VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 22, 2012) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Teslin River Resources Corp. (TSX VENTURE:TLR) ("Teslin" or the "Company") is pleased to announce that it has completed an agreement with Eureka Resources Inc. ("Eureka") to amend the Frasergold project Option Agreement originally executed on November 21, 2011 and subsequently amended on April 25, 2012.
The Option Agreement, as revised on April 25, 2012, required property expenditures of CDN $1,206,678.31 be incurred by Teslin by December 31, 2012 with a further CDN $1,100,000 incurred by December 31, 2013 and a further CDN $1,100,000 by December 31, 2014.
As a result of reduced investor confidence in the natural resource sector, which has made financing junior resource companies challenging throughout 2012, Teslin has had to recalibrate its exploration plans in line with the realities dictated by the adverse current market conditions.
As part of this realignment of expectations Teslin entered into discussions with Eureka, the owner of the Frasergold property, to advise them of the uncertain market conditions and specifically the ability to fund ongoing exploration activities.
Following negotiations, the parties have agreed to amend the terms of the Option Agreement. The property exploration program of CDN $1,206,678.31 scheduled to be completed by December 31, 2012, has been 100% deferred to December 31, 2013. The following two years of property expenditures of CDN $1,100,000 for each year has also been deferred from December 31, 2013 and 2014 to December 31, 2014 and 2015 respectively.
As a consequence of rescheduling these property payments, Teslin has paid CDN $25,000 of the CDN $50,000 payment scheduled by December 31, 2012 Eureka for this accommodation.
Mr. John Icke, Chair and Interim President and Chief Executive Officer commented, "Securing the Option Agreement amendment at Frasergold was very important to the Company. Current market conditions are negatively impacting the ability for many junior resource companies to maintain their exploration momentum and the situation that Teslin has experienced is a prime example of that anomaly. With this amendment in place, the Company has secured its option position without penalty on an outstanding property which we believe has significant upside potential. On behalf of the shareholders of Teslin, I would like to thank the Eureka management team and Board of Directors for their support in the realignment negotiations."
About Frasergold Project
The Frasergold Project, optioned from Eureka Resources Inc., is located in the Cariboo Gold Camp, situated in the historic Quesnel Trough area of central British Columbia and has a long history of continued exploration since the 1970s. A combination of quartz veins and knotted phyllites host gold mineralization containing coarse free gold and finer grained sulphide bearing gold. Previous operators identified a twelve-kilometre belt of gold mineralization on the property through drilling, soil sampling, induced polarization ("IP") geophysical surveys and surface exploration.
A prior NI 43-101 compliant resource was completed in November, 2009 -- "Report on the 2007 and 2008 Drill Programs on the Frasergold Project" prepared by K.V. Campbell and G.H. Giroux for Hawthorne Gold Corp. -- of 614,000 ounces of gold Measured and Indicated and 1,225,000 ounces of gold Inferred at a cut-off of 0.30g/t gold. The prior resource is a historical estimate and a qualified person for the Company has not done sufficient work to classify the historical estimate as a current mineral resource. As a result the historical estimate is not being treated as a current mineral resource and is not to be relied upon.
Teslin has the right to earn a 51% interest in the Frasergold Project by spending $3,550,000 on the property and providing payments to Eureka totaling $200,000 over a 4 year period ending December 31, 2015. An additional 24% interest (totaling 75%) can be earned by completing a feasibility study.
Dr. Michael Hitch, P. Eng, P. Geo. is a Qualified Person pursuant to NI 43-101 and has approved the contents of this release.
Cautionary Notes: Inferred mineral resources have insufficient confidence to allow the meaningful application of technical and economic parameters or to enable an evaluation of economic viability suitable for public disclosure. Neither the Company nor readers can assume that all or any part of an inferred mineral resource will be upgraded to indicated or measured mineral resource. Most projects at the inferred mineral resource stage do not ever achieve successful commercial production. Each stage of a project is contingent on the positive results of the previous stage and that there is a significant risk that the results may not support or justify moving to the next stage. Mineral resources which are not mineral reserves, do not have demonstrated economic viability.
About Teslin River Resources Corp.
Teslin River is an exploration company with interests in Nevada and British Columbia. The Company focuses on precious metals exploration with properties currently being explored in both Nevada and British Columbia. Existing properties include the Frasergold Project and Rand properties in British Columbia and the Mustang and Morningstar properties in Nevada.
ON BEHALF OF TESLIN RIVER RESOURCES CORP.
John Icke, Executive Chairman and Interim President and CEO
Statements in this release that are forward-looking statements, are subject to various risks and uncertainties concerning the specific factors identified in the Company's periodic filings with Canadian Securities Regulators. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drill results and other exploration data, the potential for delays in exploration or development activities, the geology, grade and continuity of mineral deposits, the possibility that future exploration, development or mining results will not be consistent with the Company's expectations, accidents, equipment breakdowns, title matters, labor disputes or other unanticipated difficulties with or interruptions in production and operations, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future, the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, regulatory restrictions, including environmental regulatory restrictions and liability, competition, loss of key employees, and other related risks and uncertainties. The Company undertakes no obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.
The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements. This news release does not constitute an offer to sell or the solicitation of any offer to buy nor will there be any sale of these securities in any province, state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such province, state or jurisdiction.
Neither 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.