Canyon Resources Corporation
Monday, July 30th, 2007
Canyon Resources Corporation a Colorado-based mining company, is pleased to announce an increase of approximately 34% in its estimate of mineralized material at its Briggs Mine in Inyo County, California. This increase results from interpretation of new drilling associated with the underground Goldtooth structure. Total in-place mineralized material in the high grade Goldtooth zone is 0.8 million tons at a grade of 0.215 ounces per ton of gold (opt) based on a cutoff grade of 0.10 opt. This high grade zone is surrounded by a blanket of lower grade material, totaling 4.2 million tons at a grade of 0.049 opt using an internal cutoff grade of 0.02 opt. Mineralized material outside of the Goldtooth zone and around the existing open pits totals 22.0 million tons at a grade of 0.022 opt at a cutoff grade of 0.01 opt. Total in-place mineralized material from all sources quoted above at Briggs is 27.0 million tons at a grade of 0.031 opt. A reserve estimate of 130,000 ounces for the open pit and underground was previously announced for the Briggs Mine. A new reserve estimate will be completed over the next three to four months based on this larger estimate of mineralized material. The Briggs Mine has been operated by Canyon as an open pit heap leach gold mine since 1996, producing more than 555,000 ounces of gold.
â€œThe Goldtooth structure continues to prove its potential as a significant source of gold mineralization. This new mineralized material estimate, combined with past production and our previously announced estimates of mineralized material for Briggs and its satellite deposits, clearly demonstrates that the Briggs mining district has multi-million ounce potential,â€ states James Hesketh, President & CEO. â€œWe are thrilled with these latest findings and are excited by the potential size of the underground structure,â€ he added.
Canyon is currently seeking bids from mining contactors to develop an adit into the Goldtooth structure to test mining conditions, ore control methods, and to provide additional geologic information. To conserve costs, the adit would be developed from the bottom of the existing Goldtooth open pit. Additional exploration drilling on the Goldtooth structure is planned and underground mine design is underway. Material mined by both open pit and underground methods would be processed utilizing existing low cost heap leach and plant facilities. To finance these operations, Canyon is considering inquiries from potential strategic partners and sale of non-core property and equipment assets.
The Goldtooth Fault is a major north-south trending high angle structure that has been mapped for more than 10,000 feet of strike length in the Briggs project area. Approximately 4,900 feet of the southern extent of this structure has been tested by drilling and the zone remains open for extension both along strike and down dip. This increase in mineralized material is the result of a 16,025 foot drill program on the Goldtooth structure completed in late February 2007. Both high grade and surrounding low grade gold mineralization associated with the Goldtooth structure was modeled using wireframe and geostatistical methods typical to underground resource estimation. True width of the high grade zone is between five and 20 feet and low grade mineralization surrounding this zone adds to this width.