Chesapeake Gold Corp.

Chesapeake Gold Corp.

June 23, 2005 22:15 ET

Chesapeake Hits Significant Gold-Silver Intersections at La Gitana

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 23, 2005) - Chesapeake Gold Corp. (TSX VENTURE:CKG) is pleased to report the results of the first 12 diamond drill holes on its La Gitana gold-silver project located in Oaxaca State, Mexico. To date, approximately one half of the 5,000 meter, first phase, diamond drilling program has been completed on a limited, inaccessible part of the Cerro di Oro zone. The HQ holes, 40 meters apart on average, covered an area approximately 350 meters by 250 meters in size and tested a 300 meter vertical section of the system.

This helicopter-supported drill program tested an area of steep and rugged terrain forming the upper portion of Cerro di Oro, a silicified northwest trending ridge extending for more than 1 kilometer along strike. The gold and silver mineralization occurs as disseminations and fillings within veins, breccias and stockwork zones hosted within a package of highly silicified volcanic dikes and flows which form part of a dome complex.

Drilling at Cerro di Oro tested the size, width, grade and continuity, along strike and at depth, of the sub-vertical, high grade structures, and the broad zones of disseminated mineralization previously defined on surface. Drill data show that the broad zones of surficial gold-silver mineralization extend to more than 250 meters depth. Most of the drill holes intersected significant intervals of similar mineralization that remain open beyond the current drill grid. All but three of the drill holes were oriented northeasterly with dips ranging between 45 and 70 degrees.

The drill results are summarized below:

Inter- Equi-
From To val Gold Silver valent
Hole # (m) (m) (m) (g/t) (g/t) (i) (g/t) Comments

DH-01 21.0 154.5 133.5 1.78 100.7 3.33
including 33.0 60.0 27.0 4.60 120.4 6.45 Feeder I
including 94.5 123.0 28.5 3.18 329.0 8.24 Feeder II

DH-02 120.0 121.5 1.5 7.69 517.0 15.64

DH-03 39.0 72.0 33.0 0.64 39.2 1.24 Feeder I
84.0 94.5 10.5 0.47 67.5 1.51 Feeder II

DH-04 0.0 33.0 33.0 0.65 1.6 0.67 Upper System

DH-05 0.0 7.5 7.5 0.74 14.9 0.97
31.5 37.5 6.0 0.68 25.2 1.07
163.5 169.5 6.0 0.48 30.9 0.96 Tectonic

DH-06 0.0 124.5 124.5 0.75 24.0 1.12
including 87.0 100.5 13.5 2.08 90.0 3.46 Tectonic

DH-7 0.0 64.5 64.5 0.72 22.2 1.05
including 40.5 48.0 7.5 2.51 137.1 4.61 Feeder I
72.0 91.5 19.5 0.62 23.3 0.98 Feeder II

DH-08 67.5 213.0 145.5 0.40 32.8 0.90
including 79.5 102.0 22.5 0.60 26.0 1.00 Feeder I
including 133.5 163.0 29.5 0.54 145.2 1.24 Feeder II
including 205.5 213.0 7.5 1.22 145.9 3.46 Tectonic

DH-09 12.0 105.0 93.0 0.99 19.4 1.29
135.0 145.5 10.5 0.39 43.7 0.98 Feeder II

DH-10 1.5 64.5 63.0 1.27 70.0 2.35
including 33.0 51.0 18.0 1.90 159.8 4.35 Feeder I &

DH-11 0.0 90.0 90.0 0.51 15.7 0.76

DH-12 1.5 94.5 93.0 0.56 20.0 0.87

(i) A gold-silver ratio of 65:1 was used for gold equivalent calculation.

Four major northwesterly trending, sub-vertical feeder systems have now been identified and partially drill tested. From southwest to northeast these are: the newly-found West Zone, the Feeder I and Feeder II structures and the Tectonic Breccia fault. Two of these feeder structures, although distorted by complex post-mineral faulting, are continuous for more than one kilometer along strike, and to depths exceeding 300 meters below surface.

Feeder I is a 20 to 30 meter thick, sub-vertical, quartz-vein-breccia system traceable for more than 1000 meters along strike, and to 300 meters depth. Previous rock channel sampling taken across the structure, returned a continuous intersection of 18 meters of 3.1 g/t gold equivalent. This structure was also intersected, lower down, 50 to 75 meters to the southeast along strike, in DH-01, DH-07 and DH-09. The Feeder I structure was identified as well in DH-10, 140 meters to the northwest, yielding 18 meters of 4.35 g/t gold equivalent.

The Feeder II structure was intersected in DH-01, DH-07, DH-08, DH-09 and DH-10 and strikes north-northwesterly, and dips almost vertically. At a depth of 94.5 meters, DH-01 intersected 28.5 meters of 8.24 g/t gold equivalent, in silver rich hydrothermal breccia comprising various stages of quartz veining and adularia. The West Zone structure located southwest of Cerro di Oro is similar and parallel to the Feeder I structure. The Tectonic Breccia structure, the furthest mineralized conduit to the northeast, was intersected at depth in most of the northeasterly dipping drill holes and has been traced on surface for over 1.5 kilometers.

This helicopter-supported portion of the drilling program has only tested a 350 meter long section of the Cerro di Oro system. The mineralized trend remains open in both directions as DH-09 and DH-10, the furthest holes drilled to the southeast and northwest, returned significant results. Step-out drilling will test both the strike and depth extensions from these drill holes. In addition, the 4 kilometer-long Gitana vein system, which runs sub-parallel to Cerro di Oro, 400 meters to the southwest, will be drilled, including the interpolated convergences with Cerro di Oro at depth and along strike. Access roads and pads are being constructed for a tractor-supported drill program to begin in July.

The La Gitana Project lies along a major northwest trending Regional fault that extends for more than one hundred kilometers along strike. During the past several months reconnaissance work has identified 6 potential bulk tonnage target areas which led Chesapeake to stake an additional 350,000 hectares along this trend. The first prospect targeted, Pena Blanca, is an area that consists of several square kilometers of argillic alteration hosting disseminated gold mineralization in clay-quartz zones. Pena Blanca was discovered through stream sentiment sampling with values up to 1.3 g/t gold followed by a rock chip sampling program that returned up to 5.4 g/t gold. Pena Blanca is located 15 kilometers northwest of La Gitana.

ALS Chemex is the analytical laboratory for the project. Sample preparation is undertaken in Guadalajara, Mexico and the analysis in Vancouver, B.C. High grade gold or silver intervals are re-assayed by fire with gravimetric finish. Mr. Andris Kikauka, P. Geo, is the qualified person under National Instrument 43-101 on the project.


P. Randy Reifel, President

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