Chesapeake Updates Regional Exploration Program
NEWS RELEASE
March 7, 2017 Symbol: TSX.V-CKG
NR1-2017
Chesapeake Updates Regional Exploration Program
Chesapeake Gold Corp. (“Chesapeake”) is pleased to provide an update on the regional exploration
program conducted near its 100% owned M etates project in Durango and proposed El Paso plant site in
Sinaloa States, Mexico. Metates hosts one of the largest undeveloped gold, silver and zinc reserves in the
world. Four precious and base metal projects with district scale potential have been identified and
systematically advanced in 2016 and 2017. Currently, Chesapeake’s regional land position totals more
than 85,000 hectares.
The four project s are strategically located along a prolifically mineralized corridor that parallels the
Pacific coast and lies along the western margin of the Sierra Madre Occidental. Two projects, Yarely and
El Paso, are located within 15 kilometers of paved highways and 25 kilometers of the El Paso plant site .
Chesapeake believes this highly prospective, under-explored region could develop an organic pipeline of
high value projects with potential synergies with the future development of Metates.
Yarely, Sinaloa
On-going regional reconnaissance northwest of the El Paso plant site has identified a large area of
extensive alteration hosting several mineralized hydrothermal systems . A systematic program of
geological mapping, trenching, and channel sampling has defined three multi-phase mineralized zones
(North, Central and South) within an open corr idor over 4 kilometers long and up to 2 kilometers wide .
Through staking and acquisition, Chesapeake has assembled a 70,000 hectare land package at Yarely.
Yarely North hosts a swarm of north -south trending high grade quartz carbonate epithermal veins hosted
within coarse and medium grain ed sandstone Mapping and sampling has discovered over 100 historical
workings from the Spanish Colonial period . The Spaniards mined high grade oxide veins to an average
depth of 20 meters which overlies a sulfide zone at depth. Chesapeake has traced 12 veins ranging up to
11 meters in width each with an average strike length of 650 meters. Surface and underground channel
samples returned values of 2 meters of 19.5 g/t gold and 505 g/t silver, 11 meters of 1.1 g/t gold and 42
g/t silver, 8 meters of 1.6 g/t gold and 33 g/t silver and 3 meters of 1.1 g/t gold and 805 g/t silver. The
vein complex remains open laterally and along strike.
Yarely Central contains several wide zones of quartz stockwork and disseminated polymetallic
mineralization hosted in highly altered sedimentary rocks . The mineralized area measur es 1.5 by 2.0
kilometers. Channel samples collected from trenches reported 14 meters of 1.5 g/t gold and 143 g/t silver,
93 meters of 17 g/t silver and 36 meters of 0.7 g/t gold and 26 g/t silver.
Preliminary sampling within breccias, veins and disseminations a t Yarely South has discovered silver,
copper and molybdenum mineralization with channel samples up to 83 g/t silver, 2.9% copper and 0.12%
molybdenum.
An 80 line -kilometer IP/Resistivity geophysical survey is currently underway . Preliminary results have
defined anomalies that are coincident with the mineralized zones at both Yarely North and Central. At
Yarely North , structures can be followed on the resistivity sections to depths of over 300 meters. At
Yarely Central, a strong chargeability anomaly 500 meters wide indicates a sulfide-bearing body extends
to over 400 meters depth. Two preliminary chargeability anomalies have been defined at Yarely South.
One anomaly is coincidental with a 250 meter wide molybdenum mineralized breccia. The second
anomaly is a blind 250 meter wide zone.
The final interpretation of the geophysic s program at Yarely wil l be integrated with the geolog y and
geochemistry to prioritize drill targets . A 5,000 meter drill program is planned for Q3 pending permit
approvals.
El Paso, Sinaloa
The El Paso district is located north west of the town of Cosala and covers more than 150 square
kilometers near the El Paso processing site. The district hosts extensive polymetallic exoskarn and
intrusive-hosted quartz stockwork zones. Channel samples within wollastonite-magnetite-garnet skarn
returned 69 meters of 2.2 g /t gold, 8 g/ t silver and 1.1 % zinc and 50 meters of 0.6 g/t gold and 12 g/t
silver within the quartz stockwork. A combined Magnetometer-IP/Resistivity survey is planned later this
year to delineate drill targets.
