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Canadian Gold Hunter Corp.: 15,000 Metre Drill Program to Commence in June Base Case Resource Estimate at GJ/Kinaskan Project

Apr 30, 2005 - 03:57 ET


VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 30, 2005) - Canadian Gold Hunter Corp. (TSX:CGH) (the "Company") is pleased to report that preparations are underway for the Company's planned 15,000 metre diamond drill program on the GJ/Kinaskan project in northern British Columbia. The upcoming 2005 summer program will test the Donnelly Zone with a further 40 diamond drill holes to as deep as 500 metres and an additional 15 holes to test other targets. The main goal of the 2005 program is to double the Donnelly Zone resource (within the area drilled to date) and bring much of it into the indicated category. In addition, the Company expects to add to the resources by extending the Donnelly Zone on strike. Further potential exists on strike and down dip on the North and GJ Zones. An updated resource estimate will be completed following the 2005 program.

The 2004 diamond drilling program significantly expanded the limits of copper-gold mineralization within the Donnelly Zone and, as a result, the Company commissioned a review and resource estimate for the zone. An independent consultant was retained to review the Donnelly zone data, estimate a resource based on the historic and 2004 drill results, and recommend a drill program that would be sufficient to bring as much as possible of those of the resources presently defined as inferred up to the indicated category for a pre-feasibility study beginning in the fall of 2005, as well as to explore for additional material that could be added to the resource base.

The resource estimate recently completed by Giles R. Peatfield, Ph.D., P.Eng., was based on a manually calculated sectional polygonal method. Intercepts were chosen by eye, based primarily on copper grades, and simple polygonal blocks erected around these intercepts. Distances of influence were chosen arbitrarily, based on an assumption of good continuity of mineralization, and on the present drilling density. The resources, all reported in the inferred category, were estimated at several block intercept cut-offs.



Donnelly Inferred Resources

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Cut off Cu Tonnes Cu Au Contained Cu Contained Au
(%) (000,000) (%) (g/t) (million lbs) (million ozs)
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0.10 105.1 0.32 0.32 741 1.1
------------------------------------------------------------------
0.20(i) 71.2 0.40 0.40 628 0.9
------------------------------------------------------------------
0.30 41.5 0.50 0.52 457 0.7
------------------------------------------------------------------
0.40 24.5 0.61 0.66 329 0.5
------------------------------------------------------------------
(i)base case

 


The 0.20% copper cut-off grade has been chosen as the "base case" scenario based on Red Chris (bcMetals Corporation), the nearest analogy to the deposit. Material below this cut-off has questionable economic expectation at this point, but at least some of it, if mined as a consequence of gaining access to the higher grade material, might well be segregated in a low-grade stockpile in case of exceptional metal prices. The 43-101 technical report by David T. Mehner, M.Sc., P.Geo. and Giles R. Peatfield, Ph.D., P.Eng., dated May 15, 2005, will be available on Sedar (www.sedar.com) as well as the Company's website (www.canadiangoldhunter.com).

The Donnelly Zone resource estimate was carried out by qualified person, Dr. Giles Peatfield, Ph.D., P.Eng. using a manual sectional method. The geological model was based on 5,256 metres of diamond drilling in 23 core holes with some 1,500 assays. Thirteen of the core holes were drilled by Texasgulf Canada Ltd. ("Tg") in 1977 and 1980; this drilling was supervised by Dr. Peatfield. The other ten holes were drilled by the Company in 2004. The assay results from the recent diamond drill program were consistent with, and corroborated, the earlier work by Tg.

The 2004 drill program and sampling protocol were supervised by qualified person David Mehner, P.Geo., Project Geologist for Canadian Gold Hunter. Appropriate quality control and quality assurance protocols were utilized on the program. Standard reference samples were inserted in each batch of assays. The Canadian Gold Hunter drill samples were analyzed for gold by fire assay and for copper by atomic absorption at ALS Chemex in North Vancouver, B. C., Canada.

The GJ/Kinaskan Property is located in northern British Columbia about 10 kilometres west of the Stewart Cassiar highway. The claims underlie an area of about 150 square kilometres, which contains 21 significant mineral showings, including the Donnelly, GJ and North Zones.

Canadian Gold Hunter has a 100% working interest in the GJ/Kinaskan property.

ON BEHALF OF THE BOARD

Richard J. Bailes, President         
FOR FURTHER INFORMATION PLEASE CONTACT:

Canadian Gold Hunter Corp.
Sophia Shane
Corporate Development
(604) 689-7842
(604) 689-4250 (FAX)
http://www.canadiangoldhunter.com


 

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