Terreno Resources Announces Exploration Program at the Las Cucharas Gold & Silver Project in Mexico

(TheNewswire)

Toronto, Canada / TheNewswire / May 10, 2018 - Terreno Resources Corp. (TSXV: TNO.H) (“ Terreno ” or the “ Company ”) George A. Brown, President & CEO, is pleased to announce that an exploration program commenced in March 2018 at the Las Cucharas Gold and Silver Project in Nayarit, Mexico. The project area covers 4,447 hectares in seventeen (17) concessions.

Las Cucharas represents a historic gold and silver mining area with well documented small-scale production from 1903 through 1961 of 3,000 kilograms of gold and 30,000 kilograms of silver (Vargas, 1994, COREMI Pub M-12e). It is located in the southern extreme of the mid-Tertiary Sierra Madre Occidental (SMO) volcanic belt, which hosts many of Mexico’s gold and silver deposits. These include the El Sauzal (over 1.7 million ounces of gold; source Goldcorp Inc. website), the Pinos Altos (1.3 million ounces of gold and 34 million ounces of silver; source Agnico Eagle Mines Limited website), the Metates (18.5 million ounces of gold and 526 million ounces of silver, reference Chesapeake Gold Corp. website), and the San Dimas (832 thousand ounces of gold and 61.8 million ounces of silver; source Primero Mining Corp. website, now First Majestic Silver Corp.).

Exploration work was carried out by Maverix Metals Inc. (formerly MacMillan Minerals Inc. and the predecessor company MacMillan Gold Corp.) between 2003 through 2012. This work succeeded in identifying fourteen mineralized zones over a north-west trending zone that is six kilometres in length, as well as several other showings outside of this main zone. Mineralization is characterized as volcanic-hosted, low-sulfidation, epithermal gold and silver in vein and shear structures, stockwork zones, and breccias. Classic low sulfidation textures are common, including banded quartz veins and breccias, as well as drusy, bladed, and chalcedonic quartz.

Maverix carried out several phases of surface and underground geological mapping, rock and soil sampling, trenching, local geophysics, and drilled approximately 2,190 metres in 15 exploration diamond drill holes. Some work highlights include:

• - Surface grab samples ranging up to 18 g/t Au and 807 g/t Ag in the Nuevo Cucharas/La Taverna Zone.

  - Underground channel samples ranging up to a weighted average of 3 g/t Au and 292 g/t Ag over 2 metre width and 71 metre strike length in the La Raizura underground working.

  - Exploration drill holes tested several of the known mineralized zones, and all but 3 of the holes returned significant gold and silver values. Several highlights reported by Maverix include the following:

These exploration results evaluated along with the historic production clearly demonstrates significant precious metal potential at Las Cucharas, and Terreno’s management is very pleased to be working on a project of this quality.

Confirmation samples collected at several of the main showings on the property during March of 2018 have returned very encouraging precious metal results. Grab samples were taken in both underground and surface exposures of known mineralized areas. Grab samples are not indicative of mineralized widths.

Highlights of 2018 sampling results include the following:

Terreno’s initial work program is focused on defining structural controls in the known precious metal areas and connecting mineralized zones into larger targets in preparation for diamond drilling. Given the very large exploration area, the main showings have been grouped into 5 main zones in order to focus more detailed work (please refer to the attached map).

The 5 zones are grouped as:

• - ZONE 1 – La Union – El Cardon – La Paloma – Los Gallos – La Guaca

  - ZONE 2 – Nuevo Cucharas/La Taverna – Jocuixtle – La Tlacuacha – La Italia

  - ZONE 3 – La Raizura – El Molino – La Azurita

  - ZONE 4 – Lajeños – Boyadero/Boyadero Norte – El Doctor/Mamalin

  - ZONE 5 – Los Llanitos – El Trompo – Varas Blancas

Company geologists are currently:

a.) Compiling all existing geological, geochemical, and geophysical data from the project;

b.) Conducting detailed 1:1000 scale geological mapping both on surface and in underground workings where available, with an emphasis on structural interpretation and defining continuity of mineralized structures;

c.) Producing a property-wide geological interpretation and model of the structures and mineralization;

d.) Defining the desired trenching and drilling locations in order to expedite the environmental permitting process.

Once environmentally permitted, the exploration program will have two phases. The first phase will consist of mechanical trenching, mapping and sampling. The objective is to help define continuity of the mineralized structures and to connect the known mineralized areas into larger drill targets.

The second phase will consist of exploration diamond drilling targeted based on compiled results of the mapping, sampling, and geological modeling.

Review of the historical work and the initial property assessment has been carried out by Mr. Cary Pothorin, P.Geo., Vice President of Exploration for Terreno Resources Corporation, and a Qualified Person (“QP”) as defined by National Instrument 43-101. Mr. Pothorin, as QP, has prepared, supervised the preparation of, or approved the scientific technical disclosure in this news release.

Mr. Pothorin is a professional geologist in good standing with the Association of Professional Engineers and Geologists of British Columbia. Mr. Pothorin has a B.Sc. with Specialization in Geology from the University of Alberta and a Business Administration Diploma from Camosun College in Victoria, B.C. and is fluent in Spanish with over 25 years of work experience throughout the Americas.

Quality Control and Assays

Rock samples were collected using industry standard documentation including sample location, type, width, and description. Samples were delivered to Bureau Veritas/Inspectorate Laboratories in Durango, Mexico for preliminary sample preparation consisting of crushing, pulverizing, and splitting, and then forwarded to Hermosillo, Mexico, and/or Vancouver, Canada for analysis. Analyses are done for gold (30 gram fire assay with an ICP finish); and 35-element ICP analyses. Samples with values over 10 g/t gold and 100 g/t silver are reanalyzed with a gravimetric finish. Bureau Veritas/Inspectorate is an ISO 9001 certified laboratory facility.  

Mr. George A. Brown, President & CEO states: “We are very proud to have Cary leading our exploration efforts in Mexico and we are already seeing very encouraging exploration results from what will become a thorough and extensive exploration program. I have always felt that the Las Cucharas Project has high potential for hosting significant gold and silver mineralization and I feel fortunate to have been able to acquire the project to pursue the potential that I was not able to pursue due to lack of financial resources when the project was held by Maverix.”

Additional information on the Company can be viewed at  www.sedar.com

For additional information, contact: Tel: (905) 467-1109

Email: georgeabrown0955@gmail.com

Suite 1102, 44 Victoria Street, Toronto, Ontario M5C 1Y2

Neither The TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of Terreno’s securities in the United States. None of the securities have been and will not be registered under the United States Securities Act of 1933, as amended (the “1933 Act”), or any state securities laws and may not be offered or sold within the United States or to U.S. persons unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration is available. Any public offering of securities in the United States must be made by means of a prospectus that contains detailed information about Terreno and its management, as well as financial statements.

This release may contain certain “forward looking statements” and certain “forward-looking information” as defined under applicable Canadian and U.S. securities laws. Forward-looking statements and information can generally be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “continue”, “plans” or similar terminology. Forward-looking statements and information include, but are not limited to, statements with respect to the transactions contemplated, any requisite regulatory approvals in respect thereof and proposed future transactions Terreno may undertake and their expected timing. Forward-looking statements and information are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that, while believed by management to be reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Forward-looking statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of Terreno to control or predict. Terreno 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.

Concession map of the Las Cucharas Gold and Silver Project indicating exploration priority zones 1 through 5.

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