VANCOUVER, BRITISH COLUMBIA--(Marketwire -11/22/11)- Teslin River Resources Corp. (TSX-V: TLR.V - News) ("Teslin" or the "Company") is pleased to announce that it has signed a definitive agreement with Eureka Resources (TSX-V: EUK.V - News) to acquire up to a 75% interest in the Frasergold Project, located 100 km east of Williams Lake in the Cariboo area of central British Columbia.
Under the terms of a binding Letter of Understanding, Teslin completed a preliminary soil geochemical program to evaluate the potential of extending the existing historic resource to the southeast. An audit of the historic resource leading to a Preliminary Economic Assessment (PEA) has now commenced and is to be completed during the first quarter of 2012. This work is being done by Roscoe Postle Associates Inc.
"We are very pleased to have completed the agreement with Eureka and are working diligently to complete the evaluation of soil sampling work recently completed at Frasergold," said John Burgess, President and CEO of Teslin. "Frasergold brings a pre-development project into our portfolio to complement our early stage exploration projects."
The Frasergold Project has a prior NI 43-101 compliant resource 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. Historical expenditures on the property total $16 million, which include 450 drill holes totaling 50,000 meters and a 300 meter long underground tunnel. The data from these various programs is well-documented. Details of the resource are as follows:
Au Cut-off 0.30g/t
------------------ Grade Gold Content
Class Million Tonnes Au (g/t) Grams Au Ounces Au
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Measured 11.47 0.595 6,800,000 216,000
Indicated 22.61 0.540 12,200,000 392,000
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M + I 34.08 0.559 19,100,000 614,000
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Inferred 75.31 0.507 38,100,000 1,225,000
Au Cut-off 0.50g/t
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Measured 5.60 0.812 4,500,000 145,000
Indicated 9.57 0.755 7,200,000 231,000
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M + I 15.17 0.776 11,800,000 329,000
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Inferred 27.49 0.718 19,700,000 634,000
Note: 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.
Under the terms of the agreement, Teslin has the right to earn a 51% interest by spending $3,550,000 on the property and providing payments to Eureka totaling $200,000 over a 3 year period. An additional 24% interest (totaling 75%) can be earned by completing a feasibility study.
The Company also announces that effective November 21, 2011 it has engaged the services of Freeform Communications Inc. to provide investor relation services for the Company thereby replacing Nicola Street Capital. The Company would like to thank Nicola Street for their services.
Established in 1992, Freeform Communications Inc. is a full service Investor Relations Firm based in Vancouver, British Columbia. With over 40 years of combined experience, specializing in a full range of investor relation and capital market services, Freeform has represented a wide array of public and private clients and has assisted each in attaining their targeted goals including the raising of capital and broadening their shareholder base.
Under the terms of the Company's agreement with Freeform, Freeform will be paid a fee of $8,500 per month over a three month term. Freeform will be granted options to purchase 250,000 common shares of the Company exercisable for a period of five years from the date of issuance (the "Options") at a price equal to the market price of the Company's shares on November 24, 2011. The Options will vest over an 12-month period.
The Agreement between the Company and Freeform is automatically renewable for a one year term and can be terminated by either party on 30 days written notice. The agreement between the Company and Freeform and the grant of the Options are subject to regulatory approval. Freeform does not currently have any interest, directly or indirectly, in the Company or its securities, or any right or intent to acquire such an interest.
About Teslin River Resources Corp.
Teslin River is an early stage exploration company with interests in Nevada and British Columbia. The Company intends to focus on precious metals exploration with new properties currently being sought in both Nevada and British Columbia. Existing properties include the newly acquired Mustang and Morningstar projects. The acquisitions and work programs have been led by John R. Kerr P. Eng., who has over 45 years of experience in the mineral exploration industry.
John R. Kerr P. Eng. 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.
ON BEHALF OF THE BOARD
John Burgess, President and CEO
For further information on the Company and its projects please visit our web site at: www.teslin-river.com.
Forward-Looking Statements
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.
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.
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