Cheni’s drilling at J&L cuts consistent silver-zinc values

Drilling on the recently discovered Yellowjacket zone on the J&L property near Revelstoke, B.C., is returning consistently good results. Cheni Gold Mines (TSE) is funding the drilling program and can earn a 60% interest in the property from owners Equinox Resources (TSE) and Pan American Minerals (TSE) by completing a bankable feasibility study and arranging project financing.

The drilling has traced the new zone along a strike length of 150 metres and a dip extent of 50 metres. The zone remains open on strike and to depth.

The first five holes of the program intersected good grade silver-lead-zinc values over widths of up to 40 metres as outlined below.

Holes 7 and 8 are reported to have cut the zone over widths of 13.5 metres and 25.9 metres respectively, although no assay results have been received. Hole 6, drilled near surface at +5 degrees failed to intersect the zone.

Holes 9 and 10 are currently being drilled.

A drilling program has also started on the Main zone where Cheni hopes to increase reserves from the current proven and probable 808,000 tonnes grading 5.2% zinc, 2.5% lead, 7.2 grams gold and 66 grams silver per tonne.

Gold in the main zone is associated with arsenopyrite and, as a result, pressure leaching will have to be used to liberate the gold.

Further metallurgical testing is being done on the Main zone material by Lakefield Research and Bacon & Donaldson. The companies are attempting to obtain a higher- grade arsenopyrite concentrate or find alternatives to pressure leaching in order to reduce the project’s capital cost.

Results from the recent drilling program are as follows: 0108,0207,0208,0206,0203,0207,0201,0206,0104,0207,0103 Silver Interval Width (grams/ Lead Zinc Hole (metres) (metres) tonne) (%) (%) S90-1 26.0-65.8 39.8 22.3 0.93 3.45 S90-2 32.9-52.0 19.1 32.6 1.33 4.16 S90-3 27.6-46.4 18.8 21.2 0.88 4.36 S90-4 40.4-80.2 39.8 19.4 0.80 3.18 S90-5 52.6-71.9 19.3 76.0 3.06 8.11

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