Nicole, Durango
Nicole is located 45 kilometers northwest of the Metates deposit within a regional hydrothermal alteration
zone spanning over 12 square kilometers . Over a vertical extent of one kilometer , quartz breccia veins
transition to disseminated and stockwork mineralization at depth. Channel samples from the upper levels
e returned values of 7 meters of 3.1 g/t gold, 238 g/t silver and 0.3% zinc and 3 meters of 12 g/t gold and
450 g/t silver. Lower in the system, channel sampling of d isseminated and stockwork mineralization has
returned results of 135 meters of 0.8 g/t gold, 16 g/ t silver, and 0.7% zinc and 35 meters of 0.7 g/t gold,
20 g/t silver and 0.5% zinc. Limited historic core drilling targeting the disseminated and stockwork
mineralization returned intercepts of 30 meters of 1.2 g/t gold, 29 g/t silver and 1.5% zinc and 30 meters
grading 0.7 g/t gold, 19 g/t silver and 0.7% zinc. A 45 line-kilometer IP/Resistivity survey has defined a
large 1.0 by 1.5 kilometer coincident low resistivity/ high chargeability anomaly which underlies the area
of drilling.
San Javier, Durango
San Javier is located 10 kilometers south of the Metates deposit. Reconnaissance stream sediment
geochemistry followed by detailed geologic mapping and rock chip sampling led to the discovery of the
San Javier project . Two different mineralized zones have been defined within a 15 square kilometer
alteration zone. Sampling of the 4 k ilometer long northeast trending quartz -silver stockwork zone has
returned values of 60 meters of 71 g/t silver and 0.6% lead and 28 meters of 158 g/t silver and 0.3% lead.
A 3 kilometer long northwest trending zone of structurally associated breccia has returned sample values
of 48 meters of 1.0 g/t gold. An IP/Resistivity survey and trenching program is planned later this year.
"We are very excited by the exploration results from these emerging new districts ” states Randy Reifel,
President. “Generative studies and systematic work at Yarely has defined five mineralized zones that
warrant drilling. A greenfield discovery at Yarely or El Paso would have the strategic advantage of
capitalizing on any future development of a process plant and infrastructure for Metates."
Chesapeake continues its regional exploration activities around the Yarely camp following up
encouraging stream sediment anomalies and new mineraliz ed targets with assays pending. The
geophysics program is expanding the grid and mechanized trenching and sampling is extending the
known zones of mineralization.
Presently, Chesapeake is well funded with C$20 million in working capital.
ALS Global was the analytical laboratory used for the samples included in this release. Sample
preparation was primarily performed in Hermosillo, Mexico with analyses done in Vancouver, Canada.
Alberto Galicia, P. Geo, Vice President Exploration for Chesapeake and a Qualified Person as defined by
NI43-101, has reviewed the technical information in this release.
For more information on Chesapeake and its Metates Project and regional exploration program , please
visit our website at www.chesapeakegold.com or contact investor relations at 604-731-1094.
CHESAPEAKE GOLD CORP
“P. Randy Reifel”
P. Randy Reifel
President
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this release.
FORWARD LOOKING STATEMENTS
This news release contai ns “forward -looking information” within the meaning of applicable Canadian securities legislation. Such forward
looking statements and information herein include, but are not limited to, statements regarding prospective gold, silver and related metal
production, timing and expenditures to explore and develop prospective mineral properties, gold, silver and related metal resources, grades and
recoveries, cash costs per ounce, capita l and operating expenditures and sustaining capital and t he ability to fund mine development . The
Company does not intend to, and does not assume any obligation to update such forward-looking statements or information, other than as
required by applicable law. Forward -looking statements or information involve kn own and unknown risks, uncertainties and other factors that
may cause the actual results, level of activity, performance or achievements of Chesapeake and its operations to be materially different from
those expressed or implied by such statements. Such factors include, among others: ability to finance mine development, fluctuations in the prices
of gold, silver and zinc, fluctuations in the currency markets (particularly the Mexican peso, Canadian dollar and U.S. dollar); changes in
national and local gove rnments, legislation, taxation, controls, regulations and political or economic developments in Canada and Mexico;
operating or technical difficulties in mineral exploration, development and mining activities; risks and hazards of mineral e xploration,
development and mining(including environmental hazards, industrial accidents, unusual or unexpected geological conditions, pressures, cave-ins
and flooding);inadequate insurance, or inability to obtain insurance; availability of and costs associated with minin g inputs and labour; the
speculative nature of mineral exploration and development, diminishing quantities or grades of mineral reserves as properties are mined; risks in
obtaining necessary licenses and permits, and challenges to the Company’s title to pr operties. Although the Company has attempted to identify
important factors that could cause actual results to differ materially from those contained in forward -looking statements or information, there
may be other factors that cause results to be materially different from those anticipated, described, estimated, assessed or intended. There can be
no assurance that any forward - looking statements or information will prove to be accurate as actual results and future events could differ
materially from those a nticipated in such statements or information. Accordingly, readers should not place undue reliance on forward -looking
statements or information.