Teras Resources Inc. reported results from its initial phase of metallurgical testing of drill samples from the Cahuilla project in Imperial County, California. Cyanide shake tests were conducted by McClelland Laboratories in Reno, Nevada on drill samples taken from Cahuilla and the results are favorable. A variety of reverse circulation drill hole samples from the recent drilling program were used to perform the cyanide shake analyses.

Samples were comprised of a combination of oxide and mixed oxide/sulfide material from within the known NI 43-101 compliant mineral resource at Cahuilla. Since a very minimal portion of the gold/silver resource is composed of sulfide material, a small number of sulfide samples were included in the analyses and they are reported in the mixed sulfide/oxide category. A total of 47 samples were analyzed and selected from many different locations throughout the project site at various depths to obtain a general sense of precious metal recoveries that can be obtained by leaching with cyanide.

Cyanide shake test procedures at McClelland Laboratories involved obtaining a split of the original reverse circulation drill sample pulps that were used for determining the initial fire assays. The minus 150 mesh sample splits were placed in centrifuge tubes containing cyanide solution and agitated on a shaker table for two hours. The solution was then analyzed by atomic adsorption for gold and silver, which was then compared with the original fire assays to determine recoveries.

After reviewing the results and speaking with McClelland Laboratories, management is optimistic with the precious metal recoveries at Cahuilla. The results suggest good potential for processing this material by cyanidation processing methods. Additional samples will be submitted for further and more detailed metallurgical and mineralogical testing as the program advances.