Canadian Shield Update on the Colpayoc Property
November 28 2008 - 11:48AM
Marketwired
Canadian Shield Resources Inc. (TSX VENTURE: CSP) ("Canadian
Shield" or the "Company") is pleased to announce the completion of
all necessary surface rights agreements with local communities
surrounding the Colpayoc Au-Cu Porphyry Property in the Department
of Cajamarca, northern Peru. The Colpayoc Property is located 15
kilometres south of Yanacocha, the largest gold mine in the western
hemisphere In addition, the Company has carried out drill target
definition work including surface mapping, sampling and 67
line-kilometres of ground magnetics.
The mineralized system comprises mid-Tertiary age intrusive
hosted gold-rich porphyry and skarn with peripheral, structurally
controlled breccia-vein style mineralization. Mineralization is
also associated with late stage diatreme or volcanic vent breccias.
The intrusive-related system is hosted in folded Cretaceous
limestones, with interbedded calc-arenites and siltstone.
Skarnification, marblization and de-calcification are pervasive in
an area of approximately 3.5 x 3.5 kilometres.
Known mineralization and newly generated targets, occur at
conspicuous intersections of northwest and northeast trending
structures, which have been defined by surface mapping and
interpretation of the ground magnetics.
New, untested drill targets generated by the recent work
include:
1) Shallowly-covered, magnetite-rich porphyry mineralization
indicated by strong magnetic highs underlying hornfelsed, pyritic
limestone and accompanied by highly anomalous zinc and lead in
soils.
2) High-level silver-rich polymetallic mineralization associated
with late stage explosive breccia. This type of breccia is also
seen cross-cutting porphyry style mineralization and contains
rounded mineralized clasts. Similar breccias occur at Newmont and
Buenaventura's Minas Conga Gold-Copper Porphyry Deposit 40 km to
the NE (641 million tonnes @ 0.8 g/t gold, 0.3% copper or
approximately 30 million ounces gold equivalent).
3) High grade structurally-controlled gold-silver mineralization
localized along a regional synclinal axis peripheral to the
porphyry mineralization. Surface samples run up to 10 g/t gold with
912 g/t silver. No systematic trenching or drilling has been yet
completed on this target area.
Background:
The Colpayoc Au-Cu porphyry property is located about 30 road
kilometres west of the city of Cajamarca, the capital of the
Department of Cajamarca. The property lies within Peru's most
prolific mineral district, reportedly containing over 84 million
ounces of gold, 32 billion pounds copper, and 236 million pounds of
molybdenum in ten high sulfidation epithermal and porphyry
deposits. The district includes the world-class Yanacocha Mine with
50 million ounces gold from production and remaining mineable
reserves. Table 1 summarizes tonnes and grade of some major
deposits in the district.
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Table 1: Yanacocha District Deposit Summary
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Deposit Ownership Deposit Size Cu% Au g/t Mo%
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Yanacocha Newmont-Buenaventura 1.25 billion 0.9
-World Bank tonnes
Minas Conga Newmont-Buenaventura 641 million 0.3 0.8
tonnes
Galeno North Peru Copper 765 million 0.49 0.11 0.14
tonnes
Michiquillay Anglo American 544 million 0.69 0.1-0.5
tonnes
Cerro Corona Gold Fields 91 million 0.5 1
tonnes
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Newcrest Mining, Balaclava Resources and Granges Resources
performed significant work on the property during the mid-to-late
nineties including surface mapping, sampling, magnetometry,
trenching and a total of 11 drill holes. Trenching and drilling
intersected porphyry style, quartz-magnetic-pyrite-chalcopyrite
stockwork mineralization and sub-vertical sheeted veins hosted in a
two-phase intrusive sequence consisting of hornblende-feldspar
porphyry and quartz-biotite-feldspar porphyry. The best gold grades
correspond to magnetite-bearing stockwork, which produces a strong
magnetic response clearly delineated in Newcrest's magnetic survey.
Work was concluded and the property returned to the underlying
owners even though additional magnetic anomalies remained
untested.
Tables 2 and 3 below summarize results of previous drilling and
trenching.
