GOLD PORPHYRY SYSTEM DISCOVERED AT KREMICE PROJECT IN SERBIA

GOLD PORPHYRY SYSTEM DISCOVERED AT KREMICE PROJECT IN SERBIA

 

October 9, 2019 – Vancouver, Canada – Tethyan Resource Corp. (TSX-V: TETH) (“Tethyan” or the “Company”) is pleased to report the discovery of an outcropping gold porphyry system on the western side of the Kremice project, southwestern Serbia (Figures 1 and 2). Kremice is located 10 kilometres to the north of the Rudnica copper-gold project, and within two kilometres of a paved road, rail and power lines, and water supply. Channel sampling of a large area of exposed stockwork veining at Kremice West returned consistent mineralization, with individual samples grading up to 0.68 grams per tonne (“g/t”) gold and 0.21% copper. Tethyan has completed two scout drill holes for a total of 680 metres and is continuing surface mapping and sampling in order to vector towards higher grades.

Highlights

  • Significant channel sample results from Kremice West are summarized below and the full results are shown in Table 1. Channel locations are shown in Figure 3:

         25 metres at 0.40 g/t gold (KCH010)

         10 metres at 0.49 g/t gold (KCH009)

          18 metres at 0.34 g/t gold (KCH007)

  • Channel sampling of outcropping mineralization at Kremice West returned grades of more than 0.1 g/t gold over a 450 metre by 350 metre area, with a core grading more than 0.3 g/t gold over a 125 metre by 100 metre area that is open to the southeast, coincident with a broad gold-molybdenum soil anomaly and mapped porphyry intrusions (Figures 2 and 3).
  • Modelling of the geochemical footprint by Fathom Geophysics indicates the presence of a near-surface porphyry target which is 750 metres by 500 metres wide (Figures 4 and 5).
  • Initial drilling intersected a series of gold mineralized porphyry intrusions, returning a best interval of 71.2 metres at 0.27 g/t gold from surface.
  • Related epithermal gold-silver mineralization has been identified at Kremice East, where soil sampling has revealed coincident gold-silver-antimony anomalies of up to 1.37 g/t gold and 8.39 g/t silver, and historical reports note mining of high-grade copper-rich veins in the early 1900s; further mapping and sampling is underway (Figure 2).

Fabian Baker, President and Chief Executive Officer, commented, “The discovery of gold porphyry mineralization at Kremice West is an exciting development for Tethyan and provides us with a high-quality exploration target. The outcrop of porphyry stockwork veining and potassic alteration was identified by our geologists in the same location as predicted by the Fathom model, which gives us additional confidence in targeting the core of the system. Porphyry expert, Dr. Steve Garwin, reviewed the project in June, confirmed the porphyry characteristics of the deposit and recommended that we proceed immediately with drilling. This discovery is a testament to the untested potential of our consolidated land package in the Raska District.”

Kremice West

The mineralization identified to date outcrops over an area of 450 metres by 350 metres, grading more than 0.1 g/t gold, with a core grading more than 0.3 g/t gold over an area of 125 metres by 100 metres that is open to the southeast. The outcropping gold mineralization is observed within a larger soil anomaly comprising strongly anomalous gold and pathfinder elements over a northwest-trending area of 1,200 metres by 600 metres, coincident with mapped diorite porphyry intrusions.

The drill target was identified by detailed mapping and channel sampling. Gold mineralization is associated with porphyry-related stockwork quartz-magnetite-pyrite veins hosted in a diorite porphyry stock with magnetite-secondary K-feldspar-leucoxene-biotite alteration, overprinted by quartz-sericite-pyrite alteration and surrounded by an outer propylitic halo (actinolite-epidote-chlorite-calcite-sericite).

There is a positive correlation between gold grade and porphyry-style (“A+B type”) vein abundance which provides a primary vector to mineralization. Porphyry style stockwork veins are coincident with a northwest-trending, steep magnetic gradient and gold-molybdenum soil anomaly (Figures 2 and 3).

Tethyan engaged Fathom Geophysics to conduct 3D geochemical modelling, 3D magnetic data inversion and structural detection using the magnetic data (Figures 4 and 5). Analysis of the Kremice data indicate the presence of a potential porphyry core between 150 metres and 700 metres below the outcropping mineralization, with lateral dimensions of 750 metres by 500 metres. Major northwest-trending structures with minor northeast-trending cross structures were identified and correlate with mapped geology. The main body of mineralization is situated within a northwest-trending structural corridor coincident with the geochemical anomaly, and this corridor will be the focus of future exploration work.

Tethyan’s geologists are extending the area of mapping and sampling towards the southeast where extensions of the soil anomaly and coincident Fathom target have not yet been explored. Photos of rock, alteration and mineralization types at Kremice West are shown in Figure 6.

Kremice East

A recent soil sampling program at Kremice East has defined a 1,000 metre by 200 metre coincident gold-silver-antimony anomaly occurring at the contact between granodiorite and serpentinite. High-grade soil samples within the anomaly have returned values up to 1.37 g/t gold and 8.39 g/t silver. Historic pits and adits in the area targeted narrow, high-grade polymetallic epithermal veins. Epithermal veins, such as these, are typically situated at a higher formational level than porphyries in a mineralizing system. A ground magnetic survey and detailed mapping are currently underway to support drill target definition.

