Canyon Resources Announces Uranium Drilling Results
GOLDEN, Colo., Aug. 27 /PRNewswire-FirstCall/ — Canyon Resources Corporation , a Colorado-based mining and exploration company, is pleased to announce favorable results from a uranium drilling program conducted on the Converse-Sand Creek Joint Venture area of interest located near Douglas, in Converse County, Wyoming. The Converse-Sand Creek Joint Venture is operated by New Horizon Uranium (Toronto Stock Exchange: NHU) on behalf of its joint venture partners, Canyon Resources Corporation and Energy Metals Corporation (Toronto Stock Exchange: EMC; NYSE: EMU).
New Horizon completed 16 rotary drill holes totaling approximately 11,700 feet during June and July 2007. Portions of three of the rotary holes were core drilled for further sampling and analysis. This drilling follows 14 rotary drill holes completed in November and December 2006. Thirteen of the recent 16 rotary drill holes were in the area of historic drilling in the early 1980s by Canyon Resources and Elf Aquitaine. Current drilling focused on the 3,000 foot mineralization trend previously identified by Canyon Resources-Elf Aquitaine and extended the mineral zone an additional 3,500 feet. Three of the current drill holes were wide-spaced step-out tests to the south and east along suspected paleo channels in the host White River Formation.
All but three of the drill holes intercepted anomalous uranium values, with three holes, SR07-9, SR07-10 and SR07-11, showing significant grades. Highlights follow:
— Hole SR07-9, located along the Canyon-Elf Aquitaine trend in the northern portion of Section 29, intercepted 10 feet grading 0.119 % uranium oxide (eU3O8) including 4.5 feet grading 0.241% eU3O8. — Hole SR07-11, located northeast of hole SR07-9 on the same trend, graded 0.142% eU3O8 over 13.5 feet, with six feet grading 0.288% eU3O8. — Drill hole SR07-10, located south of hole SR07-9 intercepted seven feet grading 0.075% eU3O8 with 3.5 feet grading 0.133% eU3O8. This hole, located significantly south of the main trend in Section 29, may indicate a previously unknown mineral trend.
Bill Wilson, President and COO of New Horizon said, “We are pleased with the results of this phase of drilling on Sand Creek, which has not only confirmed the previously indicated uranium mineralization, but has substantially extended the target zone. We look forward to further work later this year to continue to delineate the extent and nature of this mineralization and to begin tests to determine its applicability for in-situ recovery.”
Jim Hesketh, President and CEO of Canyon Resources said, “This drilling confirms the potential for development of additional mineralization on our joint venture properties. We look forward to seeing positive results from the next round of drilling.”
Observed lithology and probe results of the holes drilled indicate two extensive zones of uranium mineralization with very distinct host rock assemblages. These two zones are identified as zone ‘A’, the upper zone, and zone ‘B’, the lower zone. The zones are defined by their stratigraphic position and the character of the sandstone or siltstone host rocks. The upper, or ‘A’ zone, displays a finer grained sandstone and siltstone host with locally conspicuous clay horizons. The lower, or ‘B’ zone, is more coarse- grained sandstone to conglomerate horizon and is essentially clay free.
While New Horizon has not yet conducted tests of in-situ recovery (“ISR”) amenability, we are encouraged by the lithology in the holes and the ‘grade thicknesses’ encountered in the drilling. Grade thickness (GT) is a term used in uranium exploration which is a measure of the grade in percent times thickness in feet. As an example, drill hole SR07-10 has a grade of 0.075% and a thickness of seven feet = 0.525 GT. A GT value of 0.20 or greater is considered geologically significant.
GTs ranging from 0.052 to 1.190 were encountered in the more favorable ‘B’ zone sands in 11 of the 16 holes. Three of the drill holes are ‘twins’ of earlier Canyon Resources holes, with coring of selective intervals in zones which contain mineralization grades and host rock characteristics possibly amenable to ISR methods. The 14 holes drilled in late 2006 contain GTs ranging from 0.085 to 0.931, six of these intercepts were located in the ‘B’ sands. Of the total 30 holes drilled in this overall program, 26 were found to contain significant anomalous uranium values.
Portions of holes SR07-8 (708 foot to 728 foot depth), SR07-9 (698 foot to 719 foot depth) and SR07-13 (612 foot to 636 foot depth) were core drilled and are now being prepared for chemical analyses to determine chemical disequilibrium ratios in the uranium mineralization. Disequilibrium is the term for the relationship of uranium determined by ‘Gamma’ electric logging in the field (eU3O8), versus the chemical assay of contained uranium in rock or drill core. Further geologic studies are underway with results expected in 45 to 60 days.
Upon completion of the disequilibrium tests and further analysis of the 30 holes from the current program, New Horizon plans to complete an additional drilling program of 30 rotary holes at Sand Creek later this year. This planned program will fill in areas to nominal 150 to 300 foot centers along the White River trend and add up to ten more step-out holes in known mineralized but less explored areas.
