Toronto, Canada, March 28, 2008 – Canadian Shield Resources Inc. (TSX V:CSP) (“Canadian Shield" or the “Company”) is pleased to announce additional results from Phase II diamond drilling at the La Estrella Property located in Huancavelica, Central Peru.
Highlights
· Drill hole DDH-E18 intersected 317 metres grading 0.30 grams per tonne gold (g/t Au) and 34.6 grams per tonne silver (g/t Ag). Mineralization extends the entire length of the hole to 324.5 metres depth with the exception of the top 4.5 metres, which was in overburden.
· Higher grade intercepts within this 317 metres include:
§ 138 metres (from 79.5 to 217.5 metres) with 0.27 g/t Au and 47.5 g/t Ag or a Silver Equivalent (AgEq) of 62.5 g/t Ag
§ 23 metres (from 194.5 to 217.5 metres) with 0.45 g/t Au and 66 g/t Ag or 91.0 g/t AgEq
The table below provides a detailed breakdown of the results from holes DDH-E15 through DDH-E18. DDH-E15, DDH-E16 and DDH-E17 were drilled in different directions from the same platform, located 150 metres to the northeast of DDH-E14. The Company reported the results of DDH-E14, which included two 41-metre intervals of mineralization, in its March 11th press release. Drill holes DDH-E15, DDH-E16 and DDH-E17 encountered moderate grade gold and silver mineralization over 30 to 93 metres thickness in highly faulted ground. DDH-E15 was stopped at 63.5 metres after entering un-mineralized footwall sediments 54.5 metres down the hole. DDH-E16 was terminated after an unsuccessful and prolonged attempt to drill through faulted ground. DDH-E17 was also stopped in un-mineralized footwall sediments.
DDH-E18 was collared 100 metres east of DDH-E14 and oriented to the west-northwest in an attempt to intercept the mineralization encountered in holes DDH-E13 and DDH-E14 from the opposite direction. The hole was stopped at 321.5 metres to conserve the project’s drill budget even though the rock was visibly mineralized. The last 3 metres of the hole ran 0.57 g/t Au and 44 g/t Ag or 75 g/t AgEq.
“We see a very significant silver-gold resource emerging at La Estrella,” said Phil Anderson, VP Exploration. “The mineralization appears to be roughly tabular and plunges to the west-northwest. Based on our drilling and incorporating two drill holes from Bear Creek’s earlier work, we see good continuity in the system. Using an intercept cut-off grade of 60 g/t AgEq, we now have a weighted average grade of the drill hole samples of 78.3 g/t AgEq over an average intercept thickness of 56.7 metres along nearly 400 meters of strike.”
QUALITY ASSURANCE AND QUALITY CONTROL MEASURES
Canadian Shield exercises a strict chain of sample custody in all programs. The Company’s personnel removes core from the drill rig and delivers it to a senior project geologist who marks the core into 1 metre sample intervals. Canadian Shield’s personnel supervise the immediate splitting, sawing and bagging of samples, and packaging of groups of samples for dispatch to the lab. The remainder of the split core remains on site.
The Company’s staff transports batches of samples 130 kilometres to Huancayo, where they ship the samples directly to SGS Laboratory’s facility in Lima. At the lab, the samples are prepared by crushing and pulverizing and a 30 gram charge is assayed for gold by conventional fire assay and/or atomic absorption methods. Multi-element ICP analysis is carried out using a multi-acid digestion process. All samples that contain silver and/or copper, lead, and zinc values that exceed the upper detection limits for ICP are reanalysed by conventional atomic absorption methods to determine the absolute values of these metals.
Silver Equivalent (AgEq) was calculated assuming a 55 to 1 ratio of Gold to Silver. Metallurgical recoveries and net smelter returns are assumed to be 100%.
Phil Anderson, a “Qualified Person” as defined by National Instrument 43-101, supervised the program and approved the technical aspects of this press release.
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 V:CSP)
Canadian Shield acquires and explores strategically-located precious and base metal properties in South America. The Company currently controls a portfolio of nine 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 V: CSP). Further information is available at Canadian Shield’s website: www.canadianshieldresources.com
CONTACT INFORMATION:
Canadian Shield Resources Inc.
Bernard Kraft
Chairman & CEO
Toll Free: 1-888-927-0025 or (416) 927-0025 Ext. 30
Fax: (416) 927-1222
Email: investor@canadianshieldresources.com
or
Canadian Shield Resources Inc.
Phil Anderson
VP Exploration
(VoIP Line): (416) 907-5690 or (511) 719-6152
Email: panderson@canadianshieldresources.com
Website: www.canadianshieldresources.com
or
Investor Relations
AGORACOM
Email: CSP@Agoracom.com
Website: www.agoracom.com/IR/CanadianShield
or
MI3
Mario Drolet
President
(514) 904-1333
Fax: (514) 904-2331
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Mr. Anderson discusses the latest news where CSP intersected two 41-Metre sections grading 96.2 g/t and 63.7 g/t Silver Equivalent
