Canadian Shield Resources Ltd.
TSX VENTURE : EXP

Canadian Shield Resources Ltd.

July 15, 2010 08:30 ET

Canadian Shield Commences Gold Exploration at Trol Project, Chile

TORONTO, ONTARIO--(Marketwire - July 15, 2010) - Canadian Shield Resources Ltd. (TSX VENTURE:EXP) ("Canadian Shield" or the "Company") is pleased to announce the acquisition of additional property and commencement of its gold exploration program at the Trol Project, located in the 9th Region of southern Chile.

From 2007, the Company controlled a 100 hectare license, centered on outcropping bedrock gold mineralization within the Madre de Dios placer gold district. The area contains significant gold mineralization, with historic drill intercepts up to 112 m @ 1.12 g/t gold, as identified and reported by Minera Cominco Resources Chile Ltda. ("Minera Cominco"). The area of historic drilling covers approximately 400 meter of strike and occurs within a 2,600 meter long by 400 meter wide soil gold anomaly. Canadian Shield has recently submitted applications for 8 additional claims covering 2,200 hectares of land surrounding the initial license. The applications have been accepted and the claims are reserved for the Company, pending formal award by a Federal court. The addition of these eight claims with the central 100 hectare property now makes Trol a viable gold exploration project.

LOCATION, ACCESS & EXPLORATION HISTORY: The Trol property and the Madre de Dios gold placer district are located on the west flank of Cordillera Trolitralahue, approximately 55 km northeast of the capital city of Valdivia. The district has excellent road access and infrastructure, with paved roads to within 5 km of the property. The Madre de Dios gold placer district was discovered in 1566 by Spanish explorers. Total production is not known, however recorded production from 1898–1936 was approximately 83,600 ounces. Outcropping bedrock gold mineralization was discovered by Amax Exploration ("Amax") programs during 1982-84. The property contains thick vegetation which has hindered bedrock exploration. The Trol prospect was initially explored by a Joint Venture between Amax and Shell Minerals ("Shell"), which resulted in drilling seven core holes. Minera Cominco explored the property in 1991-92 and drilled three additional reverse circulation drill holes. Based on surface rock samples and 10 drill holes, Minera Cominco prepared an historic estimate of the gold resource based on exploration data (not compliant with NI-43-101 regulations). The property was optioned to Pegasus in 1993-94 and they conducted an extensive regional exploration program, including 46 drill holes. The property was later dropped and the 100 hectare central claim was acquired by Anderson Peru Mining and Exploration S.A.C. ("APMX"). APMX conducted extensive soil sample panning surveys, which identified an extensive region containing visible gold flakes in the soil. Interpreted observations identified up to 48 flakes of gold per sample. Results of this work indicate potential mineralized zones are discontinuous but extend at least 1,500 meters northeast and 700 meters southwest from the area of historic drilling, for a total area measuring approximately 2,600 meters northeast by 400 meters wide. Canadian Shield acquired the property through its acquisition of APMX in 2007.

GEOLOGY AND GOLD MINERALIZATION: Gold mineralization occurs within a sequence of complex, low-angle and high-angle shear zones and faults, hosted within Carboniferous-age, metamorphosed volcanic and sedimentary rocks. Most rocks have been metamorphosed to variably micaceous schists. The host rocks are part of the Western Metamorphic Series of the Central Coast Range and contain three episodes of intrusions. Historic reports by Minera Cominco indicate gold mineralization occurs as free gold, associated with graphitic mica (muscovite) and quartz schists. The mineralized schists occur with an 80–100 meter thick, flat-lying shear zone, which has been traced 300 meters along strike and 250 meters down dip. Surface rock sampling identified gold values ranging from 1–25.5 g/t gold in the vicinity called Pique Magico. Historic drilling by the Shell/Amax Joint Venture, and subsequent drilling by Minera Cominco, is summarized in the following table, with drill hole locations combined with surface rock gold assays, shown on the attached map. The Company believes that the historic results are reliable and relevant, and is planning a program of independent verification and field follow-up. Taken together, these drill results and surface rock gold assays define a northerly trending gold zone that remains open for additional expansion with drilling along strike in each direction, and down dip.

