Mining Explorers 2009: Teryl explores next to Fort Knox

Junior has long-running partnership with Kinross in property near major’s Alaska mine

Shane Lasley

Mining News

With four gold properties located next door to Kinross Gold Corp.’s Fort Knox gold mine, Teryl Resources Corp. is one of the largest landowners in the Fairbanks Mining District, and a favored joint venture partner for Kinross’ Alaska subsidiary, Fairbanks Gold Mining Inc.

Since their partnership began at the Gil Project (Kinross 80 percent and Teryl 20 percent), the gold producer and the junior explorer have spent about US$7.5 million outlining some 10.1 million tons of ore with an average grade of 1.25 grams of gold per metric ton, or 404,000 ounces, of gold at the property that lies just to the east of Fort Knox.

In 2009 the partners spent US$1.644 million, respective to their JV interest, on exploration of the Gil property.

Kinross, the operator of the program, focused on the Sourdough Ridge prospect, located about 8 miles northeast of the Fort Knox Mine. Following up on mineralized zones defined with a ground magnetometer survey conducted at the beginning of the season, Kinross completed about 1,800 meters of core drilling and 3,000 meters of reverse circulation drilling at the prospect.

Teryl said the principal goal of the 2009 drilling was to further delineate the strike extension of the mineralized zones at the Sourdough Ridge prospect. The program was also designed to infill between step-out holes in order to gain a better understanding of ore-zone continuity and to establish a resource base at Sourdough Ridge.

“The 2009 exploration program is an important step towards achieving Teryl Resource’s goal of establishing a producing gold mine in the Fairbanks Mining District,” the junior said.

Preliminary assay results in August reveal that hole GVR-09-540 cut 32 meters with an average grade of 4 g/t gold and GVR-09-534 intersected 22.9 meters grading 2.5 g/t gold.

The Gil claims consist of Main Gil Area, Sourdough Ridge, Intrusive Ridge, All Gold Ridge and Too Much Gold Ridge. In 2004, Kinross initiated an exploration program involving rock and soil sampling, geologic mapping, trenching and reverse circulation drill holes in order to define the potential for an exploration program. This work generated several new exploration targets in the Main Gil Area and along Sourdough Ridge.

In addition to the Gil Claims, Teryl has joined Linux Gold Corp. in a 50-50 joint venture partnership on the Fish Creek property that borders the west side of Gil. Teryl also owns the Stepovich property which lies between Gil and the Fort Knox Mine, as well as the West Ridge claims bordering the True North Mine about 11 miles west of Fort Knox.