LAVAL, CANADA--(Marketwired - May 8, 2013) - TYPHOON EXPLORATION INC. ("Typhoon") (TSX VENTURE:TYP) entered into a joint venture, in 2010, with Aurizon Mines Ltd., ("Aurizon") for the development of the Fayolle Project, located only 10 kilometres north of Aurizon's Joanna Project, in Quebec. The Fayolle Property comprises 39 mining claims, 100%-owned by Typhoon, covering 1,373 hectares across the Porcupine-Destor Fault, one of the most productive gold bearing structures of the Abitibi Belt.
The mineralized zones on the Fayolle Deposit are distributed along a major shear corridor of approximately 2.5 kilometres long by 1 kilometre wide.
TERMS OF THE AGREEMENT SIGNED IN MAY 2010
Aurizon has provided input on exploration programs as part of the joint venture option agreement and may become the project's operator if the initial 50% interest has been earned. During the course of the initial four year term, Aurizon will incur CAD$10,000,000 in exploration expenditures, and have the right to subscribe for common shares of Typhoon up to CAD$500,000 on each anniversary of the option agreement, for a total investment of up to CAD$2,000,000.
As part of the joint venture option agreement, Aurizon may earn an additional 15% to earn 65% by either completing a bankable feasibility study on the project or by spending a further CAD$15,000,000 within a two-year period (after earning its initial 50% interest in the project), for a total investment of CAD$27,000,000.
To date, a total of CAD$9,000,000 has been incurred on the property since the agreement effective date. During the same period, Aurizon has invested CAD$1,500,000 in common shares of Typhoon.
- First subscription of CAD$500,000, completed in June 2010, for 609,756 shares at a unit price of $0.82 per share.
- Second subscription of CAD$500,000, completed in June 2011, for 633,905 shares at a unit price of $0.79 per share.
- Third subscription of CAD$500,000, completed in June 2012, for 1,923,077 shares at a unit price of $0.26 per share.
The value of Typhoon's shares for the fourth and final subscription, scheduled for June 10th, 2013, will be based on the volume-weighted average trading price per share on the TSX Venture Exchange during the 15 day period ending on the third business day before the date on which shares are to be purchased by Aurizon, which will be June 9th, 2013.
UPDATED MINERAL RESOURCE ESTIMATE SUMMARY
The updated mineral resource estimate integrates the results of all the drill programs on the Fayolle Deposit since the mineral resource estimate prepared for Typhoon Exploration Inc. in 2007. (See press release dated January 19, 2007)
The updated mineral resources are estimated at 1,814,800 tonnes at 2.7 grams of gold per tonne, or 156,000 ounces of gold at a minimum cut-off grade of 0.8 grams of gold per tonne. All of the updated mineral resources are in the indicated mineral resource category. (See press release dated September 6, 2012)
Preliminary metallurgical testwork indicates a process recovery between 94% and 97% with straight cyanidation. On the environmental side, testing done on two composites samples suggests that acid generation is highly unlikely to occur from these samples considering the high carbonate/low sulphur content profile of both types of mineralized rocks.
The following table represents results at additional cut-off grades for comparison purposes (cut-off grades are based on the market conditions: gold price, exchange rates and mining costs).
Table 1: Fayolle Deposit 2012 Mineral Resource Estimate
Indicated Mineral Resources- as at September 2012 (1)
|Grade Cut-off |
The drill program completed to date has focused on obtaining information inside the Fayolle Zone down to a depth of about 250 metres, and laterally along 200 metres. The new updated mineral resource estimate indicates the potential to delineate mineralization at a grade above 5 grams of gold per tonne using a tight drilling pattern and using two different orientations.
Efforts have been made over the last years to test the mineralized system influence outside the Fayolle Zone with 41 drillholes completed at a 100 to 150 metre-wide spacing along a 2 kilometres long trend. Mineralized intersections, in the range of 1 to 8 grams per tonne over a thickness between 3 to 10 metres, have identified different parallel gold bearing structures located a few hundred metres south of the Fayolle Zone.
The exploration drilling approach used a 150 metres spacing and appropriate orientation to intersect targets inside four (4) parallel trends named the Vang Trend, Vang Extension, Paré Trend and the Fayolle Extension, forming a 500 metre wide and 2 kilometre long favorable corridor.
Grades in the range of 1 to 5 grams of gold per tonne over core length of 5 to 21 metres have been obtained in 10 drillholes at vertical depth ranging between a few tens of metres down to 350 metres. A local coarse gold occurrence returning 1,480 grams of gold per tonne over a length of 1 metre has been intersected 700 metres east of the Fayolle Deposit. All these targets require a detailed geological interpretation before being followed up by further drilling.
The Board of Directors has approved, on Friday April 12th, 2013, a grant of 650,000 stock options to its directors, employees and consultants, at the exercise price of $0.105 per share, under the company's Stock Option Plan.
For further information on the updated resource estimate as well as on the preliminary economic assessment study, please view the news releases dated September 6th, 2012 and April 9th, 2013 on our website at: http://www.explorationtyphon.com/exploration.php?content=Press-Release&lang=enCA
ABOUT TYPHOON EXPLORATION INC.
- Typhoon Exploration Inc. has a cash position of $3,079,654, representing $0.13 per share.
- Typhoon Exploration Inc. holds only 24,101,235 shares outstanding.
- The Fayolle Property offers the company the potential to host important gold resources.
THE COMPANY OWNS THE FOLLOWING PROJECTS:
- Fayolle Project, 100%-owned by Typhoon Exploration Inc. / Rouyn-Noranda region
- (See agreement with Aurizon Mines Ltd. in press release dated May 18, 2010)
- (See agreement with Aurizon Mines Ltd. in press release dated May 18, 2010)
- Faille 1 Project, 100%-owned by Typhoon Exploration Inc. / Rouyn-Noranda region
- Monexco Project, 100%-owned by Typhoon Exploration Inc. / Chibougamau region, in the heart of Plan Nord territory
- Nordair Project, 100%-owned by Typhoon Exploration Inc. / James Bay region, in the heart of Plan Nord territory
- Aiguebelle-Goldfields Project, 51%-owned by Typhoon and 49%-owned by Agnico-Eagle Mines Limited / Rouyn-Noranda region
- Destorbelle Project, 50%-owned by Typhoon and 50%-owned by Diamond Frank Exploration Inc. / Rouyn-Noranda region
Mr. Daniel Gaudreault, ing. (OIQ No. 39834), of Géologica Groupe-Conseil, is the Qualified Person as defined by NI 43-101, to supervise the preparation of this press release.
The common shares of Typhoon Exploration Inc. are listed on the TSX Venture Exchange under the symbol "TYP".
This news release contains statements that constitute "forward-looking information" or "forward-looking statements" within the meaning of applicable securities legislation. This forward-looking information is subject to numerous risks and uncertainties, certain of which are beyond the control of Typhoon. Actual results or achievements may differ materially from those expressed in, or implied by, this forward-looking information. No assurance can be given that any events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits that Typhoon will derive therefrom. Forward-looking information is based on the estimates and opinions of Typhoon at the time the information is released and Typhoon does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.