Celtic Minerals Announces Completion of NI 43-101 Report On The Dawson Gold Project and Corporate Update

TORONTO, Sept. 29, 2011 /CNW/ - Celtic Minerals Ltd. ("Celtic" or the "Corporation") is pleased to report that it has completed a National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101")  technical report (the "Report") on its Dawson Gold project ("Dawson") in south-central Colorado prepared by Isobel Wolfson, P.Geo. on behalf of the Corporation and dated September 27, 2011. Isobel Wolfson is a qualified person and is responsible for all items in the Technical Report, but according to NI 43-101 and 43-101CP, she is not considered independent as Ms. Wolfson was a previous consultant to the Corporation from which the majority of her income derived at such time. The Report is available under the Corporation's profile on SEDAR and will be on the Company's website, celticminerals.com.

Celtic's Board of Directors is pleased to note that the site visit and the independent sampling support the historical exploration records of the Property.

Dawson Project Field Office

Celtic announces that it has opened a field office in Cañon City, CO to oversee the operational logistics of the project.  Celtic is pleased to announce that the corporation has engaged Mr. Jim Javernick as project coordinator.  Mr. Javernick has several years' experience working on the project and is located in Cañon City, Colorado.  Mr. Javernick has been given a mandate by the Board of directors to investigate the most expedient way of bringing the Dawson Project into production.  However there can be no guarantee that the Corporation will achieve production at the Dawson Project.

Celtic has initiated permitting and additional staking on the project.

About the Dawson Gold Property

The Dawson Property, located in south-central Colorado, hosts gold and base-metal mineralization in a Proterozoic-age, metamorphosed exhalative zone of quartz-biotite ± garnet gneisses. Dawson is a joint venture between Celtic and Uranerz USA Inc. ("UUS Inc."), a wholly owned subsidiary of Cameco Gold. In 1999, UUS Inc. elected to dilute its then 30% interest in the project. Although a formal dilution calculation has not been completed, Celtic currently holds at least 70% interest in the project.  The Property is subdivided into several administrative "Segments", two of which contain drill-tested zones of gold and base-metal mineralization.

The Dawson Segment

Mineralization in the Dawson Segment consists of 3 main zones which formed the basis of historical mineral resources.  Based on the Uranerz Report (defined below), the Dawson Segment contains an historical "gold resource" of 263,000 short tons at a diluted (to 5 feet minimum thickness) grade of 0.460 ounces gold per short ton (opt).

The most recent resource estimations for the Dawson Segment were completed in 1991 and 1992. The following estimation method is taken from the 1991 Annual Report of UUS Inc. by C. Mettler (1991 Annual Report; Project 7355: Dawson. Uranerz USA Inc. Report, 1992) (the "Uranerz Report").
For the Dawson Segment, resources were calculated using a method whereby the influence around diamond drill intersections was calculated by the inverse distance squared method ("IDS") on longitudinal sections oriented parallel to mineralized zones constrained by geological and geochemical boundaries. Each longitudinal section was subdivided into square 25' x 25' (625 square feet) cells.

Where there was more than one gold assay for a sample interval, the assays were averaged. Gold assays were uncut. All gold values below 0.007 ounces per short ton ("opt") were set to 0.001 opt. Intervals not sampled but identified within the mineralized zones were given a blank gold value.

Gold grades were composited within sample intervals to give a weighted average gold grade. The true thickness ("T") of each zone in drill core was calculated by multiplying the sine of the average foliation angle of the sample intervals by the entire sample length. The average grade was multiplied by the true thickness to produce a "grade-thickness" ("GT") value for each composited interval.

Using a search radius of 125 feet, up to 5 GT values were used to calculate an average GT and T (true thickness) for each cell. Those blocks with GT values ≥ 1.0 were used in the resource calculations.

An average tonnage factor of 12.4 cubic feet per short ton (equivalent to a specific gravity of 2.58) was used; this was based on specific gravity tests on eight "representative samples".

For each mineralized zone, the total of the number of cells above the "cutoff" (GT values ≥ 1.0) was divided by 625 square feet (cell area) to give an area of the zone. The average true thickness was the sum of the T divided by the total number of cells. The volume of the zone was calculated as the area multiplied by the average thickness. The tonnage of the zone was calculated by dividing the volume by the tonnage factor. The average gold grade for each zone was calculated by the sum of GT divided by the sum of T.

The minimum required thickness of each zone was 5 feet. If the zone was less than 5 feet, it was diluted with material at zero gold grade and 2.58 specific gravity to produce a zone with a thickness of 5 feet.

