Chesapeake Gold Corp.

Chesapeake Gold Corp.

March 16, 2007 09:00 ET

Chesapeake Announces 2007 Exploration and Development Programs

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 16, 2007) - Chesapeake Gold Corp. ("Chesapeake") (TSX VENTURE:CKG) wishes to report the exploration and development programs scheduled in 2007. Following the completion of the business combination with American Gold Capital Corporation, Chesapeake has $35 million in cash and investments, the world-class Metates gold-silver project in Mexico, the Talapoosa gold deposit in Nevada and a portfolio of district-scale exploration projects in Mexico and Nicaragua. For 2007, Chesapeake has budgeted $4 million to undertake its planned work initiatives.

Metates, Durango State

Metates is one of the largest, undeveloped disseminated gold and silver deposits in the Americas. In 1996, predating NI 43-101 requirements, Cambior using a 0.70 g/t equivalent gold cut-off, calculated a tonnage and grade estimate of 492 million tonnes of 0.74 g/t gold, 18.2 g/t silver and 0.17% zinc, which is contained within a 823 million tonne (0.50 g/t equivalent cut-off) mineralized system. The reported resource does not comply with NI 43-101 standards nor has it been verified by Chesapeake and therefore should not be relied upon.

The Metates deposit occurs in two zones: the Main Zone with mineralization hosted in the intrusive and its underlying sediments and the North Zone, with mineralization found in volcanic conglomerates and adjacent sediments. Previous exploration concentrated on drilling the Main Zone. The down-dip extensions of the Main and North Zone remain open. Several peripheral targets exist that are also untested. Chesapeake is undertaking a systematic mapping and sampling program on Metates to define additional targets to be drill tested. Regional exploration around Metates also offers excellent exploration upside. A recently assembled, non-drilled 12,000 hectare mining district north of Metates is currently being evaluated.

The Metates development program will involve a complete review of the original technical data, metallurgical studies and mine plan. In 1997, Cambior completed a feasibility study based on substantially lower metal prices and a heap leach process. Chesapeake's review will focus on original assay data to assess new options for recovery of the four primary metals (including lead) contained in the deposit. The planned metallurgical work will focus on a mill and flotation process flow sheet.

El Tecomate, Durango State

The El Tecomate gold-silver project is a multi-vein and stockwork epithermal system mainly controlled by sets of faults and fractures associated with a collapsed volcanic caldera nearly 8 kilometres in diameter. Chesapeake has completed regional geological mapping and stream sediment geochemistry over an area of 150 square kilometres. Detailed exploration including mapping, trenching, rock chip and channel sampling has focused on the Tecomate center zone.

To date, five major subparallel mineralized structures have been identified in the area, forming a 4 kilometre long, NW trending low sulfidation epithermal system. One structure, Los Hundidos, is a multi-vein and stockwork system hosted in argillized rhyolitic rocks that extends more than 400 meters along strike. Four cross-cutting, channel sample sections collected 100 meters apart returned:

Meters Gold Silver
------ ---- ------
Section One(i) 28.0 1.55 g/t 0.96 g/t
Section Two 53.0 1.30 g/t 1.57 g/t
Section Three(i) 44.0 0.90 g/t 1.80 g/t
Section Four(i) 19.0 1.55 g/t 4.66 g/t
(i)Previously reported

Another structure, Los Filos, is a hydrothermal breccia and stockwork zone that has been traced for a kilometer along strike. Don Lupe, another sub-parallel structure east of Los Filos, extends for over 1.2 kilometers. Initial channel sampling returned 51 meters of 1.0 g/t gold and 5 g/t silver. Further east, the Las Pilas structure returned a rock section cut of 55 meters of 25 g/t silver. Recently, a new hydrothermal breccia structure was discovered 1.5 kilometres south of the central zone. Two channel sections sampled 100 meters apart from poorly exposed outcrops, returned 21 meters of 5.2 g/t gold and 4 g/t silver and 6 meters 2.1 g/t gold and 8 g/t silver. Topographically, the vertical relief of the southern structure is located 100 meters above the Tecomate center zone.

Exploration continues on the southern structure to define its potential strike length as well as to determine whether the sub-parallel Los Hundidos, Los Filos and Don Lupe structures trend into this area. Overlying soils and debris obsure the total length and width of the epithermal system. Additional mapping, sampling and trenching is on-going to advance the central Tecomate corridor to the drilling stage within the next 3-4 months.

Talapoosa, Nevada

The Talapoosa project is a disseminated, quartz-adularia style epithermal gold-silver deposit. In 1996 Miramar released a resource estimate that included a measured and indicated resource of 42.7 million tons grading 0.78 g/t gold (1.06 million ounces of gold) and 10.5 g/t silver (14.5 million ounces of silver). The resource is based on cut-off grades of 0.2 g/t gold for oxide mineralization and 3.7 g/t gold for sulfide mineralization.

Chesapeake is planning an advanced exploration and drilling program at Talapoosa with the objectives of increasing the grade of the measured and indicated resource. Excellent potential also exists to expand the resource as step-out drilling identified ore-grade gold values adjacent to and along strike of the known deposit. Two hundred and fifty meters northwest of the resource grid, one hole intersected 6 meters of 15 g/t gold while over 900 meters to the east and 600 meters to the southeast, three holes returned 4.5 meters of 13 g/t gold, 20 meters of 1.9 g/t gold and 44 meters of 1.2 g/t gold.

Joint Ventures

Chesapeake has joint ventured its Cucaracha Dorada gold project in Durango state to Christopher James Gold Corp. Christopher James can earn up to 65% interest by making payments and share issuances totalling to $1.0 million over 4 years and expending US $10.0 million in exploration in 8 years. Christopher James is planning to commence a 2,500 meter diamond drilling program within 2-3 weeks.

In Oaxaca state, Pinnacle Mines Ltd. has joint ventured Chesapeake's La Calavera and Rio Minas gold-silver polymetallic prospects. To initially earn a 51% interest, Pinnacle has agreed to payment and share issuances of US$1.8 million and exploration expenditures of US$6 million over 5 years. The joint venture agreement is subject to regulatory approval. Once received, Pinnacle expects to drill La Calavera before year end.

Elsewhere, Chesapeake continues to build its strong project portfolio through generative exploration. Exploration programs in Mexico are supervised by Alberto Galicia, P. Geo, who is the qualified person under NI 43-101.


P. Randy Reifel, President

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Chesapeake Gold Corp.
    P. Randy Reifel
    (604) 731-1094
    (604) 731-0209 (FAX)