Western Keltic Mines Inc.

Western Keltic Mines Inc.

October 27, 2005 14:21 ET

Western Keltic Mines Inc.: Kutcho Creek Project

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 27, 2005) -

Drilling Adds to Copper - Zinc Resources at Kutcho and Sumac West Deposits

Western Keltic Mines Inc. (TSX VENTURE:WKM) is pleased to provide final drill results for the company's 100 per-cent-owned Kutcho Creek copper-zinc project located 100 kilometers east of Dease Lake in northern British Columbia. The Kutcho Creek project hosts the Kutcho, Sumac West and Esso West copper-zinc deposits. Two of the deposits, Kutcho and Esso West, contain an aggregate resource of 14.5 million tonnes with a net smelter return copper equivalent grade of 3.5% containing 670 million pounds of copper and 960 million pounds of zinc (see Press Release dated January 11, 2005). Most of this tonnage is contained within the Kutcho deposit which is amenable to open pit mining.

2005 Program Highlights

- Drill results extend the upper edge of the Kutcho deposit which will reduce strip ratio

- Higher grade core zone identified in the Sumac West deposit will increase total copper and zinc resources of the Kutcho Creek project

- 2004 and 2005 drilling programs return consistently higher copper, gold and silver grades in comparison to historical (1979 - 1985) drilling results

- Potential for higher-grade starter pit at Kutcho deposit indicated by drill results

The 2005 drill program consisted of 7,372 m of drilling (following 7,691m in 2004) and was designed to fulfill four objectives:

1) to obtain sample material from the up-dip edge of the Kutcho footwall which would form part of the pit wall and to outline the possible extension of the Kutcho deposit in the up-dip direction,

2) to test for deposit extensions along the down-dip edge of the Kutcho deposit and to the west of the Esso West deposit,

3) to outline the limits of a copper-zinc rich core zone at Sumac West,

4) test additional targets on the property. Maps showing target and drill hole locations and results can be viewed at the company's website: www.keltic.com.

Kutcho Deposit

Twelve drill holes were completed along the upper edge of the Kutcho deposit in order to provide geotechnical and geochemical information about the deposit footwall to aid in design of the open pit and to determine engineering and development parameters. Many of these holes extended the Kutcho mineralization significantly closer to surface. Of the twelve holes, eight contained significant intersections (noted in bold in the following table) that will contribute to the size of the Kutcho deposit resource and lower the overall strip ratio. Additionally, copper and zinc grades in the 2005 and 2004 drill holes confirm the potential for higher grade starter pits at the eastern and western ends of the deposit. A total of four holes tested the down-dip extension of the Kutcho deposit with mixed results. Two of the Kutcho down-dip drill holes were extended to test the Footwall zone of mineralization, which is located 100m stratigraphically below the Kutcho horizon, but were unsuccessful in defining additional mineralization.

Kutcho Deposit: Diamond Drill Results

Thickness Ag Au
Hole-ID Target From To (metres) Cu% Zn% g/t g/t

WK05-39(i) FWZ and
extension 162.5 164.3 3.1 2.51 0.20 69.9 0.45
WK05-40(i) " 275.0 276.0 1.0 1.58 0.02 102.0 0.25
WK05-41(i) Kutcho
Down Dip 184.0 188.0 4.0 2.45 2.46 63.0 0.24
WK05-42(i) Kutcho
Upper Edge 45.6 49.0 3.4 1.08 4.42 13.3 0.32
WK05-43(i) " 24.1 25.2 1.1 0.57 5.33 22.0 0.33
And " 31.6 33.2 1.6 4.87 5.34 147.0 0.93
WK05-44(i) " 52.0 61.4 9.4 2.62 2.98 52.7 0.37
WK05-45(i) " 11.8 16.0 4.2 0.25 3.46 5.2 0.71
And " 19.5 29.6 10.1 0.78 1.55 12.8 0.15
And " 31.0 37.0 6.0 3.07 2.38 43.5 0.41
WK05-46(i) " 33.6 35.2 1.6 3.08 0.53 44.0 0.33
WK05-47 " 38.0 39.0 1.0 1.54 0.05 5.0 0.05
WK05-4 Kutcho
Down Dip 218.2 219.0 0.8 1.19 0.05 10.0 0.32
WK05-49 Kutcho
Up Dip 37.4 42.1 4.7 2.31 6.29 91.2 0.64
WK05-50 " 33.2 35.7 2.5 0.88 1.58 13.4 0.45
WK05-51 " No ore intersection
WK05-52 " "
WK05-57(i) " 21.1 33.0 11.9 2.73 2.89 41.9 0.45
WK05-58(i) " 11.0 25.0 14.0 1.28 2.29 13.0 0.17
Incl. " 16.6 25.0 8.4 1.77 3.53 15.0 0.23

