Chieftain Metals Inc.
TSX : CFB

Chieftain Metals Inc.

December 05, 2011 07:00 ET

Chieftain Confirms Upper Zone with Numerous High Grade Intercepts

TORONTO, ONTARIO--(Marketwire - Dec. 5, 2011) - Chieftain Metals Inc. ("Chieftain" or the "Company") (TSX:CFB) is pleased to announce further assay results from its 31,181 m exploration program that continues to demonstrate strong progress for the expected conversion of inferred to indicated resources in and around the Tulsequah Chief deposit. These results represent the remaining holes completed in the immediate mine area, additional to the drillhole assay information released previously (see Press Release dated October 5, 2011). These results will finalize drillhole composite data and lens solid modeling for the updated reserve estimate as part of the updated Feasibility Study (See Press Release dated September 19, 2011).

A significant number of the reported holes contain high-quality intersections expected to be well above the projected operating cut-off grade in terms of Net Smelter Return (NSR) from payable metals, after deduction of all transportation, treatment, and refining charges, as per the assumptions contained in the Preliminary Economic Assessment (PEA) technical report (see Press Release dated June 14, 2011). The highlights of these high grade intersections previously unreported are shown in Table 1:

Table 1: Selected significant intersections:

Hole-ID From
(m)
To
(m)
Length
(m)
TW
(m)
Zone Au
(g/T)
Ag
(g/T)
Cu
(%)
Pb
(%)
Zn
(%)
TCU11177 385.28 388.52 3.97 2.11 G1 5.28 79.25 2.49 0.59 15.48
TCU11180 475.41 488.35 12.94 10.49 H4 16.23 200.34 1.55 0.65 1.99
TCU11186 524.00 539.20 15.20 11.79 H4 2.96 75.71 1.01 0.73 13.60
TCU11190 112.00 124.60 12.65 10.96 E52-1 1.05 55.88 2.08 0.79 6.05
inc. 118.00 121.60 3.60 3.12 1.30 82.50 1.92 2.13 15.06
TCU11191 99.30 130.17 30.91 29.09 E52-1 0.68 37.32 1.31 2.46 11.89
*
inc. 110.65 130.17 19.52 18.37 E52-1 0.76 43.02 1.64 3.31 16.19
*
inc. 117.13 130.17 13.04 12.27 E52-1 0.86 53.66 1.87 4.81 20.95
*
TCU11192 107.45 129.34 21.89 21.36 E52-1 1.20 48.97 2.35 1.14 8.94
inc. 108.65 124.65 16.00 15.61 E52-1 1.15 47.64 2.49 1.44 11.19
TCU11194 80.95 81.37 0.42 0.42 0.38 60.40 1.16 3.91 12.00
plus 111.20 121.04 9.84 9.84 B52-1B 1.95 157.21 1.68 2.02 16.09
TCU11195 101.11 119.04 17.93 17.71 B52-1B 1.99 305.38 5.01 0.85 16.02
**
plus 134.28 139.06 4.78 4.71 2.37 115.41 0.86 5.19 15.69
TCU11198 84.20 89.07 4.87 4.77 1.64 176.39 1.09 0.96 13.24
plus 116.18 135.79 19.61 19.18 B52-3 0.62 94.24 0.27 2.20 7.93
TCU11199 84.79 89.29 4.50 4.39 B52-3 1.37 153.10 0.68 2.22 11.92
TCU11200 109.87 115.65 5.78 5.29 A54-4 1.38 200.39 1.88 1.06 5.54
* includes three samples (total 3.00m in length) in composite overlimit for Zn : >30% Zn; currently being re-assayed by revised methods
** includes two samples (total 1.93m in length) in composite overlimit for Zn : >30% Zn; currently being re-assayed by revised methods

Those holes in the above table with a numerical sequence above 189 were drilled in the upper part of the deposit in an area containing historical reserve blocks from previous operations in 1957. These holes have confirmed the presence of the mineralized zones, which have not previously been integrated into any 43-101 resource estimate. Re-modeling of the zones is progressing for consideration of integration into the planned resource estimate update. Two of the holes in Table 1 (TCU11191 and 195) have returned individual sample assays which were above the assay limit of 30% zinc and require re-assaying. The composites presented here have been calculated using a 30% Zn assay value for those samples.

A more comprehensive compilation of the assay data is shown in Table 2.

Table 2: Complete list of the additional drillhole information within the Tulsequah Chief mine area:

