Piper Capital Inc.
TSX VENTURE : PCL

Piper Capital Inc.

November 07, 2005 16:00 ET

Piper Capital Inc.: Phase II Drilling Program Encounters High-Grade Gold in Golden Zone Breccia Pipe

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 7, 2005) - Piper Capital Inc. (TSX VENTURE:PCL) is pleased to announce results of its Phase II drill program at the Golden Zone project, Alaska. The Phase II program which was completed on October 6, 2005, consisted of 818 metres (m) of drilling in four core holes designed to test depth extension of the Golden Zone (GZ) Breccia Pipe.

Significantly mineralized intervals were found in all four holes, with the largest intercepts in hole 47.3E-2. This hole encountered a 124.4 m intercept grading 4.5 grams per tonne (g/t) Au, including a 5.1 m intercept grading 19.74 g/t Au, 87.0 g/t Ag, and 0.22% Cu. Hole 47.3E-2 was mainly in the GZ Breccia Pipe and was drilled at -80 degrees SE to a total depth of 271 m. Assay results from this and other Phase II drill holes are provided in the table below:



Hole From To Length Au Ag Cu Target
(m) (m) (m) g/t g/t %

47.3E-1 3.0 18.3 15.3 1.07 4.2 0.03 BLT Zone

30.5 47.2 16.7 1.05 1.7 0.02 BLT Zone
including 30.5 36.6 6.1 2.03 2.8 0.02

153.9 163.1 9.8 3.69 16.3 0.16 GZ
Breccia
Contact
Zone

47.3E-2 3.0 4.6 1.5 13.25 41.9 0.09 GZ
Breccia
Contact
Zone

57.9 68.6 10.7 3.19 5.5 0.03 GZ
Breccia
Contact
Zone

91.4 215.8 124.4 4.50 37.4 0.28 GZ
Breccia
including 96.0 143.3 53.3 8.48 52.0 0.27
135.6 143.3 7.6 11.16 19.4 0.06
96.0 109.7 10.7 13.21 71.1 0.28
98.5 103.6 5.1 19.74 87.0 0.22

48.5E-1 15.2 24.4 9.2 1.14 2.4 0.25 BLT Zone

121.9 147.8 25.9 1.37 13.2 0.13 GZ
Breccia
including 121.9 128.0 6.1 2.63 12.1 0.10

167.6 175.3 6.1 2.85 17.5 0.11 GZ
Breccia

179.8 195.1 15.2 3.72 60.5 0.60 GZ
Breccia

50E-1(1) 117.3 118.9 1.5 3.23 14.4 0.18 GZ
Breccia
Contact
Zone

141.7 147.8 6.1 3.09 8.1 0.04 GZ
Breccia

190.5 202.7 12.2 1.34 3.0 0.03 GZ
Breccia
(1) Drillhole 50E-1 abandoned at 205.1 m while in mineralized breccia


During the 2005 exploration season, a total of 3,180 m has been drilled at the Golden Zone project in nineteen core holes and one reverse circulation hole, of which the first 16 holes constituted Phase I (news release dated October 31, 2005). Earlier drilling campaigns at Golden Zone established a measured and indicated resource of 253,000 ounces of Au at an average grade of 2.81 g/t Au using a cut-off grade of 1.0 g/t Au (news release dated May 30, 2005).

The Phase II GZ Breccia Pipe drill holes serve to define its configuration and internal grade distribution at depths of up to 240 m below the outcrop. Holes 47.3E-1 and 2 tested the pipe's southwest margin and extended high-grade mineralization to depth in this area. Hole 48.5E-1 crosscut the central part of the body below previous drilling, and Hole 50E-1 defined its down plunge extension to the northeast. The latter hole was abandoned in mineralized breccia at a depth of 205 m (240 m below the outcrop). Results from these holes, together with earlier Phase I results, will be evaluated and integrated with the existing Norwest Corporation resource estimate over the coming months to develop a revised resource calculation.

The Phase II drill plan and a longitudinal section illustrating positions of certain reported holes (designated by cross-sectional location) may be viewed under the project section of the Piper website: www.pipercapitalinc.com/s/GoldenZone.asp?ReportID=120979.

The core drilled at Golden Zone was primarily 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, B.C. Dr. Charles Hawley, CPG, Chairman and Director of Piper Capital was the Qualified Person supervising the Phase II 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.

Chuck Hawley, Chairman of Piper stated, "The Phase II program has been very encouraging and has not only confirmed excellent grade, but will contribute greatly to the modeling of the Breccia Pipe, and will serve to revise the resource calculation of the GZ deposit."

John Prochnau, CEO of Hidefield added, "We are very pleased with these results and will be evaluating and interpreting them over the upcoming months to help us design the 2006 exploration program."

ABOUT PIPER

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, measured and indicated resource (with an average grade of 2.81 g/t and using a 1.0 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.

ABOUT HIDEFIELD GOLD

Hidefield has a direct 15.6% interest in Piper, and can earn a 50% interest in the Golden Zone project through a combination of exploration expenditures, share issuances and cash payments. Hidefield is a mineral exploration company with a focus on the acquisition and development of highly prospective projects in North and South America. The Company has a diverse portfolio of projects, some of which are directly held, however the majority of which are held in independent, self-funded associate companies. Apart from its North American investments, Hidefield has substantial direct gold project interests in South America.

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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