Chieftain Metals Inc.
TSX : CFB

Chieftain Metals Inc.

October 05, 2011 16:03 ET

Chieftain Announces New Assay Results in Its Program to Convert Inferred to Indicated Resources

TORONTO, ONTARIO--(Marketwire - Oct. 5, 2011) - Chieftain Metals Inc. ("Chieftain" or the "Company") (TSX:CFB) is pleased to announce new assay results from its 30,000m exploration program that continues to demonstrate strong progress for the expected conversion of inferred to indicated resources in and around the Tulsequah Chief mine site. The holes released here represent approximately 50% of the holes completed in the immediate mine area. It is expected that the remaining results will be available and compiled in late October which will form the basis of the updated reserve estimate within the upcoming Feasibility Study update (See Press Release dated September 19, 2011).

A significant number of the reported holes contain high-quality intersections well above the projected operating cut-off, in terms of Net Smelter Return (NSR) from payable metals, after deduction of all transportation, treatment, and refining charges, as per assumptions contained in the recently completed Preliminary Economic Assessment technical report (see Press Release dated June 14, 2011). A comprehensive table can be found at the end of this press release and the highlights of this report are as follows:

Hole-ID From
(m)
To
(m)
Length
(m)
TW
(m)
Zone Au
(g/T)
Ag
(g/T)
Cu
(%)
Pb
(%)
Zn
(%)
TCU11154 * 113.45 125.20 11.75 6.35 H4 1.78 122.67 2.44 0.62 5.42
TCU11155 * 122.75 130.88 8.13 7.97 H3 4.98 143.60 0.27 2.09 18.64
plus 147.04 150.23 3.19 3.13 PYF 1.56 52.26 1.80 2.70 7.45
TCU11156 * 138.33 142.47 4.14 2.57 G2 23.01 472.27 4.09 5.07 24.23
plus 175.70 182.30 6.60 5.02 G1 9.37 239.71 2.90 2.64 13.06
TCU11157 * 141.04 147.75 6.71 6.04 G2 4.58 104.24 1.46 1.38 7.71
plus 185.70 188.25 2.55 2.04 G1 3.63 94.24 2.48 1.45 8.21
TCU11159 520.37 524.23 3.86 3.09 H3 3.45 120.48 1.30 2.66 10.89
TCU11160 154.30 164.35 10.05 8.07 G1 2.43 54.43 0.71 0.63 4.12
TCU11164 638.60 664.00 24.40 13.92 H2 4.51 133.13 1.16 1.30 6.28
TCU11165 290.63 309.36 18.73 18.07 H3 3.07 100.52 1.47 2.86 9.48
TCU11168 698.77 703.43 4.66 2.57 H2 1.37 140.34 0.61 0.25 4.98
TCU11170 441.82 446.64 4.82 4.62 H4 1.60 65.20 2.99 0.07 6.73
TCU11173 402.72 406.38 3.66 3.06 G1 3.42 75.63 1.47 1.17 5.92
TCU11176 382.94 392.10 9.16 6.81 G1 2.13 72.85 1.33 0.67 4.47
* These holes were released earlier in a press release dated June 28 2011. They represent holes drilled for metallurgical test samples
NSR values are derived as reported in the preliminary economic assessment Technical Report prepared by SRK Consulting Ltd. filed on July 27, 2011 and are based on consensus metal prices, in US$, of $2.35/lb Cu, $0.90/lb Zn, $0.85/lb Pb, $15.00/oz Ag and $1,000.00/oz Au and an exchange rate of CAN$1.00=US$0.91.

The upper deposit contained in the 1957shutdown reserves are included in the remaining 50% of the assay results to be received. These reserves have not been incorporated within any 43-101 resource estimate for the deposit. A total of 12 holes were drilled above and below the 5400 level to confirm the presence and grades of these blocks, and each one intersected mineralization.

All of the holes, excluding the metallurgical sample holes, were drilled on the margins of the known lenses in areas of inferred resources. The drilling is intended to expand the resources and to allow conversion of inferred resources to indicated category in a resource estimate to be the basis of the Feasibility Study update.

Data Security and Verification:

Terence Chandler, P.Geo., Executive Vice President for Chieftain Metals Inc. is the Qualified Person responsible for this disclosure in conformance with the standards of National Instrument 43-101. Drill hole location, down-hole surveying (using EZ-shot magnetic and maxibor non-magnetic survey systems) and core sampling are managed directly by Chieftain geologists. Chieftain has implemented a careful quality control and assurance program that includes insertion of field blanks, duplicates and standards into the sample stream in order to monitor the precision and accuracy of the assay data. All samples are prepared by Chieftain personnel and shipped directly to the Whitehorse sample preparation facility of Eco-tech labs, followed by shipment to the Eco-Tech laboratory in Kamloops, BC for assays and analyses. Eco-Tech labs is an accredited assay laboratory, formerly a division of the Stewart Group and as of late July acquired by the ALS Laboratories Group. Chieftain is working closely with ALS to ensure that assaying standards and quality are maintained through this transition.