(i) Previously released results

Sumac West Deposit

Drilling in the Sumac West deposit was successful in defining a higher grade area core zone with dimensions of approximately 400 m long by 200 m wide and an average thickness of 25 m. Thickness and grades are better in the western end of the deposit, near Esso West, and weaken in an easterly direction. Although the Sumac deposit is lower grade than the other deposits, it is located along a potential access corridor to the Esso West deposit and therefore could provide mill feed as allowed by metal prices. Sumac West has the potential to add significantly to the current 670 million pound copper and 960 million pound zinc resource currently contained within the Kutcho and Esso West deposits. Updated resource estimates for the Kutcho, Sumac West and Esso West deposits will be forthcoming in late 2005.

Sumac West Deposit: Diamond Drill Results

Thickness Ag Au
Hole-ID Target From To (metres) Cu% Zn% g/t g/t

WK05-59(ii) Sumac West 359.6 383 23.4 1.37 1.9 26.2 0.23
WK05-62 " 427.6 453.7 26.1 1.45 2.56 23.7 0.23
WK05-63 " 489.5 490.0 0.5 1.72 0.02 10.0 0.13
WK05-64 " 294.6 303.0 8.4 0.80 1.95 14.6 0.20

(ii) Previously released results

All drill holes are approximately perpendicular to the mineralization and are therefore true thicknesses, with the exception of 45, 49 and 57 where true thickness will be approximately 80% of the intersection thickness.

Additional Targets

Testing for the westward extension of the Esso West deposit has determined its western limits. Therefore, mineralization intersected in the westernmost historic drill hole E94B4 (5.4 m grading 2.7% Cu and 9.6% Zn) is thought to be part of a different, and as yet undefined, sulphide deposit. Further drilling will be necessary to test this theory. Drilling in the Jack zone was successful in intersecting the Kutcho horizon but unfortunately no significant mineralization was located. Further drilling in the area would be predicated on success with deep penetration geophysical methods. A single drill hole was drilled to test the North Graben target, a potential zone of mineralization located to the northeast of the rhyolite flow-dome complex associated with the Kutcho deposit. The drill hole was drilled 550 m northeast of the Kutcho deposit, in an area selected as a site for waste-rock from the Kutcho open pit. The drill hole intersected a thick sequence of rhyolite flow-dome complex. Additional drilling is required further northeast to test for a graben type feature on the north side of the flow-dome complex.

Permitting and Metallurgy

Western Keltic has formally entered the Kutcho Creek project into the British Columbia Environmental Assessment Process in order to obtain permitting for a mining operation. Initial consultations with all appropriate government agencies, both provincial and federal, have been held. Water balance, weather, fish and wildlife studies are in progress. Open houses with local communities and consultation with First Nations will commence this Fall. Additionally, metallurgical testwork is ongoing at Lakefield Research under the supervision of Art Winckers, P.Eng.

Quality Assurance

The technical information contained in this news release has been prepared in accordance with regulatory requirements set out in National Policy Instrument 43-101. Technical information has been reviewed by Brian Butterworth, P.Geo., Executive Vice President and Peter Holbek, P.Geo., Vice President Exploration for Western Keltic. The 2005 exploration program is carried out under the direction of Peter Holbek, P.Geo., a qualified person under National Policy Instrument 43-101. All drill holes are logged and the core is split and quartered on site. Half of the core is sent to Lakefield Research for metallurgical testwork and one-quarter of the remaining core is sent to ALS Chemex in North Vancouver for ICP analysis and fire assay. Western Keltic employs a system of quality control for all assays which includes the regular use of standards and blanks and check assaying.

About Western Keltic

Western Keltic Mines Inc. is a mineral exploration and development company currently focused on the discovery and development of copper and other base and precious metal assets. In addition to advancing the Kutcho Creek project, the company is actively engaged in the search for additional assets to compliment its current project portfolio.

On behalf of the Board of Directors

Western Keltic Mines Inc.

Brian Butterworth, P.Geo. Executive Vice-President

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

Contact Information

  • Western Keltic Mines Inc
    Brian Butterworth, P.Geo.
    Executive Vice-President
    (604) 682-8414 or 1-800-501-1201
    (604) 682-3727 (FAX)