Company Year Drill
Hole
From
(m)
To
(m)
Interval
(m)
Gold
Assay
(g/t)
Hole
Depth
Drill
Type
Shell/Amax JV 1986 DTL-1 NSV       104.45 Core
Shell/Amax JV 1986 DTL-2 96.0 101.8 5.8 0.50 101.80 Core
Shell/Amax JV 1986 DTL-3 18.0 34.0 16.0 0.33 155.31  
      44.0 112.0 68.0 0.90    
    inc. 62.0 74.0 12.0 1.53    
Shell/Amax JV 1986 DTL-4 36.0 52.0 16.0 0.56 170.00 Core
      56.0 74.0 18.0 0.77    
      90.0 106.0 16.0 0.32    
      108.0 136.0 28.0 1.22    
    inc. 128.0 132.0 4.0 6.10    
      148.0 156.0 8.0 0.54    
      162.0 168.0 6.0 0.55    
Shell/Amax JV 1986 DTL-5 0.0 10.0 10.0 0.69 80.53 Core
      20.0 34.0 14.0 1.54    
    inc. 22.0 28.0 6.0 3.00    
      44.0 50.0 6.0 0.92    
Shell/Amax JV 1986 DTL-6 18.0 26.0 8.0 0.38 140.77 Core
      30.0 38.0 8.0 0.45    
Shell/Amax JV 1986 DTL-7 NSV       81.30 Core
Cominco 1992 CCL-1 37.0 149.0 112.0 1.12 152.00 RVC
                 
Cominco 1992 CCL-2 50.0 55.0 5.0 0.48 200.00 RVC
      66.0 99.0 33.0 1.42    
      151.0 157.0 6.0 0.61    
Cominco 1992 CCL-3 111.0 128.0 17.0 0.22 250.00 RVC
      139.0 175.0 36.0 0.28    

HISTORIC MINERAL RESOURCE ESTIMATE: Based on these drill results, and additional surface rock sampling from trenches, outcrops and tunnels driven into the mineralized zone, Minera Cominco Resources Chile Ltda. prepared a "preliminary geological gold resource estimate" in 1992. Minera Cominco's historic resource estimate does not utilize classifications included in National Instrument 43-101 of the Canadian Securities Administrators, and is not compliant with NI 43-101. Cominco estimated a minimum geological gold resource of 6.25 million tonnes with an average grade of 0.72 g/t gold, which equates to approximately 144,700 ounces of contained gold, using a minimum 0.5 g/t low grade cutoff. The historic resource estimate is included in a report titled "Llipe Project Final Report, Summer 1992 Campaign and Exploration Possibilities for Stratiform Gold in the Metamorphic Basement of Southern Chile Coastal Belt" by John Davidson, April 15, 1992. The reputation of the Minera Cominco staff that prepared the historic estimate is generally of a high quality. The Company considers this historic estimate to be relevant, and a preliminary indication of the potential gold resources present on the property. A qualified person has not performed sufficient work to classify the historic estimate as current mineral resources, and Canadian Shield is not treating the estimate as current mineral resources. The historic estimate should not be relied upon until it can be confirmed by the Company. The Company will seek to confirm this data with future exploration and drilling. No additional historic resource estimates have been prepared to the knowledge of the Company. 

To view the figure associated with this press release, please visit the following link: http://media3.marketwire.com/docs/exp0715fig1.pdf.

EXPLORATION PROGRAM: The Company's exploration program will include independent sampling to verify the historic exploration results and an initial detailed stream sediment geochemical survey to confirm the regional distribution of gold on this 23 square kilometer property. Systematic soil surveys will be initiated within the 2,600 meter long soil anomaly identified by APMX, to confirm and further evaluate the distribution of gold in the soils. Soil results will be followed up with trenching, and possibly with ground geophysics, prior to selecting drill targets. 

COMMENTS ON HISTORIC EXPLORATION RESULTS: Drill intervals are down-hole thicknesses, not necessarily true thicknesses. The drill intervals were calculated using a minimum width of four meters, containing a weighted average gold content greater than 0.2 g/t. Only one internal or adjacent assay interval of material containing less than 0.2 g/t gold were included in these calculations. Canadian Shield does not possess the actual assay certificates however assay data was extracted from historic company reports. A Qualified Person has not verified the data contained in the results from historic work reported here, but this work is considered to be reliable and relevant. Canadian Shield has no duplicate or confirmation samples, and is relying on the data and practices conducted by the professional geologists at Amax, Shell, Minera Cominco and APMX. The Company noted one area of concern, as it appears that initial gold assays conducted by Amax/Shell were conducted using the Atomic Absorption method, which is generally less reliable than Fire Assay and tends to under-estimate total gold content. However, at the time of the exploration program, this practice was considered reasonable. Canadian Shield has acquired a portion of the historic exploration data and it is seeking to locate additional remaining data.

About Canadian Shield Resources Ltd. (TSX VENTURE:EXP) Canadian Shield is a precious metals exploration and development company focused on strategically-located properties in Perú and Chile. Canadian Shield has seven precious metal exploration projects in Perú 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 VENTURE:EXP). Further information is available at Canadian Shield's website: www.canadianshieldresources.com. The Shareholders recently approved a name change of the Company to Estrella Gold Corporation, which is expected to become effective August 1, 2010.

On behalf of the Board of Directors

Keith A. Laskowski, President and Director

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.

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