The Company would also like to note that some of the statements made in the press release dated November 30, 2012 were slightly different than stated in the Technical Report; therefore interested parties should reference the published NI 43-101 report directly. These differences are not material.
With respect to field activities, Teras has initiated an aggressive exploration and development program for the Cahuilla project in 2013. The Company has engaged Zonge International, Inc. of Reno, Nevada to conduct extensive geophysical surveys at Cahuilla with the following objectives. Primarily, the geophysical program is being designed to focus on identifying deeper high-grade feeder structures that may represent the source of the many surface high-grade veins and widespread disseminated precious metal mineralization. Zonge has been directly involved in discovering many of these higher-grade feeder zones or structures at other epithermal gold/silver deposits similar to Cahuilla.
Secondly, geophysics will be used to search for additional shallow disseminated gold/silver mineralization and high-grade vein targets that are located outside of the current mineral resource boundaries. Lastly, Teras will begin a comprehensive exploration program that will seek to find new targets that occur beneath shallow pediment cover, which is prevalent throughout the southern and eastern portions of the project.
Zonge is currently in the process of reinterpreting historical geophysical data with more modern, specialized evaluation techniques that should provide an excellent guide to the detailed planning and implementation of the new geophysical surveys that will begin later this month.
Drilling is scheduled to begin in the first quarter 2013 with purpose of expanding the current NI 43-101 resource and further identify high-grade precious metal zones. Drilling will initially be conducted on the northeast and southeast portions of the project area outside of the current resource. In these areas, wide-spaced historical drilling has returned anomalous to ore-grade gold values. Once the geophysical surveys are complete, drilling will be focused on testing potential high-grade feeder zones. Detailed mineralogical and structural investigations are also in progress.
In other news, Teras has relinquished the Spanish Canyon project in Nye County, Nevada to the underlying owner Mountain Gold Exploration, LLC. Spanish Canyon is a grass roots generative exploration project and the Company has elected to focus its efforts and expenditures on advancing its flagship Cahuilla project. Teras has made this decision based results received in December 2012 from the work performed in 2011 and 2012.
The Company has also leased its Golden Jubilee property in Madison County, Montana to the same company who purchased Teras' Watseca property. Teras will receive a 3% net smelter royalty on all ore produced from the Golden Jubilee once in production. The lessor has the option to purchase 2% of the royalty for a cash payment of $2 Million dollars. The lessor has a drill program planned for the spring of 2013. The lessor has a minimum work commitment of $50,000 per year to maintain the lease in good standing.
The scientific and technical information in this press release was prepared and approved by Dennis J. LaPoint, a Registered Member of SME, who is a Qualified Person under National Instrument 43-101 and a Director of Teras Resources Inc.
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