Cash Minerals Expands its Uranium Interests in Southern Yukon
NEWS RELEASE TRANSMITTED BY CCNMATTHEWS
Cash Minerals Ltd.
February 20, 2006 - 08:00:11 ET
Cash Minerals Expands its Uranium Interests in Southern Yukon
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Feb. 20, 2006) - Cash Minerals
Ltd. (TSX VENTURE:CHX) is pleased to announce that it has staked 42 claims at
the Hot Dog uranium property in southern Yukon. The property is located 70 km
northeast of Whitehorse and covers about 850 hectares. Due to the favorable
location of the Hot Dog property the drill program is scheduled to begin in
April, 2006.
The Hot Dog property was discovered and briefly explored by Chevron Minerals
Ltd. in the late 1970s. Radiometric surveys conducted at Hot Dog produced
strongly anomalous readings along the volcanic contact. (Greater than 1000 cps
to a max of 2850 cps over a background of less than 100 cps). Further along
strike, the contact is covered by a thick layer of glacial till. Limited soil
sampling yielded values ranging from 200 to 3900 ppm uranium (0.46% U3O8).
Chevron drilled seven shallow holes within the volcanic unit. Unfortunately,
the small diameter holes gave very poor core recovery and the holes were not
radiometrically logged. The highest core assay was 0.13% U3O8 from fragments
which total 0.33 m length and represent the majority of the material collected
from surface to a depth of 6.4 m. (The historical core assays were collected
by Archer, Cathro & Associates and reported to Chevron Minerals Ltd., prior to
the implementation of NI 43-101).
Mr. Basil Botha, President and CEO of Cash Minerals Ltd. said, "We are very
excited by our acquisition of the Hot Dog property. The radiometric surveys
suggest the possibility of significant uranium mineralization, and we will
expand our 2006 uranium exploration program to include drilling at Hot Dog.
With uranium demand increasing significantly and a supply imbalance, prices
are expected to go much higher. Cash Minerals will continue to aggressively
acquire assets that are favourable to discovery of uranium deposits."
The Yukon has excellent uranium potential. Geological and exploration
indications are that Cash Minerals' eight Yukon uranium projects can be
modeled on major deposit types, as follows:
1. Four of the Company's Wernecke Mountain properties (Igor, Steel, Bond and
Dolores) have characteristics similar to the well-known Olympic Dam deposit in
Australia, which follows the Iron-Oxide-Copper-Gold (IOCG) model.
2. The fifth Wernecke property (Lumina) exhibits characteristics of an
unconformity related, high-grade, vein-and-fracture-controlled uranium. In
2005, an extensive field of uranium-rich boulders was discovered at Lumina
through surface exploration. This occurrence, named the Jack Flash Showing,
produced an average of 1.49% U3O8 (29.8 lb/ton) and ranged from 0.025% to
7.67% U3O8 (0.5 to 153.4 lb/ton). (Originally reported in the Cash Minerals
news release dated October 12, 2005).
3. Two other Yukon properties with uranium hosted with Cretaceous granitic
intrusions (Alle and Pedlar) are modeled after the Rossing Deposit in Southern
Africa.
4. The mineralization and geological setting at the Hot Dog property closely
resembles that of the Blizzard Deposit in southern British Columbia.
The 2006 uranium exploration program in Yukon will include at least 6,000
metres of diamond drilling, airborne magnetic surveys, and ground geophysical
surveys. Spending for 2006 uranium exploration is currently budgeted at
approximately $4.5 million.
Including the Hot Dog property, Cash Minerals is on target to earn up to a 75%
interest in 8 uranium properties in the Yukon under option agreements with
Twenty-Seven Capital Corp.
About Cash Minerals Ltd.
Cash Minerals Ltd. (www.cashminerals.com) is an emerging energy resource
company listed on the TSX Venture Exchange under the symbol "CHX" and has
approximately 60.4 million shares outstanding. Current activities are
primarily focused on the development of its significant base of coal and
uranium assets in Yukon.
Cash Minerals' Uranium exploration projects boast major stakes in eight
quality projects, all of which were previously drilled. Four resemble an
Olympic Dam-type project, two are modeled after the prolific Rossing Deposit
in South Africa and one is testing possible unconformity-related, high grade,
vein-and-fracture-controlled uranium mineralization.
The Division Mountain Coal Project's five Coal leases measure 776.4 hectares
and the 30 Territorial Coal Exploration licenses cover some 360,000 hectares
in coal-bearing stratigraphy. The Updated NI 43-101 Report dated December 21,
2005 by T. C. Becker, B.Sc., P.Geo. of Norwest Group (filed with SEDAR on
January 10, 2006) confirmed coal resources of 52.5 million tonnes entirely in
the Measured category and a feasibility study is nearing completion.
Cash Minerals is led by a strong, proven management team committed to building
shareholder value through discovery and development. This is coupled with a
high level of exploration and operational expertise covering Africa, Australia
and Canada. The management team includes high calibre professionals with
combined experience of over 100 years in uranium and over 50 years in coal.
AI
