Canadian Gold Hunter Corp.

Canadian Gold Hunter Corp.

July 31, 2008 09:00 ET

Canadian Gold Hunter Intersects 64.01 Metres Grading 1.02 g/t Gold at Caballo Blanco, Mexico

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 31, 2008) - Canadian Gold Hunter Corp. (the "Company") (TSX:CGH) is pleased to report additional gold assays from the Caballo Blanco project in Veracruz, Mexico. On the Cerro la Paila target, core hole 08CBN-017 intersected 64.0 metres grading 1.02 g/t Au (grams gold per metric ton) in iron-oxide-cemented, vuggy silica breccias. The hole was drilled to 227.99 meters; however assays have only been received for the top 145.69 metres.

Hole 08CBN-012 was drilled to a depth of 227.08 meters, where the hole was abandoned due to a loss of circulation in cavernous vuggy silica breccias. The bottom 16.77 meters of the hole, which had very poor core recovery, assayed 3.15 g/t Au, within an interval that graded 0.99 g/t Au over 61.0 metres.

A number of the holes, including 08CBN-012, 013, 014 and 016, were lost in mineralized vuggy silica breccias prior to being completed to their planned depths. Holes 08CBN-014 and 016 were drilled through significant intervals of unmineralized andesite before encountering silica breccias with anomalous gold values and then being lost. The last few samples in each hole had the highest gold grades in the hole.

Significant assay results for 07CBN-012 to 017 are listed in the table

Drill Az/ Depth Interval Width Au Ag
Hole Angle (m) (m)(ii) (m)(ii) g/t g/t

08CBN-012(i) 090 degrees/ 227.08 166.12-227.08 60.96 0.99 1.1
-50 degrees
including 210.31-227.08 16.77(iii) 3.15 2.9
08CBN-013(i) 090 degrees/ 18.26 43.59-118.26 74.67 0.30 2.4
-50 degrees
including 89.31-118.26 28.95 0.54 3.9
08CBN-014(i) 270 degrees/ 103.63 99.06-103.63 4.57 0.25 0.5
-70 degrees
08CBN-015 090 degrees/ 157.89 124.35-150.27 25.92 0.87 1.4
-80 degrees
including 136.55-147.21 10.66 1.41 1.3
08CBN016(i) 120 degrees/ 201.17 195.07-201.17 6.10(iii) 0.42 215.0
-60 degrees
08CBN-017 090 degrees/ 227.99 67.97-131.98 64.01 1.02 1.2
-85 degrees
including 105.80-122.53 16.73 2.10 1.7

Notes: (i) Hole lost above planned target depth.
(ii) Intervals are core lengths and true widths may be less than
reported here.
(iii) Intervals had very poor core recovery and grades are unreliable.

The initial phase of drilling in the Northern Zone has been completed. Nineteen holes totaling 3,446 metres were drilled. The remaining assay results for the Cerro la Paila target will be released when they are available. At Cerro la Paila, gold-bearing silica breccias have now been traced by surface sampling and diamond drilling over a north-south distance of 750 metres and up to about 350 metres in an east-west direction. The gold-bearing breccias are up to 150 metres thick; however on most sections the drill holes were abandoned in mineralized silica breccia and the true thicknesses are not known. The next phase of drilling at Cerro la Paila will be completed using a larger rig that will more capable of drilling deeper holes so that Cerro la Paila can be tested on 50-metre centres to a depth of at least 300 metres.

Rick Bailes, President, stated, "What is really encouraging about this first phase of work at Cerro la Paila is that geophysics, surface sampling and diamond drilling have outlined a large area underlain by gold-bearing silica breccias. Because of difficult drilling conditions, we were unable to establish the thickness of the mineralized breccias on most sections; however, the next phase of diamond drilling, which is scheduled to start in the late fall, will use larger drill rigs and will be designed to test the true thickness of the breccias in order to define a mineral resource."

The two core rigs have been moved from the Cerro la Paila gold zone to the Central Grid gold-rich porphyry copper zone. Ten holes totaling 3,000 metres are planned at the Central Grid to test coincident geophysical and geochemical anomalies. Previous drilling intersected 56 metres grading 0.34% copper and 0.84 g/t gold (see Almaden Minerals Ltd. news release dated June 1, 2005).

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 and various duplicates are inserted in each batch of assays. Drill core samples are cut by saw on site and sample splits are shipped for preparation to ALS Chemex in Guadalajara, Mexico. Sample pulps are sent to ALS Chemex in North Vancouver, B.C., Canada and analyzed for gold by fire assay and for silver and 34 other trace and major elements by ICP-MS in accordance with standard industry practices.


Richard J. Bailes, President

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Contact Information

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