Western Keltic Mines Inc.
TSX VENTURE : WKM

Western Keltic Mines Inc.

January 10, 2007 09:54 ET

Western Keltic Mines Inc.: Drilling Confirms High Grade Open-Pit Resource at Kutcho

Drilling Intersects 6.9% Copper and 3.1% Zinc Over 6.2 Metres

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 10, 2007) -

THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN. THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.

Results of the 2006 drilling program announced today confirm a higher-grade, near-surface copper-zinc resource at Western Keltic Mines Inc.'s (TSX VENTURE:WKM) Kutcho Project, located approximately 100 kilometers east of Dease Lake in northern British Columbia. The drilling program, undertaken between September 15 and October 30, consisted of 1,870 meters of drilling in 23 holes and focused on in-fill drilling of the eastern end or starter pit area of the Main deposit. The Main deposit hosts an open pittable, measured and indicated resource of 14.2 million tonnes grading 1.9% copper, 2.4% zinc, 33g/t silver and 0.4g/t gold (see press release January 24, 2006).

"We are very pleased with the results of the drilling program," says John McConnell, president and CEO, Western Keltic Mines Inc. "The results provide verification of the historical data, extend some of the thicker and higher grade zones of mineralization, and indicate that mineralization extends almost to surface with no oxidation. The results continue to outline the potential for mining near-surface, higher-grade material in the early years of the mining operation."

Highlights of drilling in the Main deposit are listed in the table below. A complete list of drill results is attached.



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Drill-hole From (m) To (m) True Thick (m) Cu% Zn% Ag g/t Au g/t
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WK06-66 5.0 16.6 11.5 2.3 3.2 43.5 0.41
WK06-69 27.2 39.5 9.2 2.9 5.0 42.0 0.49
WK06-84 77.2 100.2 22.3 3.1 3.9 58.4 0.60
WK06-86 26.5 44.0 13.1 4.1 2.9 33.4 0.41
incl. 27.4 36.5 6.8 6.9 3.1 52.6 0.65
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2006 Drill Program

The in-fill drilling was designed to upgrade indicated resources within the 5 year starter pit of the Main deposit to the measured category and to aid in pit optimization for feasibility studies which are currently being undertaken, in conjunction with AMEC Americas Inc. As well, the drilling provides additional material for metallurgical testing. Historical drilling delineated the deposit on 60m spaced sections with hole spacing of approximately 30m along sections; the 2006 drilling in-fills the eastern third of the deposit on approximate 30m spaced sections.

Drill holes WK06-65 through 68 are located at the eastern edge of the deposit and extend the greater than 10m thickness of the core zone further to the east (see www.westernkeltic.com for drill hole location map). Hole 66 intersected an 11.5m thickness of massive sulphide mineralization within 5m of surface and did not display any evidence of oxidation. Drill-holes 69 through 73 form a section 120m further west (section 538150E) and are generally comparable to the drill-holes on adjacent sections with the exceptions of being slightly thicker with slightly higher zinc grades as indicated in WK06-69 with 9.2m of 2.9% Cu and 5.0% Zn and WK06-72 with 14.9m grading 1.5% Cu and 4.4% Zn. Drill-hole WK06-84, on section 538030E, intersected 22.3m grading 3.1% Cu and 3.9% Zn, which increases the extent (and grade) of the greater than 20m thick area of the deposit. Drill-holes WK06-86 and 87 are located along the up-dip edge of the deposit on section 538100E and intersected above average grades including a 6.8m interval grading 6.9% Cu and 3.1% Zn.

Quality Assurance

The technical information contained in this news release has been prepared in accordance with regulatory requirements set out in National Policy Instrument 43-101. The 2006 drilling program was carried out under the direction of Peter Holbek, P.Geo., Vice President Exploration and a qualified person under National Policy Instrument 43-101. All drill holes are logged and the core is split and quartered on site. Half of the core is sent to Lakefield Research for metallurgical testwork. A quarter of the core is sent to ALS Chemex in North Vancouver for ICP analysis and fire assay. The Company employs a system of quality control for all assays which includes the regular use of standards, blanks and check assaying.

