| Teryl Resources (TSX.V:TRC) is set to take | | | | to maximize reward potential while mitigating |
| flight as it moves into the next stage of an | | | | risk for investors. The company is also |
| ambitious drilling program on its Gold Hill | | | | applying this philosophy to its program in |
| property near Bisbee, Arizona. The company | | | | Alaska. Teryl has entered into a joint |
| has just signed a drilling contract for the | | | | venture agreement with Kinross, with 80% |
| project, with work to commence as soon as a | | | | Kinross/20% Teryl, on the Gil Project. The |
| drill becomes available. The program will | | | | main Gil Zone consists of a 3000 ft. strike |
| target several copper showings on the | | | | length. According to Teryl's website, the |
| property. The Gold Hill Mine property | | | | company has spent $1.6 million on exploration |
| comprises 14 patented mining claims that | | | | that has defined a resource of 400,000 ounces |
| include the Old Gold Hill, Superior, and | | | | of gold (10 million tons grading 0.04 ounces |
| Baston mines. Old shallow placer diggings are | | | | per ton gold). |
| found throughout the property as well as | | | | |
| small shafts, pits and cuts. Gold Hill is | | | | The company's management isn't afraid to |
| located less than four miles west of Phelps | | | | think big. "All we need to do is find another |
| Dodge's (since bought out by Freeport McMoRan | | | | Fort Knox," says John Robertson, Teryl's |
| for $26 billion) Copper Queen/Lavender Pit, | | | | president. The company also has a 50-50 joint |
| which was one of the world's biggest and | | | | venture agreement with Linux Gold (of which |
| richest mines during its heyday from | | | | Mr. Robertson is also president), on the Fish |
| 1954-1970. This open-pit operation yielded 75 | | | | Creek claims. The company has recently |
| million tons of gold, silver and copper ore | | | | completed a $400,000 private placement- with |
| for Phelps Dodge. The company has expanded | | | | $150,000 earmarked for drilling targeted |
| its holdings in the area by staking another | | | | zones on the Fish Creek property that were |
| dozen patented claims near Copper Queen. | | | | identified as geophysical anomalies. |
| Teryl has a chance to earn a 100% interest in | | | | |
| the property, with a small royalty payable to | | | | Alaska is usually regarded as an expensive |
| the original owners. | | | | place to work; however, Teryl is particularly |
| | | | well situated to run a low-cost operation. |
| Teryl's other major project consists of four | | | | The property is only 22 miles north of |
| strategically-located claim blocks (the Gil | | | | Fairbanks- hence workers can stay in town- |
| Project, the Fish Creek claims, the Stepovich | | | | thus eliminating the need for |
| claims, and the West Ridge property) in the | | | | company-constructed housing. The area's |
| Fairbanks Mining District of Alaska- where it | | | | infrastructure is excellent, given the |
| is one of the main landowners- with holdings | | | | property's close proximity to the Fort Knox |
| contiguous to Kinross' (TSX: K; NYSE: KGC) | | | | mill and to a major highway. |
| Fort Knox Project. Fort Knox is the largest | | | | |
| producing gold mine in Alaska, with a | | | | Several key factors allow the company to |
| 4,000,000 oz. Au ore deposit. | | | | offer its investors an attractive risk-reward |
| | | | ratio: the ability to defray its overhead |
| Other properties in the company's portfolio | | | | costs; two work programs entering the |
| include a joint venture silver prospect | | | | drilling stage; properties in the backyards |
| located in northern British Columbia, as well | | | | of major producers in historically rich (and |
| as revenue-producing oil and gas projects in | | | | politically stable) areas, and high metals |
| Texas and Kentucky. | | | | prices. |
| | | | |
| Production in the Bisbee Mining District | | | | Any exploration success at Bisbee will |
| dates back to 1880 with the discovery of the | | | | undoubtedly garner interest from the majors |
| copper carbonate deposit at the Copper Queen. | | | | like Rio Tinto (owners of Bear Creek), |
| New reserves are still being found, and as | | | | Freeport McMoRan, and Newmont. Mr. Robertson |
| of 2006, there were 11 producing copper mines | | | | is optimistic regarding the company's |
| in Arizona. According to a monograph by | | | | direction, as "the price of gold is moving to |
| Spencer Titley and Lukas Zurcher of the | | | | new highs, and Teryl is very |
| University of Arizona, the geology of the | | | | well-positioned". |
| area is recognized as "Nevadan-aged plate | | | | |
| convergence [which] was attended by formation | | | | Teryl offers unparalleled value at its |
| of rhyolite calderas in a WNW-trending belt | | | | current price range- with the downside risk |
| that overlaps the international border and, | | | | being minimal- while the ongoing program at |
| of which, Bisbee, Arizona (ca. 200Ma) may be | | | | Gold Hill shows very high upside potential. |
| a product. Extension of the Chihuahua terrane | | | | Few companies at this price range have this |
| into southern Arizona reveals a distinctive | | | | much potential. This could well be a play |
| crustal block characterized by Laramide | | | | that floats like a butterfly- and stings like |
| igneous activity and Cu-related intrusion | | | | a bee. |
| centered ore systems in a metal province than | | | | |
| transgresses the border." Results on the | | | | This article is intended for information |
| property so far support such a hypothesis- | | | | purposes only, and is not a recommendation to |
| with 3% Cu in surface sampling, with gold | | | | buy or sell the equities of any company |
| values as well. Recent very deep penetrating | | | | mentioned herein. It is based on sources |
| geophysics in Arizona has revealed new | | | | believed to be reliable, but no warranty as |
| deep-seated copper resources previously | | | | to accuracy is expressed or implied. The |
| unknown by past operators. The company's | | | | opinions expressed in the article are those |
| analysis of its geophysical info has defined | | | | of the author except where statements are |
| 3-4 highly anomalous drill targets. | | | | attributed to individuals other than the |
| | | | author, in which case the opinions are those |
| Teryl's strategy is simple in that it looks | | | | of the individual to whom they are |
| for deposits near major existing or former | | | | attributed. |
| producers. This approach allows the company | | | | |