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