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Tagish 025 Gold & Silver Project, Atlin Mining Division, Northern B.C.

Project Highlights

  • Multi-million ounce gold & silver potential
  • Sediment-hosted, structurally controlled, mesothermal gold deposit
  • 6km structure open in all directions
  • High grade surface gold & silver
  • 49 holes drilled to date, 8345 metres
  • 80% on Main & Bearox Zones, 20% on Barney Zone
  • Up to 7.5g/t gold & 300g/t silver from drilling
  • Over 20m average width of structure
  • Numerous untested drill targets on structure and elsewhere on property
  • Next step is deposit delineation

Property Description

In January of 2006, CZM entered into an option agreement to acquire a 100% interest in the TAG Gold - Silver Property within the Atlin Mining Division of British Columbia. The Property is located 35 km west of Atlin, British Columbia on the east shore of Taku Arm, Tagish Lake.

Tagish Lake Property Aerial ViewThe claim group, after additional staking by CZM, now totals over 2500 hectares. The original claims were staked in 1988 by Gary Thompson upon the discovery of an outcrop of gold bearing breccia near the shore of Tagish Lake. The property is bounded to the west by the long-lived deep-seated Llewellyn Fault system and the Coast Crystalline Complex. The claims cover a 6 km long, 10-100 m wide splay fault off the Llewellyn Fault system. Mr. Thompson, over a 10-year period, identified 3km of anomalous gold-silver strike from 4 zones within the 6km structure and an additional 3km remained unexplored.

In May 2006, CZM completed a 12 hole, 1400 metre (m) drill program over 1.2km of the 6km structure. Six holes were completed on the Main Zone and six were completed on the Bearox Zone.

The drilling was being conducted to test the structure that was identified by surface prospecting, trenching and soil geochemistry.

Grades from drilling in the Phase 1 program ranged up to 7.5g/t Au and up to 106.5g/t Ag. The width of the mineralization averaged over 20 metres.

Tagish Lake Property Camp PhotoFollowing the success of Phase 1 drilling, in October 2006, CZM completed construction of a fully winterized camp and began Phase 2 drilling on November 1, 2006.

In this program, CZM completed 2000m over 11 holes on the Main and Bearox Zones. Drilling was conducted to extend the TAG Gold Deposit at depth and along strike. Grades from drilling in the Phase 2 program ranged up to 5.7g/t Au and up to 300.0g/t Ag to a maximum depth of 200m. Mineralization continued to be open at depth and along strike. Widths continued to average over 20m.

Tagish Lake Property DDH ResultsZachery Dingsdale, President of CZM stated:"Historically, gold-silver mineralization in the Tagish Lake region has been found in very narrow quartz veins.  We are very encouraged by the unprecedented broad zones of gold-silver mineralization that CZM has encountered to date by drilling the 025 Fault."

In June 2007, CZM began its 2007 work program by infill drilling 18 additional holes between the Main and Bearox Zones and testing mineralization to 250m. Numerous gold-bearing intervals were intersected by the drilling. The highlight of this program was the intersection obtained in TAG07-29 that returned 35.0m of 1.3g/t Au and 5.9g/t Ag. Mineralization continued to be open at depth and along strike. Widths continued to average over 20m.

These first 3 programs have now established mineralization continuity over 1.5km of strike length and to a depth of 250m.

During the summer of 2007, CZM flew an airborne geophysical survey which produced 3 distinct magnetic anomalies and established additional drill targets. The Company then cut over 6km of drill roads along the 025 Fault Zone and completed a 1103 sample geochemical survey. The survey covered an approximate area of 5.6km2 and a 5.7km length of the 025 Fault.

Soil Cores"The soil geochem survey was very effective at defining future drill targets on the 025 Fault Zone. We are also quite happy that the survey generated some new prospecting targets off the 025" commented Mark Fekete, a CZM director.

The survey returned some very strong gold results with values up to 1.14g/t Au. Strong silver values were also obtained up to a maximum of 3.5 g/t.

Following the completion of this survey CZM began its 4th drill program in October 2007. A total of 8 holes were completed. On the Main Zone, CZM drilled 2 deep holes to test mineralization to a depth of 300m. The Company then moved the drill over 3km north on the Fault to begin drill testing the Barney Zone. The Barney Zone had never been drilled before. CZM completed 6 drill holes on the Barney Zone over a length of 400m. The soil anomaly that marks the Barney zone remains untested 250m north and 525m south of the drilled section. The southern part of the Barney zone corresponds to a magnetic high that appears to be caused by a quartz diorite intrusion. Assay results from these holes are still pending.

Higher grade intersections typically four to five metres wide were found in almost all of the 41 holes drilled and sampled to date and this appears to be a characteristic feature of the 025 Fault. It also appears that the gold-silver grades are improving moving north along the fault structure.

CZM is very encouraged by the unprecedented broad zones of gold-silver mineralization and the continuity of mineralization encountered to date by drilling the 025 Fault. Kluane Drilling Inc. has stored a diamond drill and bulldozer at CZM's fully winterized camp and CZM intends to continue drilling at TAG as early as March 2008.


Gold Eagle Properties, Porcher Island B.C.

Property Description

In early 2006, CZM Capital Corp. acquired 6 Gold Eagle Properties totaling over 550 hectares on Porcher Island located in the Skeena mining division, 35 kilometres south-southwest of Prince Rupert, B.C. There is a long history of exploration and production from Porcher Island including the Surf Point and Edye Pass gold mines.

Most notable in these claims are the Promise and the Mascot showings.

The Promise showing occurs in the northwest corner of Porcher Island, a few hundred metres northwest of the Edye Pass Mine. This showing contains a sheared quartz vein, 30 centimetres wide, strikes east and dips 60 degrees south within Cretaceous to Tertiary quartz diorite of the Coast Plutonic Complex near its contact with Paleozoic-Mesozoic metasediments. Mineralization consists of blebs and streaks of auriferous pyrite.

Porcher IslandThe Mascot showing occurs near the northwest corner of Porcher Island about 1.5 kilometres east of the Surf Point Mine. The Mascot showing contains a quartz vein, striking 050 degrees and dipping 80 degrees north, occurs in Cretaceous to Tertiary quartz diorite of the Coast Plutonic Complex near its contact with Paleozoic to Mesozoic mixed volcanic and plutonic rock. The vein is sheared and is up to 1 metre wide and 20 metres long. Mineralization consists of stringers of pyrite. A selected sample assayed 27 grams per tonne gold and 41 grams per tonne silver (Minister of Mines Annual Report 1933, page 42). All resource figures were compiled prior to and are not compliant with National Instrument 43-101 requirements.

There is a small community on Porcher Island, infrastructure is excellent and easy access either by water or air is available from Prince Rupert. The property can be worked year-round.

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Contact CZM
204 - 700 West Pender St.
Vancouver, BC
Canada V6C 1G8

1-800-610-9552
T: (604) 642-0115
E: investor@czmcapital.com
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News

CZM Intersects Unprecedented Mineralization During First Phase of 2008 Drilling at TAG Property
July 03, 2008

CZM Capital is pleased to announce that from May 28 to June 21, 2008, 1850m of drilling was completed in 10 holes on the TAG gold-silver property located on Taku Arm of Tagish Lake some 35km due west of Atlin, BC.

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