Hole-ID From
(m)
To
(m)
Length
(m)
TW
(m)
Zone Au
(g/T)
Ag
(g/T)
Cu
(%)
Pb
(%)
Zn
(%)
TCU11177 385.28 388.52 3.97 2.11 G1 5.28 79.25 2.49 0.59 15.48
plus 390.84 393.86 4.02 2.13 G1 FW 1.18 48.46 0.70 0.46 2.37
plus 396.77 399.64 2.87 1.52 G1 FW 1.45 51.78 0.43 0.83 3.83
TCU11178 411.33 412.83 1.50 1.43 H8 1.68 56.00 0.34 0.17 4.20
plus 420.33 421.83 1.50 1.43 H8 2.09 70.20 0.01 0.49 1.03
plus 429.09 429.60 0.51 0.49 H8 1.84 28.00 0.22 0.02 0.72
TCU11179 478.64 481.55 2.91 1.80 G1 1.65 37.95 0.42 0.39 3.12
plus 485.55 489.23 3.68 2.28 G1 2.81 74.41 0.62 0.38 1.68
TCU11180 367.00 368.50 1.50 H8 1.60 4.60 0.03 0.03 0.14
plus 475.41 488.35 12.94 10.49 H4 16.23 200.34 1.55 0.65 1.99
plus 494.35 498.35 4.00 3.24 H4 4.65 77.10 1.59 0.01 0.04
plus 501.67 503.88 2.21 1.79 H4 4.72 58.75 0.77 0.04 0.14
TCU11181 No massive sulphide intercepts G1
TCU11182 349.99 351.47 1.48 1.19 G1 0.55 26.07 0.35 0.42 0.67
TCU11183 325.88 328.50 2.62 2.15 H8 0.20 5.02 0.08 0.13 1.36
TCU11184 353.65 355.65 2.00 1.65 2 0.40 107.28 0.06 0.65 1.00
plus 359.23 362.00 2.77 2.28 2.77 0.63 31.38 0.11 0.37 2.46
TCU11185 291.00 291.80 0.80 0.76 H8 0.88 29.00 0.48 0.02 3.10
TCU11186 524.00 539.20 15.20 11.79 H4 2.96 75.71 1.01 0.73 13.60
plus 545.00 557.00 12.00 9.31 H4 FW 3.97 29.15 0.05 0.17 0.58
plus 563.00 567.50 4.50 3.49 H4 FW 1.55 94.07 0.13 0.39 1.75
TCU11187 274.16 276.00 1.84 H8 HW 0.95 27.37 0.23 0.68 2.77
TCU11188 No significant intercepts H8
TCU11189 583.30 589.00 5.70 4.23 H4 2.02 85.03 0.14 0.75 1.58
TCU11190 112.00 124.60 12.65 10.96 E52-1 1.05 55.88 2.08 0.79 6.05
inc. 118.00 121.60 3.60 3.12 1.30 82.50 1.92 2.13 15.06
plus 141.80 153.00 11.45 9.93 PYF 2.17 76.71 1.61 0.92 3.30
TCU11191 99.30 130.17 30.91 29.09 E52-1 0.68 37.32 1.31 2.46 11.89
*
inc. 110.65 130.17 19.52 18.37 0.76 43.02 1.64 3.31 16.19
*
inc. 117.13 130.17 13.04 12.27 0.86 53.66 1.87 4.81 20.95
*
TCU11192 107.45 129.34 21.89 21.36 E52-1 1.20 48.97 2.35 1.14 8.94
inc. 108.65 124.65 16.00 15.61 1.15 47.64 2.49 1.44 11.19
TCU11193 112.25 113.23 0.98 0.97 E52-4 1.68 116.00 1.51 2.32 2.65
plus 123.50 124.65 1.15 1.13 0.76 88.40 0.81 0.02 0.08
TCU11194 80.95 81.37 0.42 0.42 0.38 60.40 1.16 3.91 12.00
plus 111.20 121.04 9.84 9.84 B52-1B 1.95 157.21 1.68 2.02 16.09
TCU11195 101.11 119.04 17.93 17.71 B52-1B 1.99 305.38 5.01 0.85 16.02
**
plus 134.28 139.06 4.78 4.71 2.37 115.41 0.86 5.19 15.69
TCU11196 111.09 111.79 0.70 0.68 6.40 259.00 0.14 1.25 0.01
plus 116.29 117.29 1.00 0.97 B52-1 1.77 63.90 0.06 0.06 4.25
TCU11197 112.77 113.89 1.12 0.98 A54-4 0.76 20.60 0.62 0.72 4.20
TCU11198 84.20 89.07 4.87 4.77 1.64 176.39 1.09 0.96 13.24
plus 116.18 135.79 19.61 19.18 B52-3 0.62 94.24 0.27 2.20 7.93
TCU11199 71.70 73.20 1.50 1.46 2.39 123.00 0.12 0.28 1.57
plus 78.25 79.15 0.90 0.88 0.48 33.00 1.24 0.05 1.65
plus 84.79 89.29 4.50 4.39 B52-3 1.37 153.10 0.68 2.22 11.92
plus 121.17 122.07 0.90 0.88 B52-3 8.90 263.00 0.11 0.93 0.02
TCU11200 109.87 115.65 5.78 5.29 A54-4 1.38 200.39 1.88 1.06 5.54
TCU11201 No significant intercepts A54-4
TC11050 150.50 152.00 1.50 1.40 AEX_23 0.26 24.00 0.50 0.01 7.05
plus 204.96 205.80 0.84 0.78 AEX_U 0.10 7.60 1.12 0.01 1.35
TC11051 145.85 147.00 1.15 0.70 AEX_23 0.17 4.42 0.37 0.02 0.61
TC11052 154.65 156.15 1.50 1.37 AEX_23 0.25 10.00 0.12 0.03 1.63
plus 166.62 168.15 1.53 1.39 AEX_U 0.10 2.00 0.08 0.08 1.08
TC11053 No significant intercepts AEX
TC11054 157.08 163.08 6.00 5.85 AEX_L 3.67 82.47 0.48 1.46 3.13
plus 166.08 167.08 1.00 0.97 AEX_L 1.17 112.00 0.37 2.08 4.91
TC11055 198.57 205.37 6.80 5.55 AEX_L 1.28 73.02 0.94 1.85 3.14
TC11056 No Significant results 5200 Syncline Alteration Zone
TC11057 No Significant results 5200 Syncline Alteration Zone
TC11058 No Significant results 5200 Syncline Alteration Zone - East Limb
TC11059 No Significant results 5200 Syncline Alteration Zone - East Limb

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. Drillhole 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.

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