Mr. John Gardiner reports

TARANIS COMPLETES METALLURGICAL WORK AT THOR DEPOSIT ON GOLD AND SULPHIDE ZONES

Taranis Resources Inc. has completed a preliminary metallurgical assessment on samples from the Thor project located near Trout Lake, B.C. The metallurgical tests were conducted by ALS Metallurgy-Kamloops on two separate portions of the deposit, including the main historic sulphide deposit containing silver, lead, zinc, gold and copper, and the new gold zone known as SIF. ALS has also completed acid-base assessment labwork of the ore that help characterize the ores and the associated waste products.

The gold zone

There is a considerable amount of outcropping gold mineralization in an area located immediately west of the known sulphide deposit that has not been outlined in the existing National Instrument 43-10 resource, and it is contained almost entirely within quartz-bearing zones. A 117.7-kilogram composite sample was collected from the SIF gold occurrence, and served as the bulk metallurgical sample for the gold zone. The head grade was identical to that sampled during the Taranis panel sampling program in summer of 2013.

HEAD GRADE FOR THE GOLD ZONE METALLURGICAL SAMPLE

Sulphur (%)   Iron (%)    Gold (%)
0.04             1.07        15.5

Three separate processes to extract gold from the sample were tested: gravity concentration, flotation and cyanide leaching. Gravity recovery in the gold zone using a Knelson concentrator yielded 83-per-cent gold recovery to a concentrate grading 715 grams per tonne gold. Similarly, flotation recovered 97 per cent of gold from the feed to a concentrate grading 219 grams per tonne gold. Cyanide leaching showed recoveries of 93 per cent after six hours and 98 per cent after 24 hours (ore ground to a nominal 67-micrometre K80 for all tests). The positive results from flotation gravity and flotation process are encouraging as these processes are low-cost, and have less environmental impact when compared with cyanide leaching.

The sulphide (silver-lead-zinc) zone

Representative drill core from 18 different drill holes were taken from the deposit at Thor and used for the metallurgical testing of the sulphide zone. The head grade for the metallurgical sample analyzed by ALS is shown in the table provided.

   HEAD GRADE FOR THE SULPHIDE ZONE METALLURGICAL SAMPLE

                                             Total organic
Cu (%) Pb (%) Zn (%) Fe (%) S (%)  Ag    Au         carbon
                                 (g/t) (g/t)            (%)

0.15    3.29   4.38   15.2  10.8  206  1.36           0.34 

This composite metallurgical sample was very close to the actual average grade of the deposit. The NI 43-101 for the sulphide zone outlined the resources as provided in the table (for more details, see the Taranis news release dated June 20, 2013), of which about 70 per cent is potentially open-pittable.

SUMMARY OF NI 43-101 RESOURCE ESTIMATE AT THOR (JUNE, 2013)

Category     Tonnes Au(g/t) Ag(g/t) Cu(%) Pb(%) Zn(%)

Indicated   640,000   0.88     187  0.14  2.51  3.51
Inferred    424,000   0.98     176  0.14  2.26  3.20 
 

Rougher and cleaner tests were performed on the sulphide zone, and utilized a conventional bulk lead flotation followed by a zinc flotation circuit (ore ground to a nominal 97-micrometre K80.) A limited number of optimization tests was performed, the best test results were from batch cleaner test 11. The bulk concentrate from test 11 had the grades and recoveries as indicated in the table.

RECOVERIES IN BULK LEAD CONCENTRATE

Metal      Grade  Recovery
       (% or g/t)       (%)

Lead          51        86
Silver     2,620        65
Gold          13        56
Zinc           8        10
Copper       1.4        45
    
Note:
Gold and silver grade are in gram per tonne,
all others are in per cent.

The zinc concentrate had the grades and recoveries as indicated in the table.

RECOVERIES IN BULK ZINC CONCENTRATE

Metal     Grade   Recovery
      (% or g/t)        (%)

Lead        1.6          3
Silver      205          5
Gold        0.9          4
Zinc         58         65
Copper      0.4         11

Note:
Gold and silver grades are in gram per tonne,
all others are in per cent.    
 

The silver and gold reporting to the bulk concentrate is an ideal situation to maximize the payback of the precious metals in the sulphide zone. The copper content is not of sufficient tenure at this time to warrant recovery. It is important to note that the results are based on batch test results. There is considerable potential to increase the metal recovery of zinc to the zinc concentrate by further reagent optimization and conducting closed circuit locked cycle tests.

General comments

The metallurgical work completed at Thor is part of a larger five-phase plan designed to permit and develop the Thor deposit (Taranis news release dated Dec. 11, 2013). Taranis has also applied for a special use permit for the main access road to the property.

The next stage in the plan is the delineation of the surface gold zone, estimated to be 24,393 square metres in area lying immediately west of the sulphide zone. Taranis is confident that an NI 43-101-compliant gold resource occurs in this vicinity. Panel sampling on isolated outcrop areas have obtained results including 21.25 grams per tonne gold over 11.45 metres (Taranis news release, Sept. 19, 2013), and has also yielded widespread gold values in surface grab sampling.

Qualified person

The collection of the metallurgical samples at Thor was overseen by John Gardiner (PGeo), a qualified person under the meaning of NI 43-101.

We seek Safe Harbor.