Canadian Shield Completes NI 43-101 Technical Report and Resource Estimate for Colpayoc Gold Project, Peru
August 03 2010 - 9:00AM
Marketwired
Canadian Shield Resources Ltd. (TSX VENTURE: EXP) ("Canadian
Shield" or the "Company") has filed a NI 43-101 Technical Report
and Resource Estimate for the Colpayoc Gold Project. The report was
prepared by SRK Consulting (U.S.) Inc. ("SRK") and concluded:
-- The Colpayoc Gold Project is an early stage gold exploration property,
located 15 km southwest of the Yanacocha mine complex in northern Peru.
The project contains a porphyry gold-copper system which has been the
focus of most historic exploration, and additional mineralized prospects
in the surrounding areas.
-- The area containing the porphyry gold-copper system (Daylight Zone)
contains historical surface trench data and four of twelve drill holes
on the property. All four drill holes contain stockwork quartz-veining
and alteration, typical of a porphyry system, and contains gold
mineralization hosted in altered intrusive rocks that are approximately
300m by 300m in plan on surface. Shallow drilling has demonstrated gold
mineralization extends to at least 170 m depths as mineralization occurs
from top to bottom of these few drill holes.
-- SRK has completed a preliminary resource estimate using the trench and
drill hole data, and using standard block modeling techniques to result
in 7.6 million tonnes at 0.59g/t Au grade for 144,600 contained ounces
gold. This Inferred resource should be considered a preliminary estimate
of the mineralized potential, for which verification work is required.
The current classified Mineral Resource estimate for Colpayoc, at a cut-
off grade of 0.3 grams per tonne is a follows:
----------------------------------------------------------------------------
Au Cut-off (g/t) Material Mass (Tonnes) Au (g/t) Au Contained(oz)
----------------------------------------------------------------------------
0.3 Oxide 4,663,275 0.59 88,800
----------------------------------------------------------------------------
0.3 Non Oxide 2,913,019 0.61 57,800
----------------------------------------------------------------------------
----------------------------------------------------------------------------
0.3 All Inferred 7,576,293 0.59 144,600
----------------------------------------------------------------------------
-- The state of exploration for Colpayoc is too early to justify estimating
in-pit resources. SRK has estimated and is reporting an in-situ total
resource rather than an in-pit resource, primarily because the resource
is all classified as Inferred. In reporting the resource at a 0.3 g/t Au
cut off, SRK has examined potential mineability and can state the
mineralization has the potential for economic extraction at current gold
prices. This resource establishes a base level from which additional
resources may be expanded. Areas of mineralization defined in trenching
are only partially drill tested by four drill holes and the mineralized
zones remain open for possible expansion. Additional drilling is
recommended to define the extent of gold mineralization beneath gold-
bearing trenches.
-- Exploration potential exists to increase the confidence of the
classification by targeted drilling; and there is potential to expand
the resources by drilling additional holes beneath some of the
mineralized trenches, and as offsets to existing drill holes. The
mineralized areas remain open at depth in all directions.
-- At the Colpayoc porphyry zone, the mineralization is predominantly gold
and copper and occurs with stockwork zones within alteration phases of
the Miocene-age diorite.
-- Low grade gold, with variable and sometimes significant copper, silver,
and molybdenum is present with the skarn alteration zone located up to
1,400 meters west of the Daylight porphyry zone, hosted in altered
Cretaceous-age limestone. Gold and silver mineralization is also present
in a northwest trending structural zone, starting 4,400 meters northwest
of the Daylight porphyry zone. Initial samples from historic prospect
pits identify gold values up to 30 g/t and silver values up to 900 g/t.
-- The deposit type that best fits the Colpayoc Property geology is a Gold-
Copper Porphyry Deposit with associated skarn and distal epithermal
mineralization. There are other known Au-Copper porphyry deposits in the
region, including the Cerro Corona deposit, owned by Goldfields Mining
Corporation (SA) and the Minas Congas deposits, owned by Minera
Yanacocha. The Colpayoc porphyry is most similar in size and composition
to Cerro Corona.
