Canadian Gold Hunter Corp.
TSX : CGH

Canadian Gold Hunter Corp.

January 18, 2008 10:24 ET

Canadian Gold Hunter Corp.: Caballo Blanco Project Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 18, 2008) - Canadian Gold Hunter Corp. (the "Company") (TSX:CGH) is pleased to present an update on work at the Caballo Blanco gold project in Veracruz, Mexico. Diamond drilling has started again with one rig after the Christmas break. A second core rig is expected to mobilize to the project in early February. The focus of drilling in the current program will be Cerro la Cruz, a gold target within the Northern Zone high-sulphidation system, utilizing the newly completed access road.

Prior to Christmas, 267 meters of HQ and NQ core were drilled in two holes (07CBN-001 and 002), the second of which remains to be completed this month. Both holes were drilled in the Northern Zone. Assay results are awaited.

Drill-hole 07CBN-001 was collared on a strong, positive resistivity anomaly in the SW part of the Northern Zone and about three kilometers SSW of the Cerro la Cruz gold target. The hole was drilled vertically to 109 meters, where it was lost in a fault zone below 12 meters of breccia composed of weakly vuggy silica fragments in a matrix of various iron oxides.

Drill-hole 07CBN-002 was drilled at -50 degrees E from a collar in the Cerro la Cruz gold zone about 200 meters SW of the collars of drill holes 05CB-03, 06CB-01 and 06CB-03. Significant gold intercepts in vuggy silica-iron-oxide breccia in these holes include 1.14 g/t Au (grams per metric ton gold) over 108 meters in DDH-05CB-03, 1.0 g/t Au over 92.7 meters in DDH-06CB-01 and 1.70 g/t Au over 76.0 meters in DDH-06CB-03 (see Almaden Minerals news releases dated August 8, 2005 and August 10, 2006).

Drill-hole 07CBN-002 encountered vuggy silica-iron-oxide breccia from 31 meters to 96 meters followed by brecciated and crackled massive silica with variable amounts of iron-oxide matrix to 158 meters, the current depth of the hole. Selected photographs of vuggy silica breccia core from 07CBN-002 are attached to this news release (to view, please click the following link: http://www.ccnmatthews.com/docs/cgh0118.pdf). The hole will be extended to a depth of at least 250 meters.

In addition, the following activities have been completed or are planned in the near future.

- Prior to Christmas, 13.6 line-kilometers of pole-dipole I.P. (+ ground magnetics) were completed in the Cerro la Cruz area at 100-meter line intervals and 10 more line-km are planned in January. Detailed I.P. (resistivity) has proven to be a highly useful tool for targeting drill holes. Additional I.P. will be carried out subsequently in the Central Zone, a porphyry copper-gold target.

- Detailed soil geochemistry (423 samples) has been carried out in the Cerro la Cruz area of the Northern Zone and will continue during January.

- An aerial photogrammetry survey was completed in November and digital data for the Cerro la Cruz area was received by the Company in late December.

- An airborne magnetic and radiometric survey will be carried out over the Northern Zone in late January.

- Detailed geological mapping of the Cerro la Cruz area has been underway since late November.

The Company can earn a 70 per cent interest in the Caballo Blanco project from Almaden Minerals Ltd. by spending US$12 million over a period of six years.

The geological data in this news release were verified by qualified person Jan Christoffersen, P. Eng., Vice President of Canadian Gold Hunter Corp. Appropriate quality control and quality assurance protocols are utilized on the program. Standard reference samples are inserted in each batch of assays. Drill core samples are split on site. They are shipped for preparation at ALS Chemex in Guadalajara, Mexico and analyzed for gold by fire assay and for silver and 34 other trace and major elements by ICP-MS at ALS Chemex in North Vancouver, B.C., Canada. Drill core samples are prepared and analyzed by ALS Chemex in accordance with industry standards.

ON BEHALF OF THE BOARD

Richard J. Bailes, President

Contact Information

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