Quaterra Resources Inc. today announced that geochemical results have been received from diamond drilling at its 100%-owned Duke Island Cu-Ni-Co-PGE property in southeast Alaska . The company recently completed seven diamond drill holes (4,505 feet) on coincident geochemical and geophysical anomalies in the Marquis, Potato Patch and Raven zones.The results shown in Table 1 below suggest that the Marquis and newly discovered Raven zones represent magmatic sulfide-bearing systems of significant size. Hole DK0506 at Raven contains the thickest interval of continuous copper mineralization drilled on the property to date, with the interval from 8 to 395 feet averaging 2,035 ppm copper, 56 ppb Pt and 59 ppb Pd. The 42 foot interval from 33 to 75 feet averages 0.38% copper and 644 ppb platinum plus palladium. However, structural and/or stratigraphic controls that could result in higher grades are poorly understood due to poor bedrock exposures and limited drilling on the property to date (total of 11 holes, 5,972 feet). The company currently is reviewing its exploration options for 2006 with the goal of identifying one or more high-grade sulfide targets within the areas of previously identified lower grade mineralization.

Table 1: Significant geochemical results from 2005 Duke Island drilling

Hole #	From Ft	To Ft	Thickness Ft	Cu ppm (wt Avg ppm)	Pt (wt Avg ppb)	Pd (wt Avg ppb)
DK0501	326	425.5	99.5	2320	68	72
including	376	394	18	4520	100	111
and	404	424	20	3625	123	133
DK0502	No	Significant	Intercepts
DK0503	37.5	186.5	149	2086	5	1
DK0404	No	Significant	Intercepts
DK0506	8	395	387	2035	56	59
including	33	75	42	3801	331	313
including	8	92	84	2531	211	219

Note: Holes DK0505 and DK0507 were not visibly mineralized and have not been submitted for geochemical analyses.

Discussion. The drilling was a follow-up to previously conducted rock and soil geochemical sampling that revealed copper values ranging from trace to +2% and ground geophysics (Max-Min and gravity) surveys conducted earlier this year that revealed coincident gravity highs and/or Max-Min conductivity anomalies.

Drilling targeted at airborne and ground electromagnetic conductors in the eastern Marquis zone (hole DK0501 and 02) intercepted wide intervals of anomalous copper mineralization with the best interval returning 99.5 feet grading 2,320 ppm copper with 140 ppm Pt + Pd. This zone also contained anomalous cobalt (40 to 608 ppm) and nickel (102 to 2730 ppm) that correlate well with elevated copper and PGE values. Mineralization consisted of disseminated chalcopyrite and pyrrhotite hosted in variably serpentinized clinopyroxenite and olivine pyroxenite. Master’s Thesis work currently in progress at Duke Island has also identified pentlandite in surface samples from the Marquis zone. Rounded and tear-drop shaped sulfide blebs were observed in core from the 2005 drilling at Marquis zone suggesting sulfide – silicate melt immiscibility during sulfide deposition. Drilling at the Marquis zone in 2005 was approximately 150 meters northeast of the drilling completed in 2001 (see Table 2).

Table 2: Significant geochemical results from the 2001 drilling at Duke Island.

 

Hole #	From Ft	To Ft	Thickness ft	Cu (wt Avg ppm)	Pt (wt Avg ppb)	Pd (wt Avg ppb)
DK01-1	0	298	298	1270	47	59
Includes	177	258.3	81.3	2170	50	64
DK01-2	4	81	77	2375	64	83
DK01-3	0	252	252	1328	62	72
DK01-4	0	188	188	1649	85	130
includes	165	167	2	12500	187	386

The 2005 diamond drilling at the Potato Patch zone, located 1.1 kilometers west of the Marquis zone, consisted of three holes (DK0503, 04 and 05) . Disseminated pyrrhotite and chalcopyrite hosted by coarse-grained pyroxenite was discovered in surface outcrops at Potato Patch in 2001. Drilling at Potato Patch was targeted using a combination of anomalous copper in rock geochemistry (trace to 915 ppm), anomalous high gravity responses and combined airborne electromagnetic conductivity and magnetic field anomalies. Hole DK0503 intercepted 149 feet grading 2,086 ppm copper in pyroxenite before passing into hornblende pyroxenite and diorite that contain significantly lower copper values. Unlike the Marquis and Raven zones, copper mineralization in the Potato Patch does not appear to be associated with significant Pt or Pd values. Drill holes DK0504 and DK0505 were targeted on gravity highs but did not intercept significant sulfide mineralization.

Drill holes DK0506 and 07 were collared in the Raven zone, located 3.4 kilometers northwest of the Marquis zone. Previous surface rock sampling in this area returned copper values ranging from trace to 2.2% and were associated with elevated platinum and palladium values (trace to 573 ppb Pt+Pd). Subsequent soil sampling, max-min and gravity surveys indicated the Raven zone was open to the south under soil cover. The 2005 drilling targeted the north and south ends of the surface geochemical and geophysical anomalies at Raven. Hole DK0506 returned the thickest interval of continuous copper mineralization seen on the property to date with the interval from 8 to 395 feet returning 2,035 ppm copper, 56 ppb Pt and 59 ppb Pd with the interval from 8 to 92 feet grading 2,531 ppm copper, 211 ppb Pt and 219 ppb Pd (Table 1). Unlike mineralization at the Marquis zone, neither cobalt nor nickel values are correlative with copper or PGE values at the Raven zone. As at the Marquis and Potato Patch zones, copper and PGE mineralization at Raven is dominantly in disseminated to net-textured form and is preferentially hosted in coarse grained pyroxenite. The bottom 225 feet of hole 6 is hosted in hornblende pyroxenite and shows a marked decrease in copper values while Pt and Pd values fall below detection limits. Hole DK0507, drilled over 500 meters south of hole 6, did not intercept significant sulfide mineralization and was not submitted for analysis.

Based on the results from combined geological, geochemical and geophysical data collected over the Duke Island project the Company has identified at least 11 sulfide-bearing exploration targets within an area extending 14.5 kilometers northwest-southeast by up to 3.8 kilometers northeast southwest, with the ultimate dimensions of these mineralized systems remaining open to expansion. Copper mineralization is accompanied by elevated platinum, palladium and cobalt with anomalous but discontinuous nickel and cobalt mineralization.

Sulfide textures in core samples suggest that sulfides are of magmatic origin. Sulfur isotope ratios suggest a mixture of magmatic and country-rock sulfur combined to achieve sulfur saturation and subsequent sulfide deposition. To date the company has conducted limited drilling at only three of the known sulfide occurrences at Duke Island with encouraging results from the Marquis and Raven zones indicating the presence of a significant size sulfide-bearing system. Structural controls affecting sulfide accumulation are poorly understood due to poor bedrock exposures and limited drilling (total of 11 holes, 5,972 feet). The Company currently is reviewing its exploration options for 2006 with the goal of identifying high-grade targets and/or advancing one or more of the known sulfide targets at Duke Island.

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All 2005 geochemical samples were analyzed by ALS Chemex for gold, platinum and palladium via fire assay techniques plus a multi-element suite via ICP using four-acid digestion procedures. Standards and blanks submitted with core and reconnaissance samples suggest no unusual or spurious geochemical results.

On behalf of the Board of Directors,

“Thomas Patton”
Thomas Patton, President
Quaterra Resources Inc.

Contact Jay Oness at 1-888-456-1112, 604-681-9059 or email: corpdev@mnxltd.com

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