Chieftain Metals Inc. Receives Mines Act and MX Permits for Tulsequah Project and Contracts 30,000 Metre Drilling Program to start March, 2011

TORONTO, Jan. 31 /CNW/ - Chieftain Metals Inc. ("Chieftain" or the "Company") (TSX: CFB) is pleased to announce that the Ministry of Mines has now transferred to Chieftain the MX-1-355 Mineral Exploration permit and the M-232 Mines Act permit for the Tulsequah Project.

Concurrent with the issuance of the permits, the Ministry of Mines has confirmed that Chieftain is clear to proceed with the proposed drilling as soon as site preparations are in place.  Chieftain is also pleased to announce that it has signed a contract with Hy-Tech Drilling Ltd. of Smithers BC to complete 30,000 metres of surface and underground drilling at the Tulsequah and Big Bull deposits.  The objectives of the program are to upgrade and increase the resources at the Tulsequah Chief and Big Bull deposits.  Crews are currently opening the camp facilities at the Shazah airstrip on the property and preparing the airstrip for mobilization of the necessary facilities installations and equipment to support the proposed program. 

The acquired Mines Act Permit covers the construction and operation of all of the project site roads, airstrip, temporary barge landing, laydown areas, and initial underground development preparations.  It also allows for the future construction of the potential acid-generating ("PAG") waste storage site, the neutral waste ("NAG") storage site and the preparation of the plant site for new plant construction including removal of the historic mine waste rock to their appropriate storage areas.

The MX permit covers past and planned exploration works and surface work on the property.  At this time, the previous exploration areas near the Tulsequah Chief deposit and along the new road infrastructure have been transferred to the Mines Act permit.  The new MX permit presently covers exploration areas in the vicinity of the Big Bull deposit and the short access road which was constructed in 2007.

These permits are key milestones for the company as it prepares for an updated feasibility study and a date for renewed development of the Tulsequah Chief Mine.

About Chieftain Metals Inc.

Chieftain Metals Inc.'s principal business is the acquisition, exploration and development of mineral properties. Since incorporation, the Company's business has focused entirely on the acquisition, and thereafter the development, of the Tulsequah Polymetallic Project, in northwestern British Columbia, Canada. The Tulsequah Project consists of 38 mineral claims and Crown-grants covering approximately 14,220 hectares and covers two previously producing mines. For more information on the Tulsequah Project, please refer to the Company's NI 43-101 compliant technical reports, "Tulsequah Chief Deposit, Tulsequah Chief Property, Northern British Columbia" and "Big Bull Project, Tulsequah Chief Property, Technical Report, Northern British Columbia", each dated as of November 8, 2010 and available under the Company's profile on SEDAR href="../(www.sedar.com).">(www.sedar.com).

Forward-Looking Information:

This press release includes forward-looking information within the meaning of Canadian securities legislation, concerning the business, operations and financial performance and condition of the Company. The words 'expect', 'believe', 'will', 'intend', 'estimate' and similar expressions identify forward-looking statements. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made, and they are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements of the Company to vary or to be materially different from those expressed or implied by such forward looking statements, including but not limited to the factors described in greater detail in the "Risk Factors" section of the Company's final prospectus dated December 16, 2010. Forward-looking statements are based on a number of assumptions, including assumptions regarding general market conditions, the availability of financing for proposed transactions and programs on reasonable terms and the availability of outside service providers to deliver services in a satisfactory and timely manner. These factors and assumptions are not intended to represent a complete list of the factors and assumptions that could affect the Company; however, these factors and assumptions should be considered carefully by readers. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned not to place undue reliance on forward-looking statements. The Company disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise, except as expressly required by law.

SOURCE Chieftain Metals Inc.

For further information:

Victor Wyprysky
President and CEO
Telephone: (416) 644-6000 ext. 650
Email: vw@chieftainmetals.com

Profil de l'entreprise

Chieftain Metals Inc.

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