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Table 2: Newcrest Drilling 1995
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Interval
Hole No. From To (m) Au (g/t) Cu(%) Ag (g/t)
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CPD-04 0 70 70 less than 0.1 n/a 43
including 18 46 28 less than 0.1 n/a 72
including 26 32 6 less than 0.1 n/a 191
CPD-06 0 147 147 0.41 0.08
including 50 147 97 0.53 0.1
including 88 147 59 0.61 0.12
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Balaclava Drilling 1997
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Interval
Hole No. From To (m) Au (g/t) Cu(%) Ag (g/t)
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RCD01 0 102 102 0.8 0.09 3.8
including 8 52 44 1.10 0.16 5.1
RCD-02 0 112 112 0.76 0.15 6.3
including 66 106 40 1.00 0.18 7
RCD-03 0 170 170 0.56 0.12 5.1
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weighted average equals 132.75 meters @ 0.61 g/t Au, 0.11% Cu, 5.0 g/t Ag
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Table 3: Highlights of Granges
Trenching
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Trench No. Length Au (g/t)
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T-7 122 0.53
T-8 98 0.47
T-9 206 0.65
T-10 158 0.51
including 25 0.85
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preliminary metallurgical tests show
leachability ranges between 84% & 94%
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"We are very fortunate to have the opportunity to explore this
property and earn in a 100% ownership over a four year option.
Colpayoc is located in a world class mining district and has
company maker exploration potential", said Phil Anderson, VP
Exploration. "Through diligent effort, we succeeded in establishing
a solid working relationship with the local community. Our
judicious exploration work has resulted in a number of drill-ready
targets within a major scale system that shows many similarities to
diagnostic features that mimic other major deposits in the
district" added Mr. Anderson.
Phil Anderson, a "Qualified Person" as defined by National
Instrument 43-101, supervised the program and approved the
technical aspects of this press release.
Investors are invited to visit the Canadian Shield IR Hub at
http://www.agoracom.com/IR/CanadianShield where they can post
questions and receive answers or review questions and answers
already posted by other investors. Alternatively, investors are
able to e-mail all questions and correspondence to CSP@agoracom.com
where they can also request to be added to the investor e-mail list
to receive all future press releases and updates in real time.
About Canadian Shield Resources Inc. (TSX VENTURE: CSP)
Canadian Shield acquires and explores strategically-located
precious and base metal properties in South America. The Company
currently controls a portfolio of eight exploration properties
located in Peru and Chile. Canadian Shield will continue to focus
on project generation and joint venture opportunities to provide
shareholders with interests in a broad portfolio of South American
mineral properties. The Company's shares are listed on the TSX
Venture Exchange (Trading Symbol TSX VENTURE:CSP). Further
information is available at Canadian Shield's website:
www.canadianshieldresources.com
STATEMENTS IN THIS PRESS RELEASE, OTHER THAN PURELY HISTORICAL
INFORMATION, INCLUDING STATEMENTS RELATING TO THE COMPANY'S FUTURE
PLANS AND OBJECTIVES OR EXPECTED RESULTS, MAY INCLUDE
FORWARD-LOOKING STATEMENTS. FORWARD-LOOKING STATEMENTS ARE BASED ON
NUMEROUS ASSUMPTIONS AND ARE SUBJECT TO ALL OF THE RISKS AND
UNCERTAINTIES INHERENT IN RESOURCE EXPLORATION AND DEVELOPMENT. AS
A RESULT, ACTUAL RESULTS MAY VARY MATERIALLY FROM THOSE DESCRIBED
IN THE FORWARD-LOOKING STATEMENTS.
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Contacts: Canadian Shield Resources Inc Bernard Kraft Chairman
& CEO (416) 927-0025 Ext. 30 or Toll Free: 1-888-927-0025 (416)
927-1222 (FAX) Email: investor@canadianshieldresources.com Canadian
Shield Resources Inc Phil Anderson VP Exploration (511) 719-6152 or
(VoIP Line): (416) 907-5690 (511) 446-1194 (FAX) Email:
panderson@canadianshieldresources.com Website:
www.canadianshieldresources.com Investor Relations: AGORACOM
Investor Relations Email: CSP@Agoracom.com Website:
www.agoracom.com/IR/CanadianShield