Terra summary2011


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Great project summary for Terra Mining for 2011

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Terra summary2011

  1. 1.     2186  S.  Holly  St.,  Suite  104   1256  W  Elmira  Rd.   Denver,  CO  80222   Sandpoint,  ID  83864   Tel:  (720)  306-­‐8984   Tel:  (208)  265-­‐5858   Fax:  (720)  306-­‐8985 Fax:  (208)  265-­‐0238 Project Name: TerraTarget Type: High-grade gold system, Resource Definition Phase, Bulk Sampling Cash Flow Land Status: 100% International Tower Hill Mines Ltd (ITH). Property consists of 240 Alaska StateMining claims covering approximately 130 square kilometers (Figure 1). All Government permits andreclamation plans for continued exploration through 2014 were renewed in 2010. Terra Mining Corporation(TMC) has a signed a JV Agreement with ITH to earn 80% interest in the Terra Project through earn inexpenditures of $9,050,000 of work into the project over four years.Background: The Terra property is located between the Revelation and Terra Cotta mountains of the Alaska longitude. The camp is fullyequipped with a core facility, kitchen and tents to accommodate 20 people, including small bulldozer andwireless internet on site. The 800m gravel airstrip provides year-round aircraft access.A total of 32 diamond drill holes have been completed on the Terra property. The primary target covers a 5kmlong area with high-grade gold mineralization hosted in four vein zones (Fish, SD, Ice and Bens zones in Figure1). The vein systems appear to be intimately associated with the margins of Donlin Creek age diorite intrusions(67 Ma) and generally trend north to northwest. To date ITH has focused mainly on Bens Vein and a NI 43-101compliant resource model was created the first quarter of 2008. TMC updated the NI 43-101 Summary Reportfor the Terra Project in June 2010. Figure 1: Terraproperty illustratingtarget vein locations Page 1 of 4
  2. 2. In the Bens Vein system the main vein has a core zone of about 23 g/t gold at a 3 g/t cutoff which expandssignificantly when the cutoff is lowered to 1 g/t. Drilling on Bens Vein has outlined an open-ended mineralizedzone over 350m long and 350m down dip with an average true width of ~1.3m at an average grade of 23 g/tgold. Drilling on the project has identified numerous veins, which in total offer potential of greater than 1Mounces. Environmental baseline studies was started in 2010 on the Terra property in anticipation of futuredevelopment.History: Outcropping gold veins were first discovered at Terra in the late 1990s by Kennecott Exploration,who transferred ownership of 5 State of Alaska claims (800 acres) to one individual. AngloGold AshantiExploration (U.S.A.) Inc. acquired 100% of the Terra project in 2005 and conducted initial drill testing whichreturned encouraging results. ITH acquired the project in 2006 as part of a take-over of the AngloGoldexploration assets in Alaska. Drilling conducted by ITH in 2006 and 2007 outlined highly attractive high-gradegold vein systems, which has now moved to the initial stage of resource delineation, development andexpansion. TMC signed a Letter of Intent to acquire an 80% interest in the project in February 2010 and the JVAgreement was signed in September 2010.The Terra mineralization has been characterized as deep epithermal and could have significant extent down dipand along strike. Furthermore, there is potential to develop a number of continuous high-grade veins forming ahighly attractive mining target. Gold characterization work on Bens Vein indicates a very large percentage ofthe gold and silver reports to a gravity concentrate.The 2007 results for the Bens Area are encouraging not only because they outlined a consistent and wellmineralized main vein structure but also because a large number of well-mineralized subsidiary veins wereencountered. These subsidiary veins offer significant potential for expansion of the system with intercepts suchas holes TR-07-20 with new footwall zone of 0.6m @ 43.2 g/t gold and TR-07-22 with new hanging wall zone0.8m @ 14.5 g/t gold. From the data currently available it appears that a higher grade shoot is developingwithin the overall Bens Vein system which could form the nucleus for an initial mining target on the project.Preliminary cash models of a prospective deposit look highly positive.Opportunity: The Terra project has significant potential for not only the development of a large high-gradegold deposit but for near-term production through bulk sample mining and pilot milling. The excellent gravityrecovery characteristics of the ore (+75%), favorable mining configuration and the high-grade nature of thedeposit are all positives for near-term development of the initial ore zone while surface and underground coredrilling exploration is developing additional ounces. TMC has positioned the project for drilling of the existingvein systems to increase the gold resource, for near-term small-scale gold production transitioning to anticipated30,000 ounce per year gold mine operation.Data Available: TMC has the ITH surface and subsurface geochemical and geological database includinggeological mapping, gold characterization study, and structural interpretations as well as the KennecottExploration surface geochemical data and geological map. The 2008 State of Alaska airborne geophysical data. Page 2 of 4
  3. 3. Figure 2: Bens Vein long section showing drill interceptsand the most prospective area for mining based on these results Figure 3: Bens Vein visible gold Page 3 of 4
  4. 4. Terra Highlights NI 43-101 Technical Reports (TSX compliant 2010) 168,000 oz Au , 310,000 oz Ag (ITH NI 43-101) Au rich Bonanza Veins (75% free gold) Advanced project with operational revenue model near term 2011 drill program - Key personnel and equipment positioned Project potential to over a million oz Au Development Plan, Environmental Assessment and Permitting, in progress Significant exploration potential for additional resource Accredited management and directorship with proven track records Closely held capital structure with limited float Project ownership structure (TMC 80%) Mine friendly StateM oving Forward Identification of additional high grade veins within the structural zone to increase gold resource to million plus ounce potential Upgrade and increase the ITH NI 43-101 inferred 168,000 oz Au resource and advance project to a measured and indicated resource 2011 bulk sampling program with anticipated revenues Exploration for bulk mineable intrusive deposits Cash flow through bulk sampling transitioning to 30,000 ton per year mine operation For information, please contact: Greg Schifrin, President & CEO Tel: (208) 265-5858 Office Email: gschifrin@terraminingcorp.com Page 4 of 4