Cortez Hills: A new "area play" in Nevada

SUBJECT: Roulston Article -MTR undervalued Posted By: LexLuthor2
Post Time: 12/24/05 11:33

This is going much higher,..I can't believe it stayed around .13 cents for awhile. Drill results coming out in Jan. 2006
Minterra Resource Corp.
(MTR-TSXV)


The Elder Creek property, which is now being drilled, is located 8 kilometers northwest of the producing Pipeline and Pipeline South gold mines operated by Placer Dome. An open-pit heap leach mine operated on the Minterra property in 1989-90, but shut down due to poor recoveries. A small resource remains at surface, with potential to further expand it. That resource is interesting in its own right, but the real target lies below the surface.

A recent independent geological report on the property noted: "the near surface resource at Elder Creek is a guide to and possibly indicative of a high-grade gold deposit in lower plate carbonate rock. The Elder Creek property has potential for high-grade gold along exposed structures where they intersect lower plate rocks at depth."

Minterra's first test of that deep target was abandoned due to difficult drilling. A second hole was drilled to 1,860 feet before reaching the limit for the reverse circulation rig. The company intends to deepen that hole with a core rig.

Two earlier holes in the area, one to the west and the other to the east, encountered the lower plate at 2,450 feet and 2,200 feet, respectively. on the Elder Creek property.

The recent Minterra hole found hydrothermal alteration such as would be expected proximal to a gold deposit in that setting. Drilling, expected to get underway again in September, will test the significance of that alteration.

The alteration in the Minterra hole is an encouraging sign, but alteration halos can be extensive and it would take a great deal of good fortune to hit the bull's-eye with the first shot. The company is planning to drill up to four additional holes in this first phase on the Elder Creek property.
The Toy property is located 12 miles south of the Pipeline mine. The Minterra property is immediately adjacent to the Toiyabe property held by the Cortez Joint Venture, which hosts an open-pit heap leach mine that operated from 1988-91.

A geophysical survey on the Minterra property turned up seven target areas. The company is presently awaiting assay results from geochemical sampling over those targets as a guide to planning a drilling program.

The company also plans to drill its Gold View property once it obtains permits. The target is a gold geochemical anomaly in a favorable structural setting. The property is located east of the Tonkin Springs deposit and immediately adjacent to a property that Bravo Venture Group has optioned to Placer Dome.

Minterra's Pipeline South prospect is 5 miles south of the Pipeline mine and 10 miles west of the Cortez mine. The property is of interest in that it hosts structures that appear to be related to gold deposits on both the Pipeline and Cortez deposits. Geophysical and geochemical surveys are planned to pinpoint drill targets.

Minterra is also planning to drill its East Whistler property, located north of Barrick's Archimedes project, which is presently under development. Geochemically anomalous zones have been found along a major structure and in contact with an intrusive unit.

Minterra also has several other interesting gold prospects in other prospective regions of northeastern Nevada. The North Carlin property is located 5 miles east of Newmont's 20 million ounce Gold Quarry mine. The property is under post-mineral cover and it was previously believed that the prospective lower plate rocks were too deep to be of interest.

Minterra's geological consultant obtained information from water monitoring wells that were drilled some years ago that indicated the lower plate on the property is much closer to surface than previously believed. The company is now conducting a detailed geological study of the property.

Two of the Minterra properties in the Northern Nevada Rift exhibit similar geology to the setting that hosts the 7-million ounce Midas deposit, which grades better than 1-ounce per ton. Minterra is defining drill targets based on geochemical values along suitable structures.

Minterra is presently doing a C$750,000 private placement, priced at C$0.15, to continue working on its properties. The company anticipates entering into joint ventures soon with other companies to help fund the drilling of its properties. I would see joint ventures as an important development, as it would lessen the dilution arising from Minterra directly funding drill programs.

Minterra offers investors numerous opportunities for exploration success. The projects are all early stage, but the stock is favorably priced, offering a high-risk / high-reward exploration play.

Price August 15, 2005: C$0.19
Shares Outstanding: 20.6 million
Shares Fully Diluted: 26.9 million
Market Cap: C$3.9 million
Contact: Investor Relations
604-687-6690
www.minterra.ca