The historical estimates of "gold resource" is a category other than the ones set out in Sections 1.2 and 1.3 of NI 43-101. Such categories cannot be compared to current mineral resources or mineral reserves as defined in Sections 1.2 and 1.3 of NI 43-101 as there have been no work to verify and classify such historical estimates. The historical estimates are not compliant with NI 43-101 and should therefore not be relied upon.

The Windy Gulch Segment

The Windy Gulch Segment contains 3 areas of gold mineralization.  Calculations on the "best defined" area indicated a "preliminary gold resource" of 33,600 short tons at 0.405 ounces per short ton gold, with an average true thickness of 8.7 feet.  The block was defined by 6 surface diamond drill holes, 3 underground drill holes and several surface channel samples.  These figures are taken from UUS Inc.'s 1990 annual report by C. Mettler (1990 Annual Report; Project 7355: Dawson Uranerz USA Inc., March 1991) (the "Uranerz 2 Report").  No description of estimation methods or assumptions were reported.

The historical estimates of "preliminary gold resource" used in the Uranerz 2 Report is a category other than the ones set out in Sections 1.2 and 1.3 of NI 43-101. Such categories cannot be compared to current mineral resources or mineral reserves as defined in Sections 1.2 and 1.3 of NI 43-101 as there has been no work to verify and classify such historical estimates. The historical estimates are not compliant with NI 43-101 and should therefore not be relied upon.

Independent Sampling

Recent exploration programs were carried out from the mid-1970s to early 1990s and included about 25,549 metres of diamond drilling in 134 holes. As part of the data verification process, the half-cores of 4 mineralized drill hole intercepts identified in historical drill logs and industry reports were collected for gold analysis by screened metallics fire assay. Three of the four assays showed reasonably good correlation with original assays; the fourth sample intercept assayed higher (sample 272719) than an original assay, which may be due to the nugget effect. The site visit and independent sampling support the historical exploration records of the Property. The historical data appears to be adequate for the purpose of the technical report, which is to report on the geology, mineralization and historical exploration of the property.

The above technical information regarding the Dawson Property was reviewed but was not verified by Ms. Isobel Wolfson, P,Geo.  Ms. Wolfson is a geoscientist with over 20 years of experience as an underground mine geologist in volcanogenic massive sulphide ("VMS") style base metal deposits. She has participated in numerous mineral resource estimates and is familiar with both the information required and the processes used to produce a mineral resource estimate, both in Canada (using NI 43-101) and Australia (using the JORC Code).

Corporate Update 

Celtic has relocated the head office to Toronto, ON  Canada, and has closed the office in Grand Falls-Windsor, NL.  A field office will be set up in St. John's, NL in the near future to oversee Celtic's Labrador Nickel project.

Advisories:

A qualified person has not done sufficient work to classify the Dawson historical estimates as current mineral resources or mineral reserves and were compiled before NI 43-101 came into effect and are not in compliance with NI 43-101.  The historical estimates of "gold resource" and "preliminary gold resource" are categories other than the ones set out in Sections 1.2 and 1.3 of NI 43-101.  Such categories cannot be compared to current mineral resources or mineral reserves as defined in Sections 1.2 and 1.3 of NI 43-101 as there have been no work to verify and classify such historical estimates.  The historical estimates are not compliant with NI 43-101 and should therefore not be relied upon.  Finally, the Corporation does not make any representation or warranties as to the accuracy of such estimates. Isobel Wolfson, M.Sc,, P.Geo  is the qualified person who has reviewed and verified the technical contents of this news release.

Forward Looking Statements:

Certain information set forth in this news release contains forward-looking statements or information ("forward-looking statements"). Although the forward-looking statements contained in this press release reflect management's current beliefs based upon information currently available to management and based upon what management believes to be reasonable assumptions, the Corporation cannot be certain that actual results will be consistent with these forward-looking statements. A number of factors could cause events and achievements to differ materially from the results expressed or implied in the forward-looking statements. Forward-looking statements necessarily involve significant known and unknown risks, assumptions and uncertainties that may cause the Corporation's actual results, event, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements. Although the Corporation has attempted to identify important risks and factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors and risks that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that the forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Any forward-looking statements are made as of the date of this press release, and the Corporation assumes no obligation to update or revise them to reflect new events or circumstances, unless otherwise required by law.

SOURCE Celtic Minerals Ltd.

For further information:

Paul Cullingham, President and Chief Executive Officer 
Celtic Minerals Ltd.
Phone: (416) 435-5282
Fax: 1(888) 678-7396
Email:  pcullingham@celticminerals.com

Additional information regarding Celtic Minerals Ltd. is available on the company's website at www.celticminerals.com.

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Celtic Minerals Ltd.

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