Capella Updates on Nevada Drill Programadmin
CAPELLA RESOURCES LTD., a publicly traded, junior exploration and mineral development company with a strong portfolio of precious and base metal projects in Chile, USA and Atlantic Canada report further to the Company’s news release of April 23, 2009, that drilling at its Nevada gold-copper project in northern Chile is progressing well with three holes completed to date. Weather conditions continue to remain favourable. The Company has started the fourth and final drill hole of the season on the project which is expected to be completed in approximately one week.
The first drill hole, NV09001, was completed to a depth of 256 meters with the second hole (NV09002) reaching a depth of 305 meters. Drill hole NV09003 penetrated to a depth of 134 meters when in hole conditions degraded and caused the hole to be prematurely shut down.
The drill program is testing a combination of magnetic and induced polarization (IP) geophysical anomalies coincident with intensely altered outcrops. Analytical results for the program are expected by late June.
Major Drilling Chile S.A. of Santiago, Chile is the chief contractor on the project. Drilling in northern Chile can typically be conducted until mid-May, before winter weather sets in and drilling is suspended for the season. The drill program at the Company’s Nevada gold-copper project is expected to recommence in October, 2009 (springtime in Chile).
The Company holds a 100% interest in the Nevada gold-copper project subject to a 5% net smelter return royalty. The project consists of seven exploration and exploitation claims comprising approximately 1,900 hectares. Access to the Nevada gold-copper property is by all-weather gravel and paved roads from Copiapo, approximately 160 kilometres to the west. The Nevada gold-copper project drill area lies approximately 10 kilometres south of Kinross’s Maricunga gold mine (formerly the Refugio gold mine) and six kilometres north of Exeter’s Caspiche gold-copper project.
Three, relatively short, drill holes were completed in the early 1990’s by Minera Mount Isa Chile S.A. on the Nevada gold-copper property yielding sporadic gold mineralization. Additional information regarding the historic and current data can be found on SEDAR (www.sedar.com) or on the Company’s website at www.capellaresources.com.