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Results

Drill Results 2012

CSH completed a total of 2,058 metres of diamond drilling in six holes (see press release April 3, 2012 and press release June 19, 2012).

Selected highlights include:

Diamond drill hole CSH12-03 returned significant silver values in a potentially new structure between 111.0 and 122.3 metres downhole, including the following screen metallic assays:

  • 1517.0 g/tonne over 0.3 metres
  • 479 g/tonne over 0.4 metres
  • 91 g/tonne over 0.3 metres
  • CSH12-03 - Section SchematicThe entire interval starting at 111.0 metres returned a composite silver value of 72.47 g/t Ag over 11.3 metres, including 168.22 g/t over 4.2 metres, with no individual silver assay below 2.4 g/t. This zone appears to be related to a new silver-bearing structure.

Other highlights include:

  • CSH12-04 returned a composite silver assay of 25.9 g/tonne over 4.3 metres, starting at 254 metres downhole. These results appear to correlate to the north extension of the Beaver Lake Fault.
  • CSH12-05 returned a composite silver value from the Beaver Lake Fault of 398.42 g/tonne over 1.9 metres., however 0.9 metres of this intersection was lost core or void due to the hole intercepting what is interpreted to be old workings at 258.8 metres downhole.
  • CSH12-06 was drilled to test within 25 metres below and west of CSH12-05 in order to avoid the historic drift/stope area and returned a composite silver value of 58.21 g/t over 0.95 metres.

DDH results table 1

Drillhole

From(m)

To(m)

Silver gpt

Length (m)

CSH12-01

105.8

106.1

6.5

0.3

CSH12-02

285.75

286.05

3.3

0.3

CSH12-03

111

122.3

72.5

11.3

including

117.9

122.3

168.2

4.4

including

121.6

122.3

923.9

0.7

CSH12-04

254

258.3

25.9

4.3

CSH12-05

248

249.9

412.6

1.5

CSH12-06

253.85

254.8

58.2

0.95

*intervals reported are core lengths; true widths of mineralization are not known.

Power Stripping and Channel sampling Results

The Company completed a power-stripping and channel sampling program near Gibson Lake on the main Keeley Frontier claim block in November of 2012 (see press release January 18, 2013).

CSHI Gibson Lake Stripping ResultsA total of 50.45 metres of channel cuts were completed and assayed for silver and trace elements. The average length weighted composite for all 77 channel samples taken is 11.33 g/t Ag, 0.12% Pb, 0.14% Zn and 0.12% Cu. Silver values ranged from 0.4 g/t to 190 g/t, with only seven samples assaying below 1.0 g/t Ag. A similar widespread dispersion of Pb, Zn and Cu values was also noted, with a high correlation to Ag values.

Selected highlights include:

  • Channel line 7 returned composite silver values of 69.3 g/t Ag over the full length of 2.9 metres, including 86.8 g/t Ag over 2.25 metres.
    • These samples also include base metal values of 0.91% Pb, 0.65% Zn, 0.28% Cu over 2.25 metres.
    • One sample returned a value of 174 g/t Ag and 1.46% Pb over 0.95 metres.
  • Channel line 8 returned a composite silver value of 28.0 g/t Ag over 2.05 metres, with 0.58% Pb, and 0.69% Zn. The composite included 70 g/t Ag 1.31% Pb, 1.64% Zn and 0.42% Cu over 0.6 metres.
  • Channel line 2 returned a composite silver value of 70.4 g/t Ag over 1.85 metres, including 190 g/t Ag over 0.6 metres.
  • Five (5) grab samples of tailings material (sand, silt and clay) exposed at various depths in one location by an excavator at depths ranging from surface to 1.8 metres depth returned silver values of 404 g/t Ag, 191 g/t Ag, 175 g/t Ag, 124 g/tonne and 74.8 g/t Ag.
  • The tailings grab samples also assayed up to 0.053% bismuth, 0.33% cobalt, and 0.09% nickel.

Shallow Targets:

  • CSH has been able at a very early stage of exploration to locate new mineralized structures within a few hundred metres of previously mined areas.  This has been done relatively quickly, using data compilation, prospecting, powerstripping and shallow drilling. Geophysical and geological targets remain to be tested, all within 50 metres of surface.
  • As CSH continues to explore for additional new mineralized structures by prospecting and powerstripping, detailed geophysics (EM, I.P.) will be used to prioritize structures to drill, focusing on highly conductive areas close to the upper contact of the Nipissing diabase sill.

Deeper Targets:

  • CSHI - 3D Plan MapEvaluation of the new Veinlode claim block just west of the mine area will require compilation of the recently acquired data set.  Previous drilling results at Veinlode intersected structures with highly anomalous silver/base metal values. This data will be added to the 3D model for the Keeley and Frontier mines and is expected to produce drill targets in the structures where they are closer to the productive silver zone above the sill.  As the sill becomes deeper to the west, drilling and downhole geophysics will become the main method of delineating structures and determining areas of high conductivity near the upper contact of the sill. The known silver-cobalt producing Beaver Lake East and Ramardo #2  faults are high priority targets, along with the Hammerstrom and Keeley Extension Faults discovered by historic drilling on the Veinlode leases.

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