Who said CKG was not drilling??????
Chesapeake drills 53 m of 1.3 g/t Au at El Tecomate
2007-03-16 09:38 ET - News Release
Mr. P. Randy Reifel reports
CHESAPEAKE ANNOUNCES 2007 EXPLORATION AND DEVELOPMENT PROGRAMS
Chesapeake Gold Corp. has laid out its exploration and development programs scheduled for 2007. Following the completion of the business combination with American Gold Capital Corporation, Chesapeake has $35-million in cash and investments, the world-class Metates gold-silver project in Mexico, the Talapoosa gold deposit in Nevada and a portfolio of district-scale exploration projects in Mexico and Nicaragua. For 2007, Chesapeake has budgeted $4-million to undertake its planned work initiatives.
Metates deposit, Durango state
Metates is one of the largest, undeveloped disseminated gold and silver deposits in the Americas. In 1996, predating National Instrument 43-101 requirements, Cambior, using a gold cut-off of 0.70 gram per tonne equivalent, calculated a tonnage and grade estimate of 492 million tonnes of 0.74 g/t gold, 18.2 g/t silver and 0.17 per cent zinc, which is contained within a 823-million-tonne mineralized system (0.50 g/t equivalent cut-off). The reported resource does not comply with NI 43-101 standards nor has it been verified by Chesapeake and therefore should not be relied upon.
The Metates deposit occurs in two zones: the main zone with mineralization hosted in the intrusive and its underlying sediments and the north zone, with mineralization found in volcanic conglomerates and adjacent sediments. Previous exploration concentrated on drilling the main zone. The down-dip extensions of the main and north zones remain open. Several peripheral targets exist that are also untested. Chesapeake is undertaking a systematic mapping and sampling program on Metates to define additional targets to be drill tested. Regional exploration around Metates also offers excellent exploration upside. A recently assembled, non-drilled 12,000-hectare mining district north of Metates is currently being evaluated.
The Metates development program will involve a complete review of the original technical data, metallurgical studies and mine plan. In 1997, Cambior completed a feasibility study based on substantially lower metal prices and a heap leach process. Chesapeake's review will focus on original assay data to assess new options for recovery of the four primary metals (including lead) contained in the deposit. The planned metallurgical work will focus on a mill and flotation process flow sheet.
El Tecomate project, Durango state
The El Tecomate gold-silver project is a multivein and stockwork epithermal system mainly controlled by sets of faults and fractures associated with a collapsed volcanic caldera nearly eight kilometres in diameter. Chesapeake has completed regional geological mapping and stream sediment geochemistry over an area of 150 square kilometres. Detailed exploration including mapping, trenching, rock chip and channel sampling has focused on the Tecomate centre zone.
To date, five major subparallel mineralized structures have been identified in the area, forming a four-kilometre long, northwest-trending low-sulphidation epithermal system. One structure, Los Hundidos, is a multivein and stockwork system hosted in argillized rhyolitic rocks that extends more than 400 metres along strike. Four cross-cutting, channel sample sections collected 100 metres apart returned:
Section Metres Gold Silver
1* 28.0 1.55 g/t 0.96 g/t
2 53.0 1.30 g/t 1.57 g/t
3* 44.0 0.90 g/t 1.80 g/t
4* 19.0 1.55 g/t 4.66 g/t
*Previously reported
Another structure, Los Filos, is a hydrothermal breccia and stockwork zone that has been traced for a kilometre along strike. Don Lupe, another subparallel structure east of Los Filos, extends for over 1.2 kilometres. Initial channel sampling returned 51 metres of 1.0 g/t gold and 5 g/t silver. Further east, the Las Pilas structure returned a rock section cut of 55 metres of 25 g/t silver. Recently, a new hydrothermal breccia structure was discovered 1.5 kilometres south of the central zone. Two channel sections sampled 100 metres apart from poorly exposed outcrops, returned 21 metres of 5.2 g/t gold and 4.0 g/t silver and six metres 2.1 g/t gold and 8 g/t silver. Topographically, the vertical relief of the southern structure is located 100 metres above the Tecomate centre zone.
Exploration continues on the southern structure to define its potential strike length as well as to determine whether the subparallel Los Hundidos, Los Filos and Don Lupe structures trend into this area. Overlying soils and debris obscure the total length and width of the epithermal system. Additional mapping, sampling and trenching is continuing to advance the central Tecomate corridor to the drilling stage within the next three to four months.
Talapoosa project, Nevada
The Talapoosa project is a disseminated, quartz-adularia style epithermal gold-silver deposit. In 1996 Miramar released a resource estimate that included a measured and indicated resource of 42.7 million tons grading 0.78 g/t gold (1.06 million ounces of gold) and 10.5 g/t silver (14.5 million ounces of silver). The resource is based on cut-off grades of 0.2 g/t gold for oxide mineralization and 3.7 g/t gold for sulphide mineralization.
Chesapeake is planning an advanced exploration and drilling program at Talapoosa with the objectives of increasing the grade of the measured and indicated resource. Excellent potential also exists to expand the resource as step-out drilling identified ore-grade gold values adjacent to and along strike of the known deposit. Two hundred and fifty metres northwest of the resource grid, one hole intersected six metres of 15 g/t gold while over 900 metres to the east and 600 metres to the southeast, three holes returned 4.5 metres of 13 g/t gold, 20 metres of 1.9 g/t gold and 44 metres of 1.2 g/t gold.
Joint ventures
Chesapeake has joint ventured its Cucaracha Dorada gold project in Durango state to Christopher James Gold Corp. Christopher James can earn up to 65-per-cent interest by making payments and share issuances totalling to $1.0-million over four years and expending $10.0-million (U.S.) in exploration in eight years. Christopher James is planning to commence a 2,500-metre diamond drilling program within two to three weeks.
In Oaxaca state, Pinnacle Mines Ltd. has joint ventured Chesapeake's La Calavera and Rio Minas gold-silver polymetallic prospects. To initially earn a 51-per-cent interest, Pinnacle has agreed to payment and share issuances of $1.8-million (U.S.) and exploration expenditures of $6-million (U.S.) over five years. Once received, Pinnacle expects to drill La Calavera before year-end.
Elsewhere, Chesapeake continues to build its strong project portfolio through generative exploration. Exploration programs in Mexico are supervised by Alberto Galicia, PGeo, who is the qualified person under NI 43-101.
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