Canadian Shield Resources Ltd.
TSX VENTURE : EXP

Canadian Shield Resources Ltd.

December 15, 2009 11:09 ET

Canadian Shield Updates Peru Gold Projects

TORONTO, ONTARIO--(Marketwire - Dec. 15, 2009) - Canadian Shield Resources Ltd. (TSX VENTURE:EXP) ("Canadian Shield" or the "Company") is pleased to provide an update on the Estrella Project located in central Peru, and the Colpayoc Project, located in the Yanacocha District of northern Peru. Canadian Shield has recently completed a review of all exploration data generated on these projects, including all trenches, rock samples and drill hole cross sections.

The Estrella property has been drilled by the Company and prior operators and the Colpayoc property has received historic trenching and drilling by prior operators (1996-2007). In each case the Company has developed Exploration Target Models for each project and Canadian Shield will prepare NI 43-101 technical reports for each property. The exploration targets contain tonnages and grades which are conceptual in nature. There is insufficient exploration to define a mineral resource as defined by NI 43-101 and it is uncertain if further exploration will result in discovery of a mineral resource. The Company has previously released all significant drilling intercepts in news releases (see www.canadianshieldresources.com).

The Estrella property contains a volcanic-hosted epithermal gold-silver system, containing associated base-metal mineralization, hosted within a north-south trending graben. Gold assays from outcrops and drill holes in the exploration target range from 0.2 - 54.0 g/t and average 0.44 g/t gold. Silver mineralization within the exploration target has assays which range from 15.0 – 1,400 g/t and average 21.15 g/t silver. The Estrella exploration target contains a minimum of 35 million metric tonnes of mineralization and may contain up to 55 million metric tonnes or more of mineralization. The mineralized area is at least 1,200 meters long (north-south) and approximately 200 meters wide (east-west). The main area of mineralization occurs in a west dipping zone (-45º), which is cross cut by sub-vertical, mineralized zones. In the west-dipping zone, the mineralization remains open up-dip, down-dip, and along trend to the north and south. Mineralization hosted in the near-vertical zones remains open at depth, and along strike in both directions. These estimates are intentionally conservative, and provide a clear indication of the location, grade variation, and trend of the mineralization.

The Colpayoc property contains a central gold-copper porphyry system at the Daylight Zone, and 5 additional target areas in the surrounding area with epithermal gold-silver and skarn-hosted targets. The Daylight Zone has received the largest amount of work. Assay results from trench and drill holes in the main exploration target area range from 0.2 – 2.9 g/t gold with an average grade of 0.50 g/t. The Daylight Zone exploration target contains a minimum of 25 million metric tonnes of mineralization and may contain up to 50 million metric tonnes or more. Gold mineralization is hosted within an intrusive rock which is exposed in a semi-circular area measuring roughly 400 meters in diameter, surrounded by sedimentary rocks. Mineralization forms a nearly continuous circular zone within the intrusion. Oxidation extends to a depth of approximately 45 meters. Copper mineralization is present but has not been evaluated in detail. The mineralized areas remain open at depth, in all directions.

Estrella Property: The property contains 2,300 hectares and is located 130 km south of Huancayo in the Department of Juancavalica. The property is accessed via 65 km of high quality paved roads, and 65 km of high quality gravel roads. The Company has a 90% interest in the property, with 10% owned by Anderson Peru Mining and Exploration S.A.C. The property contains an outcropping, multiple phase epithermal, intermediate sulfidation gold-silver system hosted in felsic and intermediate volcanic and sub-volcanic intrusive rocks of probable Tertiary age. Mineralization occurs with pervasive sericite (illite), clay, and lesser silica alteration. The volcanic rocks overly limestone of Permo-Triassic age and are hosted within a distinctive north-trending, fault-bounded graben. Mineralization occurs in at least three different styles which are present within a 1,200 meter north-south by 200 meter east-west zone. The largest area of mineralization occurs as a north-south trending, west dipping, irregular, stratabound zone made up of one to three sub-zones, which cumulatively measure 50 – 150 meters in thickness. The stratabound zones contain variable grade gold and silver mineralization which occurs with disseminated and vein hosted pyrite, tetrahedrite, galena and sphalerite. The zone has been intersected along strike for 600 meters, and remains open for additional expansion to the north and south. The stratabound zone also remains open up-dip, to the projected sub-crop (beneath Quaternary alluvium), and down-dip. The second type of mineralization occurs as a flat-lying tabular zone that ranges from 10 - 25 meters in thickness, and is located at or near surface. The flat lying zone covers an area that is approximately 200 meters east-west and 130 meters north-south, and occurs above the west-dipping stratabound zone. The third type of mineralization occurs as north trending, sub-vertical fault zones, containing silver and gold mineralization, which cut both the west-dipping stratabound zone and the flat-lying near surface mineralization. This third type of mineralization outcrops at surface and has been intersected in drill holes, extending north of the stratabound zone for a distance of 600 meters (north-south). The sub-vertical zone consists of multiple 3-15 meter wide individual zones that occur within broader 60 – 80 meter wide zone. The sub-vertical mineralization is topographically higher than the west-dipping stratabound zone, which may be present at depth, below existing drilling. The sub-vertical zone locally contains some of the highest grade mineralization on the property, including drill intersections up to 11 meters @ 311.2 g/t silver and 0.59 g/t gold (RC-E10 from 43-54 m). The sub-vertical mineralization also remains open for expansion along trend to the north and south and at depth. The overall depth of oxidation on the Estrella property is very near surface (<5.0 m). The Company plans to undertake additional drilling to expand the area of mineralization and in areas of higher grade mineralization. Drilling will be planned to facilitate preparation of a NI 43-101 technical report.

