VANCOUVER, BRITISH COLUMBIA, August 15 /CNW/ - CAPELLA RE
(TSX VENTURE:CPS) ("CAPELLA" or the "Company") is pleased to announce
completion of an airborne magnetic and radiometric survey over four of its
uranium properties in southern New Brunswick. Ground reconnaissance work has
preliminarily evaluated two of its western properties located on the northern
and southern contacts of the Marysville Basin of Lower Carboniferous age, 45
kilometres south and southwest of Fredericton respectively. Historic showings
and new anomalous zones as outlined by the new airborne surveys have been
ground-truthed with encouraging preliminary results.
A new discovery at Harvey consists of a significant anomalous zone of
radioactivity that is 450m in strike length, 50m to 150m wide, and lies on a
siliceous promontory. It exhibits a high background of 1,000 counts per second
("cps"). A string of discontinuous outcroppings yielded scintilometer readings
in the 5,000 - 8,000 cps range with a maximum reading of over 40,000 cps. A
handheld spectrometer registered a spot reading of 1,475 ppm uranium. Host
rocks are altered and brecciated rhyolitic volcanic flows and tuffs that have
been intensely argillitized and hematized. Historical records indicate the
presence of veins of pitchblende-pyrite-flourite-arsenopyrite and secondary
A second discovery, known as Hoyt, is exposed in a gently dipping outcrop
300m in strike length and 2m in width. Radioactivity readings recorded by a
scintilometer range from 1,000 to 14,000 cps. The Hoyt anomaly occurs in
intensely altered Late Devonian -- Carrow Formation volcanogenic sandstone and
conglomerate. The radioactivity is associated with chlorite-altered zones with
hematite, pyrite, and fluorite accompanied by bleaching.
The Company is encouraged not only by the intensity and scale of these
occurrences, but also by the favourable geological environment they occur in.
Evaluation of the properties continues with diamond drilling planned on both
properties in early September.
About Capella Resources Ltd.
The Company is a publicly traded, junior exploration company with over
20,000 mineral exploration claims covering an aggregate land area coverage of
over 1,010,000 acres (407,800 hectares) in Atlantic Canada (Nova Scotia, New
Brunswick and Newfoundland and Labrador). The Company holds a 100% interest in
the Tinton Gold Project located 15 kilometres west-northwest of the famous and
historic Homestake Mine in the Black Hills at Lead, South Dakota. The property
consists of 1270 hectares contained in 157 unpatented mining claims. The
Company also holds a 100% interest in the Nevada and Dorado Gold and Copper
properties located in the Maricunga Gold and Copper District approximately 700
kilometres northwest of Santiago, Chile. The properties are comprised of ten
exploration claims and six exploitation claims totalling a cumulative 3,500
hectares in area.
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Per: R.A. "Bruce McDonald"
R.A. Bruce McDonald, Chairman of the Board
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