Chesapeake Gold Corp.: La Gitana Drilling Continues to Intersect a Major Gold-Silver System
VANCOUVER, BRITISH COLUMBIA, Nov 21, 2005 (CCNMatthews via COMTEX) --
Chesapeake (TSX VENTURE:CKG) is pleased to announce the results of an additional 10 diamond drill holes from its La Gitana gold-silver project located in Oaxaca State, Mexico. The latest drilling results at Cerro di Oro have confirmed that gold-silver mineralization extends for more than 500 meters along strike, up to 250 meters in width and to depths exceeding 325 meters. To date, 24 HQ core drill holes totaling 5,013 meters have been completed. Drilling continues at Cerro di Oro, one of several large mineral prospects found within the La Gitana Project.
Cerro di Oro is a 1.5 km-long, NW-trending, structurally-controlled, epithermal system where gold-silver mineralization is found as high-grade shoots in a set of N-NW trending, sub-vertical structures, and as low grade disseminations within broad zones of quartz stockworks and breccias. To date, 5 significant north-northwest trending, breccia-vein structures, hosting moderate to high grade mineralization have been identified at Cerro di Oro. These 'feeder' zones vary from 2 to 25 meters in thickness and are semi-continuous for hundreds of meters along strike.
Broad zones of disseminated gold-silver mineralization have developed along the main 'feeder' structures of Cerro di Oro. From surface, some of these low grade zones extend for more than 100 meters away from the structure and down to 200 meters at depth. The disseminated zones form as elongated, funnel-shaped envelopes around the mineralized structures and are continuous along the full strike length of the area drilled. The size, geometry, grade and surface extent of the gold-silver system indicate a potential open-pit, bulk tonnage mining scenario.
The drill results are as follows:
Gold
From To Interval Gold Silver Equivalent
(m) (m) (m) (g/t) (g/t) (g/t)
------- ------- -------- ----- ------ ----------
DH-13 150.00 163.50 13.50 1.30 60.20 2.23
including 159.00 160.50 1.50 8.94 301.00 13.57
207.00 211.50 4.50 0.73 18.60 1.01
225.00 229.50 4.50 0.35 83.10 1.63
DH-14 3.00 63.00 60.00 1.20 31.20 1.67
including 24.00 55.50 31.50 2.09 51.20 2.88
including 30.00 33.00 3.00 16.78 72.90 17.90
DH-15 0.00 10.50 10.50 0.62 41.30 1.25
DH-16 0.00 7.50 7.50 0.90 69.40 1.97
18.00 22.50 4.50 0.45 60.50 1.38
39.00 43.50 4.50 0.47 49.90 1.24
60.00 66.00 6.00 1.06 59.80 1.98
81.00 123.00 42.00 0.51 33.50 1.02
147.00 178.50 31.50 0.25 15.90 0.50
234.00 237.00 3.00 1.18 12.80 1.37
DH-17 7.50 13.50 6.00 0.45 27.60 0.87
117.00 136.50 19.50 0.44 30.40 0.90
199.50 202.50 3.00 2.19 54.40 3.02
241.50 247.50 6.00 2.63 12.00 2.82
264.00 268.50 4.50 1.00 5.30 1.08
DH-18 30.00 102.00 72.00 0.75 34.70 1.29
115.50 126.20 10.50 3.17 93.30 4.61
DH-19 108.00 118.50 10.50 0.84 15.60 1.08
151.50 166.50 15.00 0.57 12.20 0.76
210.00 216.00 6.00 0.17 37.50 0.75
DH-20 36.00 43.50 7.50 6.00 281.60 10.33
including 36.00 39.00 3.00 13.28 602.00 22.54
91.50 157.50 66.00 0.60 15.50 0.84
including 118.50 135.00 16.50 1.01 33.40 1.52
174.00 195.00 21.00 0.34 11.30 0.51
DH-21 45.00 60.00 15.00 0.24 13.40 0.45
97.50 102.00 4.50 0.49 11.80 0.67
121.50 124.50 3.00 0.53 12.50 0.73
DH-22 6.00 87.00 81.00 0.31 19.80 0.62
- A gold-silver ratio of 65:1 was used for gold equivalent calculation.
Approximately one third of the 1.5 kilometer long portion of Cerro di Oro has now been drill tested. Most drill holes strike and dip east-northeasterly and are located on the S-SW side of Cerro di Oro, 100 meters or more below the top of the ridge. Drilling underway on the northeast flank of Cerro di Oro has recently intersected several significant zones related to major NE dipping mineralized structures found on surface. The Company plans to complete an additional 4 - 6 step-out holes before the Christmas break.
Drilling will continue in 2006 to further test the extension of Cerro di Oro and additional outlying targets. The Nopales zone, located 400 meters NW of the current drilling, is characterized by strongly silicified rocks displaying moderate to intense quartz stockworks and breccias. The target area also coincides with a strong 'resurging', high resistivity geophysical anomaly, comparable to the geophysical signature observed along the central portion of Cerro di Oro.
Another important target located 500 meters SW of the drilled area, is a widespread highly argillized and silicified zone with quartz stockwork and breccias. This zone is presently being trenched and channel sampled. The southeast limit of Cerro di Oro is also untested with gold and silver anomalies being traced for over 400 meters along strike.
Besides Cerro di Oro, the 4 km-long La Gitana vein system, running sub-parallel and 500 meters to the southwest, will be drill tested next year. Recent rock chip sampling from the mid portion of the vein system yielded values up to 15 g/t gold and 3 kilograms of silver. A prominent high resistivity anomaly reflecting multiple NE dipping structures is observed along the entire length of the survey grid.
With improving weather conditions Chesapeake has resumed its district scale exploration along the vastly unexplored 100 km NW trending structural corridor hosting the La Gitana project. Systematic detailed mapping and sampling is being conducted on three large prospects, Pena Blanca, Santa Maria and recently discovered Pena Larga, all of which are located within 20 km NW of Cerro di Oro. The prospects are associated with an area of over 15 square kilometers of hydrothermally altered volcanic rocks. Sampled outcrops from each prospect has returned widespread anomalous values up to 2.5 g/t gold. The Company plans to drill test at least one of the regional prospects in 2006. Further updates will be disclosed as these prospects are advanced.
ALS Chemex is the analytical laboratory for the project. Sample preparation is undertaken in Guadalajara, Mexico and the analysis in Vancouver, BC. High grade gold or silver intervals are re-assayed by fire with gravimetric finish. Mr. Andris Kikauka, P. Geo, is the qualified person under National Instrument 43-101 on the project.
During the past several weeks the Company has also reviewed the drill results reported by its joint venture partner (New World Resources Ltd.) on the La Juliana gold project in Sonora State. The Company has decided not to execute the purchase option and on October 27, 2005 the concession owners ratified the termination of the agreement. Formal notice of cancellation has been filed with the Mining Registry and is expected to be received shortly.
Currently, Chesapeake has $26.8 million in working capital with no debt.
CHESAPEAKE GOLD CORP.
P. Randy Reifel, President
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SOURCE: Chesapeake Gold Corp.
Chesapeake Gold Corp. Investor Relations (604) 731-1094 www.chesapeakegold.com
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