CZM Capital Corp.

CZM Capital Corp.

November 19, 2009 11:14 ET

CZM Receives NI 43-101 Mineral Resource Estimates for the TAG Au-Ag Property, B.C.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 19, 2009) - CZM Capital Corporation ("CZM")(TSX VENTURE:CZM) is pleased to announce it has received a mineral resource estimate from Reddick Consulting Inc. ("RCI") on its TAG gold-silver property in northern British Columbia. The mineral resource estimate includes 250,000 tonnes @ 3.0 grams per tonne ("gpt") gold ("Au") and 12.1gpt silver ("Ag") classified as Indicated mineral resources and a further 400,000 tonnes @ 3.0gpt Au and 9.9gpt Ag classified as Inferred mineral resources. All the estimated mineral resources are associated with the 025 Zone on the TAG gold-silver property. The TAG property its 100% owned by CZM and consists of 26 claims (2,429 hectares) located in northern British Columbia on Tagish Lake, approximately 135 kilometres due south of Whitehorse, Yukon and 35 kilometres due west of Atlin, B.C. The mineral resource estimates for the TAG 025 Zone are summarised as follows:

CategoryTonnesAu gpt (cut)Ag gpt (cut)Au gpt (uncut)Ag gpt (uncut)
Indicated250,000 3.0 12.1 3.1 14.4 
Inferred400,0003.0  9.9 3.1 12.4 
  1. For Mineral Resource Estimate methodology see text below.
  2. Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
  3. The quantity and grade of reported inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these inferred resources as an indicated or measured mineral resource and it is uncertain if further exploration will result in upgrading them to an indicated or measured mineral resource category.
  4. The mineral resources in this press release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council December 11, 2005.

The mineral resources were estimated using a vertical cross-sectional polygonal method. Criteria for inclusion in the mineral resource estimate include a cut-off of a minimum value of 3.0gpt gold-equivalent ("AuEq"), using combined gold and silver values, and a minimum core length of 2.0 metres. The gold-equivalent method for the cut-off used a gold to silver ratio of 59.93 based on the 3 year average prices of gold US$830 per ounce and silver at US$13.85 per ounce. Core lengths are thought to average approximately 70% of true widths. The application of a top cut reduces the amount of contained gold in the estimates by about 4% and reduces the contained silver by about 18%.

Assuming metallurgical recoveries and net smelter returns of 100%, the estimated mineral resources contain 25,736 gold-equivalent ounces (cut) or 26,848 gold-equivalent ounces (uncut) in the Indicated category and 40,705 gold-equivalent ounces (cut) or 42,528 gold-equivalent ounces (uncut) in the Inferred category as summarised below:

CategoryAu Oz (cut)Ag Oz (cut)AuEq Oz (cut)Au Oz (uncut)Ag Oz (uncut)AuEq Oz (uncut)
Indicated24,113 97,256 25,736 24,917 115,743 26,848 
Inferred38,581 127,317 40,705 39,867 159,468 42,528 
  1. Assumes gold US$830 per ounce and silver at US$13.85 per ounce
  2. Grams to ounces conversion factor 0.03215075

The 025 Zone on the TAG property is a lode gold deposit associated with the 025 Fault, a structure characterized by a steep dip with generally low-grade gold and silver values within which there are locally continuous zones of mineralisation at higher grades. The better grade zones that contribute to the mineral resource estimate are concentrated over a strike length of about one half of a kilometre near the southern end of the structure as it is defined by drilling. The continuity of the mineralisation in the 025 Zone at very low grade cut-offs appears to be very good. The mineral resources are at a grade that makes the economic potential of the estimate sensitive to metal prices.

The Indicated mineral resources occur as a continuous mineralised zone with multiple drill hole intercepts over a strike length of approximately 200m and with a maximum down-dip extent of approximately 175m below surface. The Inferred mineral resources occur primarily in a continuous mineralised zone with multiple drill hole intercepts over a strike length of approximately 300m and with a down-dip extent from surface to approximately 215m below surface. Additional Inferred mineral resources are found as discontinuous zones approximately 400m to the north of the area hosting the Indicated mineral resources.

The Tag property is accessible year-round by aircraft although access is more difficult during the winter months. There is no road access. Access by boat or barge is possible for five months of the year. The topography in the general vicinity of the project is mountainous but there are some fairly flat areas on the claims, including the area where the camp is located and most of the surface area overlying the 025 Zone. Good transportation and shipping facilities are available in the Yukon and northern British Columbia. No mining, advanced stage exploration or development work occurred on the TAG Property prior to work by CZM.

Between 2006 and 2008 CZM completed 69 diamond drill holes totalling 11,519 metres on the TAG property; all directed along the structural trend of the 025 Zone. Other work completed under the supervision of CZM included a soil geochemical survey, an airborne geophysical survey, prospecting, trenching and surface sampling, and the construction of a 16-person, all-weather camp. 

Bourlamaque Assay Laboratories Ltd. in Val d'Or, Quebec and Eco-Tech Laboratory Ltd. in Kamloops, B.C. provided analytical services over the life of the project. At both laboratories gold was determined by conventional 30 gram fire assay, atomic absorption finish method and silver by partial acid digestion, atomic absorption method. Both laboratories are independent of CZM and maintain internal quality control programs. In 2007, CZM initiated an independently designed and monitored QA/QC program whereby blanks, standards and duplicates were inserted into each sample batch.

RCI considers there to be the potential to discover additional zones of gold-silver mineralization on the TAG property and states that infill drilling would improve the confidence in continuity and better define the mineralisation in some areas that have been subject to previous drilling. RCI recommends that CZM undertake 5,000 metres of drilling below the mineralized zones that contribute to the mineral resource estimate and along untested areas of the 025 Zone. In addition, metallurgical test work is recommended given the association of gold and silver mineralization with arsenopyrite. An Induced Polarization survey (IP) as a means of identifying potential targets along 5 kilometres of the 025 structure is also recommended. The total estimated cost of the recommended program is one and a half million dollars ($1,500,000).

A copy of the full technical report will be available on the SEDAR website within 45 days of this press release. The mineral resource estimate, effective as of November 16, 2009, was completed by John Reddick, M.Sc., P. Geo, of Reddick Consulting Inc., Inverary, Ontario, and is based on data and geological interpretations supplied by CZM to Reddick Consulting Inc. John Reddick is an 'independent qualified person' for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators and has verified the data disclosed in this release. Tracy Armstrong, B.Sc., P. Geo., of TJ Armstrong Geological Consulting Inc., Magog, Quebec, is also an 'independent qualified person' for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators, and has verified the sampling procedures and QA/QC data delivered to Reddick Consulting Inc. and is of the opinion that the data are of good quality and suitable for use in the resource estimates.

Mark Fekete, B.Sc., P. Geo., of Breakaway Exploration Management Inc., Val d'Or, Quebec, is the designated "qualified person" as defined in Section 1.2 in and for the purposes of National Instrument 43-101 responsible for the preparation of this release.

For further information please visit our website at or call Toll Free 1-800-610-9552.

This release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described in the Company's periodic reports including the annual report or in the filings made by the Company from time to time with securities regulators. The Company undertakes no obligation to publicly release the result of any revision of these forward-looking statements to reflect events or circumstances after the date they are made or to reflect the occurrence of an unanticipated event.

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