Chieftain Metals Corp.
TSX : CFB

Chieftain Metals Corp.

November 20, 2013 18:23 ET

Chieftain Drilling Hits Twin of Tulsequah Footwall Stringer Zone

TORONTO, ONTARIO--(Marketwired - Nov. 20, 2013) - Chieftain Metals Corp. ("Chieftain" or "the Company") (TSX:CFB) is pleased to provide the results of the first phase of its drilling program at the 100%-owned, construction-ready, Tulsequah Chief project located in B.C., Canada. The drill program was focussed upon re-interpreted geological, geophysical and geochemical targets (see CFB press release dated May 29th, 2013) along with newly modelled 3D-Induced Polarization ("3D-IP") geophysical inversion anomalies identified within the prospective Tulsequah Chief, Big Bull and Sparling-Banker areas between May and September 2013.

"We are extremely pleased with the results of this initial exploration campaign," said Victor Wyprysky, President and CEO of the Company. "Our geologic model has generated immediate success; VMS deposits are well known to increase resources as mining progresses and Tulsequah is undoubtedly one of the world's highest quality VMS deposits with the strong prospect of doubling or tripling the resources."

Of primary interest are the base metal values intersected in four holes targeting the strong 3D-IP chargeability anomaly located 350 metres to the southwest of the known Tulsequah Chief Orebody (See reserves in Table 2).

This 3D-IP anomaly bears many remarkable similarities (in terms of strength and dimensions) with the 3D-IP anomaly associated with the known Tulsequah Chief Orebody. It was also found to be directly associated with a very prospective, newly discovered Volcanogenic Massive Sulphide (VMS) alteration zone and its corresponding wide zone of footwall massive sulphides (mainly 'proximal discharge' pyrite) and intensely altered rhyolitic stratigraphy. Chieftain is now using these results to further vector its next round of drilling towards what appears to be a substantial new VMS deposit.

A total of 3,540 meters were drilled in 9 surface NQ holes for a total program cost of $1.25 million under the guidance of James (Jim) Pickell, P. Geo. As noted, the drill targets were generated by a comprehensive re-interpretation of historic geological data supported by newly modelled 3D-IP chargeability anomalies. The specific objectives of this exploration program were:

1) Increase the size of the Tulsequah deposit to boost an already promising economic return
2) Identify new zones of mineralization proximal to the Tulsequah reserves

Both objectives were met.

Initial assay results are included within Table 1.

Potential New VMS Lenses

Drill holes TC13064, TC13065, TC13066 and TC13067 targeted a 3D-IP chargeability anomaly ("Target #3") located 350 metres southwest of the Tulsequah orebody. A smaller polymetallic orebody mined historically by Cominco Ltd. is located about 350 metres northeast of the existing Tulsequah orebody thereby establishing an apparent spatial periodicity between the known VMS lenses. Target #3 is highly suggestive of the discovery of a new 'blind' base metal lens which is now referred to as the "SW Zone".

These holes intersected wide zones of IP chargeable mineralization with some chalcopyrite within typical footwall massive sulphide stringer zones (notably one 0.45m interval in TC13064 containing 3.28% Cu, 10 g/t Ag, 0.223 g/t Au). The overall alteration, copper and sulphide contents were noted to increase dramatically at depth. The deepest attempted drill hole ( TC13065) was abandoned because of stuck drill rods at the very start of a highly altered, sulphide-mineralized rhyolite flow resting upon a very thick footwall alteration sequence comprised of strongly chloritized basalt flow and rhyolite fragment-rich debris flows containing abundant semi-massive to near massive pyrite bands.

A fourth, very promising appearing 3D-IP chargeability anomaly ("Target #4") is located approximately another 350 m further to the southwest of the "SW Zone". One historical hole drilled along the north edge of the Target #4 3D-IP chargeability anomaly cut a thick zone of footwall alteration with disseminated to semi-massive pyrite. Any base metal mineralization associated with this fourth 3D-IP target would also be 'blind' and well below the present surface.

Extension to Existing Tulsequah Deposit

Five of the eight holes drilled adjacent to the Tulsequah Volcanogenic Massive Sulphide ("VMS") deposit successfully hit abundant semi-massive to massive sulphides within strongly altered footwall feeder system rocks. Moderate to high-grade sections of zinc and copper were cut in two of the eight Tulsequah deposit-focussed holes.

Drill hole TC13062 was targeted on a strong 3D-IP chargeability anomaly ("Target #2") located about 50 metres in the footwall of the existing Tulsequah orebody. This hole cut wide zones of semi-massive to massive sulphides directly associated with intense footwall VMS alteration and local base metal enrichment. It also confirmed the existence of stacked lenses as evidenced by the high-grade zinc intersections noted in Table 1.

Drill Results on Targets Located Elsewhere on the Property

The apparent direct association between the massive sulphides cut in the recent drill holes and the newly modelled 3D-IP chargeability anomalies within the prospective Tulsequah Chief rhyolitic package significantly upgrades the exploration potential of similar 3D-IP targets hosted within the Big Bull and Sparling-Banker area rhyolite packages. More information about this elevated potential will be made available in a subsequent release.