About Kutcho

The Kutcho Project is comprised of three copper-zinc-silver deposits with an aggregate size of greater than 20 million tonnes, containing approximately 850 million pounds of copper and 1.2 billion pounds of zinc. The Main deposit consists of a measured and indicated resource of 14.2 million tonnes grading 1.9% copper, 2.4% zinc and 33g/t silver and is suitable for low-cost open pit mining. The Esso deposit consists of a 2.03 million tonnes indicated resource grading 2.9% copper, 5.5% zinc and 69g/t silver and the Sumac deposit has an inferred resource of 4.2 million tonnes grading 1.4% copper and 1.8% zinc (see Press release, January 24, 2006).

Western Keltic has engaged AMEC Americas Inc., an international project management and engineering services company to co-ordinate a pre-feasibility study for the Kutcho Project. Upon compilation of the 2006 drilling results, AMEC will complete an independent, 43-101 compliant resource estimate and determine optimal open pit development plans for the Main deposit. In addition, pre-feasibility stage studies on access and infrastructure needs, metallurgical and environmental studies are currently underway. The Company has also initiated tailings and waste rock impoundment studies, hydrology and mine closure plans. The Company currently envisages a 4,000 t/day operation capable of producing approximately 57 million pounds of copper and 70 million pounds of zinc, in concentrates, on an annual basis. Mine and mill power requirements would be met by on-site diesel powered generators and concentrates would be trucked to the port of Stewart for shipment to smelters.

Western Keltic Mines Inc. is a mineral exploration and development company that is advancing the Kutcho Project to a production decision. The company, traded on the TSX Venture Exchange under the symbol WKM, is managed by a team of geologists, mining engineers and environmental experts experienced in responsible mine development.

John McConnell, President and CEO



2006 Drill Results

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Drill-hole From (m) To (m) True Thick (m) Cu% Zn% Ag g/t Au g/t
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WK06-65 8.2 22.6 10.5 2.15 4.38 46.9 0.70
WK06-66 5.0 16.6 11.5 2.27 3.25 43.5 0.41
WK06-67 22.0 36.0 14.0 1.58 4.50 33.9 0.45
WK06-68 42.0 49.0 5.1 0.65 1.63 13.6 0.31
and 55.0 56.0 0.8 3.11 1.20 104.0 1.14
WK06-69 27.2 39.5 9.2 2.91 5.01 42.0 0.49
WK06-70 20.9 36.6 15.7 2.04 3.44 23.0 0.29
WK06-71 51.1 88.1 26.0 1.20 1.74 21.8 0.29
WK06-72 51.0 66.3 14.6 1.48 4.39 21.3 0.29
WK06-73 48.6 66.6 18.0 1.57 2.18 20.7 0.23
WK06-74-79 Assays pending
WK06-80 102.9 108.0 4.3 2.36 2.05 32.2 0.44
and 111.4 123.5 10.3 2.15 3.43 37.6 0.63
WK06-81 49.0 60.0 11.0 1.28 1.47 22.4 0.29
incl. 55.9 60.0 4.1 2.52 2.42 41.7 0.64
WK06-82 52.3 67.9 10.6 2.73 3.96 43.3 0.49
WK06-83 77.0 89.9 12.7 1.68 4.00 31.7 0.42
incl 80.2 89.9 9.6 2.11 4.67 39.1 0.51
WK06-84 77.2 100.2 22.3 3.13 3.88 58.4 0.60
WK06-85 89.4 104.5 12.4 1.38 3.12 24.3 0.35
incl. 89.4 95.2 4.8 2.08 6.03 35.5 0.45
WK06-86 26.5 44.0 13.1 4.10 2.96 33.4 0.41
incl. 27.4 36.5 6.8 6.91 3.07 52.6 0.65
WK06-87 18.8 28.4 9.6 3.08 3.77 22.6 0.26
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Contact Information

  • Western Keltic Mines Inc.
    John McConnell
    (604) 682-8414 or 1-800-501-1201
    or
    Western Keltic Mines Inc.
    Brian Butterworth
    (604) 682-8414 or 1-800-501-1201
    Website: www.westernkeltic.com