Chieftain Metals Inc.
TSX : CFB

Chieftain Metals Inc.

September 19, 2011 16:09 ET

Chieftain Announces Initialization of the Updated Feasibility Study for Tulsequah Chief Mine

TORONTO, ONTARIO--(Marketwire - Sept. 19, 2011) - Chieftain Metals Inc. ("Chieftain" or the "Company") (TSX:CFB) is pleased to announce that Wardrop, a Tetra Tech company ("Tetra Tech") has been engaged to complete a NI 43-101 compliant Feasibility Study ("Feasibility Study") for the Tulsequah Chief project. Victor Wyprysky, President and CEO of Chieftain commented: "We are pleased to have engaged a skilled engineering team with the expertise as Tetra Tech. Drawing on their previous experience from the Tulsequah Chief project, and other mining developments in northern BC, delivers an opportunity for significant optimization of the project design; providing additional value for our shareholders."

Updated Feasibility Study

Chieftain completed a Preliminary Economic Assessment on June 14, 2011 ("PEA") using the 2007 Feasibility Study as the technical basis. The PEA calculated a pre-tax NPV(8) and IRR of C$277 million and 25%, respectively, on an initial capital of C$310.1 M demonstrating robust economics at analyst consensus metal prices. The PEA outlined the potential for annualized production of 69,400 ounces of gold equivalent (Au oz equiv) at a total cash cost (net of base metal by-product credits) of negative US$365/oz Au equiv, or 74 mm lbs of zinc at a total cash cost of negative US$0.72/lb of zinc (net of by-product credits) based on 2,000 tonnes per day over a 9-year mine life.

Project Optimization – Key Improvements

Tetra Tech will coordinate the Feasibility Study and incorporate previous work from the 2007 study. They will also be responsible for reserve estimation, principal mine design, project execution plan, mill and infrastructure design and financial modeling.

In addition to updating the construction execution plan and incorporating the project with current capital and operating costs, the updated Feasibility Study will include the following optimization improvements from the 2007 study:

  • A mine reserves update to include approximately 21,000m of drilling in the Tulsequah project conducted from March 20 - September 13, 2011.
  • An optimized construction plan that includes an access road connecting to the BC grid for use of bulk materials and ore concentrate supply to market.
  • An optimised process plant flow sheet design with increased recovery and cleaner concentrate product based on the updated metallurgical testing program conducted from June -September 2011.

Completion of the Feasibility Study is expected by late Q1-2012, and will form as the basis for initiating construction of the Tulsequah Chief project in 2012.

About Chieftain Metals Inc:

Chieftain Metals' principal business is the acquisition, exploration and development of mineral properties. Since incorporation, the company's business has focused entirely on the acquisition, and thereafter the development, of the Tulsequah Chief Polymetallic Project, in north-western British Columbia, Canada. The Tulsequah Project consists of 38 mineral claims and Crown-grants covering approximately 14,220 hectares and two previously producing mines. For more information on the Tulsequah Project, please refer to the Company's NI 43-101 compliant technical reports, "Tulsequah Chief Deposit, Tulsequah Chief Property, Northern British Columbia" and "Big Bull Project, Tulsequah Chief Property, Technical Report, Northern British Columbia", each dated as of November 8, 2010 and available under the Company's profile on SEDAR (www.sedar.com).

Forward-Looking Information:

This press release includes certain "forward-looking statements" within the meaning of the Ontario Securities Act or other laws or regulations. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization, mineral resources or reserves, exploration results and future plans and objectives of Chieftain Metals Inc. are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

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