Includes 46 ft. of 1.7 oz gold Calpine drilling returns high grade

The program is funded by Calpine and equal partner Consolidated Stikine Silver (VSE), with Calpine as operator.

Among the more impressive step-out holes is hole 89-87 which returned 45.9 ft grading 1.67 oz gold and 57.75 oz silver, including 29.5 ft of 2.49 oz gold and 85.29 oz silver per ton.

Other results from step-out drilling are: 144.3 ft grading 0.116 oz gold and 3.60 oz silver; 13.1 ft of 0.570 oz gold and 12.59 oz silver; 6.6 ft of 2.07 oz gold and 67.69 oz silver; 19.7 ft of 0.947 oz gold and 30.57 oz silver; and 26.2 ft of 0.115 oz gold and 4.06 oz silver.

A recent step-out hole, 89-109, intersected a 50-ft interval containing sections with visible gold mineralization. Calpine said the appearance of visible gold is the first reported for the 21 zone other than a minor occurrence in one other hole.

Assays are expected within the next several weeks for the interval which is located within a 660-ft sulphide mineralized section. The hole is the first on a geophysical grid planned to test the volcanic stratigraphy hosting two weak IP anomalies interpreted to be the northwestern strike extent of the 21 zone.

The sulphide mineralized section features disseminated, stringer and massive sulphide sections containing honey-colored sphalerite, galena and pyrite, consequently base metal assaying will be done as some sections are anticipated to contain significant zinc and lead values.

Calpine said because 89-109 is the first hole on this step-out section, the true width of the mineralization is not known. The company estimates the true width to be at least 75% of the intercept, however verification must await additional drilling of the target along strike and down dip.

The infill drill program tested the 21 zone on about 80 ft sections and 80 ft centres to an approximate depth of 328 ft down the dip of mineralization.

Calpine said all holes intersected mineralization as anticipated. Results include: 52.5 ft of 0.230 oz gold and 8.59 oz silver; 26.2 ft of 0.352 oz gold and 11.96 oz silver; 59 ft of 0.201 oz gold and 2.77 oz silver and 95.1 ft of 0.387 oz gold and 4.39 silver including 22.9 ft grading 1.23 oz gold and 2.75 oz silver per ton.

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