Capella Resources Ltd.
TSX VENTURE : KPS
PINK SHEETS : CPSJF
September 30, 2009 09:01 ET
Capella Discovers Rare Earth Mineralization at Wentworth
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 30, 2009) - CAPELLA RESOURCES LTD. (TSX VENTURE:KPS)(PINK SHEETS:CPSJF) ("Capella" or the "Company") is pleased to provide an update on its 100% owed Wentworth Project in Nova Scotia where Company geoscientists recently completed a compilation of results from the Company's 2007 and 2008 exploration program and historic work by Gulf Minerals. New geochemistry from the Company's 2007 core drilling program yielded up to 0.42% Rare Earth Elements (TREO+Y+Zr+Nb+Ta) from drill hole W-014.
The new data has refocused the project on tin/tungsten/bismuth/molybdenum/silver mineralization with substantial amounts of Rare Earth Elements (Y+REEs). Five target zones have been outlined with tungsten concentrations from 180 to 410 ppm, tin up to 548 ppm, bismuth up to 265 ppm, molybdenum up to 0.37%, and silver concentrations up to 93g/t. Highly anomalous concentrations of Rare Earth Elements (Y+REEs) up to 0.30% appear to be associated with distinct breccia zones and felsic intrusives. Three of the 2007 diamond drill holes encountered substantially anomalous Rare Earth mineralization (Y+REEs) where sampling was not designed to evaluate such mineralization.
Nova Scotia is divided geologically into two distinct parts, the Avalon Terrane to the north and the Meguma Terrane to the south. The two terranes are separated by the east-west trending Minas Geofracture (commonly referred to as the Cobequid-Chedabucto Fault Zone). The Wentworth project area is in the Avalon Terrane in a zone comprising Precambrian to Carboniferous volcanic rocks consisting of felsic and mafic flows, pyroclastic rocks and granitic intrusives. Numerous NW-SE trending faults are known in the area.
Widespread iron oxide mineralization occurs along the terrane-bounding Cobequid-Chedabucto Fault Zone with an associated enrichment of copper, gold, cobalt and nickel. The fault zone is host to more than 100 mineral occurrences and deposits of iron oxide + copper + cobalt +/- gold +/- nickel +/- barium. These mineral occurrences are known as Iron Oxide Copper Gold ("IOCG") - Style Mineral Occurrences.
Following interpretation of the Company's 2007 geophysical and in-field geological data, high priority targets were established for drill testing. A 10-hole (2200 metre) drilling program was completed in the Wentworth area during the summer of 2007. Data from the Wentworth Project continues to be analyzed by company geoscientists who believe the volcanic polymetallic property displays characteristics of both porphyry and IOGC style deposits. Capella intends to maintain the Wentworth Project holding (225 claims); however, the Company is considering options for the property which include potential Joint Ventures with qualified partners.
The reader is directed to Company's website www.capellaresources.com where a new presentation on the Wentworth Project provides additional information regarding this release.
About Capella Resources Ltd.
Capella Resources Ltd. is a publicly traded, junior exploration and mineral development company with a strong portfolio of precious and base metal projects in Chile, USA and Atlantic Canada. The Company has a 100% interest in the Lajitas and Nevada gold-copper properties located in the Maricunga Gold and Copper District approximately 700 kilometres northwest of Santiago, Chile. The properties comprise ten exploration claims and six exploitation claims totalling a cumulative 3,500 hectares in area. The Company holds a 100% interest in the Tinton Gold Project located 15 kilometres west-northwest of the famous and historic Homestake Mine in the Black Hills at Lead, South Dakota. The Tinton property consists of 1,270 hectares contained in 157 unpatented mining claims.
The Company also holds 3839 mineral exploration claims covering an aggregate land area of over 71,558 hectares in Atlantic Canada (Nova Scotia, New Brunswick and Newfoundland and Labrador).
CAPELLA RESOURCES LTD.
Richard Bachman, Chief Executive Officer, President & Chief Geological Officer
FORWARD LOOKING STATEMENTS: This press release contains forward-looking statements, which address future events and conditions, which are subject to various risks and uncertainties. The Company's actual results and financial position could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company's control. These factors include: results of exploration activities and development of mineral properties, fluctuations in the marketplace for the sale of minerals, the inability to implement corporate strategies, the ability to obtain financing, currency fluctuations, general market and industry conditions and other risks disclosed in the Company's filings with Canadian Securities Regulators.
Forward-looking statements are based on the expectations and opinions of the Company's management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.