Cash Minerals Ltd (C-CHX) - News Release
Cash Minerals, Mega Uranium drill 4.5 m of 0.993% U3O8
2007-10-24 07:57 MT - News Release
Shares issued 108,592,469
CHX Close 2007-10-23 C$ 0.66
Also News Release (C-MGA) Mega Uranium Ltd
Mr. Basil Botha of Cash Minerals reports
CASH MINERALS ANNOUNCES ADDITIONAL DRILL RESULTS FROM IGOR PROPERTY INTERSECTING 0.993% U3O8 AND 2.7% COPPER OVER 4.5 METRES
Cash Minerals Ltd. and joint venture partner Mega Uranium Ltd. have received additional drill results from Igor, an iron-oxide copper-gold-uranium property located in the Wernecke uranium district, Yukon. New results include 0.993 per cent U3O8, 2.70 per cent copper, 0.07 gram per tonne gold and 5.7 g/t silver over 4.5 metres. On-ground exploration in the 2007 season has also identified that numerous new properties, staked in the 2006 season, exhibit highly anomalous uranium and polymetallic mineralization. The most prospective new properties will be tested by diamond drilling in 2008.
Highlights from 2007 initial drill results at Igor and Lumina also include 22.25 metres at 0.055 per cent U3O8, 2.82 per cent Cu, 5.2 g/t silver (Ag) and 0.03 g/t gold (Au); and 1.5 metres of 0.14 per cent U3O8, 0.035 per cent molybdenum (Mo) and 0.08 g/t Au, respectively. These intervals are augmented by the newly presented results.
"The findings from the 2007 program reaffirm management's belief that the Igor and Lumina properties, both located in the highly prospective Wernecke uranium district, have the potential to host Olympic Dam- and polymetallic (copper, gold and uranium)-style deposits," commented Basil Botha, president and chief executive officer of Cash Minerals.
The 2007 drill program strategy was to employ an integrated and systematic approach to reaching the company's objective of defining a resource at one or more Wernecke properties. This strategy aims to expand recently discovered mineralized zones by determining continuity and orientation of IOCG-U and polymetallic mineralization, as well as exploring the remaining, untested mineralized and altered zones within the Igor and Lumina properties. Recent drill results released (see news reported in Stockwatch Sept. 19, 2007) demonstrate the success this approach has yielded.
Igor and Lumina
Three drill rigs were allocated to the Igor property during the 2007 exploration program. Approximately 8,000 metres of drilling has been completed at Igor to date. Initial results from Igor show appreciable uranium and copper mineralization close to surface and extend the area of known mineralization. The last phase of the program at Igor will test the buried gravimetric anomaly identified in 2006, as well as attempt to extend the extent of known mineralization to the north; mineralization is open to the north and south, as well as to depth. These data will provide a greater insight into the distribution and continuity of uranium-copper mineralization at Igor, which will enable more productive exploration on the property and elsewhere in the Werneckes.
Drilling on the Lumina property has concluded for 2007, with more than 4,000 metres drilled this year. Drill results, released earlier this year from the 2007 exploration program, prove the continuity of uranium mineralization and extend the known subsurface distribution of uranium confirming that mineralization continues to the south of the Jack Flash showing. Additionally, on-ground fieldwork shows that uranium mineralization also crops out along the same structure to the north of the Jack Flash showing. Moreover, the geological understanding of the Lumina property has evolved due to drilling and on-ground exploration conducted this year, which indicates that uranium is manifest as polymetallic U-Mo-Au mineralization.
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 96.30 101.80 4.50 0.993 2.70 0.07 5.7
IG-10 137.30 138.30 1.00 0.053 - 0.01 0.7
192.20 199.70 7.50 0.027 0.17 0.31 1.0
includes 192.20 194.20 2.00 0.050 0.61 0.33 2.7
IG-11 80.90 84.90 4.00 - 0.46 0.05 3.0
117.60 125.00 7.40 - 0.85 0.04 2.2
130.00 133.00 3.00 - 3.00 0.07 2.6
Wernecke exploration
Significant new areas of uranium and IOCG-U mineralization have been delineated on the Lumina, Vic and NAD properties, with samples containing up to 6.86 per cent U3O8. On the Lumina property, additional showings of outcropping uranium mineralization were discovered in many locations, which include the Flash Gordon and Eagle Eye localities. The Vic property, an IOCG-U target, contains numerous outcropping localities with highly anomalous mineralization where samples contain up to 6.86 per cent U3O8, 6.13 per cent copper, 0.398 per cent molybdenum and 4.46 g/t gold, which appears to be structurally controlled and exhibits all the hallmarks of IOCG-U mineralization similar to that of the Igor property.
