Cash intersects 22 m of 0.055 % U3O8 and 2.8% Cu
Cash Minerals Ltd (C:CHX)
Shares Issued 80,578,011
Last Close 9/18/2007 $0.84
Wednesday September 19 2007 - News Release
Mr. Basil Botha reports
CASH MINERALS INTERSECTS 0.055% U3O8 AND 2.82% COPPER OVER 22.25 METRES IN FIRST PHASE OF DRILLING AT IGOR URANIUM PROPERTY
Cash Minerals Ltd. and joint venture partner Mega Uranium Ltd. (TSX: MGA) have released their results from the first phase of drilling at the Igor and Lumina properties. Advanced exploration in the Wernecke uranium district builds on past exploration success by once again producing notable results as shown by intersections yielded in the first phase of drilling.
Highlights from recent drilling at Igor and Lumina include:
At Igor: 22.25 metres at 0.055 per cent uranium oxide (U3O8), 2.82 per cent copper (Cu), 5.2 grams per tonne silver (Ag) and 0.03 g/t gold (Au);
At Lumina: 1.5 metres of 0.14 per cent U3O8, 0.035 per cent molybdenum (Mo) and 0.08 g/t Au; as well as 40.1 metres of 0.014 per cent uranium (U), 0.047 per cent Mo and 0.31 g/t Au.
Igor and Lumina, known as iron-oxide, copper-gold-uranium (IOCG-U) and U-Mo-Au targets, respectively, are both located in Canada's mineral-rich Wernecke uranium district, Yukon Territory. A total of 16,000 metres has been diamond drilled in 2007, with up to six drill rigs operating concurrently on a number of the Yukon properties. The focus for drilling in 2007 has been the Igor and Lumina properties. Exploration on other Wernecke properties is engaged in testing other areas to identify targets for this year and 2008 drilling.
"Management is extremely pleased with results from the first phase of drilling, which continues to show the potential of a world-class IOCG target, similar to that of Australia's Olympic Dam mine," commented Basil Botha, president and chief executive officer. "Our plan this year was to use a systematic approach to exploration, which would support us in reaching our objective of defining a resource. Today's results clearly validate our approach where we are continuing to extend the distribution of known uranium mineralization, in addition to creating additional project value through new mineral discoveries, such as the polymetallic U-Mo-Au mineralization shown in the 2007 drilling data at Lumina."
Igor property continues to deliver
At Igor, IOCG-U mineralization crops out and is open at depth. Uranium-copper mineralization is largely coincident with masses of magnetite, hematite, barite and pyrite within dilatant veins and breccias, interpreted to have formed over a long period of geological time.
Drilling at Igor began in June, 2007, and initial results show intersections with appreciable uranium and copper mineralization, which include 22.25 m at 0.055 per cent U3O8, 2.82 per cent Cu, 5.2 g/t Ag and 0.03 g/t Au; 9.5 m at 1.68 per cent Cu, 0.24 g/t Au; and 3.0 g/t Ag; and 3.6 m at 0.125 per cent U3O8 (see first table).
The objective of the 2007 drill program at Igor aims to define a resource by testing existing areas with known uranium and copper mineralization, as well as examining the potential for IOCG-U mineralization at depth, which would comprise testing the annulus-shaped subsurface geophysical anomaly identified in 2006. Initial drilling conducted this year has yielded intersections of U-Cu-Au-Ag mineralization comparatively close to the surface, with the source of the anomaly currently being tested. Drilling will continue at Igor until the end of October weather conditions permitting, with three drills allocated to the property.
SUMMARY DRILL HOLE RESULTS FROM PRELIMINARY
ANALYSIS FROM THE IGOR PROPERTY
Hole From To Interval U3O8 Cu Au Ag
name (m) (m) (m) (%) (%) (g/t) (g/t)
Igor
IG-06 138.75 161.00 22.25 0.055 2.82 0.03 5.2
IG-02 6.00 15.5 9.50 - 1.68 0.24 3.0
includes 9.00 12.0 3.00 - 3.01 0.39 4.4
and 110.20 119.4 9.25 - 0.60 0.05 1.0
includes 110.15 111.90 1.75 - 2.01 0.16 2.4
IG-03 186.2 191.7 5.50 0.037 - 0.03 1.6
includes 190.7 191.7 1.00 0.099 - 0.01 0.6
and 223.0 226.6 3.60 0.125 - - 2.2
includes 225.0 225.6 0.60 0.310 - - 1.8
"Cash Minerals' drilling and exploration program is going extremely well in the Wernecke uranium district. Given the intersections of U-Cu-Au-Ag mineralization at Igor, as well as the characterization of U-Mo-Au mineralization on the Lumina property, the district could be better described as a polymetallic minerals province," stated Dr. Geordie Mark, vice-president, exploration. "Our exploration team continues to apply an integrated technical approach with the aim of adding value by enhancing targeting strategies, which in the case at Lumina would assess the hydrothermal mineralization as part of a polymetallic U-Mo-Au system."
