Piper Capital Inc.

Piper Capital Inc.

September 20, 2005 18:14 ET

Piper Capital Inc.: Hidefield Gold Elects to Excercise Option on Golden Zone Project

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 20, 2005) - Piper Capital Inc. (TSX VENTURE:PCL) is pleased to announce that Hidefield Gold plc ("Hidefield") has elected to exercise its option to acquire up to 50% of the Company's interest in the Golden Zone gold project in Alaska. Piper currently has a 58.12% interest in the project and is in the process of increasing that interest to 75% by a combination of exploration expenditures, share issuances and cash payments.

The Hidefield option entitles Hidefield to initially acquire a 37.5% interest in the Golden Zone project through the completion of exploration on the project and surrounding area in the amount of US$1,500,000; of which US$300,000 must be spent before the end of 2005, and US$600,000 in each of 2006 and 2007. Hidefield will meet its 2005 expenditure requirement through the immediate implementation of a 1000 metre (m) core drilling program before the end of the current field season. This Phase II program is designed to further test and potentially increase the gold resource in and around the GZ Breccia Pipe.

Piper and Hidefield each have a further option to acquire additional 12.5% interests in the Golden Zone project (bringing combined ownership to 100%) by each paying Mines Trust Company, the underlying owner of the project, US$100,000 of which, up to 50% may be made in shares of Piper and Hidefield, respectively. Mines Trust will retain a 2.5% net smelter royalty which can be reduced to 1.5% upon payment of US$1,000,000.

"By reviewing the available technical data to date and electing to exercise their option to increase ownership interest, Hidefield clearly believes in both the resource expansion and exploration potential of the Golden Zone Project," said Chuck Hawley, Piper Capital Chairman. "We are extremely pleased with their involvement and continued support of the advancement of Golden Zone."

The Golden Zone (GZ) Breccia Pipe and related mineral showings occur in fault-bounded northeast-trending zones of hydrothermal alteration associated with alkalic granitic intrusive rocks of Cretaceous age. The property also hosts a large number of untested or partially tested gold and gold-copper prospects. This geologic setting is characteristic of major gold and gold-copper deposits in the Tintina Gold Belt including Placer Dome's Donlin Creek deposit (25 million ounces gold) and Northern Dynasty's Pebble deposit (26.5 million ounces gold and 16.5 billion pounds copper).


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 grading 2.81 g/t gold, containing approximately 253,000 ounces of gold, 1,180,000 ounces of silver and 6,114,000 pounds of copper.


Hidefield Gold is a publicly listed company trading on the Alternative Investment Market (AIM) of the London Stock Exchange. The strategy of the Company is to acquire and develop highly prospective mineral projects in North and South America. Hidefield has a diverse portfolio of projects, some of which are directly held, but the majority of which are held in independent, self-funded associate companies. Hidefield Gold currently holds a direct 15.6% interest in Piper.


Kenneth P. Judge,President & CEO

This news release may contain 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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