Canadian Shield Resources Inc.
TSX VENTURE : CSP

Canadian Shield Resources Inc.

June 12, 2006 10:57 ET

Canadian Shield Expands Humajala Gold Zone

TORONTO, ONTARIO--(CCNMatthews - June 12, 2006) - Canadian Shield Resources Inc. (TSX VENTURE:CSP) ("Canadian Shield" or the "Company") is pleased to announce recent assays from its drill program at the Humajala Gold Property in Peru.

The Company completed 1,508 m of drilling in 15 reverse circulation holes that ranged from 30 m to 200 m in length. The focus of this drill program was to test the extent of the CSP Discovery Gold Zone and outlying geophysical targets. Assays have been received for several drill holes and the remaining assays are pending. Several new drill holes in the vicinity of the CSP Discovery Gold Zone have returned significant results.

Drill holes HUM-06-031 and HUM-06-032 were drilled 50 m southeast of the HUM-05-021, the location of the CSP Discovery Gold Zone. Both new holes returned higher gold grades over broader intervals than the drilling in 2005.



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Drill Hole Depth- From Depth-To Gold Intersection
Number (m) (m) (g/t) (m)
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HUM-06-031 18.0 63.0 1.16 45.0
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including 18.0 36.0 2.71 18.0
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HUM-06-032 16.5 52.5 0.93 36.0
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including 16.5 37.5 1.39 21.0
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The two holes were drilled from the same drill platform. Drill hole HUM-06-031 was a vertical hole, while HUM-06-032 was inclined at 60 degrees at an azimuth of 200 degrees, or grid south along the geophysical survey lines oriented 020 degrees - 200 degrees. The final depth of HUM-06-031 was 72 m and HUM-06-032 ended at 109.5 m. The drill platform for holes HUM-06-031 and HUM-06-032 lies at the southern extent of Trench B, excavated and sampled in 2005, which follows the slope of a steep hillside. As reported on November 9, 2005, the results from Trench B averaged 0.7 g/t gold over 20.5 m. Assays for the sample from the bottom 45 m of hole HUM-06-032, from 55.5 m to 109.5 m, are pending.

As previously announced in 2005 and reported here for comparison of results, gold mineralization of 0.65 g/t gold over a core length of 39 metres was intersected in diamond drill hole HUM-05-021. This hole was drilled beneath trench A where 2.18 g/t gold was reported over 24.5 m from continuous chip samples. HUM-05-021 was drilled grid north at an inclination of 60 degrees. Within the 39-m core interval, a higher-grade zone of 1.45 g/t gold over 7.5 m was intersected from 31.0 m to 38.5 m and a second zone of 0.94 g/t gold over 3 m.

Two additional core holes from the October 2005 drill program, as previously reported, also intersected and confirmed the CSP Discovery Gold Zone. Core hole HUM-05-020 was drilled grid south at an inclination of 60 degrees from the north end of Trench A and intersected 0.53 g/t gold over 7.5 m from 8.2 m to 27.7 m in the hole. Core hole HUM-05-022, was drilled grid south at an inclination of 60 degrees from the same platform as HUM-05-21, and intersected 0.51 g/t gold over 33.0 m, including a single sample of 3.96 g/t gold over 1.5 m from 45.4 m to 46.9 m.

The rock types in HUM-05-021 and HUM-05-022 have been described as a silicified breccia of grey heterolithic fragments in a strongly silicified matrix. The drill core for HUM-05-021, for example, also hosts numerous narrow quartz and sulphide veins as well as jarosite veins, fine disseminated pyrite, limonite in fractures in the upper intervals and locally as a pervasive stain. The rock chips for holes HUM-06-031 and HUM-06-032 appear similar to lithologies described in the core holes, such as HUM-05-021 and HUM-05-022, which are located 50 m to the northwest. However, the rock chips from reverse circulation drilling do not provide samples suitable for identifying the type of breccia intersected nor any structural data for geological interpretation. The gold mineralization in holes HUM-06-031 and HUM-06-032 may represent the extension of the CSP Discovery Gold Zone but further geological mapping and structural interpretation is required.

HUM-06-030 was a 126 m long vertical hole collared 50 m upslope and southwest from HUM-05-021, along geophysical survey line 104+00E. The hole intersected a weakly to moderate argillic alteration zone with a broad, weakly mineralized interval. Gold values in HUM-06-030 average 0.29 g/t gold over 36 m, from a depth of 54 m to 90 m, including a zone of 6 m that grades 0.47 g/t gold.

HUM-06-034 was a 145.5 m vertical hole collared an additional 25 m uphill and grid south (approximately 75 m from HUM-05-021) and along the 104+00E geophysical survey line. The hole intersected silicic-argillic alteration over its entire length, with pyrite noted from 90 m to 112.5 m. No assays have been received for this interval.

Three holes HUM-06-028, HUM-06-029 and HUM-06-033, with a cumulative length of 231.5 m were drilled to test a resistivity anomaly identified on survey line 102+00E. The holes were spaced 200 m, 100 m and 50 m west of HUM-05-021 in an area covered by colluvium. Mapping near drill platform HUM-06-029, had identified up to 5 mm-wide stibnite (antimony sulphide) veinlets in the new road cuts.

These three holes intersected primarily intense argillic alteration confirming that the alteration system extends to the west of the CSP Gold Discovery Zone. The target of these drill holes was a resistivity anomaly, which may be associated with zones of silica enrichment potentially hosting gold mineralization. The characteristics of the bedrock lithologies do not adequately explain the resistivity anomaly on survey line 102+00E and it is possible that the source of the anomaly is displaced from the interpreted location. The geophysical data will be reinterpreted using the new geological and analytical data in order to determine the source of the geophysical anomalies.

Assays are pending for the remaining eight holes, all of which were drilled east of the CSP Discovery Gold Zone. As results for the current drill program become available, geophysical and geological data will be reinterpreted. Drill targets for the next campaign will be finalized based on integration of the new geological interpretation with the existing database.

This drill program was completed by AK Drilling International S.A., utilizing a Center Sample Rotary Method, otherwise known as reverse circulation (RC) utilizing 4" OD x 2" ID double-wall drill pipe, interchange and down-the-hole hammer. Air was used to move drill cutting from the drill bit to surface except under difficult drilling conditions, where water was injected into the air flow, to assist in the recovery of the sample. Continuous chip samples were collected over 1.5 m intervals. Samples were weighed to estimate recoveries which were generally close to 100% except in intervals of higher clay content and/or where the water table was encountered. Approximately 20% of the drilling was done using water circulation to improve recovery. Dry samples were riffle split to achieve samples weighing approximately 10 kg which were submitted for analysis or placed in storage at a local, secure warehouse. Wet samples were split in half, to minimize sample handling, and shipped in micropore bags for drying, preparation and analysis. 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.

Lynda Bloom (M.Sc., P.Geo.), a "qualified person" as defined by National Instrument 43-101, has supervised this drill program and approved the technical aspects of this press release.

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.

About Canadian Shield Resources Inc.

Canadian Shield is focused on the acquisition, exploration and development of strategically located precious metal and base metal properties in Peru. The Company will continue to explore the "CSP Gold Discovery Zone" at the Humajala Gold Property and the copper porphyry potential at the Cerro Cori Copper-Gold Property. Canadian Shield also holds two other exploration properties, the Ccello Ccello Copper-Gold Property and the Pucarana Gold Property with major resource potential.

The Company's shares are listed on the TSX Venture Exchange (Trading Symbol CSP: TSX V). For further information, visit www.canadianshieldresources.com.


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