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Summary
The Company has an option with Eastfield Resources Ltd. (ETF-TSXV) to earn up to a 75% interest in the Zymo Property, 40 km west of Smithers, BC. The 10,250 hectare property is accessed by good quality logging roads from Smithers.
CGH may earn an initial 60% interest in the property by making cash payments totaling $350,000, issuing 50,000 shares and completing exploration expenditures of $4 million over five years. CGH may earn a further 10% interest by completing a feasibility study and a further 5% by arranging mine financing for Eastfield. A minimum exploration expenditure of $800,000 must be completed in calendar 2008.
In 2007 Eastfield completed a reconnaissance exploration program on the Zymo property (see Eastfield news release dated 1/17/08 for summary).
The Zymo property hosts at least two large copper-gold-porphyry, or intrusion-related, mineralized zones, both of which will see detailed exploration in 2008. The program beginning in July will include extensive geochemical sampling, IP geophysical surveying and diamond drilling. The reconnaissance program that led to a new discovery last year (Hobbes Zone) will continue over a number of prospective target areas. More detailed work, followed by diamond-drill testing, will be completed in the Main and Hobbes Zones.
The Main Zone is defined by a large geochemical anomaly measuring approximately 1.0 km by 1.0 km. In 2007 in the Main Zone area, chip sampling along a creek exposure returned 0.13% copper and 0.26 g/t gold. Grab samples in this area have returned up to 1.0% copper. About 800 metres southeast of the Main Zone, prospecting located a new showing, where a grab sample returned a grade of 0.92% copper, 0.26 g/t gold and 4.5 g/t silver. The nearest drill holes to this new showing are over 500 m to the southeast and to the west, respectively.
The Hobbes Zone is a 2007 discovery of porphyry-style mineralization approximately 4.5 km west of the Main Zone. Grab samples returned copper grades to 0.33% and gold grades to 1.13 g/t, indicating a significant copper-gold system associated with a magnetic high that measures 1.0 km in length. The host rocks are intensely altered intrusives. In this area, a soil sample survey on the outer edges of a magnetic high outlined strong copper, gold and molybdenum anomalies over an area of at least 1.0 x 1.0 km.
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