Calpine’s drilling extends Eskay Creek along strike

Since the program resumed in June, approximately 27 holes have been completed, 15 infill and 12 step-out. The step-out holes are listed below. Hole No Interval Length Gold Silver oz/t oz/t CA89-71 423.2-459.3 36.1 0.125 14.2 including

423.2-439.6 16.4 0.232 30.78 CA89-72 433-597 16.4 0.043 0.41 including

433-452.6 19.6 0.072 1.14

567.5-597 29.5 0.104 0.86 CA89-73 482.3-570.9 88.6 0.231 2.83 including

82.3-505.3 23 0.684 9.76

557.8-570.9 13.1 0.15 0.13 CA89-74 351.1-410.1 59.0 0.192 7.34 including

351.1-377.3 26.2 0.378 15.94 CA89-75 367.4-406.8 39.4 0.471 27.56 including

370.8-387.2 16.4 0.918 58.32

Infill drilling has tested the 21 zone over a distance of 650 ft and to approximately 328 ft down the dip of the mineralization. Although complete assay results aren’t yet available, Calpine emphasizes that “all holes have intersected mineralization as anticipated.” The results included 78.7 ft of 0.185 oz gold and 3.6 oz silver (including 19.6 ft grading 0.34 oz gold and 3.8 oz silver) in hole CA89-77 and 42.6 ft of 0.19 oz gold and 5.0 oz silver in CA89-78.

The company’s Ski 4 claim has been cancelled following a ruling by the Ministry of Energy Mines and Petroleum Resources. The claim fell under an option agreement with ARC Resources Group which allegedly staked the property incorrectly. The ruling is being contested. In any event, Calpine says that preliminary survey work indicates the favorable stratigraphic contact which hosts the 21 zone discovery does not trend onto the Ski 4 claim.

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