Adding value at Lumina
Drilling and exploration at the Lumina property began in June primarily near the Jack Flash showing, which returned significant uranium mineralization during the 2006 exploration season (55.1 m at 0.103 per cent U3O8; refer to news in Stockwatch September, 2006). Drilling in 2007 has proved continuity of the uranium mineralization discovered in 2006, and it has extended the known subsurface distribution of uranium mineralization around 130 m to the southwest (e.g., LU-27, see second table).
The geology of the property has evolved due to drilling conducted this year, which has expanded the companies' knowledge of Lumina. In turn, this knowledge has facilitated additional drill planning and geochemical sampling defining the presence of significant polymetallic U-Mo-Au mineralization (see second table), thereby enhancing the metal potential of the property. Exploration within the Lumina property shows that there are numerous areas with comparable geology, some with more than one kilometre long, on-surface uranium anomalies, which were defined from heli-borne radiometrics. The geology of many of these regions exhibit common characteristics and show U-(Mo-Au) mineralization, most likely formed in a single hydrothermal system distributed for tens of kilometres throughout the Lumina property.
SUMMARY DRILL HOLE RESULTS FROM PRELIMINARY
ANALYSIS FROM THE LUMINA PROPERTY
Hole From To Interval U3O8 Mo Au Ag
name (m) (m) (m) (%) (%) (g/t) (g/t)
Lumina
LU-20 124.05 153.45 29.4 0.026 0.034 0.23 0.9
includes 127.05 130.95 3.9 0.053 0.115 0.89 3.1
LU-21 78.10 98.10 20.0 0.031 0.022 0.04 0.5
includes 78.10 85.55 7.5 0.048 0.017 0.05 0.5
LU-23 52.0 65.5 13.5 0.043 0.008 0.03 0.6
includes 64.0 65.5 1.5 0.139 0.035 0.08 1.9
and 79.0 81.0 2.0 0.033 0.084 1.09 3.2
LU-27 96.7 136.8 40.1 0.014 0.047 0.31 1.3
includes 96.7 106.8 10.1 0.025 0.065 0.22 1.9
includes 125.3 131.3 6.0 0.015 0.062 0.88 1.4
Drilling is still under way in the Werneckes with five drills operating at Igor, Lumina and properties in and around the Bear River camp. Drilling at Igor is currently testing the geophysical anomaly beneath the surface. At, Lumina drilling continues to test for U-Mo-Au mineralization to the north of the Jack Flash showing. Geochemical results from the second phase of drilling, as well as geophysical data collected from the Wernecke properties during the 2007 exploration season, are expected to be released in the second half of fourth quarter 2007.
Cash Minerals confirms cash position
Cash Minerals would also like to address the subject of investment strategy as it pertains to the company's holdings of cash. Cash Minerals' investment policy prioritizes the preservation of capital, while ensuring both liquidity and adequate returns by investing in banker's acceptances issued by Canadian Schedule 1 Financial institutions only. The company has total cash and banker's acceptances of approximately $10-million.
In addition, the company has granted management 150,000 options. The options are exercisable at 63 cents per share and are for a term of five years.
Samples prepared and analyzed by ALS Chemex, Vancouver. Samples are crushed, pulverized and digested in a four-acid solution and all elements, but gold were analyzed by ICP methods. Gold was analyzed by fire assay and ICP-AES. Exploration in the Wernecke uranium district is being conducted under the supervision of Christopher K. Hutchings, PGeo, who is the qualified person as specified in National Instrument 43-101 for technical disclosure. Mr. Hutchings is president of Kiex Consulting Limited, a professional geoscience consulting company. True width intervals are unconstrained due to insufficient data at depth.