Geochemical Footprint Modelling at Kremice

Fathom Geophysics has developed a proprietary algorithm that models the spatial distribution of trace elements in an exploration project dataset and compares the results with the ‘ideal’ chemical footprint of a porphyry deposit. The strength of similarity between the exploration project data and ‘ideal’ porphyry model is used to create 3D volumes which represent the probability of porphyry mineralization. More information is available on the Fathom Geophysics website at http://www.fathomgeophysics.com/geochemfootprint.html.

 

Figure 1: Tethyan’s Exploration Licences and Key Exploration Projects in the Raska District of Southwest Serbia

 

Figure 2: Kremice Project Showing Kremice West and Kremice East, and Simplified Geology Overlain by Ground Magnetics and Soil Sampling Results

 

Figure 3: Detailed Geology of the Kremice West Gold Porphyry Project Showing the Results of Recent Channel Sampling Which Define a 450 Metre by 350 Metre Zone of Gold Mineralization Grading More Than 0.1 g/t Gold

 

Figure 4: Porphyry Target and Structures at Kremice Interpreted from Geochemical and Ground Magnetics Data by Fathom Geophysics

 

Figure 5: Cross Section A-A’ at Kremice West (Refer to Figure 4) Showing a Porphyry Target Based on Analysis of Soil Geochemistry, and Location of Scout Drill Holes

 

Figure 6: Photos of Rock, Alteration and Mineralization Types at Kremice West

 

Table 1: Complete Results of Channel Sampling at Kremice West

Notes:

  1. Intervals were calculated using a 0.1 g/t gold cutoff with a maximum of 10 metres consecutive internal dilution.
  2. The true thickness of mineralized zones is estimated to vary between 70% and 100% of apparent width. Due to currently limited outcrop, early stage of exploration and variable geometry of the mineralization, the Company is currently unable to estimate true widths accurately.

 

Table 2: Kremice West Channel Sample Location Data

 

Table 3: Kremice West Drill Collar Data

 

Table 4: Significant Drilling Results from Kremice West

Notes:

  1. Intervals were calculated using a 0.1 g/t gold cutoff with a maximum of 10 metres consecutive internal dilution.
  2. The true thickness of mineralized zones is estimated to vary between 70% and 100% of apparent width. Due to currently limited outcrop, early stage of exploration and variable geometry of the mineralization, the Company is currently unable to estimate true widths accurately.

 

About Tethyan Resource Corp.

Tethyan Resource Corp., a member of the Augusta Group of Companies, is a precious and base metals mineral exploration company incorporated in British Columbia, Canada, and listed on the TSX Venture Exchange. Tethyan is focused on the Tethyan Metallogenic Belt in Eastern Europe, mainly Serbia, where it is acquiring and exploring a portfolio of quality precious and base metals projects with known mineralization and compelling drill targets. Tethyan emphasizes responsible engagement with local communities and stakeholders, and is committed to the proactive implementation of Good International Industry Practice (GIIP) and sustainable health, safety and environmental management. More information can be found on Tethyan’s website:    www.tethyan-resources.com.

Sampling Methodology and Quality Assurance and Quality Control

The channel sampling protocol is managed by Tethyan under the supervision of Andrew Tunningley, MAusIMM(CP), Tethyan’s Exploration Manager. The samples were taken by chisel and hammer in continuous horizontal lines. Typically samples were collected in 2 metre lengths, however this may be reduced to 0.5 metres where lithological or significant mineralogical changes were observed in order to accurately reflect the apparent width of mineralization. Typical sample weights were 1 kg per metre. Samples were collected in cotton bags and given a unique reference number.

Tethyan follows industry best practise for its geochemical sampling programmes. Samples were delivered by Tethyan personnel directly to the ALS Chemex preparation laboratory in Bor, Serbia. Rock and channel samples were submitted for gold and multi-element analysis using analytical method codes Au-AA23 (30 g fire assay with AAS finish) and ME-ICP61 (33 element four acid ICP-AES). Samples were submitted in batches of 40, including three external control samples (blank, certified reference material, and duplicates). ALS Chemex also employed their own internal QAQC and control sampling.

Qualified Person

The technical information in this news release has been reviewed and approved by Tethyan’s Exploration Manager, Andrew Tunningley, MAusIMM(CP), who is a Qualified Person as defined by National Instrument 43-101.

Contact

Fabian Baker, President and Chief Executive Officer

+011 44 1534 881 885 | fabian@tethyan-resources.com

Jacqueline Allison, Vice President, Investor Relations and Strategic Analysis

+1 416 366 5678 Ext. 205 | jacqueline@tethyan-resources.com

TSX Venture Exchange Disclaimer

Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

Certain information contained herein constitutes “forward-looking information” under Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the exploration program. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “expected”, “intends”, “will be”, “look forward”, “looks” or variations of such words and phrases or statements that certain actions, events or results “will” occur. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Tethyan to be materially different from those expressed or implied by such forward-looking statements or forward-looking information, including: the receipt of all necessary regulatory approvals; the size of the exploration program; capital expenditures and other costs; and additional capital requirements. Although management of Tethyan has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Tethyan will not update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws.