Canyon Resources Uranium Joint Venture Drilling Confirms Mineralization
GOLDEN, Colo., Jan. 8 /PRNewswire-FirstCall/ — Canyon Resources Corporation , a Colorado-based mining company, is pleased to announce favorable results from a drilling program conducted on the Converse-Sand Creek Joint Venture area of interest near Douglas, Wyoming. The drilling was conducted by operating partner New Horizon Uranium Corporation.
In a progress report dated December 26, 2006, New Horizon detailed the results of their initial rotary drilling effort on the Converse-Sand Creek Project, located near Douglas, Wyoming. A drilling program was initiated on November 24, 2006, that focused on the “Scott Ranch” target area. On December 15, and after the completion of 14 drill holes and 10,395 feet of drilling, the program was suspended due to the approaching year-end holidays and seasonally inclement weather. Completion of the first phase of drilling is anticipated for early 2007, and a second phase of 12 additional rotary drill holes is presently being permitted for completion during the same timeframe.
The current drilling program consisted of wide-spaced, reconnaissance style drilling on five fences of drilling over a strike length of 1.5 miles and with drill hole spacing of 500 to 1,000 feet. Of the 14 drill holes completed to date, 13 holes encountered intercepts of uranium mineralization indicative of a “roll front” style uranium deposit. In addition, the drill holes have provided considerable additional information regarding both the location of a uranium-bearing roll front, its apparent orientation and rock types. Uranium mineralization has been previously identified in sediments of the White River Formation that trends through the Sand Creek JV area. The White River formation is the same formation that hosts Cameco Corporation’s Crow Butte in-situ leaching (ISL) uranium operation in Nebraska. In addition to the intercepts quoted below, considerable low-grade uranium mineralization peripheral to the indicated intercepts may be amenable to solution mining with present ISL technology.
Bill Wilson, President of New Horizon said, “In light of the widespread nature of these drill holes, we are very pleased with the results to date that, in part, helps to confirm the historic drilling completed by Canyon’s partner Aquitaine in 1981. We look forward to additional drilling planned for the first quarter of 2007.” James Hesketh, President and CEO of Canyon Resources, said the following with regard to the results, “These results point out the potential for development of substantial uranium mineralization in this highly prospective but under-explored district in Wyoming.”
Uranium drill intercepts summarized by New Horizon include the following: Converse-Sand Creek Program Hole ID From To Feet % U3O8 (Location) (Feet) (Feet) 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
The Converse Joint Venture was formed in January 2006 by Canyon and New Horizon Uranium Corporation, a private company based in Golden, Colorado, to explore and develop uranium properties in Converse and Niobrara Counties of Wyoming. In June 2006, the Converse Joint Venture joined with High Plains Uranium to form the Sand Creek Joint Venture. The Converse-Sand Creek JV covers an area of interest of approximately 92,000 acres (37,300 hectares), located east and south of Douglas, in Converse County, Wyoming.
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 currently owns the Briggs Mine in California and is currently evaluating the re-start of that operation. Canyon is also evaluating the potential development of the Reward Gold Project in Nevada. 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 or 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/