Southern Peru Copper Hits 48 Metres of 0.36% Copper and Drops Option at Canadian Shield’s Cerro Cori Property
TORONTO, ONTARIO–(Marketwire – Sept. 5, 2008) – Canadian Shield Resources Inc. (TSX VENTUERE:CSP) (“Canadian Shield” or the “Company”) is pleased to announce that Southern Peru Copper – Surcusal del Peru (“Southern Peru”), the Peruvian branch of Southern Copper Corporation has completed a 9 hole, 3,428 metre diamond drilling campaign on the Company’s Cerro Cori Property located in the Department of Ayacucho in southern Peru.
Significant intersections from the program are: Drill Hole________ From__________To______ Length (metres)______ Copper % ——————————————————————– —- CO-03______________ 126________ 174__________________ 48____________0.36 Including__________ 132________ 156__________________ 24____________0.58
The mineralization in hole CO-03 appears to be stratigraphically controlled occurring in a porous, fragmental pyroclastic volcanic rock variably altered by silica and clay. Copper minerals comprise covelite and bornite with a trace of chalcopyrite. No appreciable precious metals were recognized in any of the nine core holes.
Cerro Cori is considered a relatively high risk exploration play where a very large (+20 sq km) alteration zone forms a “lithocap” or zone of silica-clay alteration which contains very little anomalous metal at surface. Large copper-gold porphyry and high sulfidation gold-silver systems may have such lithocaps preserved, overlying the productive part of the system. Abundant native sulphur and barren pyrite in the drill core also indicates much of the drilling did not penetrate depths below the paleo-water table where base and/or precious metals would typically be found.
“While one significant intercept out of nine holes is not considered highly successful drill results, Canadian Shield feels this limited success is encouraging. Geologic and geochemical vectors point south, down dip of both structure and stratigraphy and to a large low lying area adjacent to the recently completed drilling. Further drilling in this area will benefit from starting holes some 200 metres lower in elevation the recent drilling, thus increasing the odds of intersecting porphyry style copper +/- gold mineralization” said Phil Anderson, VP Exploration.
Southern Peru began drilling February 2, 2008 and terminated the last hole June 8, 2008. Difficult climatic conditions (typical of the Peruvian Andes rainy season) were largely responsible for the relatively slow progress of the program. Under terms of the earn-in agreement between Southern Peru and Canadian Shield, Southern Peru was obligated to spend $350,000 during the first year of exploration which was completed. In addition Southern Peru paid Canadian Shield US$150,000 in 3 cash payments. Canadian Shield received the letter of termination of the earn-in agreement on July 18 and received final report materials on July 31, 2008.
“We greatly appreciate the hard work and fortitude shown by Southern Peru required to complete this program. They did an excellent job on environmental, archaeological and community relations issues and have left the property in good standing” added Mr. Anderson.
Canadian Shield also announces a change to its Board of Directors. The Company would like to thank Leonard De Melt for his support and contributions over the years as he stepped down from the Board on August 13, 2008.
Investors are invited to visit the Canadian Shield IR Hub at http://www.agoracom.com/IR/CanadianShield where they can post questions and receive answers or review questions and answers already posted by other investors. Alternatively, investors are able to e-mail all questions and correspondence to CSP@agoracom.com where they can also request to be added to the investor e-mail list to receive all future press releases and updates in real time.
About Canadian Shield Resources Inc. (TSX VENTURE:CSP)
Canadian Shield acquires and explores strategically-located precious and base metal properties in South America. The Company currently controls a portfolio of eight exploration properties located in Peru and Chile. Canadian Shield will continue to focus on project generation and joint venture opportunities to provide shareholders with interests in a broad portfolio of South American mineral properties. The Company’s shares are listed on the TSX Venture Exchange (Trading Symbol TSX VENTURE:CSP). Further information is available at Canadian Shield’s website: www.canadianshieldresources.com
STATEMENTS IN THIS PRESS RELEASE, OTHER THAN PURELY HISTORICAL INFORMATION, INCLUDING STATEMENTS RELATING TO THE COMPANY’S FUTURE PLANS AND OBJECTIVES OR EXPECTED RESULTS, MAY INCLUDE FORWARD- LOOKING STATEMENTS. FORWARD-LOOKING STATEMENTS ARE BASED ON NUMEROUS ASSUMPTIONS AND ARE SUBJECT TO ALL OF THE RISKS AND UNCERTAINTIES INHERENT IN RESOURCE EXPLORATION AND DEVELOPMENT. AS A RESULT, ACTUAL RESULTS MAY VARY MATERIALLY FROM THOSE DESCRIBED IN THE FORWARD-LOOKING STATEMENTS.
(c) 2008 Marketwire. Provided by ProQuest LLC. All rights Reserved.