-- Several exploration targets are proposed by Canadian Shield which
include the following:
-- The Porphyry Gold-Copper target (Daylight Zone) that centers on the
outcropping and shallow drilled elliptical shaped porphyry that
exhibits good quartz stockwork and pervasive oxidation at surface.
This target type remains the primary target on this property.
-- The second target consists of magnetic highs surrounding the
porphyry which may indicate the presence of higher percentage of
magnetite within the altered limestone wallrocks (skarn). Historic
drilling by Newcrest, intersected wide intervals of skarn
alteration, ranging from 54-236 meters which included up to 72
meters of variable skarn alteration with an average gold value of
0.23 g/t gold (Drill hole CPD 02). Drill hole CPD 04 also contained
significant silver mineralization in skarn, with a continuous
interval of 64 meters averaging 44.8 g/t silver.
-- The third target type includes structurally controlled epithermal
mineralization that occurs along the contact between volcaniclastic
rocks and limestone, approximately 4,400 meters northwest of the
porphyry system at the Daylight zone. Historic prospecting by
Canadian Shield and other companies has identified high-grade gold
and silver mineralization associated with manganese oxide-rich
breccias and mantos, along a northwest trending fault zone.
-- Canadian Shield has secured surface access Agreements with all surface
land owners. A disagreement with the village of Chetilla concerning
ingress and egress adjacent to village lands is currently being worked
out with Canadian Shield, but had not been solved at the time of my site
visit.
-- SRK recommends an exploration program to include:
-- Structural mapping, sampling and multi-element analysis
-- RC drilling (minimum of 10 holes) to define other targets on the
property
-- Core drilling (minimum of 10 holes) in the Daylight Zone area of
mineralized trenches
-- A testing program of density measurements and preliminary
metallurgical studies
-- A re-modeling of the deposit to incorporate structure, variography,
new drill hole data, an a re-defined oxide boundary.
-- A recommended Phase I budget is presented for the above-recommended
program (Section 18). The total budget is estimated to be $1,055,000
million for Phase I.
-- Continued successful drilling from the recommended Phase I program
would justify and additional Phase II program of perhaps $2.0
million in the following year, as a 12 month program, to include
further definition drilling, geotechnical drilling for potential
open pit slope determinations, a definitive metallurgical program
and a Scoping Study to determine the project potential for economic
development.
About SRK Consulting (U.S.) Inc. Allan V. Moran, Principal
Geologist, and Jay Pennington, Principal Mining Geologist, both
with SRK Consulting (U.S.) Inc., are the independent Qualified
Persons as defined by NI 43-101 responsible for preparing the
current resource estimate.
About Canadian Shield Resources Ltd. (TSX VENTURE: EXP) Canadian
Shield is a precious metals exploration and development company
focused on strategically-located properties in Peru and Chile.
Canadian Shield has seven precious metal exploration projects in
Peru and one in Chile. Mr. Keith A. Laskowski, MSc., is a Qualified
Person for the purposes of National Instrument 43-101 Standards of
Disclosure for Mineral Projects of the Canadian Securities
Administrators, and has prepared, reviewed and verified the
technical information contained in this news release The Company's
shares are listed on the TSX Venture Exchange (Trading Symbol
TSX-V: EXP). Further information is available at Canadian Shield's
website: www.canadianshieldresources.com.
STATEMENTS IN THIS NEWS 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.
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES
PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX
VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY OF THIS RELEASE.
Contacts: Canadian Shield Resources Ltd. Keith Laskowski MSc.,
President Direct Tel: (800) 362 2040 or (720) 272-6224 (416)
927-1222 (FAX) klaskowski@canadianshieldresources.com
www.canadianshieldresources.com Investor Contact: First Canadian
Capital Dan Boase Partner (416) 742-5600 x 232 (416) 742-6410 (FAX)
dboase@firstcanadiancapital.com
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