The down payment consists of 250,000 common shares of Tudor Gold and $50,000 (the shares are subject to a four month statutory hold period). A further 450,000 common shares of Tudor Gold and $650,000 is to be paid over the five year option period. Tudor Gold will earn a 100% interest in the property subject to a 2.5% Net Smelter Royalty in favour of Teuton without any provisions for a buyback. The transaction is subject to TSXV approval.
Small-scale prospecting programs tested portions of the property intermittently from 1995 to 2007. Trenching of one showing in 1994 returned a weighted average of 0.074 opt gold and 1.36% arsenic over 13m. A small drill program carried out on this prospect in 2007 disclosed narrower widths of gold mineralization than observed on surface.
The sericite schist unit on the property, which contains anomalous gold in places, is becoming increasingly exposed with the meltback of ice. In one location, native sulfur was discovered suggesting an acid sulfate environment akin to that identified to the north in the Treaty property central gossan area.
Dino Cremonese, President and CEO of Teuton, states: “The Orion is Teuton’s sixth property to be farmed out in this geologically prospective area. We believe that all of these properties, two of them optioned to Pretium Resources and four to Walter Storm’s Tudor Gold, are now in strong hands. As for our eight properties adjoining further to the south, we plan to work them ourselves this year with special attention to the Big Gold property.”
Silver Crown 6 Property
The Silver Crown 6 claim is jointly owned with Silver Grail and is presently under option to Decade Resources. It adjoins north of Decade’s Red Cliff property.
D. Cremonese, P.Eng., President and CEO of Teuton said: “These are very encouraging results which strongly suggest that a gold source lies west uphill from the streams on the Silver Crown 6 claim. This source is either an extension of the Montrose zone (located on the Red Cliff) or it could be a new, independent zone. In any event, we are quite hopeful that follow-up work will identify the area from which the gold is coming.”
The Qualified Person for this news release is D. Cremonese, P.Eng., who, as President and CEO, is not independent of the Company.
Dino Cremonese, P.Eng., President, Teuton Resources Corp.
The TSX Venture Exchange has neither approved nor disapproved the information contained herein.