10,000 Metres of Drilling Recommended for Treaty Creek Property

VANCOUVER, BC -- (Marketwire) -- 02/08/11 -- Teuton Resources Corp. ('Teuton') ('TUO'-TSX-
V) ('TFE'-Frankfurt) announces that it has recently received a copy of a summary
report on the Treaty Creek property, dated May 31, 2010, from American Creek
Resources. The report is written by Raul Sanabria Orellana, P. Geo., previously
Vice-President of Exploration for American Creek, who notes that both the GR2
and Copper Belle mineralized zones remain open in several directions. Excerpts
from the report are reproduced below in which Mr. Orellana recommends 9,000 to
11,000 metres of additional drilling work for these zones:
'The GR2 zone hosts the potential of a volcanogenic massive sulphide (VMS)
deposit with high gold and silver grades. The identified feeder (sulphide-rich
stringer zone) in a strongly phyllic altered rock and the bedded sulphides in
turbiditic carbonaceous mudstone, along with coarse grained sulphides in a
massive sulphide lens, appears to be either the proximal zone of the sulphide
vent, or a deep low-sulphidation epithermal system, and indicates the great
potential of this newly geologically interpreted area. The sulphide lens
interpreted from 4 subparallel drill sections perpendicular to the strike of the
mineralized zone, and 3 additional offset drillholes, appears to thicken towards
the southwest. The same thickening occurs in the turbiditic sequence hosting
the bedded sulphides. Gold values apparently increase towards the north,
opposite to the sulphide rich zones, where sulphide content is increasing
towards the south. Drilling the GR2 target along strike, stepping back from the
known mineralization towards the northeast around hole GR2-09-07 and southwest
following up with the sulphide rich zones found around hole GR2-09-11, will test
the potential for the mineralization found at depth and along strike. A
4,000-5,000 metre drill program with less than 50 metre spacing between holes
stepping back from the initial 2007 drillholes is recommended to test the
continuity of the precious and base metal mineralization while continuing
defining the ore bodies.
Drilling the Copper Belle target is recommended towards the west where the
volcanic breccias are found. Copper Belle hosts the potential of a low-grade,
bulk-tonnage gold-(copper-molybdenum) porphyry style of mineralization.
Correlation between drillholes and surface is possible with a high grade of
confidence and gold and base metal grades combined are in the range for a bulk
tonnage deposit according to the current market conditions. A drill program of
5,000-6,000 metres, stepping back towards the west from the 2009 drill pads and
with 75-100 metre spacing can be done in the higher grade zones for the purpose
of better confidence in correlation between holes.
The various mineral zones explored during the 2009 program are described in the
report as follows:
GR2 Zone - 'The GR2 target is located in the vicinity of the Copper Belle, at
higher topographic and stratigraphic level. Marked structural and lithological
control, textures in sulphide mineralization as well as very elevated
concentration of pathfinder elements such as arsenic, antimony and manganese
values indicates an epithermal system with features of the feeder zone of a
Volcanogenic Massive Sulphides (VMS) style of mineralization. Three styles of
mineralization have been interpreted in core. Stringers and veins composed
chiefly of quartz and pink manganoan dolomite/rhodocrosite, and minor galena,
sphalerite and chalcopyrite. These veins show breccia and crustiform textures,
typical of deep, low-sulphidation epithermal mineralization, or a combination of
both. The second style of mineralization is found as well bedded sulphides
(pyrite) in black mudstones of turbiditic origin, which indicates the presence
of exhalative sulphides and a reduced basin where deposition and preservation of
sulphides exist. The third style of mineralization is found as a zone of coarse
grained sulphides, locally up to 20m thick, showing intensive silicification.
The stratabound character of the zone indicates a possible lens of massive
sulphide proximal to the venting zone, and not sinter as is typical of other
epithermal systems. Elevated grades of gold and silver correlate with zinc and
lead (sphalerite, galena and lead sulphosalts) in these zones, whereas gold is
more commonly found in the fossilferous black mudstones-siltstones of turbiditic
origin. Sulphide rich zones are characterized by the presence of massive galena
and sphalerite, generally very corase grained, with variable amounts of silver
sulphosalts and finely disseminated chalcopyrite. Pyrite is conspicuous within
the phyllic (sericite-carbonate) altered host rock. The mineralized lenses and
stringer-vein zones strike roughly northeast and dip steeply to the northwest.'
Hole GR2-09-07 intersected 14.5 metres @ 5.44g/t gold (including several high
grade intervals within it: 1.50 metres @ 17.29 g/t Au that includes 0.40 metres
@ 27.50 g/t Au).
Copper Belle Zone -- 'The Copper Belle target was drilled in 2007 and followed
up during the 2009 season along strike toward the southwest, parallel to the
surface alteration (gossanous) zone. The Goat Trail zone was drilled between
the 2007 drill pad and the historic 1989 drillholes. The sulphide and gold rich
areas are found on surface and at depth and trend roughly NE, dipping steeply to
the NW. Several NE-SW fault zones offset the mineralized zones. The best and
more consistent gold values are found in chlorite-sericite-pyrite altered
volcanic breccias. Lower and more discontinuous gold values are found in
feldspathic sandstones interbedded with pink and green chlorite and K-Feldspar
altered andesitic ash tuffs, similar to the surface outcrops in the Goat Trail
gossan. The volcanic breccias are found to the west of a regional NE-SW fault
zone, and are hosting the bulk of the gold mineralization in the Copper Belle
zone. Copper values are also elevated in this host rock.
During the 2009 season, hole CB-09-14, the most northwesterly hole drilled on
this zone to date, returned 241 metres of 0.80 g/t gold and ended in
mineralization.'
Eureka Zone - 'A large AeroTEM airborne anomaly shows evidence of a porphyry
style mineralization with epithermal overprinting. The AeroTEM airborne survey
indicates that the anomaly is located just beneath the main gossan in the Treaty
Nunatak. Sulphide enrichment at depth and towards the center of the anomaly
found in drill core and the lack of base metals in soils may indicate surface
leaching and presence of the sulphide mineralization at depth (porphyry style
with high grade Au-Ag epithermal overprinting). '
Treaty Ridge Zone - 'The Treaty Ridge zone is a new target located in the
eastern part of the property. It is characterized by the presence of a strong
EM conductor in a mudstone formation on top of a bimodal volcanic sequence
comprised of basalts and dacite-rhyolite (Mount Dilworth Formation) rocks of
submarine origin. Drainages from this unit reported strong values of zinc and
silver in silt samples. The age of the unit is coincident with the age of the
nearby Eskay Creek deposit.
The holes were collared stratigraphically above the mentioned mudstone formation
and stopped in the rhyolite-dacite formation. Although no significant gold or
silver intersections were encountered in the 2009 drilling, all three holes
intersected several tens of metres of pyritic mudstones, appearing as thin beds
of detrital pyrite, presumably of turbiditic origin. In the lower part of the
holes, the beds also included very fine tuffaceous sandstone beds (pyjama beds)
grading from cherty-pebble conglomerates immediately below. The Treaty Ridge
will continue to be an area of focus in future exploration.'
The Qualified Person for the purposes of this news release is D. Cremonese,
P.Eng. Mr. Cremonese has not independently verified the American Creek/Raul
Orellana data.
Dino Cremonese, P.Eng.'
President
Teuton Resources Corp.
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