Quaterra provides Mexico exploration update

Quaterra Resources Inc. announced that a “scout” (reconnaissance) drilling program at its Mirasol property in Durango, Mexico, and core drilling at the Company’s Crestones property, also in Durango, intersected insignificant amounts of precious metal mineralization.

Geologic mapping and sampling at Americas, which abuts Mirasol on the west, has identified at least 10 prospective drill targets. The most prospective will be drill-tested in the 2008 field season.

Of particular interest at Americas, is a target related to an 800-meter rhyodacite breccia that appears to be an eruptive vent outcropping in the centre of the property.

Hydrothermal breccia dikes are common peripheral to the large breccia. A two by six kilometre area of stockwork veining has been identified along the north margin of the hydrothermal alteration shell that is open to the northeast.

Rock chip samples of the vein material are anomalous in gold and silver with values ranging from 0.025 to 0.91 g/t gold and 1.4 to 86 g/t silver.

The Americas system is a strong and very large hydrothermal system, possibly covering an area up to fifteen by four kilometers, says Sergio Razo, Quaterra’s Mirasol-Americas Project Manager.

We have yet to finish the initial geologic mapping surveys and already we have identified 10 drill targets based on geology, added Mr. Razo.

In addition, reconnaissance work in 2007 and 2008 in the nearby state of San Luis Potosi, Mexico, has resulted in the identification and staking of five prospects covering a total of 69,034 hectares (266.54 square miles).