Canadian Shield Resources Inc.

Canadian Shield Resources Inc.

October 03, 2005 08:50 ET

Canadian Shield Expands Gold Mineralisation at Humajala, Peru

TORONTO, CANADA--(CCNMatthews - Oct. 3, 2005) - Canadian Shield Resources Inc. (TSX VENTURE:CSP) ("Canadian Shield" or the "Company") has intersected the gold zone at the Humajala Gold Property in southern Peru in two additional drill holes. As previously announced, gold mineralization of 0.73 g/t gold over a core length of 27 metres was intersected in diamond drill hole HUM-05-021 in the current drilling campaign as well as 2.18 g/t gold over 24.5 metres for continuous chip samples from a trench located above the drill hole.

The mineralized interval for diamond drill hole HUM-05-021 was previously reported as continuous from 31.0 metres from the surface to 58 metres from surface. Assays for samples from the lower part of diamond drill hole HUM-05-021 indicate that the mineralized interval extends to 65.5 metres from surface with an average grade for the entire interval of 0.65 g/t gold over 39 metres. The hole was inclined at -60 degrees to the north at an azimuth to intersect the bedrock below the trench. Within the 39-metre HUM-05-021 mineralised interval, there is a higher-grade zone of 1.45 g/t gold over 7.5 metres from 31.0 to 38.5 metres and a second zone of 0.94 g/t gold over 3 metres.

Assay results for HUM-05-021:
7.0 - 79.0 0.45 g/t gold over 72.0 metres
(36.0 metres vertical
including 26.5 - 65.5 0.65 g/t gold over 39.0 metres
including 31.0 - 56.5 0.76 g/t gold over 25.0 metres
including 31.0 - 38.5 1.45 g/t gold over 7.5 metres

Two additional diamond drill holes have also intersected gold mineralisation associated within the same silicified breccia of grey heterolithic fragments in a strongly silicified matrix, hosting numerous narrow quartz and sulphide veins as well as numerous jarosite veins, terminated quartz crystal filled vugs, fine disseminated pyrite, limonite in fractures in the upper intervals and locally as a pervasive stain. Diamond drill hole HUM-05-020 intersected 0.53 g/t gold over 7.5 metres and HUM-05-022 intersected 0.51 g/t gold over 33.0 metres, including a single sample of 3.96 g/t gold over 1.5 metres at 45.4 to 46.9 metres.

Assay Results for HUM-05-020:
8.2 -17.7 0.36 g/t gold over 19.5 metres
including 8.2 -15.7 0.53 g/t gold over 7.5 metres

Assay Results for HUM-05-022:
16.9 - 141.4 0.24 g/t gold over 124.5 metres
(62.25 metres vertical
including 27.4 - 60.4 0.51 g/t gold over 33.0 metres
including 73.9 - 85.9 0.24 g/t gold over 12.0 metres

Gold mineralization was intersected in diamond drill hole HUM-05-020 from 8.2 to 27.7 metres below surface and the hole is located towards the north end of the mineralised trench, drilled from the opposite direction, towards the south as compared with hole HUM-05-021 which was drilled to the north.

Diamond drill hole HUM-05-22 was drilled from the same site as HUM-05-021 but was drilled in the opposite direction, to the south, at a -60 degree inclination. The gold mineralisation in HUM-05-022 was intersected between 16.9 to 141.4 metres below surface.

The mineralised intervals lie within a relatively horizontal zone of silicified breccia that has an approximate depth of 35 to 65 metres that has been traced on surface over an area of 450 by 350 metres. Diamond drill hole HUM-04-012, from the December 2004 drill program intersected lower grade gold mineralization with the same unit including intersections of 0.44 g/t gold over 4.5 metres and 0.42 g/t Au over 4.5 metres with individual one-metre length samples assaying 1.1 and 1.3 g/t gold. Diamond drill hole HUM-04-012 intersected the prospective horizon for gold mineralization 450 metres further to the south and up-slope from where it has been intersected in the current drill program. The significance of diamond drill hole HUM-04-012 is that the same unit that hosts mineralisation in diamond drill holes HUM-05-20, HUM-05-021 and HUM-05-022 is not only evident outcropping on surface for a distance of 450 metres but also for 450 metres to the south, buried beneath younger volcanic flows.

At least four similar zones have been identified, each with silicified haloes surrounding argillic breccia pipes or possible monzonite intrusives, and with anomalous gold in surface samples. An induced polarisation and resistivity survey using a multi-separation pole-dipole array with an estimated depth of penetration of 300 metres is in progress, and the results of the geophysical surveys will be used to select priority drill targets in outcropping silicified breccia associated with breccia pipes or intrusives.

Terence Bottrill, P.Eng., is the Exploration Manager for the Company and the Qualified Person for the project. He has read and approved the technical aspects of this press release. The samples were 1.5 metres in length of one half of sawn HQ core, except where shorter intervals were selected to correlate with significant geological contacts. Samples were submitted to SGS de Peru, Lima following industry-accepted quality control protocols. Samples were assayed by standard fire assay methods with atomic absorption spectrometry finish.

The Humajala Gold Property is held 100% by Gallant Peru. Canadian Shield owns 66% of Gallant Peru and retains the right to increase ownership to 90% under terms described in the press release of September 1, 2004.

Canadian Shield Resources Inc. is currently focused on the acquisition, exploration and development of precious metal and base metal properties in Peru. The Company's shares are listed on the TSX Venture Exchange (Trading Symbol CSP: TSX V).


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