Piper Capital Inc.
TSX VENTURE : PCL

Piper Capital Inc.

August 10, 2005 16:00 ET

Piper Announces Initial Results From the Golden Zone Project

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 10, 2005) - Piper Capital Inc. (TSX VENTURE:PCL) is pleased to announce results from the first seven diamond core holes in a planned twenty hole program at its Golden Zone gold project in Alaska. All results to date are from holes within the Golden Zone corridor; a northeast (NE) trending, 600 metre (m) wide, 2,500 m long belt of hydrothermally altered and mineralized rocks centered on the Golden Zone (GZ) breccia pipe. A preliminary measured and indicated resource at the GZ breccia pipe has been modeled in a 43-101 compliant report prepared by Norwest Corporation (using a gold cutoff grade of 1 gram per tonne (g/t)) of 2,801,371 tonnes, containing approximately 253,000 ounces of gold, 1,180,000 ounces of silver and 6,114,000 pounds of copper.

Drilling, which commenced in late May, has initially focused on deeper and peripheral zones in the GZ breccia pipe and on untested targets identified by surface sampling NE of the pipe. Fifteen holes have been completed to date with assay results received for seven. The Phase I drill plan and cross sections illustrating positions of the reported holes (designated by cross-sectional location) may be viewed under the project section of the Piper website: www.pipercapitalinc.com/s/GoldenZone.asp

Drill holes 48E-1 and 49E-1 targeted areas within the GZ breccia pipe which had not been well-defined in past drilling campaigns. Both holes intercepted long intervals of gold mineralization and provide important new information on grade distribution within the pipe and its configuration, limits and depth extension. Significant mineralized intervals are summarized as follows:



Hole From To Length Au
(m) (m) (m) g/t
---------- ----- ----- ------ ------
48E-1 13.7 24.4 10.7 2.98

86.9 128.8 41.9 3.11(i)
including 91.4 100.6 9.2 4.70

49E-1 6.1 44.2 38.1 3.75(i)
including 6.1 21.3 15.2 4.47

114.3 204.2 89.9 2.18
including 114.3 132.6 18.3 4.11
123.4 128.0 4.6 5.66
185.9 187.5 1.6 7.78

(i) indicates a greater than 10 g/t assay
included in composite; re-assay
pending


Three holes (51E-1, 51.5E-1 and 52.5E-1) tested the GZ breccia pipe NE of its last outcrop exposure to establish grade and plunge configuration at its NE margin. Holes 51E-1 and 51.5E-1 intercepted breccia-hosted gold mineralization indicating a steep northeasterly plunge to a depth of approximately 235 m. Hole 52.5E-1, the furthest to the east, encountered short intervals of gold mineralization in altered contact rocks indicating a steepening plunge, or possible plunge reversal, at greater depth. Significant mineralized intervals included:



Hole From To Length Au
(m) (m) (m) g/t
---------- ----- ----- ------ ------
51E-1 45.7 50.3 4.6 3.34

99.1 161.5 62.4 1.47
including 109.7 153.9 44.2 1.94
114.3 118.9 4.6 5.39(i)

178.3 181.4 3.1 3.30

195.1 199.6 4.5 1.99

51.5E-1 37.5 39.0 1.5 2.49
81.7 83.2 1.5 2.39
113.7 115.2 1.5 4.30
133.5 136.6 3.1 3.59
141.1 142.6 1.5 3.07
150.3 151.8 1.5 3.29

52.5E-1 No Significant Values

(i) indicates a greater than 10 g/t assay
included in composite; re-assay
pending


Holes 59E-1 and 60E-1 were drilled approximately 225 m NE of GZ breccia pipe and targeted extensions of the Mayflower and BLT shear zones, within which past surface and underground sampling had indicated potentially important gold and silver mineralization. Hole 59E-1 intercepted a 10.7 m mineralized zone averaging 0.90 g/t Au and 3.60 g/t Ag, including 1.6 m at 2.09 g/t Au and 8.50 g/t Ag. Hole 60E-1 intercepted a 1.5 m interval of 949 g/t Ag.

"We are extremely encouraged by these early drill results," said Dr. Charles Hawley, Chairman of Piper, "the long intervals of gold mineralization encountered in holes 48E-1, 49E-1 and 51E-1 demonstrate excellent grade continuity and significant depth extension of the GZ breccia pipe. The other holes indicate potentially important gold mineralization immediately marginal to the pipe and within the Mayflower and BLT zones. The balance of the Phase I drill program will continue to define grade and configuration of the pipe for resource expansion and test new targets within the large Golden Zone property."

The core drilled at Golden Zone is HQ in size; it was split (sawn); one half sent for assay, and the remaining half (the split core and pulps) retained in a core storage facility at Golden Zone. Samples were prepared at the ALS Chemex facility in Fairbanks, Alaska and assayed at Chemex lab in Vancouver, BC. Dr. Charles Hawley, CPG, Chairman and Director of Piper Capital is the Qualified Person supervising the Phase I drill program and is responsible for the technical disclosure in this news release; Phillip Larson, M.S., P.G. is the
QP responsible for all sample protocol. Further Phase I assays are pending and will be reported when received.

Piper is a gold exploration and development company focused on projects in the productive Tintina Gold Belt in central Alaska, where past production and reserves exceed one hundred million ounces of gold. The Company's principal focus is the advancement of the Golden Zone property, located 240 km north of Anchorage, which consists of mineral claims totaling over 8,000 hectares. The Golden Zone (GZ) breccia pipe contains a 43-101 compliant, preliminary measured and indicated resource (using a 1 g/t per gold cut-off) of 2,801,371 tonnes, containing approximately 253,000 ounces of gold, 1,180,000 ounces of silver and 6,114,000 pounds of copper.

ON BEHALF OF THE BOARD

Kenneth P. Judge, President & CEO

This news release contains forward-looking statements regarding ongoing and upcoming exploration work and expected geology, geological formations and structures. Actual results may differ materially from those anticipated in these statements.


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

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