Chesapeake options La Cecilia in Sonora state
2004-12-30 16:32 ET - News Release
Mr. Randy Reifel reports
CHESAPEAKE ACQUIRES THE LA CECILIA GOLD PROJECT IN SONORA STATE, MEXICO
Chesapeake has signed an option agreement to acquire a 100-per-cent interest in the La Cecilia gold project, an 800-hectare mineral concession located in northern Sonora state. La Cecilia is an old mining camp centred on Cerro Magallanes, a rhyolite flow dome complex that forms a dominant topographical feature in the area. La Cecilia is being acquired from the Consejo de Recursos Minerales de Mexico (CRM), the mining and geological research division of the Mexican government.
All figures are in U.S. currency.
Chesapeake can earn its 100-per-cent interest by making the following staged payments totalling $100,000 to the CRM over four years. The CRM retains a 1-per-cent net smelter royalty.
a) $10,000 upon signing the option agreement;
b) $15,000 on the first anniversary of the effective date;
c) $20,000 on the second anniversary of the effective date;
d) $25,000 on the third anniversary of the effective date; and
e) $30,000 on the fourth anniversary of the effective date.
The La Cecilia project is a classic low-sulphidation, epithermal-type gold-silver system related to two well-developed northwest and northeast trending sets of fractures and faults associated with a rhyolite dome complex. The gold-silver mineralization occurs as high-grade in vein structures and as lower grade within broader zones of stockworks and breccias. Numerous other anomalous zones of silicification, brecciation and argillic alteration found across the extent of the flow dome complex, an area of more than one kilometre by two kilometres, have not been studied.
During the late 1980s the CRM completed a surface mapping, sampling and limited drill program on the southeastern portion of the La Cecilia concession. Rock chip samples (one to two metres wide) from several high-grade shoots within Cerro Magallanes have returned grades ranging from 22 grams per tonne to 53 g/t gold and 204 g/t to 1,128 g/t silver. The CRM drilled four core holes, of which two holes returned significant intersections (over 100 metres) greater than 0.7 g/t gold and 15 g/t silver. One hole, Barreno-3, intersected 180 metres of 1.2 g/t gold and 20 g/t silver from surface-down.
In 1995, Cambior Inc. optioned La Cecilia and the exploration work that followed included mapping, surface sampling, road building and 19 diamond drill holes. Similar to CRM, several holes drilled by Cambior returned long intercepts of gold and silver mineralization. In 1997, Cambior closed down its exploration activities in Mexico and terminated its interest in La Cecilia.
Preliminary review and evaluation of La Cecilia by Chesapeake indicates that a large portion of the property, including broad zones of silicified breccias further to the northeast, have not been sampled or drill tested. Moreover, the northeast and northwest trending mineralized fracture systems continue under a thin cover of debris and sediments away from the dome complex. Chesapeake plans to undertake a program of detailed mapping and surface sampling on La Cecilia, together with ground geophysics to define additional drill targets.
This news release has been prepared under the supervision of Andris Kikauka, PGeo, who serves as the qualified person for this project under National Instrument 43-101.
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