Fjordland Exploration Inc.
TSX VENTURE : FEX

Fjordland Exploration Inc.

May 18, 2010 07:30 ET

Fjordland: Gold Fields Reports on Drilling at Woodjam North

Intersects 90.8 m Grading 0.58g/t Gold and 0.39% Copper, Including 30.4 m Grading 1.10g/t Gold and 0.72% Copper at Deerhorn Zone

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 18, 2010) - Fjordland Exploration Inc. (TSX VENTURE:FEX) and Cariboo Rose Resources Ltd. (TSX VENTURE:CRB), the Woodjam Joint Venture ("WJV") 60%/40% partners, are pleased to report that Gold Fields Horsefly Exploration Corporation, a member of the Gold Fields Limited group of companies (NYSE: GFI), has forwarded additional drilling results from the 2010 drilling program on the Woodjam North gold-copper property, located 45 km east of Williams Lake in central British Columbia.

The winter program started in early February, 2010 at the Takom Zone where seven holes totaling 2330.5 m were completed; encouraging results from this program were reported in a news release dated April 21, 2010. The drilling has since progressed to the Deerhorn Zone where 9 new holes totaling 2723.4 m were completed. Drilling is currently in progress on the Spellbound area, located approximately 1500 m to the east of the Deerhorn Zone. Four to five drill holes are planned to test this area, where there has been no previous drilling.

Deerhorn Zone

In 2008, the WJV discovered significant gold-copper mineralization in the drilling of the first two holes completed in the geophysical anomaly. Follow-up drilling consisting of 3 holes totaling 993.6 m in 2009 by Gold Fields provided additional encouragement, including an assay interval of 89.5 m grading 1.16g/t Au and 0.26% Cu in drill hole DH09-03. Assay results for the 9 new holes completed in 2010 are reported in the table below:

Hole ID(i) From (m)(i) To (m)(i) Int. (m)(i) Au g/t Cu % Au Eq. g/t(i)
DH10-04 173.0 341.0 168.0 0.14 0.10 0.34
including 196.0 234.0 38.0 0.28 0.21 0.70
DH10-05 149.5 194.5 45.0 0.24 0.18 0.60
including 181.0 194.5 13.5 0.41 0.22 0.85
DH10-06 57.7 132.0 74.3 0.24 0.18 0.60
including 57.7 88.0 30.3 0.42 0.22 0.86
DH10-08 42.0 215.0 173.0 0.20 0.11 0.42
including 70.0 122.0 52.0 0.32 0.21 0.74
DH10-09 68.6 159.4 90.8 0.58 0.39 1.35
including 68.6 99.0 30.4 1.10 0.72 2.53
DH10-10 57.9 122.0 64.1 0.19 0.28 0.75
including 94.0 118.0 24.0 0.24 0.34 0.91
DH10-11 214.4 230.0 15.6 0.16 0.24 0.64

(i) Intervals are core lengths; Au Equivalent in g/t calculated using US$950/oz gold, US$2.50/lb copper and the formula: ((%Cu x 22 x Price Cu/lb) + (g/t Au x 0.029166 x Price Au/oz))/(Price Gold/oz x 0.029166). Metallurgical recoveries and net smelter returns are not considered.

The highlight drill intersection (DH10-09) was a 90.8 m section grading 0.58g/t Au and 0.39% Cu, including a higher-grade intercept of 30.4 m grading 1.10g/t Au and 0.72% Cu. Hole DH10-05 was lost at 194.5 m, while still in mineralization. Holes DH10-07 and DH10-12 did not intersect significant mineralization. A drill location map may be viewed at www.fjordlandex.com\news\nr10-08b.pdf.

The best gold and copper-bearing zones are intimately associated with a monzonite porphyry intrusion and to a lesser extent with its volcaniclastic equivalents. Mineralization is associated with disseminated and fracture-controlled chalcopyrite and minor bornite which may also occur in a sheeted vein quartz stockwork within the monzonite. The ratio of hematite to magnetite varies across the mineralized zones which may vector into additional target areas not associated with magnetic highs. Potassic and silica alterations are intense, and zones of tourmaline alteration and brecciation have been noted. To date, gold-copper mineralization has been traced over a strike length of approximately 700 m in an upper zone. A lower zone is also recognized which has an undefined geometry.

The managements of Fjordland and Cariboo Rose are very encouraged by these recent results, as drilling continues to demonstrate high potential in what is now clearly a large cluster of mineralized intrusions throughout an area of at least 20 square km, covering only a small portion of the property explored to date. Tom Schroeter, President of Fjordland commented, "The significant interval of gold and copper mineralization encountered in drill hole DH10-09 is very encouraging. We look forward to further drilling results from Gold Fields in this zone."

Gold Fields has an option to earn up to a 70% interest in the Woodjam North Property by spending $19 million in exploration over 7 years (see July 30, 2009 News Release for details). Gold Fields budgeted approximately $3 million for the first-year work program including drill testing, IP geophysical surveying, soil geochemical and high resolution airborne geophysical surveying on the 40,750-hectare property.

Fjordland, Cariboo Rose and Gold Fields are also working towards completion of the Woodjam South Agreement (see January 15, 2010 News Release for details) and commencing an extensive exploration program on this significant copper-gold-molybdenum property. The best assay result from previous drilling on the Southeast Zone is 200.76 m grading 1.01% Cu and 0.44 g/t Au.

T.G. Schroeter, P.Eng./P. Geo., who is a qualified person within the context of National Instrument 43-101, has read and takes responsibility for this news release. Gold Fields, as operator of the exploration program has quality assurance and quality control procedures in place.

About Gold Fields Limited

Gold Fields is one of the world's largest unhedged producers of gold with attributable production of 3.6 million ounces(i) per annum from nine operating mines in South Africa, Ghana, Australia and Peru. Gold Fields also has an extensive growth pipeline with both greenfields and near mine exploration projects at various stages of development. Gold Fields has total attributable Mineral Reserves of 81 million ounces and Mineral Resources of 271 million ounces. (i) Based on the annualized run rate for the first quarter of F2010.

About Fjordland Exploration Inc.

Fjordland Exploration Inc. is a mineral exploration company focused on the discovery of gold, copper and molybdenum deposits in British Columbia. Of the 20 properties Fjordland currently owns, the Woodjam North and Woodjam South properties are part of the Woodjam Joint Venture between Fjordland (60%) and Cariboo Rose Resources Ltd (40%); the Woodjam North is currently under option to Gold Fields Horsefly Exploration Corporation. Fjordland also has a 100% interest in 6 other properties ("Tak Package") in the Woodjam area. Fjordland and Serengeti Resources Inc. are 40%/60% partners (QUEST) exploring 11 properties totaling 100,000 hectares in the Quesnel terrane north of Woodjam for precious and base metals. Shares of Fjordland Exploration Inc. trade on the TSX Venture Exchange under the symbol "FEX". For more information please visit the Company's website at www.fjordlandex.com.

Tom Schroeter, President & CEO

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the release.

Contact Information

  • Fjordland Exploration Inc.
    John Gomez
    Manager, Investor Relations
    604-893-8365
    604-669-8336 (FAX)
    www.fjordlandex.com