VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 7, 2006) - Chesapeake Gold Corp. ("Chesapeake") (TSX VENTURE:CKG) is pleased to report an update on the Company's exploration activities in Oaxaca state. During the past few months Chesapeake completed the second phase drilling program on its La Gitana project and concluded the first pass generative reconnaissance on its 365,000 hectare land position in Oaxaca state. Work todate has resulted in the discovery of four significant precious metal and six polymetallic systems within this new emerging mineral district.
At La Gitana, Chesapeake has drilled the final 18 core holes of a 40 hole program totaling 8,462 meters. All but two holes tested a 1,000 meter long section of the Cerro di Oro zone, a 1.5 kilometer long NW trending, structurally controlled, epithermal system. The last two holes, DH-39 and DH-40, were drilled 800 meters to the northwest targeting a section of the subparallel Gitana vein structure.
Most of the 2006 drill campaign focused on step-out targets to determine the mineralized limits further along strike and at depth. Five holes (DH-23, D-24, DH-33, DH-36 and DH-37) collared at the northwest end of Cerro di Oro, tested the lateral continuity and depth extension of DH-14 which returned 31.5 meters of 2.88 g/t gold equivalent. DH-24 and DH-33 returned mineralized intersections of 28.5 meters of 3.23 g/t gold equivalent and 29.0 meters of 1.94 g/t gold equivalent confirming that the mineralization continues at depth for over 100 meters.
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From To Interval Gold Silver Gold Equiv.
Hole # (m) (m) (m) (g/t) (g/t) (g/t)
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DH-23 201.00 204.00 3.00 0.29 36.30 1.02
213.00 216.00 3.00 2.20 14.60 2.49
DH-24 103.50 132.00 28.50 1.55 83.80 3.23
142.50 150.00 7.50 1.63 49.70 2.62
156.00 159.00 3.00 0.60 -- 0.60
DH-33 98.60 127.50 29.00 0.69 62.80 1.94
including 106.50 109.50 3.00 3.56 358.00 10.72
124.50 126.00 1.50 1.81 80.30 3.42
DH-36 28.50 31.00 2.50 0.30 34.00 0.98
DH-37 1.70 7.50 5.80 0.34 4.85 0.47
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DH-37, the furthest step-out hole to the NW, did not intersect any significant mineralization but the continuity of the mineralization system is believed to persist in this direction. The steeply dipping, NW trending structures that control mineralization, as seen further to the SE, have been affected by complex post-mineral, cross-cutting, fault displacements. The regional fault corridor that hosts the epithermal system found at Cerro di Oro remains untested for more than 500 meters further to the northwest.
Six holes, DH-25 to DH-30, tested a 500 meter southeast extension of the Cerro di Oro zone at the uppermost topographic elevations. Drill holes 25 to 29 were spaced 60 to 100 meters apart along strike followed by DH-30, drilled a further 300 meters to the southeast. The assay and core logging results indicate that although the structures continue to the southeast, the gold and silver mineralization is not widespread at these levels of the system. Potential still remains at depth as the drill holes intersected several narrow feeder structures with up to 10.2 g/t gold equivalent (DH-28) surrounded by broad intercepts of anomalous mineralization.
The remaining five holes, DH-31, 32, 34, 35 and 38, were drilled in the southwest flank of the Cerro di Oro ridge. The southeast holes tested the depth extensions of the high grade mineralized structures found higher up across the core zone. Beginning at 126 meters, DH-38 intersected 51 meters of 1.21 g/t gold equivalent and several feeder structures were also found in the other four holes. Overall the results indicate that mineralization remains open at depth and along strike to the southeast.
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From To Interval Gold Silver Gold Equiv.
Hole # (m) (m) (m) (g/t) (g/t) (g/t)
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DH-25 216.00 219.00 3.00 0.81 16.70 1.14
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DH-26 36.00 37.50 1.50 1.30 89.20 3.08
93.00 94.5 1.50 1.40 18.20 1.76
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DH-27 No Significant Values
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DH-28 7.50 9.00 1.50 1.20 8.90 1.38
61.50 63.00 1.50 0.13 503.00 10.19
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DH-29 133.50 136.50 3.00 0.43 50.65 1.44
148.50 150.00 1.50 0.59 62.10 1.83
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DH-30 138.00 139.00 1.00 1.82 18.90 2.20
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DH-31 22.50 37.50 15.00 0.38 3.26 0.45
135.00 139.50 4.50 0.90 6.70 1.03
151.50 165.00 13.50 0.35 6.50 0.48
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DH-32 147.00 153.00 6.00 0.59 43.00 1.45
159.00 163.50 4.50 0.32 31.60 0.95
232.50 238.50 6.00 2.76 3.62 2.83
264.00 268.10 4.10 0.37 10.00 0.57
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DH-34 1.50 4.50 3.00 1.10 2.70 1.15
78.00 93.00 15.00 0.34 14.79 0.64
276.00 277.00 1.00 0.87 2.90 0.93
337.50 339.00 1.50 0.95 18.00 1.31
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DH-35 31.50 35.50 4.00 0.49 3.80 0.56
120.00 126.00 6.00 0.34 34.70 1.04
139.50 142.50 3.00 0.34 11.60 0.57
180.00 193.50 13.50 0.30 37.80 1.05
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DH-38 126.00 177.00 51.00 0.81 19.90 1.21
including 127.50 129.00 1.50 13.35 307.00 19.50
208.50 220.50 12.00 0.29 19.70 0.69
255.00 256.50 1.50 2.20 14.00 2.48
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DH-39 57.00 58.00 1.00 - 26.00 -
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DH-40 84.00 85.50 1.50 - 19.00 -
117.00 118.50 1.50 - 16.00 -
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Holes DH-39 and DH-40 tested a portion of the Gitana vein structure, a 4 km-long multiple quartz vein-stockwork system that runs sub-parallel to Cerro di Oro, 500 meters further to the southwest. The drill results indicate that the main mineralized structures consist of silver bearing feeder conduits that both coalesce and narrow at depth.
