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LAVAL, CANADA–(Marketwire – Oct. 30, 2012) – TYPHOON EXPLORATION INC. (TSX VENTURE:TYP) is pleased to announce that the updated mineral resource estimate for the Fayolle Deposit and results of the metallurgical testwork on the Fayolle Property are now available under SEDAR and on website at www.typhoonexploration.com.
The Fayolle Project is located within the Abitibi. The Abitibi hosts some of the richest mineral deposits of the Superior Province, including the giant Kidd Creek massive sulphide deposit (Hannington et al., 1999) and the large gold camps of Ontario and Québec (Robert and Poulsen, 1997; Poulsen et al., 2000)
David Mc Donald, President and CEO of Typhoon Exploration Inc. said, “This resource estimate update significantly exceeds our expectations with a 332% increase of the indicated resources. It is noteworthy that all of the estimated resources in this update have been upgraded from the inferred to the indicated category. Furthermore, this new resource estimate seems to show a possible extension at depth, towards the south-east of the Fayolle Deposit Zone. This mineral resource estimate confirms the relevance of continuing the preliminary economic evaluation (PEA), which should be completed by the end of 2012.”
The updated mineral resource estimate was prepared by InnovExplo Inc. of Val-d’Or, Quebec, in collaboration with Aurizon’s personnel.
In the “Interpretation and conclusion” of the report of estimate resource (Under Sedar since October 18), it was mentioned: “The property is strategically positioned in an area known to be associated with gold mineralization. InnovExplo considers the Fayolle Property to be an advanced-stage project with significant potential.”
In the same report in the section “Recommendations”, it was mentioned: « The authors believe that there is a reasonable potential for making new discoveries on the Fayolle Property. Further drilling is recommended in order to test other known occurrences, test new target areas, and assess the potential of the property. A comprehensive structural study covering the entire property is recommended to fully understand the relationship between faults, shear zones and gold mineralization. Stripping the already identified gold showings on the property would enhance such a structural study, particularly if performed in parallel with drilling of their lateral and depth extensions.
METALLURGICAL TESTWORK
With an average gold recovery rate around 96%, originating from a preliminary metallurgical test (Conducted by SGS Canada Inc. / available on SEDAR since October 18th, 2012), the Company is very satisfied with the results. On the environmental side, testing done on composites samples suggests that acid generation is highly unlikely to occur from these samples considering the high carbonate/low sulphur content profile of both types of mineralized rocks.
The new resource estimate according to different cut-off grades is summarized as follows:
| Table 1: Fayolle Deposit – Mineral Resource Estimate / September 2012 |
| Cut-Off grade (Gold g/t) |
Tonnes (t) | Grade (g/t) |
Gold (ounces) |
|
| Indicated Mineral Resources (1) | 0.4 | 3,573,900 | 1.6 | 188,000 |
| 0.6 | 2,423,300 | 2.2 | 170,000 | |
| 0.8 | 1,814,800 | 2.7 | 156,000 | |
| 1.0 | 1,451,500 | 3.1 | 146,000 | |
| 2.0 | 701,000 | 5.0 | 112,000 | |
| 2.5 | 548,500 | 5.8 | 101,000 | |
| 3.0 | 438,000 | 6.5 | 92,000 | |
| 4.0 | 295,500 | 8.0 | 76,000 | |
| 5.0 | 216,400 | 9.3 | 64,000 |
NOTES:
GEOLOGY
Gold mineralization of the Fayolle Zone is mainly contained in deformed komatiitic rocks and altered intermediate intrusions near the contact with massive basalt and silicified sediments. Shear zones and fault patterns observed are generally oriented west to north-west, corresponding to a major inflexion of the La Pause Fault.
The dense and complex dykes swarm is characterized by changing orientation and perceived as a strong favourability indicator for gold mineralization.
Mineralization is part of a stacking of pluri-metric zones located inside a 50 to 100 metre wide favourable structure, plunging moderately towards the east. Visually, this mineralized structure corresponds to tectonic breccias. The grades can generally be correlated with the intensity and complexity of brecciation. Alteration is characterized by carbonates, chlorite and fuchsite in ultramafic rocks and by albite-hematite in dykes. Gold is mostly observed as free grains up to a millimetre in size in both host rocks.
OUTLOOK
The drill programs completed to date aimed at obtaining information inside the Fayolle Zone down to a depth of about 250 metres, and laterally along 200 metres. The mineralization model developed in the new updated mineral resource estimate confirms the possibility to correlate high grade intervals. This information, combined with the various gold prospects identified by drilling inside a 1km radius from the Fayolle Deposit will be used to test the possibility to delineate mineralization at a minimum grade of 5 g/t.
Future activity on the property will focus on re-evaluating the exploration potential and the drilling approach adapted to the particular geometry of the Fayolle Zone. Emphasis will be put on eventually extending in the outskirts of the zone down to 500 metres.
AGREEMENT WITH AURIZON MINES LTD.:
Typhoon Exploration Inc. signed an option agreement with Aurizon Mines Ltd., for the development of its Fayolle gold property (100%-owned by Typhoon), located in the heart of Abitibi’s mining projects. Pursuant to the Agreement, Aurizon has the option to acquire up to a 65% interest in the Fayolle Project by incurring total expenditures of (CND) $25 Million and by subscribing for common shares of the Corporation for gross proceeds of (CND) $2 Million.
ABOUT TYPHOON EXPLORATION INC.
THE COMPANY OWNS THE FOLLOWING PROJECTS:
Typhoon takes advantage of Quebec’s excellent mineral potential for the development of new world class gold deposits.
For more information, visit SEDAR’s website at www.sedar.com or the company’s website at www.typhoonexploration.com
QUALIFIED PERSON
Mr. Daniel Gaudreault, P. Eng., Geol. (OIQ), of Géologica Groupe-Conseil, is the Qualified Person as defined by National Instrument 43-101, to supervise the preparation of this press release.
The Independent and Qualified Persons for the updated mineral resource estimate, as defined by National Instrument 43-101, are Pierre-Luc Richard, M.SC., P.GEO., and Alain Carrier, M.SC., P.Geo. (InnovExplo Inc.).
The common shares of Typhoon Exploration Inc. are listed on the TSX Venture Exchange under the symbol “TYP”.
Forward-Looking Statements
This news release contains statements that constitute “forward-looking information” or “forward-looking statements” within the meaning of applicable securities legislation. This forward-looking information is subject to numerous risks and uncertainties, certain of which are beyond the control of Typhoon. Actual results or achievements may differ materially from those expressed in, or implied by, this forward-looking information. No assurance can be given that any events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits that Typhoon will derive therefrom. Forward-looking information is based on the estimates and opinions of Typhoon at the time the information is released and Typhoon does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Two maps are available at the following address: http://media3.marketwire.com/docs/mapauri_eng_1030.pdf