The following table indicates uranium intercepts for the 16 holes completed during the recent drilling program (June-July, 2007):
Drill From To Feet Grade Hole (feet) (feet) % eU3O8 SR07-1 749.5 759.0 9.5 0.019 Including 3.5 0.028 774.5 776.5 2.0 0.022 779.5 782.5 3.0 0.031 801.0 805.5 4.5 0.022 SR07-2 780.5 785.5 4.5 0.018 SR07-3 771.0 776.5 5.5 0.022 789.5 802.5 13.0 0.056 Including 10.5 0.066 SR07-4 657.5 665.5 8.0 0.019 SR07-5 749.0 750.5 1.5 0.022 787.5 799.5 12.0 0.030 Including 5.0 0.050 SR07-6 679.5 681.0 1.5 0.020 762.5 772.5 10.0 0.027 Including 4.0 0.042 SR07-7 765.0 766.5 1.5 0.020 824.5 826.0 1.5 0.019 832.0 848.0 16.0 0.032 Including 8.5 0.048 SR07-8 647.5 649.0 1.5 0.018 711.5 728.0 16.5 0.034 Including 5.5 0.052 Including 1.5 0.064 735.5 738.5 3.0 0.024 SR07-9 700.5 710.5 10.0 0.119 Including 4.5 0.241 SR07-10 665.0 672.0 7.0 0.075 Including 3.5 0.133 SR07-11 589.0 602.5 13.5 0.142 Including 6.0 0.288 674.0 676.0 4.0 0.016 SR07-12 649.0 655.0 6.0 0.030 Including 3.0 0.045 SR07-13 629.0 632.0 3.0 0.022 643.0 644.5 1.5 0.017 646.0 648.5 2.5 0.023 SR07-14 602.0 611.0 9.0 0.031 Including 3.5 0.058 645.0 647.0 2.0 0.026 SR07-15 No significant values SR07-16 No significant values
The following table indicates uranium intercepts for the 14 drill holes completed during the drilling program conducted last year (November-December 2006):
Drill From To Feet Grade Hole (feet) (feet) % eU3O8 SR06-1 775.0 785.5 10.5 0.066 Including 2.0 0.146 793.0 797.0 4.0 0.031 SR06-2 735.5 738.0 2.5 0.038 755.0 767.0 12.0 0.054 Including 4.0 0.093 SR06-3 711.5 713.0 1.5 0.031 724.0 726.5 2.5 0.031 SR06-4 650.0 651.5 1.5 0.046 SR06-5 696.0 696.5 0.5 0.027 SR06-6 648.5 653.5 5.0 0.031 SR06-7 631.0 653.0 22.0 Local anomalies to 1,000 counts/ second SR06-8 597.5 598.5 1.0 0.025 601.5 607.0 5.5 0.021 SR06-9 613.0 614.0 1.0 0.026 SR06-10 No significant values SR06-11 740.0 743.5 3.5 0.024 754.0 755.5 1.5 0.017 SR06-12 622.5 625.5 3.0 0.022 710.5 714.0 3.5 0.017 722.0 725.0 3.0 0.017 SR06-13 685.0 686.5 1.5 0.024 728.5 733.0 4.5 0.016 758.0 762.5 4.5 0.018 SR06-14 542.5 547.5 5.0 0.021 About Canyon Resources
Canyon Resources, based in Golden, Colorado, was formed in 1979. The Company has a history of precious metals exploration success and can claim a number of significant discoveries. Canyon has produced over 850,000 ounces of gold since 1989. The Company is evaluating the development of its Briggs Mine in California, as well as the full size of the underground structure there. The Company has also begun final engineering and feasibility studies on its Reward gold project in Nevada. Canyon is one of three JV partners in its Converse-Sand Creek Uranium Joint Venture. For additional information on Canyon Resources and its projects please visit our website at http://www.canyonresources.com/.
This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934 as amended. Such forward looking statements include, among others, projections of favorable geologic formations, environments and similarities to existing uranium deposits. Factors that could cause actual results to differ materially from these forward-looking statements include, among others: the variability of natural geological settings, the volatility of uranium prices; potential operating risks of mining, development and expansion; the uncertainty of estimates of mineralized material and uranium deposits; and environmental and governmental regulations; availability of financing; the outcome of litigation, as well as judicial proceedings and force majeure events and other risk factors as described from time to time in the Company’s filings with the Securities and Exchange Commission. Most of these factors are beyond the Company’s ability to control or predict.
FOR FURTHER INFORMATION, CONTACT: James Hesketh, President and CEO (303) 278-8464 Valerie Kimball, Investor Relations (303) 278-8464
Canyon Resources Corporation
CONTACT: James Hesketh, President and CEO, or Valerie Kimball, InvestorRelations, both of Canyon Resources Corporation, +1-303-278-8464
Web site: http://www.canyonresources.com/