Chesapeake News:
February 8, 2006
Symbol: TSX V-CKG
NR01-2006
NEWS RELEASE
Chesapeake Stakes an Additional 272,154 Hectares in Oaxaca State, Mexico Pena Blanca Trench Cuts 23.5 Meters of 2.26 g/t Gold and 178 g/t Silver
Chesapeake is pleased to report that district-scale exploration work completed along the northwest trending volcanic and tectonic belt hosting the Company’s La Gitana and La Calavera projects in Oaxaca State, Mexico has resulted in the discovery of nine exciting new mineral prospects including Pena Blanca and most recently, Rio Minas. Chesapeake also received title on an additional 272,154 hectares of highly prospective ground staked northwest of the La Gitana project, increasing the Company’s total land package to 365,345 hectares.
Pena Blanca, located 12 kilometers northwest of the Company’s La Gitana gold-silver project, is a new, emerging, large tonnage, epithermal gold-silver prospect that was discovered in 2005 during a regional-scale stream sediment sampling program. Sediment anomalies ranging between 276 ppb to 2200 ppb gold were returned from a 2.5 kilometre by 3.5 kilometre area surrounding the Pena Blanca ridge. Recently, Chesapeake conducted a follow-up, first-phase, exploration program that included semi-detailed mapping and systematic surface sampling over an area about 600 meters by 1000 meters in size.
Geochemical assay results obtained from a 300 meter by 1000 meter soil sample grid at Pena Blanca show a broad, N-NW trending gold anomaly with values above 0.2 g/t gold extending across the entire length of the grid. A stronger anomaly, greater than 0.5 g/t gold, is also observed across a core area of 200 meters by 400 meters to the northwest of the grid. The soil geochemistry data shows that the mineralization has a strong northwest component and that it is continuous for more than 1 kilometre along strike.
A series of continuous, channel-cut, rock sample sections were collected from outcrops and hand-dug trenches excavated in the 200 meter by 300 meter area located at the northwest end of the soil sample grid. This portion of Pena Blanca, an area affected by more intense silica-argillic alteration, also coincides with the soil grid’s 1.0 g/t plus gold anomaly. The sample cuts were taken across several different zones 50 meters to 100 meters apart.
The trenching and outcrop channel sampling results are as follows:
Interval (m) Gold (g/t) Silver (g/t) Gold Eqv.* (g/t)
Outcrop & Trench** 23.5 2.26 178.00 5.22
Outcrop & Trench** 23.0 0.61 11.50 0.80
Outcrop** 46.0 0.61 7.10 0.73
Outcrop** 10.0 0.54 2.40 0.58
Trench** 9.0 0.42 1.90 0.45
Outcrop** 25.0 0.47 7.70 0.60
Outcrop** 7.0 0.82 2.70 0.86
Outcrop** 10.0 0.45 1.57 0.47
Outcrop** 3.0 5.96 16.00 6.20
Outcrop** 3.0 2.15 6.50 2.26
* A gold-silver ratio of 1:60 was used for gold equivalent calculation.
** Ended in mineralization.
High grade structures and widespread low grade disseminated mineralization were encountered throughout the 200 meter by 300 meter core area with many of the section cuts ending in mineralization. One outcrop zone, located more to the southwest, returned an intersection of 23.5 meters of 5.22 g/t gold equivalent from a partially exposed northeast trending quartz stockwork system, and a cut of 23 meters of a 0.81 g/t gold equivalent from a set of northwest trending fractures, 50 meters further to the south. Other significant intersections included 46 meters of 0.73 g/t equivalent 200 meters to the southeast, and 25 meters of 0.61 g/t gold equivalent 150 meters more to the northeast.
The Pena Blanca prospect covers nine square kilometers of hydrothermal alteration of which less than 1 square kilometer has been systematically mapped and sampled. In December, another zone, located about 1 kilometer east-northeast of Pena Blanca, returned rock ship assay results of up to 4.8 g/t gold. The mineralization is associated with a swarm of northwest trending, sub-parallel quartz veins, 1 meter to 5 meters in width, partially exposed for more than 500 meters along strike. Numerous other mineralized zones marked by stream sediment, soil and rock chip anomalies have been found at Pena Blanca. The style of the alteration and mineralization, together with the orientation and size of structures suggests that several zones might interconnect to form a major epithermal system.
Rio Minas is a silver-rich, polymetalic skarn prospect located 40 kilometers northwest of La Gitana, and 35 kilometers southeast of La Calavera. The area of interest is centered on an old mining district with remnants of small-scale mining activity seen across several near-surface, enriched mineralized zones. The Rio Minas prospect covers two separate mineralized areas, located 2.5 kilometer apart, but probably related to the same skarn system associated to the contact zone of a granidioritic intrusive and limestones that can be traced for several kilometers.
Outcrop zones of copper-zinc-silver skarn mineralization and alteration exist in both target areas of Rio Minas and form a large aureole around the intrusive stock. Results from a series of rock chip samples, 2 meters to 5 meters wide, have returned values up to 7.1% Cu, 3.2% Zn, 128 g/t Ag and 0.4 g/t gold. The higher grade values are associated with exoskarn mineralization that occurs across a 2 meter to 15 meter wide, peripheral zone that is traceable for more than 1 kilometer along the contact between the intrusive stock and the host calcareous limestones.
Chesapeake is presently completing environmental impact studies and negotiating long-term community work agreements in order to be granted the necessary permits to undertake road construction, mechanized trenching and geophysics on both Pena Blanca and Rio Minas. Once permited, the Company plans to fast-track both prospects to the drill ready stage with Pena Blanca being the first one tested in 2006.
In January, Chesapeake renegotiated a new 5 year working agreement with the local community at La Gitana. The drilling program has resumed and the Company continues to test the south-southeast extension of Cerro di Oro and the deeper levels of the system. To date, 30 holes have confirmed that gold-silver mineralization extends for more than 600 meters along strike, up to 300 meters in width, and down to 350 meters at depth. Drill results will be released after the completion of an additional 6 to 8 holes.
With La Gitana and the discovery of Pena Blanca, Rio Minas and other significant prospects, Chesapeake believes its 3,650 square kilometer land package in Oaxaca State is an emerging new mining district with the potential to host multiple large scale deposits.
ALS Chemex is the analytical laboratory for the project. Sample preparation is undertaken in Guadalajara, Mexico and the analysis in Vancouver, BC. Mr. Andris Kikauka, P. Geo, is the qualified person under National Instrument 43-101 on the project.
For more information, please visit our website at www.chesapeakegold.com or contact investor relations at 604-731-1094.
CHESAPEAKE GOLD CORP.
“P. Randy Reifel”
P. Randy Reifel
President
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