Colpayoc Property: The property contains 4,200 hectares and is located 15 km west of the city of Cajamarca and 15 km south of the Yanacocha mine complex, operated by Newmont Mining Corporation. The Company has an option to acquire a 100% interest, subject to a 2% NSR royalty in the property. The property is accessed along a 29 km improved gravel road from Cajamarca. The property contains oxidized, outcropping gold and copper mineralization hosted within a felsic intrusive, typical of a porphyry gold-copper system. The intrusion is nested within two similar intrusions, all of which have intruded and are hosted within Cretaceous age, massive limestone, calc-arenite, and siltstone. The intrusions are circular and form a 400 meter diameter area of discontinuous outcrop, surrounded by the sedimentary host rocks. Alteration consists of variable density quartz-magnetite-pyrite-chalcopyrite stockwork and sericitization within the intrusions, and variable skarn development and decalcification within the sedimentary rocks. Mineralization, host rocks, and alteration are similar to the Cerro Corona deposit, located in the northern Yanacocha district. The property contains northwest trending fault zones, and northeast trending fault zones within the sedimentary rocks. In several places, these structures host variably brecciated felsic volcanics (possible vent breccias), with precious metal mineralization, including gold assays up to 10 g/t and silver assays up 912 g/t reported from surface rock samples. These areas have received only preliminary sampling at this time, and more systematic work is required to assess the distribution of this mineralization. In summary, the property contains three types of mineralization, which occur in six separate target areas. The main area of mineralization, which has been explored and evaluated (as described above) is the Daylight Zone/porphyry gold-copper mineralization. Epithermal silver-gold mineralization is present within felsic volcanics and skarn mineralization may be present, associated with a series of magnetic anomalies within the sedimentary rocks, at depth. Canadian Shield plans additional drilling to prepare a mineral resource estimate. Recently the Company received opposition to its planned drilling program, from a community, located adjacent to the Colpayoc Property. Canadian Shield is expanding its Community Relations program and is negotiating an additional agreement. 

Summary of Exploration Data:

Property Drill Holes Meters (Drilling) Trenches Meters (Trenching) Trench & Rock Assays Minimum Drill Hole Assay Interval Average Gold Assay
Colpayoc 4 647 17 2,500 1,686 3.0 m @ 0.2 g/t Au 0.50 g/t
La Estrella 33 5,800 0 0   615 3.0 m @ 0.2 g/t Au OR 21.0 g/t Ag 0.44 g/t

For more information on Estrella and Colpayoc please visit Canadian Shield's website where technical information and past press releases detailing work and results relating to these properties can be reviewed. 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.

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. The Company's shares are listed on the TSX Venture Exchange (Trading Symbol TSX VENTURE:EXP). Further information is available at Canadian Shield's website: www.canadianshieldresources.com.

Forward-Looking Statements

This news release includes certain "forward-looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives or expected results of Company, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Future drilling may fail to confirm economic mineral accumulations on current targets or discoveries. Important factors that could cause actual results to differ materially from the Company's expectations are the risks and uncertainties inherent in resource exploration and development detailed from time to time in the filings made by Company with securities regulators.

No securities commission or other regulatory authority has approved or disapproved the information contained herein.

The TSX Venture Exchange and its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts no responsibility for the adequacy or accuracy of this release.

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