February 16, 2012 Symbol: TSX.V-CKG
NR2-2012
CHESAPEAKE GOLD ANNOUNCES NEW RESOURCE ESTIMATE FOR METATES
Chesapeake Gold Corp (“Chesapeake”) is pleased to announce the results of a new NI 43-101 compliant resource estimate
for its 100% owned Metates gold-silver project located in Durango State, Mexico. The resource estimate was prepared by
Independent Mining Consultants (“IMC”) of Tucson, Arizona and incorporates 53 core holes totalling 23,500 meters
completed by Chesapeake in 2011. The previous resource estimate for the Metates deposit was announced in April 2010
and was based on a gold equivalent cutoff grade of 0.40 g/t gold and assumed metal prices of $900 per ounce gold and
$14 per ounce silver. The new resource is based on assumed metal prices of $1,200 per ounce gold and $24 per ounce
silver and a cutoff grade of 0.35 g/t gold equivalent*.
Key findings of the new mineral resource estimate are:
• Measured and Indicated resources increase to 19.0 million ounces of gold, 519 million ounces of silver
and 4.2 billion pounds of contained zinc, representing over 95% of the total mineral resource
• Inferred resources of 800,000 ounces of gold, 21 million ounces of silver, and 130 million pounds of zinc
• Measured and Indicated gold equivalent resources of 27.9 million ounces
Based on a cut-off grade of 0.35 g/t gold equivalent the in-pit resources are as follows, broken down into sedimentary
hosted and intrusive hosted mineralization:
Metates Mineral Resource
Resource Class Ktonnes Gold Eq. Gold Gold Silver Silver Zinc Zinc
(g/t)* (g/t) (Koz) (g/t) (Koz) (%) (Mlbs)
Measured 344,832 0.87 0.60 6,663 15.9 176,377 0.18 1,361
Intrusive Host 90,003 1.05 0.77 2,222 16.5 47,746 0.26 518
Sediment Host 254,829 0.81 0.54 4,441 15.7 128,631 0.15 843
Indicated 834,527 0.68 0.46 12,347 12.8 342,314 0.15 2,824
Intrusive Host 148,000 0.82 0.61 2,922 12.1 57,576 0.22 705
Sediment Host 686,527 0.65 0.43 9,425 12.9 284,738 0.14 2,119
Measured + Indicated 1,179,359 0.74 0.50 19,010 13.7 518,692 0.16 4,184
Intrusive Host 238,003 0.91 0.67 5,144 13.8 105,323 0.23 1,223
Sediment Host 941,356 0.69 0.46 13,866 13.7 413,369 0.14 2,962
Inferred 67,557 0.54 0.38 818 9.7 21,158 0.09 130
Intrusive Host 5,368 0.57 0.43 74 7.9 1,363 0.06 7
Sediment Host 62,189 0.54 0.37 744 9.9 19,795 0.09 123
*Gold equivalent grade is defined as gold (g/t) plus silver (g/t)/58.4 taking into account different metallurgical recoveries for gold and silver.
Note: contained resources may not add due to rounding
The Metates resource estimate is based upon 29,223 assay intervals and 229 diamond core drill holes totalling 86,700
meters. An updated geologic interpretation included 14 rock types and 10 structural domains. The resource estimate used
inverse distance weighting methods to assign estimated gold, silver and zinc grades to blocks within the geologic
domains. The average drill hole spacing throughout the resource area is approximately 75 meters. Block size for the
geology and grade estimation modeling was 15 meters by 15 meters by 15 meters. Grade models were validated visually
and the inverse distance resource estimates were compared with nearest neighbour models. Tonnage estimates
incorporated 617 bulk density measurements to assign unique densities for the 14 different rock types defined in the
geologic model. IMC classified the resource by applying a specific number of individual assay composites together with
the average distance from the closest drill holes for each block.
The mineral resource was estimated within the US$1,200 gold optimized pit shell (using a cut-off grade of 0.35 g/t gold
equivalent) based on a large open pit delivering ore at the rate of 120,000 tonnes per day. The economic parameters and
costs used to develop the pit shell are processing the ore via grinding, production of a flotation concentrate and oxidation
of the concentrate followed by cyanidation to recover gold and silver. Assumed operating costs were US$1.50 per tonne
for mining, and US$10.80 per tonne for processing, general and administrative. Estimated overall metal recoveries are
90% for gold and 77% for silver based on extensive metallurgical testing (see Chesapeake news release NR3-2011).
Potential revenue from zinc recovery was not used in the economics to derive the resource. Mineralization that is within
the block model but falling outside the pit shells is not reported in the resource estimate. Mineral resources that are not
mineral reserves do not have demonstrated economic viability and may include inferred mineral resources that are
considered too speculative geologically to have economic considerations applied to them and allow them to be classed as
mineral reserves.
The open pit associated with the resource measures 2,200 meters north-south, 1,900 meters east-west and about 650
meters in depth. The total material within this cone shell is 2.39 billion tonnes. Based on the results of the 2011 drill
program, the deposit remains open to the northwest and southeast. The north and northeast extent of the deposit has been
defined as drilling of the former Inferred classed resources in this area largely returned lower grade assays. The 2011
infill drill program supported an increase in the Measured + Indicated resources by 1.83 million ounces gold, 52.2 million
ounces silver and 791 million pounds of zinc over the previous estimate.
This resource estimate will form the basis for developing an engineered pit design that will be used to generate potential
reserves as part of the upcoming pre-feasibility study (“PFS”). The design of the PFS pit will use a variable and higher
cutoff grade than used for this resource estimate to optimize overall economic returns. The PFS pit will sequentially mine
the higher grade intrusive hosted mineralization in the earlier years of operation before moving into the sediment hosted
mineralization.
Chesapeake’s 100% owned Metates project is one of the largest undeveloped gold-silver projects in the Americas. On a
gold equivalent basis, Metates contains 27.9 million ounces in Measured + Indicated class material along with 1.2 million
ounces in the Inferred class.
The resource estimations were completed by Mike Hester, FAusIMM, of IMC, an independent qualified person (“Q.P.”)
pursuant to NI43-101, who has reviewed and approved this release. Gary Parkison, CPG, Vice President Development for
Chesapeake Gold and Metates Project Manager and a Q.P. has reviewed the technical information contained in this
release.
Chesapeake has in place a comprehensive quality assurance/quality control (“QA/QC”) program including standards,
blanks and duplicate samples as well as check assays that form part of the sampling and assaying protocol. Core samples
are cut with one-half of the core shipped directly to ALS Labs in Hermosillo, Mexico for sample preparation with the
pulps subsequently sent to ALS Labs in Vancouver, Canada for gold fire assay and ICP analysis. The results of the
QA/QC program have been reviewed by Jeff Jaacks, Ph.D, of Geochemical Applications International, Inc., an
independent qualified person.
For more information on Chesapeake and its Metates Project, please visit our website at www.chesapeakegold.com or
contact investor relations at 604-731-1094.
CHESAPEAKE GOLD CORP
“P. Randy Reifel”
P. Randy Reifel
President
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