Information posted is accurate at the time of posting, but may be superseded by subsequent press releases.
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 2, 2007) - Canadian Gold Hunter Corp. (the "Company") (TSX:CGH) is pleased to announce that it has agreed to sell on a non-brokered, private placement basis up to an aggregate of 3 million common shares of the Company at a price of Cdn $2.25 per share for gross proceeds of Cdn $6.75 million. A 4% finder's fee may be payable on a portion of the private placement. Net proceeds of the private placement will be used towards the acquisition of a 70% interest in the Caballo Blanco gold property in Veracruz State, Mexico and the upcoming work program on the project as well as for general corporate and working capital purposes. The private placement is subject to regulatory approval. Shares issued pursuant to the private placement will be subject to a 4 month hold period.
As announced on April 16, 2007 the Company signed a letter of intent with Almaden Minerals Ltd. ("Almaden") to acquire a 70% interest in the Caballo Blanco gold property. Caballo Blanco is a large, high-sulphidation epithermal gold system that has seen limited work to date. The property is located on the Gulf of Mexico roughly 60 kilometres north of the port city of Veracruz. Infrastructure is excellent as the prospective areas are all located within 10 kilometres of the Panamerican highway and a power plant.
The property covers three large areas of mineralization known as the Northern Zone, the Highway Zone and the Central Grid Zone. Extensive alteration typical of high sulphidation gold systems is associated with the Northern and Highway Zones. Limited drilling (from one drill site) in the Northern Zone has intersected 108 metres grading 1.14 g/t gold in drill hole CB-05-03, 92.7 metres grading 1.0 g/t gold in CB-06-01 and 76 metres grading 1.70 g/t gold in CB-06-03 (Almaden news releases dated August 8, 2005 and August 10, 2006). This mineralization is hosted in explosive breccias with several events of superimposed silicification and alteration.
Examples of high-sulphidation gold deposits are Yanacocha in Peru, which contains 13.4 million ounces of gold in 377.2 million tonnes grading 1.1 g/t gold and Veladero in Argentina, which contains 11.4 million ounces of gold in 337 million tonnes grading 1.1 g/t gold.
The Central Grid Zone is a gold-rich porphyry target, in which drill hole CB-04-01 intersected 56 metres grading 0.84 g/t gold and 0.34% copper (Almaden press release dated June 1, 2005).
Under the terms of the letter of intent, the Company can earn a 70% interest in the project by expending US$12.0 million over a period of six years, of which US$1.5 million is a firm commitment in the first year. In addition Canadian Gold Hunter will issue 1.0 million common shares to Almaden and make a cash payment of US$500,000 on signing a formal option agreement. The Company will then fund all costs required for the completion of a bankable feasibility study; after such time the two parties shall each fund their pro rata share of all costs required in connection with development and mining operations.
The geological data in this press release were verified by qualified person Jan Christoffersen, P.Eng., Vice President for Canadian Gold Hunter. Canadian Gold Hunter's due diligence check samples were analyzed for gold by fire assay by ALS Chemex in North Vancouver, B. C., Canada.
ON BEHALF OF THE BOARD
Richard J. Bailes, President
FOR FURTHER INFORMATION PLEASE CONTACT:
Canadian Gold Hunter Corp.
(604) 689-4250 (FAX)