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Canadian Gold Hunter Expands Copper-Gold Donnelly Zone at GJ Project

Aug 10, 2005 - 04:25 ET


VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 10, 2005) - Canadian Gold Hunter Corp. (the "Company") (TSX:CGH) is pleased to provide an update on the current diamond drilling program on the GJ/Kinaskan copper-gold project in northern British Columbia.

The Company has received assay results for the first thirteen holes of a planned 50 hole, 15,000-metre diamond drill program. Holes 05-023, 025, 026, 028 and 030 tested the eastern extension of the Donnelly Zone and have extended the zone 300 metres to the east. The rest of the holes are infill holes within previously drilled portions of the Donnelly Zone. Please see attached drill results table.

Copper-gold mineralization has now been traced for over a 1400-metre strike length on the Donnelly Zone from hole 04-015 in the west to hole 05-030 in the east. The zone dips steeply to the south, strikes east-west and is up to 300 metres thick. The holes are generally drilled at minus 45 degrees to the north in order to cut across the zone. Please see attached map and cross sections. The results to date are meeting expectations, for the most part returning long intervals with grades consistent with those from previous drilling.

A key objective of the program is to expand the known inferred resource at the Donnelly Zone and bring much of it into the indicated category. Further potential also exists on strike and down dip on the North and GJ Zones. An independent resource estimate was commissioned following the 2004 program. This estimate will be updated upon completion of the current 2005 program.


2004 Donnelly Inferred Resource Estimate

----------------------------------------------------------
Cut off Tonnes Cu Au Contained Cu Contained Au
Cu (%) (000,000) (%) (g/t) (million lbs) (million ozs)
----------------------------------------------------------
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

Rick Bailes, President of CGH, commented, "The drilling at the Donnelly Zone has been very encouraging and the zone is still open on strike and to depth. Two rigs are currently on the property and we plan to test the western portion of the zone next and then move the drills to other targets on the property while we compile the Donnelly results."

The GJ/Kinaskan gold/copper property consists of a large claim group covering several significant porphyry copper-gold systems as well as a number of high-grade gold vein occurrences.

The focus of the 2005 drilling is porphyry style copper-gold mineralization associated with the Groat stock, a poorly exposed elongated stock of monzodiorite, which intrudes andesite and volcaniclastic sediments. Three mineralized zones have been discovered to date associated with the Groat stock: the Donnelly Zone, the GJ Zone and the North Zone. Significant gold-rich porphyry deposits that occur in the region are Red Chris: 446.1 million tonnes grading 0.36% copper and 0.29g/t gold, and Galore Creek; 286 million tonnes grading 0.73% copper and 0.44g/t gold.

CGH is engaged in gold exploration focused on Canadian projects. The Company will be drilling its Manson Creek gold project in central B.C. in the fall of 2005. The Company has a 100% interest in the GJ/Kinaskan project.

The 2004 resource estimate was based on 23 drill holes and all material is considered at this time to be in the inferred resource category. 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. A 43-101 technical report by David T. Mehner, M.Sc., P.Geo. and Giles R. Peatfield, Ph.D., P.Eng., dated May 15, 2005, is 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, in a program supervised by Mr. Mehner. The assay results from the 2004 diamond drill program were consistent with, and corroborated, the earlier work by Tg.

The 2005 drill program and sampling protocol are being supervised by qualified person David Mehner, P.Geo., Project Geologist for Canadian Gold Hunter. Appropriate quality control and quality assurance protocols are utilized on the program. Standard reference samples are inserted in each batch of assays. The Canadian Gold Hunter drill samples are analyzed for gold by fire assay and for copper and silver by "ICP" at ALS Chemex in North Vancouver, B. C., Canada. Drill core samples are prepared and analyzed by ALS Chemex in accordance with industry standards. Drill results and technical data are reviewed by Dr. Giles Peatfield, P.Eng., a Qualified Person pursuant to NI 43-101, prior to release. Dr. Peatfield is independent of the Company. True thicknesses are not accurately known at this time; in some cases they may be less than the core lengths reported.

