Teras Resources Inc. ("Teras" or the "Company"): Teras is pleased to provide a corporate update and report new gravity results from recent geophysical surveys for the Cahuilla gold/silver project in Imperial County, California.
The gravity surveys have recognized multiple apparent new structural targets including possible deep high grade feeder zones and additional shallower anomalies beneath gravel cover throughout the project area.
Gravity Survey. The following illustration reveals multiple gravity anomalies possibly representing structural breaks or faults indicated in orange/red/purple colors. The map also shows the location of the NI 43-101 resource and many potential new precious metal targets throughout the project area that were interpreted from the gravity survey results.
To view the map referenced above, click the following link: http://media3.marketwire.com/docs/tra_map.pdf
The anomalies shown to the southwest, northeast and east may represent shallow disseminated and high grade vein targets that could substantially increase near-surface precious metal resources as delineated in our 2011/2012 drill program. The large structural breaks interpreted to the south and around the circumference of the main resource area may signify deeper potential high grade feeder zones which are the primary objective of the geophysical surveys. It should be noted that many of the new anomalies are located outside of the current drill permit boundary and environmental surveys are in progress to expand the drill permit to encompass the entire project area.
Teras is awaiting final results of the MT and IP surveys which will be used in conjunction with the gravity to better target deeper high grade feeder zones, shallower disseminated/vein targets and potential mineralized areas covered by shallow gravels. Once the geophysical interpretations are complete, the Company plans to drill test targets that occur within the permitted area. A total of 230 holes may still be drilled within the existing permitted area.
Peter Leger, President and CEO of Teras Resources, commented "We are optimistic the geophysics will help to increase the potential size of the current resource and also identify high impact target areas including deeper high grade feeder zones which could improve the overall grade of the project. The gravity data has identified many exciting new drill targets that will allow us to effectively schedule our forthcoming drill program. Over the next few months, we will develop a focused drilling strategy to expand our current precious metal resources and identify potential deeper high grade feeder zones that could significantly enhance this exciting project."
Mr. Leger also remarked "While geophysics does not directly confirm mineralization; comparing drill results and geology at Cahuilla with geophysics provides our management team high confidence that the project could potentially be much larger than the current resource. We have always believed our project has the capability to be world class in size and we are moving in the direction to fulfill our goals."
"We are again very optimistic given the current resource and potential to develop Cahuilla since the project is located in a mining friendly area adjacent to exceptional infrastructure and mining expertise. At present we are working closely with some of the most respected and qualified technical experts in the industry to assist with demonstrating Cahuilla's true potential. We are currently gathering valuable technical information and will report progress as results are received."
Corporate Update. At present, the Company currently has $1.3 million available in cash and a receivable of $2.5 million from the sale of its Watseca project in Montana. In addition, we have $2.7 million in outstanding warrants to be exercised at $0.55. Mr. Leger stated "we feel the funds will be adequate to advance the Cahuilla project and reach our targeted goals and the Company is very fortunate to be in a positive cash position in this very difficult market. We have been very careful with our funds and ensure they are used efficiently and effectively in advancing Cahuilla. Given our past drill results and experience on the project, we are confident we will have adequate funding to complete a new drill program and substantially expand our NI 43-101 gold/silver resource."
Teras' immediate objective for Cahuilla is to compile a detailed technical data room in the second quarter of 2013. Given the shortage of large projects in North America, we feel once we have compiled all technical data on the project, there will be interested parties interested in evaluating our project for potential transaction purposes or to develop a mutually beneficial working relationship.
Given the shortage of large projects with great infrastructure in a politically sound location such as North America, we are optimistic in further advancing the project to significantly increase shareholder value. Now that we have finished the NI 43-101 resource and are nearing completion of a data room, we will begin presenting Teras and Cahuilla to the markets as we feel the Company and true potential of Cahuilla are widely unknown.
Dale A Vitone P. Eng., registered with the Association of Professional Engineers of Ontario, Alberta and North West Territories and a Director for Teras, is the Company's nominated qualified person responsible for monitoring the supervision and quality control of the programs completed on the Company's properties. Mr. Vitone has reviewed and verified the technical information contained in this news release.