The drilling campaign is intimately associated with significant on-ground exploration in the Werneckes, which is focused on defining new regions with IOCG-U and polymetallic mineralization potential. This campaign forms a vital component in nurturing Cash Minerals' growing portfolio of prospective properties in the Wernecke uranium district, and integrates geological, geochemical and geophysical tools to define new areas with mineralization potential. Significant new areas of uranium and IOCG-U mineralization have been identified this year.
THE GEOCHEMICAL COMPOSITION
OF SELECTED SURFACE ROCK SAMPLES
FROM THE VIC, LUMINA AND NAD PROPERTIES
IN THE WERNECKE URANIUM DISTRICT
Sample U3O8 Cu Mo Au Ag Wt
No. % % g/t g/t g/t kg
Vic property
2571 6.716 0.13 0.002 0.01 4.2 0.56
2573 6.856 0.01 0.002 0.00 0.9 2.40
2574 2.878 0.05 0.002 0.03 12.4 1.40
2575 1.392 0.06 0.003 0.02 4.8 1.16
2576 0.125 0.03 0.002 0.02 0.5 1.43
2227 0.001 0.85 0.002 0.03 6.6 2.04
2228 0.113 0.44 0.151 1.43 8.9 0.84
2280 0.071 0.02 0.007 0.50 1.4 1.28
2311 0.303 0.02 0.398 4.46 9.6 1.44
2352 0.025 0.51 0.011 0.49 1.3 1.24
2353 0.117 0.21 0.018 0.03 3.0 1.48
2354 0.036 0.04 0.060 0.04 2.4 1.08
2276 0.002 6.13 0.001 0.72 4.6 1.10
2277 0.002 3.81 0.007 0.05 4.3 1.34
2355 0.026 0.10 0.007 0.01 1.5 2.54
2263 0.002 0.43 0.002 0.12 1.3 1.12
2270 0.004 0.98 0.001 0.01 1.3 0.82
2271 0.000 0.35 0.000 0.03 8.8 0.90
2278 0.000 0.67 0.006 0.26 2.0 0.94
2279 0.002 0.32 0.002 0.01 0.8 1.70
Lumina property, Flash Gordon
1127 0.228 0.27 0.001 0.045 1.3 2.08
1128 0.107 0.37 0.000 0.026 0.5 1.42
1129 0.220 0.42 0.000 0.010 0.8 0.80
1130 0.010 0.04 0.000 0.003 0.1 1.90
1131 0.094 0.44 0.000 0.009 0.5 1.37
1132 0.046 0.02 0.000 0.006 0.1 1.50
1133 0.028 0.00 0.000 0.001 0.0 2.89
NAD property
2324 0.150 0.00 0.001 0.036 0.8 1.10
2325 0.200 0.00 0.000 0.021 0.0 1.88
2327 0.064 0.00 0.001 0.038 0.4 2.75
Additional drill assays from the 2007 program are expected to be released by the end of the year. These data along with released results will be employed to identify new targets for the 2008 exploration program. In addition to drilling in the Yukon, management intends to use ground and airborne geophysical data from the Aillik property -- located in the central mineral belt, Labrador -- to define targets for 2008 drilling.
Cash Minerals is continuing to test drill targets on the Igor and Odie properties in the Wernecke uranium district, Yukon. Drilling is expected to continue until late November. To date, the company has completed over 18,000 metres of diamond drilling, making the 2007 exploration program one of the largest and most comprehensive projects testing iron-oxide copper-gold-uranium (IOCG-U) and hydrothermal uranium targets in Canada.
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 Ltd., a professional geoscience consulting company. He has reviewed the technical information in this release.
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