Western Keltic Mines Inc.

Western Keltic Mines Inc.

January 11, 2005 13:48 ET

Western Keltic Mines Inc.: New Resource Estimates for Kutcho Creek Project


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: WESTERN KELTIC MINES INC.

TSX VENTURE SYMBOL: WKM

JANUARY 11, 2005 - 13:48 ET

Western Keltic Mines Inc.: New Resource Estimates for
Kutcho Creek Project

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 11, 2005) - Western
Keltic Mines Inc. (TSX VENTURE:WKM)

- Kutcho deposit resource at 11.6 Mt grading 3.36% CuEq

- Esso West deposit expanded to 2.12 Mt at 5.82% CuEq

- Project contains 672 million lbs copper and 959 million lbs zinc

Western Keltic Mines Inc. is pleased to announce new resource estimates
at the Kutcho Creek Project, in north-central British Columbia. The
Project contains 672 million pounds of copper and 959 million pounds of
zinc at an average copper equivalent (CuEq(i)) grade of 3.65% within the
two deposits. The resource estimates follow completion of 41 drill holes
during the 2004 exploration program. Resources were estimated using 158
drill holes in the Kutcho deposit and 44 drill holes in and around the
Esso West deposit. All assayed samples have an associated specific
gravity value. Three dimensional solids models were constructed to
outline the sulphide deposits. Copper, zinc, silver and gold grades and
specific gravity for each block within the models were estimated using
an inverse distance cubed interpolation. Results at various Cu % cutoff
grades are listed below.



Kutcho Deposit Measured and Indicated Resources

-----------------------------------------------------------
Cut-off Tonnes Cu Zn Ag Au CuEq(i)
(% Cu) (000's) (%) (%) (g/t) (g/t) (%)
-----------------------------------------------------------
0.5 13,061 1.94 2.59 33.7 0.41 3.10
-----------------------------------------------------------
0.7 12,565 2.00 2.65 34.6 0.42 3.19
-----------------------------------------------------------
1.0 11,554 2.10 2.80 36.2 0.44 3.36
-----------------------------------------------------------
1.2 10,364 2.22 2.98 38.1 0.47 3.55
-----------------------------------------------------------


Esso West Deposit Indicated Resources

-----------------------------------------------------------
Cut-off Tonnes Cu Zn Ag Au CuEq(i)
(% Cu) (000's) (%) (%) (g/t) (g/t) (%)
-----------------------------------------------------------
1.5 2,120 3.26 5.86 75.7 0.71 5.82
-----------------------------------------------------------
(i) The copper equivalent calculation is based on the following: metal
prices of US$1.00 Cu, $0.50 Zn, $6 Ag and $400 Au; metallurgical
recoveries for Cu (88%), Zn (85%), Ag (60%) and Au (50%); and
smelter payables for Cu (70%), Zn (44%), Ag (85%), and Au (68%).
The copper equivalent algorithm is: CuEq% equals Cu% + Zn%/3.29 +
Ag g/t/138.3 + Au g/t/3.105.


The new Kutcho resource estimate resulted in a slight increase in grade
and slight decrease in tonnage over the previous resource estimate. The
increase in copper, silver and gold grades is attributed to larger
diameter core samples and improved core recovery. The decrease in
tonnage is a result of constraining the interpolation within the solids
model.

The new Esso West resource estimate resulted in a 25% increase in
tonnage. The previously reported estimate was 1.5 million tonnes grading
3.37% Cu, 5.71% Zn, 63.4 g/t Ag and 0.54 g/t Au. The 2004 drilling
program returned slightly higher precious metal grades relative to the
previous work.

The resource estimates and the 2004 drilling campaign at Kutcho Creek
were performed by or under the supervision of Western Keltic's Vice
President of Exploration Peter Holbek, MSc, P.Geo., a qualified person
as defined by National Instrument 43-101. All drill holes were logged
and split on site. Half of the core was sent to Lakefield Research for
metallurgical test work and one-quarter of the core was sent to ALS
Chemex Labs of North Vancouver for analysis. A system of quality control
was in place for the 2004 program including the use of regular check
assaying using standards and blanks.

The 2004 drilling program not only increased tonnage at the higher grade
Esso West deposit but also confirmed continuity of mineralization within
both deposits. Samples obtained from both the Kutcho and Esso West
deposits have been shipped to Lakefield Research and will be used for
metallurgical testing.

Western Keltic is a mineral exploration and development company
currently focused on the discovery and development of copper and gold
assets. The company is engaged in searching for additional assets to
compliment its current project portfolio. The company has 22.3 million
shares outstanding and has no debt.

On behalf of the Board of Directors

Western Keltic Mines Inc.

Donald McInnes, President

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Western Keltic Mines Inc.
    Donald McInnes
    President
    (604) 682-8414 or Toll Free: 1-800-501-1201
    (604) 682-3727 (FAX)
    Website: www.keltic.com
    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.