Quaterra Updates Progress on Arizona Uranium, Nieves Silver Projects
2006-04-24 News Release
The Ollie pipe is located ten miles southeast of the Hack’s Canyon mines that produced 9.5 million pounds of uranium (eU308). Quaterra’s first hole was lost in bad ground at a depth of 1,040 feet. A nearby Energy Fuels Nuclear hole drilled in the early 1990’s was re-entered and deepened to 1,430 feet. The best intercepts included:
1172 – 1175.5 3.5 feet 0.13% eU308, including 2.0 feet at 0.17%
1178 – 1180.5 2.5 feet 0.12% eU308, including 1.5 feet at 0.16%
There were numerous mineralized intercepts averaging .03% to .08% between 1,020 feet and 1,242 feet. There was no mineralization from 1,242 feet to TD at 1,430 feet where the hole is believed to have exited the pipe throat and entered the Hermit siltstone along the northeast pipe margin. A study of historic data indicates that much of the pipe to the southwest remains untested.
The first hole on the EZ4 target, located seven miles northwest of Hack Canyon, was drilled to 1,340 feet and intercepted anomalous uranium mineralization between 970 and 1,000 feet near the Coconino sandstone/Hermit shale contact. The Coconino sandstone is considered the conduit for mineralization in the Arizona breccia pipes and the presence of mineralization near the contact strongly suggests the close proximity of a mineralized pipe throat. Drill-hole drift to the east and south of the collar location defines a possible target to the northwest.
The EJ target was rotary drilled to 500 feet and cored from 500 – 520 feet. The core shows flat-lying bedded dolomite and gypsum that are inconsistent with lithologies expected near a pipe throat. No further work is planned on this target.
The YS target is currently being drilled by a deep hole targeting the centre of a structural depression defined by shallow stratigraphic holes. One additional deep drilling target at WB is also scheduled for drilling in the current program.
An eight-hole, 5,894 metre core drilling program was completed during March, 2006. The program successfully extended the strike length of the Santa Rita Vein to the east but did not expand mineralization beyond currently known areas in the Concordia-San Gregorio areas. Excellent potential remains for narrow high-grade silver veins over a strike length of approximately 1.5 kilometres and a vertical extent of 300 metres on both the Concord ia-San Gregorio and Santa Rita vein systems. Quaterra president, Dr. Thomas Patton noted the attractiveness of these targets “has increased because of the current higher silver prices”. Recommendations for additional work, which could include either underground exploration or additional surface drilling, will be made within the next three months, he said.
Four holes tested the deep vein and stockwork potential in the Concordia-Delores area, one hole each were drilled on the Santa Rita and Orion veins and two holes evaluated alteration and geophysical anomalies. Results are as follows:
Santa Rita. Hole QTA 37, drilled 500 metres east of the nearest hole, intersected a quartz breccia vein starting at a downhole depth of 466.1 metres that contains 5.9 meters averaging 104 g/t silver, 0.23% lead and 0.56% zinc. The thickness and strength of the vein are positive features that upgrade the potential of the eastern Santa Rita zone for higher silver grades.
Concordia-Delores. Four holes drilled to the north, south and west of QTA-30 downgrade the potential for high-grade silver mineralization in veins or stockwork zones below the 1,550 metre level (about 350 metres below surface).
Other Areas. One hole each tested the eastern extensions of the Orion and California veins with negative results. A geophysical anomaly coincident with an area of intense alteration northwest of San Gregorio also failed to intersect significant mineralization.
Dr. Thomas Patton is the qualified person responsible for the preparation of this release.
On behalf of the Board of Directors,
Thomas Patton, President
Quaterra Resources Inc.
Contact Jay Oness at 1-888-456-1112, 604-681-9059 or email: email@example.com
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