Teuton Resources Corp. announces that its optionee, Frontline Gold Corporation, has discovered a gold-bearing zone on the Company's Lord Nelson property, located south of Highway 37 some 20 miles east of Stewart, British Columbia in the Golden Triangle region of northwestern British Columbia.
One of the most promising zones discovered to date on the Lord Nelson property is the LNX, the footwall rocks of which contain rhyolite stratigraphy. Stream sediment, soil and rock samples were taken in 2012 from the vicinity of the LNX zone outlining an auriferous geological environment with a strike length of over 500m and featuring a multi-element signature (Au-Ag-As-Sb +/- Cd, Cu, Pb, Zn). The LNX zone is also associated with an AeroTEM airborne anomaly that has a greater than 2km strike length on the Lord Nelson property and remains untested by diamond drilling.
A 2013 follow-up drill program totaling 1 200m is recommended to test the LNX zone.
The newly discovered area lies to the north and along projected strike of the extensive gold and silver-bearing LG vein system hosted by the Del Norte-Midas property, owned by Teuton, Sabina Silver and Silver Grail Resources.
The 2012 program was carried out by Geofine Exploration Consultants Ltd. and was supervised by David Molloy, P. Geo., who is Frontline's Qualified Person for the purposes of National Instrument 43-101. Dino Cremonese, P.Eng., is Teuton's Qualified Person. He has not independently verified the data provided by Frontline Gold and its QP.
Frontline can earn a 100% interest in the Lord Nelson claims by paying $210,000 to Teuton over the five year term of the option. It must also perform $1,200,000 of exploration work over this period. Teuton retains a net smelter royalty of 2%, half of which can be purchased for $1,000,000. An advance royalty of $50,000 per year, indexed to inflation, is also payable to Teuton beginning in 2016.
Source: http://www.teuton.com/