce that they have signed an agreement on the Dorset gold property subject to board and regulatory approvals. The property is located approximately 70 kilometres southeast of the Hemlo gold mines in the Mishibishu Greenstone Belt of northwestern Ontario. This area of the Wawa geological Subprovince has seen production of approximately 25 million ounces (~C$14 Billion) of gold in the last 25 years with most of this coming from the Hemlo gold mines (~ 100 Mt @ 8.0 gpt Au).
Terex will have the right to earn an initial 50% interest in the Dorset Property by spending $2.0 million on exploration; making cash and stock payments to MetalCORP totaling $220,000 and issuing 900,000 shares over five years. A cash payment of $20,000 and share issuance of 150,000 are due on obtaining all necessary board and regulatory approvals. Terex will be able to earn a further 20% interest by completing a feasibility study and paying $100,000 cash and issuing 500,000 shares. On completion of Terex's option, a joint venture will be formed between Terex and MetalCORP on either a 50:50 or 70:30 basis, respectively.
The Dorset Property consists of 18 claim units (288 hectares) covering a 1.2 km gold bearing zone approximately 6.0km north of the Eagle River Deposit owned by River Gold Mines Ltd. (~2.0 Mt @ 9.1 gpt Au).
The Dorset Zone was discovered by prospecting in 1995, when sampling and trenching exposed a gold bearing zone for 1.2km after follow-up of an old Noranda gold showing found in 1989.
The zone is unlike other gold zones of the Mishibishu Greenstone Belt, where the gold is generally hosted within quartz veins. The Dorset Zone is a primary hydrothermal stratiform gold system, with a minimum strike length of 1km, which exhibits the potential for significant areal extent (Chris Beaumont-Smith - Structural Geologist, Battle Mountain Gold- 1999).
The Dorset mineralization is an intensely albitized, iron-carbonated system with finely disseminated 2-3% pyrite and arsenopyrite. Trace amounts of pyrrhotite, chalcopyrite and sphalerite have been noted. The zone is generally 3.0 - 7.0 metres wide with widths up to 22.0 metres and gold grades of 1.0 to 6.0 gpt. Visible gold can occur within discrete, late narrow quartz veins, which often cross-cut the zone. These veins, which are typically less than 20cm in width, can yield very high gold grades up to 1291.0 gpt.
Approximately 35 drill holes were completed on the Dorset Zone in 1998 and 1999 with the widest intersection being 4.0 gpt Au over 22.0 metres. Some of the better mineralized intersections were 6.16 gpt Au over 3.05 metres in hole # 27, 5.05 gpt Au over 7.70 metres in hole # 28 and 2.0 gpt Au over 5.40 metres in hole # 32. The Dorset Zone remains open in all directions with a strong IP anomaly suggesting considerable potential for strike extensions.
MetalCORP and Terex management are excited about the potential of expanding the Dorset gold zone given the significant historic drill holes reported in the past. The Mishibishu Belt has proven to be an emerging gold camp with hundreds of gold occurrences discovered since the early 1980s. Access and infrastructure are excellent. The area is traversed by an all weather road and power line, which services the Eagle River Gold Mine and mill at the Magnacon Deposit. The belt contains all of the important geological features commonly associated with established Archean gold camps.
The Dorset agreement compliments Terex's significant land package of some 13,120 acres in the Mishibishu Belt. A VTEM airborne survey will commence immediately over Terex's complete land package including the Dorset property (visit www.terexresources.com).
The Dorset exploration program was carried out under the supervision of Aubrey Eveleigh, P.Geo. (QP - NI43-101). Samples were sent to Accurassay Labs for analysis by fire assay with an atomic absorption finish.
Don Hawke, Professional Geologist, Qualified Person and President of Terex has reviewed and approved this press release.
For further information contact:
Wayne J. O'Connor, Chairman 416-364-6957, ext. 103 email: wayne@terexresources.comDon Hawke, President 705-385-0465 email: hawke@vianet.ca
or
Aubrey EveleighVice President, ExplorationMetalCORP Limited 807-346-2760 email: eveleigh@tbaytel.net
Shares issued: 45,224,662
The TSX Venture Exchange has neither approved nor disapproved of the information contained herein. Statements in this press release regarding the Company's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.
TEREX RESOURCES INC.120 Adelaide Street West, Suite 512, Toronto, Ontario, Canada M5H 1T1Tel: 416-364-6957Fax: 416-364-5400www.terexresources.com |