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, "Preliminary Economic Assessment" dated July 29, 2011; "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.

Hole-ID From
(m)
To
(m)
Length
(m)
TW
(m)
Zone Au
(g/T)
Ag
(g/T)
Cu
(%)
Pb
(%)
Zn
(%)
TCU11154 * 113.45 125.20 11.75 6.35 H4 1.78 122.67 2.44 0.62 5.42
TCU11155 * 122.75 130.88 8.13 7.97 H3 4.98 143.60 0.27 2.09 18.64
plus 147.04 150.23 3.19 3.13 PYF 1.56 52.26 1.80 2.70 7.45
TCU11156 * 138.33 142.47 4.14 2.57 G2 23.01 472.27 4.09 5.07 24.23
plus 175.70 182.30 6.60 5.02 G1 9.37 239.71 2.90 2.64 13.06
TCU11157 * 141.04 147.75 6.71 6.04 G2 4.58 104.24 1.46 1.38 7.71
plus 185.70 188.25 2.55 2.04 G1 3.63 94.24 2.48 1.45 8.21
TCU11159 520.37 524.23 3.86 3.09 H3 3.45 120.48 1.30 2.66 10.89
TCU11160 154.30 164.35 10.05 8.07 G1 2.43 54.43 0.71 0.63 4.12
TCU11164 638.60 664.00 24.40 13.92 H2 4.51 133.13 1.16 1.30 6.28
TCU11165 290.63 309.36 18.73 18.07 H3 3.07 100.52 1.47 2.86 9.48
TCU11168 698.77 703.43 4.66 2.57 H2 1.37 140.34 0.61 0.25 4.98
TCU11170 441.82 446.64 4.82 4.62 H4 1.60 65.20 2.99 0.07 6.73
TCU11173 402.72 406.38 3.66 3.06 G1 3.42 75.63 1.47 1.17 5.92
TCU11176 382.94 392.10 9.16 6.81 G1 2.13 72.85 1.33 0.67 4.47
TCU11152 206.65 207.75 1.10 0.80 H4 2.04 29.40 1.65 0.03 0.45
TCU11152 225.80 226.80 1.00 0.75 H3 2.39 58.60 0.21 0.67 0.01
TCU11153 464.61 467.08 2.47 1.90 H2 0.84 45.08 0.03 0.57 1.06
TCU11158 173.25 176.23 2.98 2.39 G1 3.25 35.63 0.08 0.22 0.37
plus 176.23 178.85 2.62 2.10 G1 3.77 53.53 0.29 0.36 1.67
plus 189.35 189.95 0.60 0.40 G3 0.39 35.10 0.24 0.42 5.23
TCU11159 531.24 533.24 2.00 1.50 n/a 4.12 37.22 0.02 0.10 0.21
TCU11161 486.76 488.29 1.53 1.40 H3 1.07 31.60 0.33 0.67 8.44
TCU11162 326.01 330.01 4.00 3.65 H4 0.09 2.50 0.08 0.01 1.46
TCU11163 291.92 292.92 1.00 0.81 H4 1.00 23.00 0.62 0.41 2.30
TCU11164 623.36 623.98 0.62 0.40 n/a 0.47 40.00 0.34 1.58 13.20
TCU11166 208.00 211.78 3.78 3.77 G1 1.89 54.66 0.45 1.03 3.34
TCU11167 208.30 216.48 8.18 7.68 G1 1.80 125.72 0.35 2.03 2.77
plus 227.45 227.84 0.39 0.30 n/a 6.30 140.00 0.65 5.90 9.85
TCU11169 414.36 417.06 2.70 2.51 0.45 12.90 0.09 0.55 2.91
plus 433.42 433.86 0.44 0.41 H4 3.30 30.20 1.24 1.63 6.55
TCU11171 552.24 552.74 0.50 0.33 H2 1.09 60.00 0.65 0.82 3.40
plus 558.87 559.87 1.00 0.65 H2 1.00 31.00 0.18 0.55 1.96
TCU11172 506.29 513.60 7.31 5.96 H4 0.85 32.20 0.51 0.48 2.85
inc 510.33 510.60 0.27 0.22 1.70 33.00 0.47 0.44 20.00
TCU11174 386.80 389.55 2.75 2.34 G1 1.95 46.94 0.38 0.49 2.36
TCU11175 436.44 436.92 0.48 0.45 H4 16.80 380.00 1.84 2.17 31.00
* These holes were released earlier in a press release dated June 28 2011. They represent holes drilled for metallurgical test samples
NSR values are derived as reported in the preliminary economic assessment Technical Report prepared by SRK Consulting Ltd. filed on July 27, 2011 and are based on consensus metal prices, in US$, of $2.35/lb Cu, $0.90/lb Zn, $0.85/lb Pb, $15.00/oz Ag and $1,000.00/oz Au and an exchange rate of CAN$1.00=US$0.91

Contact Information