Silver Grail Resources Ltd. (“Silver Grail”) (“SVG”–TSX-V; “KD7”-Frankurt) and Teuton Resources Corp. (“Teuton”) (“TUO”:TSX–V; “TFE”- Frankfurt)
are pleased to announce the discovery of bulk tonnage style gold mineralization in diamond drilling at the Midas property.The Midas property is located 30 km east of the deepwater port of Stewart, British Columbia.
Broad widths of gold mineralization were intersected in all three holes testing the 3 Oz vein zone. The best result was in
Hole SDN-06-02 which returned a wide interval of gold mineralization grading 2.52 g/t gold (0.07 oz/ton) over 32.4 meters. True width is estimated at 29.2 meters or 96 feet. Within this intersection, a sub-interval ran 26.77 g/t gold (0.78 oz per ton) over 0.7 meters.
“These are the first holes to test the 3 Oz vein area and with the success of this program we are very much looking forward to further drilling in 2007, particularly as
this zone is open in all directions,” stated D. Cremonese, P.Eng., President and CEO of Silver Grail and Teuton.
“We are especially intrigued by the potential for a bulk tonnage type gold deposit. Willoughby Creek, locally well-known as a rich, placer gold bearing stream, flows directly below the discovery. This new zone could well be one of the primary sources for gold in Willoughby Creek.”
Midas Property—
Stewart Eskay Creek Region The Midas property lies within the Stewart-Eskay Creek region of northwestern British Columbia, an area with a long mining history. Famous precious metal mines within the region include the formerly producing Premier mine and the currently producing Eskay Creek mine, the latter one of the highest-grade gold and silver mines in North America. Due to strong gold and silver prices, exploration in the region has quadrupled over the past four years. A significant portion of the $25+ million spent locally in 2006 was aimed at proving up bulk tonnage, low grade gold or gold-copper deposits. “These kinds of targets are much sought after right now in the Stewart region,” explains President D. Cremonese, P.Eng. “In 2006, Silver Standard carried out a major drill program at its Snowfield gold zone, and just recently announced a multi-million ounce gold resource grading 1.45 g/t gold at a 0.5 g/t cutoff. Pinnacle Mines and Mountain Boy Resources are also drilling off a bulk tonnage target at the Silver Coin-Kansas property about 20 km north of Stewart with an average grade of 1.6 g/t”.
Midas Drilling Complete results from the 4 holes drilled on the Midas property are as follows:
| Hole (SDN-) | Zone | From(meters) | To(meters) | Interval(meters) | Silver(g/t) | Gold(g/t) | TWF* |
| 06-01 | EM#1 | | | | | | NC** |
| 06-02 | 3 Oz | 78.33 | 126.01 | 47.68 | 10.4 | 1.77 | 0.90 |
| …including | | 92.05 | 124.45 | 32.40 | 12.5 | 2.52 | |
| …including | | 123.00 | 124.45 | 1.45 | 86.4 | 20.70 | |
| …including | | 123.00 | 123.70 | 0.70 | 92.7 | 26.77 | |
| 06-03 | 3 Oz | 75.29 | 153.60 | 79.24 | 2.6 | 0.68 | 0.74 |
| …including | | 108.81 | 153.60 | 44.79 | 4.1 | 0.97 | |
| …including | | 108.81 | 124.05 | 15.24 | 2.5 | 1.48 | |
| …including | | 122.53 | 124.05 | 1.52 | 2.4 | 4.30 | |
| 06-04 | 3 Oz | 85.50 | 243.68 | 158.18 | 3.5 | 0.44 | 0.54 |
| …including | | 135.94 | 242.50 | 106.56 | 4.9 | 0.61 | |
| …including | | 151.49 | 157.58 | 6.09 | 5.4 | 1.67 | |
*TWF True Width Factor 1 metre = 3.28 feet 1 g/t = 0.029 oz/ton
**NC Hole not completed; abandoned due to technical issues
The three holes drilled on the 3 Oz vein tested the vein/shear over a vertical difference of approximately 300 meters on one section (see Fig 1 & Fig 2).
The upper portion of this section between surface and the intersection in Hole SDN-06-02 represents an outstanding target for further drilling in 2007, the more so because surface samples indicate the potential for higher grades.Grab and chip samples have ranged from trace to 29.65 g/t (0.86 oz/ton) in gold, and float samples from trace to 102.8 g/t (3 oz/ton) gold.
The 3 Oz vein/shear lies within a northerly trending alteration zone marked by pronounced clay alteration with local areas of silicification. Host rocks include various pyroclastics with admixed epiclasts.
At present, geological mapping is too limited to trace the alteration zone conclusively but a series of linear magnetic lows, suggestive of the destruction of primary magnetic minerals, indicates a strike length of up to 2 km and more.