Next Steps

Based upon the successful discovery of appreciable sulphides and accompanying strong footwall VMS alteration associated with the newly interpreted 3D-IP chargeability anomalies that occur within favourable rhyolitic host rocks, future drilling will target the high chargeability isoshells that most clearly match those of the known VMS lenses. The next exploration program is expected to consist of priority drilling of the SW Zone on a grid pattern plus new follow up drilling of Target #4, located 350 m southwest of the SW Zone). Both areas have the strong potential of hosting a VMS orebody of at least similar size and grade to the Tulsequah Chief deposit.

Table 1: Chieftain Metals 2013 Assay Results

Hole-ID From
(m)
To
(m)
Length
(m)
TW
(m)
Lith Au
(g/T)
Ag
(g/T)
Cu
(%)
Pb
(%)
Zn
(%)
TC13060 No Significant Results
TC13061 No Significant Results
TC13062 89.00 89.92 0.92 0.66 SMSX 0.53 9.00 0.05 2.51 5.51
TC13062 112.59 114.10 1.51 1.08 SMSX 0.16 14.60 0.14 0.01 12.99
inc. 112.59 113.17 0.58 0.41 MSX 0.21 18.00 0.16 0.00 22.20
TC13062 247.38 249.70 2.32 1.05 MSX 1.61 21.93 1.14 0.96 12.78
inc. 247.38 248.55 1.17 0.53 MSX 1.23 19.00 0.41 1.85 22.70
TC13063 No Significant Results
TC13064 364.670 365.26 0.59 n/a DSX 0.77 17.49 0.59 0.01 0.01
plus 399.17 399.62 0.45 n/a STSX 0.22 10.00 3.28 0.01 0.03
TC13065 372.10 388.04 15.94 n/a QSP 0.08 0.79 0.12 0.06 0.19
inc. 386.77 388.04 1.27 n/a QSP 0.21 4.00 0.42 0.56 1.92
TC13066 No Significant Results
TC13067 Results Pending
BK13006 No Significant Results

Abbreviations: inc. - Including; TW - True Width; Lith - Lithology; MSX - Massive Sulphides; SMSX - Semi-Massive Sulphides; DSX - Disseminated Sulphides; STSX - Stringer Sulphides; QSP - Quartz Sericite Pyrite Alteration.

Table 2 - Tulsequah Chief Reserves

Mineral Reserve: Tulsequah Chief Deposit, BC (JDS, December 12, 2012)

Category Tonnes Cu (%) Pb (%) Zn (%) Au (g/t) Ag (g/t)
Probable 6,447,098 1.13 1.04 5.59 2.3 81.39

*Underground mineral reserves are reported at a cut-off of US$125. **Cut-off grades are based on a price of US$1,350/oz of gold, US$22/oz for silver, US$1.10/lb for zinc and lead and US$3.10 for copper and recoveries of 81.8% for gold, 79.5 for silver, 87.8 for copper, 44.5% for lead and 88% for zinc.

Quality Assurance Program, Quality Control Measures and Analytical Procedures

Chieftain's Quality Assurance program consists of inserting Quality Control "QC" samples in the sample stream at frequency of 1 QC sample per 10 samples including: standard reference material, blank material and duplicate samples. At the conclusion of the program 5% of the samples will be sent to a second laboratory for further check analysis. The drill core samples are shipped to ALS Minerals, Whitehorse, YK, where the 1-5kg samples are crushed and pulverized to produce a 250g split. This split is sent to ALS Minerals North Vancouver, BC Laboratory for analysis. All samples are analyzed by a 30g fire assay for Au by Atomic Absorption Spectroscopy and 35 element inductively coupled plasma-atomic emission spectroscopy with 0.5g digested in aqua regia. Any sample over limit for element: Ag, As, Cu, Pb or Zn is sent for assay grade analysis for elements Ag, As, Cu, Pb and Zn, as well as Specific Gravity from Pulp.

Qualified Person

James Pickell P.Geo, is the qualified person who has supervised the preparation of the technical information in this News Release dated 20 November 2013 and has verified the drilling data, assay results and interpretations disclosed within. Mr Pickell is a Senior Geological Consultant and Director of Chieftain Metals.

About Chieftain

Chieftain Metals Corp. is the public holding company of Chieftain Metals Inc. ("Chieftain Inc."), whose principal business is the acquisition, exploration and development of mineral properties. The Company's business has focused on the development of the shovel ready, high-grade Tulsequah Chief Polymetallic Project, in north-western British Columbia, Canada. Chieftain Metals Inc.'s property, Tulsequah Shazah Camp, consists of 55 mineral claims and Crown-grants covering approximately 30,581 hectares and covers two previously producing mines.

In addition to the 100% stake in the attractive Tulsequah asset, Chieftain has:

  • Consistent financial backing of West Face Capital Inc. ("West Face"), a Toronto-based investment management firm with assets under management (AUM) of over $3.0 billion. West Face is Chieftain's largest shareholder.
  • Strong support from Royal Gold with a $60 million streaming transaction in the Tulsequah project.
  • A highly experienced development team, and
  • Advanced project financing discussions with senior bank lenders and prospective suppliers.

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, 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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