GOLDEN, Colo., March 16 /CNW/ -- Canyon Resources Corporation (Amex:
CAU), a Colorado-based mining company, is pleased to announce the partial
results of its step-out drilling along the Goldtooth fault structure at its
Briggs Mine in Inyo County, California. This exciting new discovery has
increased the potential for additional underground mineralization along strike
on the Goldtooth fault structure. This structure is believed to be the major
control for gold mineralization at Briggs.
Holes R-105 and R-106, both previously reported as step-out holes drilled
to the north of existing mine design areas on the Goldtooth fault structure,
indicated the possibility for additional gold mineralization with step-out
drilling. The decision was made to test this potential with a series of
exploration holes drilled at roughly 200 foot increments north along strike on
the Goldtooth structure. Six holes have recently been drilled outlining an
additional 1,600 feet of mineralized strike length on the Goldtooth structure.
Assays have been received on four of these new holes. The last two drill
holes, R-111 and R-112, drilled 200 feet and 340 feet, respectively, north
from hole R-110 on the Goldtooth fault structure, have intercepted the
expected structure and mineralization and assays are pending.
Highlights from the latest drilling include:
* Hole R-110, a step-out hole drilled 1,300 feet along the strike from
the reserve panel previously reported on the Goldtooth fault,
encountered 20 feet (6.1 meters) of 0.198 ounce per ton (opt) Au
(6.8 gram per tonne (gpt) Au), including 5 feet (1.5 meters) of 0.497
opt Au (17.1 gpt Au).
* Hole R-109, a 1,100 foot step-out hole encountered two mineralized
zones, one of 20 feet (6.1 meters) averaging 0.096 opt Au (3.3 gpt Au)
and one of 10 feet (3.0 meters) averaging 0.119 opt Au (4.1 gpt Au).
* Hole R-108, a 750 foot exploration step-out hole encountered five feet
(1.5 meters) of 0.119 opt Au (4.1 gpt Au).
* Hole R-107, drilled 50 feet north along strike from Hole R-105
encountered 10 feet (3 meters) of 0.125 opt Au (4.25 gpt Au).
* Hole R-105, a 450-foot exploration step-out to the north encountered
15 feet (4.6 meters) of 0.11 opt Au (3.77 gpt Au), including 5 feet
(1.5 meters) of 0.266 opt (9.13 gpt Au).
James Hesketh, President and CEO stated, "These drilling results are
notable in that they clearly define the potential for a significant extension
of mineralization along the Goldtooth structure. We have now drilled over
4,800 feet of strike length along the Goldtooth fault and have demonstrated
the existence of nearly continuous gold mineralization over the entire length.
We have also demonstrated continuity within the system with infill drilling in
select areas that resulted in our recent reserve declaration. We have now
mapped almost 10,000 feet of Goldtooth fault on our Briggs property and are
impressed by the potential that remains open along strike and to depth on this
very large mineralized system. We are currently limited in our ability to
conduct additional surface drilling along strike to the north by steep
terrain. This area will be more accessible from underground workings to
determine its full potential. In light of our increased understanding of the
Briggs gold deposits, specifically the high-grade Goldtooth structure, and due
to the cost and difficulty of conducting additional surface drilling, we are
reviewing our options for Briggs' development. These options include the
potential for developing existing reserves by underground mining to develop
cash flow, while pursuing the additional mineralized potential of this system
by underground drilling and drifting."
Below is a table of significant unreported gold intercepts from this last
round of drilling, including the previously reported holes R-105 and R-106.
The higher-grade ( > 0.10 opt Au) gold intercepts are italicized.
Hole From To Intercept Intercept Grade Grade
(feet) (feet) (feet) (meters) (opt) (gpt)
R-105 265 290 25 7.5 0.031 1.08 Step-Out
330 345 15 4.6 0.039 1.36
425 440 15 4.6 0.11 3.77
including 430 435 5 1.5 0.266 9.13
R-106 420 425 5 1.5 0.103 3.53 Step Out
R-107 430 440 10 3.0 0.125 4.25 Step-Out
R-108 555 560 5 1.5 0.119 4.09 Step-Out
R-109 580 600 20 6.1 0.096 3.30 Step Out
630 640 10 3.0 0.120 4.10
R-110 610 630 20 6.1 0.198 6.8 Step-Out
Including 620 625 5 1.5 0.495 17.8
The Goldtooth fault is a major north-south trending high angle structure
that has been mapped for over 10,000 feet of strike length in the Briggs
project area. In the Goldtooth structure, pyrite content usually rises above
2-3 percent in the high-grade gold intervals which makes them visually very
distinctive. The assay footwall of the high-grade gold mineralization,
nearest the Goldtooth fault, is typically sharp, while the hanging wall assay
values are usually gradational over several tens of feet. These visually
notable features assist in our understanding of these deposits. Interpretation
of geology and recent drilling results indicate that an elevational control
exists for mineralization on the Goldtooth fault structure. Previous shallow
drilling for open pit ores intercepted the Goldtooth structure above this
elevation cutoff and returned only low grade or no detectable gold assays.
Drilling below this zone is producing relatively consistent results. This
mineralized zone has been poorly tested to depth and with mixed results.
Assay analyses were performed by ALS Chemex of Sparks, Nevada, using a 30
gram fire assay with AA finish. The drilling and assay program has been
performed under the direction of Mr. Bill Fleshman, PGeo, AUSIMM, as a
For additional information on Canyon Resources, please visit our website
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, feasibility and drilling studies for the
Briggs and Cecil R projects, mineralized material estimates, reserves
estimates, drilling capability and the potential reopening or expansion of the
Briggs Mine. Factors that could cause actual results to differ materially
from these forward-looking statements include, among others: the volatility of
gold prices; potential operating risks of mining, development and expansion;
the uncertainty of estimates of reserves, mineralized material and gold
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
For further information:
For further information: James Hesketh, President and CEO, or Valerie
Kimball, Investor Relations, both of Canyon Resources Corporation,
+1-303-278-8464 Web Site: http://www.canyonresources.com