FYI Roulston thinks the Yellowknife Gold Trend is a hidden treasure. TerraX is located close to Yellowknife and he discusses the Con and Giant Mines, the history of the area, and the prospects of this particular company. Ike

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TerraX Resources (TXR.V)

TerraX has confirmed multiple gold discoveries in a prolific gold trend in northern Canada. Located in a trend with two multi-million ounce deposits, those finds are extremely significant. Drilling over the next few months will further validate the known occurrences and will test a number of other highly prospective zones.

Earlier this year, TerraX acquired a substantial property position along the Yellowknife gold trend in the southern part of the Northwest Territories. That property was last explored in the 1990s. The TerraX discoveries (and rediscoveries) are the result of evaluating decades of historic work.

The Yellowknife gold trend includes the Con mine which produced 5.5 million ounces. It was operated by the major mining company Cominco from 1938 to 1986 and then by small companies until 2003. The Giant mine was operated by a unit of another major – Falconbridge – from 1948 to 1986 and then by small companies until 2004. The Giant mine produced 7.6 million ounces. Both mines were high-grade operations, averaging around 11 grams per tonne.

For a variety of reasons, the district saw little exploration activity since the mid-1990s and was virtually ignored after the two mines closed. Even while the mines operated, the district was never thoroughly explored.

The enormous potential of the district was recognized by the TerraX geological team. They were familiar with the potential of the geological setting, and had made an important discovery in a similar setting. The historic work in the Yellowknife district made it abundantly clear that this district hosts a lot of gold. TerraX acquired the Northbelt property as soon as it became available.

Dr. Tom Setterfield, vp exploration, has over 30 years of international exploration experience across a range of deposit types. He holds a PhD in geology from Cambridge University (England) and has worked in several countries. He was vp exploration for Monster Copper Corporation from its inception until its takeover by Mega Uranium Ltd in 2007.

Joseph Campbell, president, is also a professional geologist with 30 years of successful exploration experience, including exploration and management of advanced mine development projects and economic feasibility studies. He was involved in the discovery of a 5 million ounce resource at Meliadine in Nunavut (now owned by gold producer Agnico-Eagle) which he managed through to feasibility.

The Northbelt property acquired by TerraX had been explored by a number of companies over six decades but had never been examined in a comprehensive manner. Falconbridge had assembled the property north of its Giant mine in the 1970s with the intent of incorporating it into the existing operation.

Century Mining, which was managed by a group with experience at the Giant Mine, acquired the Northbelt property in 2005. Century faced ongoing operating difficulties at its gold mine in Québec, and never had the opportunity to explore or develop the Northbelt property. Century went bankrupt and TerraX bought the property earlier this year from the receiver. They then augmented the property position with a further acquisition.

The Northbelt property covers 35 square kilometers spanning 13 kilometers along the Yellowknife gold trend, immediately north of the Giant mine property. It is road accessible and located just eight kilometers from the Yellowknife airport.

A substantial amount of work was done over six decades on the property now held by TerraX, including 463 drill holes. That work identified numerous gold occurrences. TerraX is compiling for the first time the results of that exploration work.

Gold in the Yellowknife gold trend is associated with shear zones in an Archean greenstone belt. The Archean is the oldest geological age, ending about 2.5 billion years ago. Greenstone refers to an assemblage of rocks typically of volcanic origin which have gone through metamorphism – changes caused by heat and pressure. Greenstone belts are an important host for gold deposits. Fluids circulating through the shear zones, or “breaks”, over hundreds of millions of years have concentrated gold values along the shears. One of the most prolific greenstone belts in the world is the Abitibi belt spanning northern Ontario and Quebec.

With the similarities between the Yellowknife trend and the Abitibi, it is no surprise that one of the most successful explorers in Quebec has taken an interest in the Northbelt project. Virginia Mines (VGQ-T) acquired 10% of TerraX by way of a private placement. They also paid $200,000 for an option to purchase a 2% royalty on the project.

TerraX has accomplished a great deal in the few months since acquiring the property. For starters, they compiled the written records for much of the earlier work. That data provides an excellent starting point for further exploration. They also located the core from 176 holes and are well advanced at re-logging and re-assaying that core. They found the drill collars for about half of the holes previously drilled on the property and have accurately surveyed those holes, allowing them to incorporate the drill results into the broader geological picture. Enough holes were surveyed so that the holes that were not found can be reliably tied into the surveyed locations based on the old records.

The first element in the TerraX fieldwork was a three-component airborne geophysical survey over much of the property. The geophysical results for this project are particularly useful given the large number of drill holes: hard data from the drill holes is useful in interpreting the geophysics and the results can be reliably projected along the trends identified by the geophysics.

Work over the summer also included extensive prospecting, sampling and geological mapping which added further information to support and extend the earlier results.

Previous explorers devoted a great deal of their exploration efforts to the Crestaurum deposit, just north of Giant. An outcropping gold occurrence led to the sinking of a shaft in 1946 to a depth of 420 feet, but the mine was abandoned and flooded the next year.

In the 1970s through 1996, a 1.5 kilometer long zone at Crestaurum was tested with about 200 drill holes. Most of those holes tested the zone to less than 100 meters depth. Geologically, the system is similar to the Con mine, which was mined to a depth of 1860 meters. If that similarity holds, then there is a great deal of depth potential remaining to be tested at Crestaurum.

Falconbridge intended to mine Crestaurum and process the ore at Giant. However, metallurgical testing in the 1980s determined that the roasting process used to treat the refractory ore at Giant was not effective in recovering the free-milling gold from the Crestaurum ore and development was put on hold.

The metallurgical testing showed that the Crestaurum material was well suited to recovery using standard leaching. That is very positive for TerraX, as the standard leaching process is far less expensive to construct and operate.

Gold at Crestaurum is hosted in quartz veins within shear zones that are 25 meters or more in width. The earlier work sampled only the quartz veins within the broader shears. The recent re-sampling of the old core found that gold values extend throughout the shear zones, suggesting the potential for a much greater gold content than was previously recognized. The potential below 100 meters is so far largely untested and represents a huge opportunity.

In addition to the main Crestaurum zone, 25 other gold-bearing shear zones were discovered in the area. Drilling in 1995-6 focused on areas where the Crestaurum shear intersects other shears. Results include a one meter zone that carried 103 g/t and two intervals each more than 10 meters wide with greater than 8 g/t.

The Barney Shear, an extensive feature which cross-cuts some of the other shear zones, received about 20 drill holes in the past which point to the potential for an important gold zone. One hole drilled in 1995 encountered 4 meters at 12.6 g/t. Another hole showed the shear zone extending to a depth of about 450 meters. The Barney shear has been identified at surface at least 700 meters north of the last drill hole. Barney will be an important focus in the upcoming drill program.

Share Price October 28th, 2013: C$0.45
Shares Outstanding: 37.4 million
Shares Fully Diluted: 46.5 million
Market Cap: C$16.8 million
Contact: Investor Relations
Toll Free: 1.866.460.0408
http://www.terraxminerals.com

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