ON BEHALF OF THE BOARD

Richard J. Bailes, President



------------------------------------------------------------------------
GJ PROJECT
------------------------------------------------------------------------

2005 Donnelly Zone Results

------------------------------------------------------------------------
Azi-
Drill Sec- North- muth Hole Inter-
Hole tion ing /Dip Depth From To val Cu Au Ag
------------------------------------------------------------------------
(met- (met- (met- (met-
res) res) res) res) % g/t g/t
------------------------------------------------------------------------
CGH-05
-021(i) 9800E 1119N 000 203.61 15.2 126.9 111.7 0.405 0.406 2.0
degrees/
-45
degrees
------------------------------------------------------------------------
incl. 54.0 108.8 54.8 0.535 0.495 2.2
------------------------------------------------------------------------

------------------------------------------------------------------------
CGH-05
-022(i) 9425E 1209N 000 187.80 35.4 50.6 15.2 0.745 0.539 2.0
degrees/
-45
degrees
------------------------------------------------------------------------
CGH-05
-022C(i) 50.6 93.3 42.7 0.409 0.361 1.8
------------------------------------------------------------------------
incl. 50.6 81.1 30.5 0.480 0.434 2.0
------------------------------------------------------------------------

------------------------------------------------------------------------
CGH-05
-023 9900E 1004N 000 247.80 23.5 204.5 181.0 0.372 0.319 2.3
degrees/
-45
degrees
------------------------------------------------------------------------
incl. 72.3 175.9 103.6 0.440 0.333 2.1
------------------------------------------------------------------------

------------------------------------------------------------------------
CGH-05
-024 9425E 996N 000 345.94 22.9 324.6 301.7 0.165 0.219 1.7
degrees/
-55
degrees
------------------------------------------------------------------------
incl. 297.2 309.4 12.2 0.539 0.760 4.3
------------------------------------------------------------------------

------------------------------------------------------------------------
CGH-05
-025(i) 9900E 1152N 000 105.76 29.0 66.1 37.1 0.278 0.344 2.4
degrees/
-45
degrees
------------------------------------------------------------------------

------------------------------------------------------------------------
CGH-05
-026 10000E 1003N 000 201.77 8.2 182.0 173.8 0.366 0.496 4.3
degrees/
-45
degrees
------------------------------------------------------------------------
incl. 17.4 99.7 82.3 0.515 0.551 4.6
------------------------------------------------------------------------
and incl. 130.1 149.4 19.3 0.483 0.325 13.0
------------------------------------------------------------------------

------------------------------------------------------------------------
CGH-05
-027 9200E 1019N 000 322.00 108.5 175.6 67.1 0.216 0.186 0.7
degrees/
-53
degrees
------------------------------------------------------------------------
and 212.1 248.7 36.6 0.522 0.473 1.3
------------------------------------------------------------------------

------------------------------------------------------------------------
CGH-05
-028 10000E 1003N 000 246.28 39.0 106.1 67.1 0.175 0.264 2.3
degrees/
-70
degrees
------------------------------------------------------------------------

------------------------------------------------------------------------
CGH-05
-029 9635E 880N 000 509.00 169.8 416.7 246.9 0.220 0.289 2.4
degrees/
-45
degrees
------------------------------------------------------------------------
incl. 355.7 410.6 54.9 0.337 0.373 2.3
------------------------------------------------------------------------

------------------------------------------------------------------------
CGH-05
-030(i) 10100E 1010N 000 242.92 5.2 43.9 38.7 0.341 0.311 3.6
degrees/
-55
degrees
------------------------------------------------------------------------
incl. 5.2 17.4 12.2 0.567 0.441 5.1
------------------------------------------------------------------------

------------------------------------------------------------------------
CGH-05
-031(i) 9700E 1121N 000 191.20 9.1 169.0 159.9 0.286 0.350 2.2
degrees/
-45
degrees
------------------------------------------------------------------------
incl. 124.1 169.0 44.9 0.346 0.411 1.8
------------------------------------------------------------------------

------------------------------------------------------------------------
CGH-05
-032(i) 9530E 1122N 000 252.06 6.1 236.8 230.7 0.240 0.291 1.9
degrees/
-45
degrees
------------------------------------------------------------------------
incl. 154.5 178.9 24.4 0.592 0.978 5.9
------------------------------------------------------------------------

------------------------------------------------------------------------
CGH-05
-033 9700E 991N 000 326.44 4.8 316.1 311.3 0.326 0.299 2.4
degrees/
-45
degrees
------------------------------------------------------------------------
incl. 50.9 99.7 48.8 0.471 0.437 3.6
------------------------------------------------------------------------
and incl. 197.2 297.8 100.6 0.417 0.329 2.7
------------------------------------------------------------------------
(i) Partial intercept (please see cross sections)

 


NOTE: Location map available from the company at the number listed below or on the company's website at www.canadiangoldhunter.com.         
FOR FURTHER INFORMATION PLEASE CONTACT:

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


 

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