Tearlach and Stellar acquire Maying mining liTearlach and Stellar acquire Maying mining licence
Also Stellar Pacific Ventures Inc (C-SPX) News Release
Tearlach Resources Ltd TEA
Shares issued 10,273,470 Sep 14 2004 close $ 0.25
Wednesday September 15 2004 News Release
Mr. Malcolm Fraser of Tearlach Resources reports
TEARLACH RESOURCES LTD.: MAYING GOLD JOINT VENTURE, CHINA; TEARLACH UNDERTAKES A FINAL PHASE PREVIEW VISIT TO SET UP THE NEW JOINT VENTURE COMPANY WITH MAYING GOLD MINES IN CHINA.
Tearlach Resources Ltd.'s joint venture has made a visit to the Maying gold mine during the week of Aug. 24 to Sept. 2, 2004. The joint visit was done by the presidents of the joint venture parties, Malcolm Fraser, BSc, MA, LLB, president of Tearlach Resources, Michel Lemay, president of Stellar Pacific Ventures Inc., and Dr. Jacques Trottier, PhD, PGeo, director of Stellar Pacific.
Conclusions drawn from the trip were:
The granted mining licence, with an established 150-metric-tonne-per-day mill, allows the joint venture to recommence production immediately. Production from the mine and mill were suspended in late 2003, pending creation of the joint venture.
Previous government policy restricting gold exploration and development to government agencies and a significant prior military presence have, to date, effectively prevented systematic mineral exploration in the area.
The Little Quinling Mountain area, which includes the Maying permit area, is part of a gold-rich tectonic front traversing central China that meets proven geologic model criteria for gold and polymetallic mineralization.
Continuation of development of a 30-metre-wide gold-bearing shear zone up to 3.5 kilometres long within the Maying permit area will permit delineation of a mineral resource.
An on-site inspection was made of the Maying mill, mine site and the new South adit development, currently 100 metres long, being driven parallel in the footwall of a 30-metre-wide mineralized shear zone. The South adit shear zone appears to be the same structure currently being mined over the past five years by adjoining Shangguan gold mine (500 tonnes per day -- 2003 average grade 5.57 grams per tonne) and Ganshu gold mine (150 tonnes per day -- 2003 average recovered grade 4.76 grams per tonne) and traverses approximately 3.5 kilometres of the mining permit.
The size and continuity of the shear zone present an excellent exploration target for additional gold mineralization.
On the Maying and adjoining Ganshu and Shangguan properties approximately 17 mineralized fracture/shear zones have been identified. This zone, identified as No. 1 field, central section, as reported by Jacques Marchand, PGeo, PEng, qualified person for Stellar Pacific Ventures, Tearlach's joint venture partner, was evaluated by the Henan Geology and Mining Bureau to contain 172,736 tonnes with a grade of 6.08 grams per tonne of gold.
The Maying mine and 150-tonne flotation mill are currently on standby status pending transfer of the existing mining licence and two issued exploration licences into the name of the new Sino Canadian Joint Venture Corporation, which will be the Chinese operating entity.
The Maying mine and the South adit are located in the upper portion of a very large massive to amygdular andesite volcanic pile (greenstone), which extends more than 10 kilometres to the south. Mineralization observed in a four-kilometre development road traverse from the Maying mine to the South adit suggests the volcanic host rock is a subaerial extrusive event (shallow undersea, possible island-arc provenance), demonstrating a sulphide-rich system. Mineralization indicators suggest a suitable host environment for polymetallic massive sulphide emplacement, in addition to the structurally controlled gold mineralization.
An aggressive surface and underground exploration program is being developed for the next two years to run in parallel with a planned reactivation of the existing mill with a capacity upgrade. Development of the Maying mine and South adit locations are planned as sources of mill feed. The company has also concluded an agreement with Stellar Pacific Ventures to form an equal joint venture for the financing, development and management of the Sino Canadian Joint Venture Company, which will own the project (see news in Stockwatch dated Aug. 25, 2004).
The directors of Tearlach are very pleased to have Dr. Trottier with his extensive background in geology and mine development as part of the joint venture development team.
WARNING: The company relies upon litigation protection for "forward-looking" statements.