With the latest stage of diamond drilling, Chesapeake has completed the initial drilling program on the La Gitana project. The drill campaign successfully discovered a large significant mineralized system in a new unexplored area of southern Mexico. Drilling results have confirmed the existence of a broad 500 meter by up to 150 meter zone of near surface mineralization, with grades averaging 0.71 g/t gold and 27 g/t silver, or 1.25 g/t gold equivalent at Cerro di Oro. Furthermore, the mineralized system extends to more than 400 meters below surface and remains open at depth and along strike to the southeast.
Property wide stream sediments, soil sampling and prospecting continues to generate high quality targets on Chesapeake's 3,650 square kilometer land position in Oaxaca state. Ten mineral prospects have been discovered so far indicating that the district could potentially host major gold and silver deposits as well as bulk tonnage silver, copper, lead and zinc systems. Two of these mineral prospects, La Baeza and Cerro Minas, were recently discovered 15 kilometers and 35 kilometers, respectively, west of La Gitana.
The La Baeza prospect consists of a five square kilometer alteration zone associated with a volcanic dome field. The area of interest has similar geological characteristics as the La Gitana and Pena Blanca gold-silver projects. Several major fault structures that are directly related to the volcanic flow domes appear to be controlling the hydrothermal system and represent a highly favourable environment for the emplacement of economic grade mineralization. One particular structure, a low angle, NW trending, mineralized fault zone with variable widths of up to 15 meters, has been traced for over a 1 kilometer along strike and for at least 300 meters down dip. Six 1.5 meter rock chip channel samples collected at surface returned average values of 0.15 g/t gold, 430 g/t silver and 0.4% molybdenum. Follow-up mapping and sampling is on-going at La Baeza.
Cerro Minas consists of three polymetallic mineralized prospects separated approximately 1.5 kilometers apart inside of a broad skarn alteration zone that can be traced for over four kilometers. The mineralization is associated to quartz stockwork and structures with northeast and northwest orientations mainly hosted in hornfels, marbles, skarn and altered granitic plugs. Rock chip channel samples taken from the zones returned the following results:
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La Fe
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Meters Ag Cu Pb Zn
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45.0 145 g/t 0.12% 0.15% 0.11%
30.0 33 g/t -- 0.72% 0.15%
13.5 27 g/t 0.23% -- 0.26%
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La Fortuna
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Meters Ag Cu Pb Zn
------ ------- ------- ------- -------
41.0 -- 0.68% -- --
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La Reyna
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Meters Ag Cu Pb Zn
------ ------- ------- ------- -------
10.0 77 g/t 1.24% -- 3.0%
6.5 235 g/t 1.83% -- 4.45
26.5 -- 0.20% -- --
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Elsewhere in Mexico Chesapeake has been conducting a reconnaissance mapping and sampling program on its 100% owned El Tecomate gold-silver project in Durango state. El Tecomate is a large unexplored mineral district in Durango state that was acquired in 2004. Fieldwork has discovered a new major gold-silver, multi-vein and stockwork epithermal system which extends over an area 2,500 meters long and 250 meters wide. Initial results will be reported in 10 to 12 days. Chesapeake has also recently acquired, through staking, a highly prospective land package comprising 130,000 hectares in Chihuahua state.
ALS Chemex is the analytical laboratory used for this project. Geochemical sample preparation is undertaken in Guadalajara, Mexico, and the final analysis is completed in Vancouver, B.C. Alberto Galicia, P. Geo, is the qualified person under National Instrument 43-101 responsible for the exploration program.
CHESAPEAKE GOLD CORP.
P. Randy Reifel, President
FOR FURTHER INFORMATION PLEASE CONTACT:
Chesapeake Gold Corp.
Investor Relations
(604) 731-1094
www.chesapeakegold.com
