Santoy Resources Ltd.
TSX VENTURE : SAN

Santoy Resources Ltd.

January 16, 2007 09:00 ET

Santoy Announces Plans to Resume Drilling on Uranium Properties, Labrador

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 16, 2007) - Santoy Resources Ltd. (TSX VENTURE:SAN) is pleased to announce plans to resume work this March on the Mustang Lake property in the Central Mineral Belt of Labrador. A 4,000 metre drilling program is proposed, concentrating initially on following up on a best previous intercept of 9.11 metres of 0.12% U3O8 in hole SP-06-10. The Mustang Lake property is part of a 50:50 joint venture with Monster Copper Corp. (TSX VENTURE:MNS).

The SP-06-10 intercept is considered significant because it is similar in width and tenor and occurs in the same geologic setting as the Michelin deposit, which is located 8 km to the SW. Aurora Energy have reported a NI 43-101 compliant Measured and Indicated Resource of 22.2 million pounds with an additional Inferred Resource of 13.4 million pounds for Michelin (source www.aurora-energy.ca).

A thorough review of all drill results augmented by structural field data gathered in 2006 has lead to the interpretation that the mineralization intersected at Mustang Lake is structurally controlled and plunges to the southwest, as it does at Michelin. Drilling will commence by following the known mineralization in SP-06-10 down-plunge and along a northeast structural trend. Interpretation of regional satellite imagery has revealed a northeast-trending structure which passes close to Michelin and continues through the Mustang Lake property. This same trend is also apparent in historical (BRINEX) ground magnetic data at Mustang Lake and will be tested in the current phase of drilling.

Prior to commencement of drilling, a 60 line kilometre ground magnetic survey is scheduled to be completed in order to assist in more accurately defining the position of major structures on the property. For operating efficiencies and in recognition of the scarcity of experienced personnel, the Monster JV operatorship is being assigned to Monster Copper.

On the 100% Santoy owned Central Mineral Belt properties, summer programs are currently being planned. This will commence with a minimum 2000 metre diamond drilling program to test the Fish Hawk Lake South and North zones. Prospecting here during the 2006 field season discovered 3 new zones of uranium mineralization which were described in a Nov. 23, 2006 news release.

The Fish Hawk Lake South zone has been traced over a strike length of 430 meters, and over widths of up to 20 meters. Two saw cut-channel samples assayed 0.093% U3O8 over 6.0 meters, and 0.062% U3O8 over 7.0 meters. Grab samples from this zone returned values of up to 1.487% U3O8.

The Fish Hawk Lake North zone occurs along a 45 meter long ridge, with additional radioactive outcrops located 175 meters away along strike. The best analysis from a locally derived angular boulder located at the base of the ridge assayed 5.086% U3O8.

Drilling is scheduled to commence once the Mustang Lake program is complete. Additional prospecting in the Fish Hawk Lake area, as well as follow up of previously located anomalous lake sediment samples will also form part of the 2007 field program.

The Qualified Person, as defined by National Instrument 43-101, responsible for the review of this news release is Ron Nichols, P.Geo., Vice-President Exploration.

About Santoy Resources Ltd.

Santoy Resources Ltd. is a Canadian mining exploration company focused primarily on the energy sector. Emphasis is being placed on uranium projects in British Columbia, Saskatchewan, Manitoba, and the Central Mineral Belt of Labrador; and on coal and coal bed methane in Western Canada. A description of our properties, including maps and photographs, can be viewed on the Company's website at www.santoy.ca.

On Behalf of the Board of Directors

SANTOY RESOURCES LTD.

Ron Netolitzky, President

Cautionary Statement on Forward-Looking Information

The statements made in this News Release may contain certain forward-looking statements. Actual events or results may differ from the Company's expectations. Certain risk factors may also affect the actual results achieved by the Company.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Santoy Resources Ltd.
    Ron Netolitzky
    President
    (604) 669-4799
    or
    Santoy Resources Ltd.
    Tony Perri
    Investor Relations, Manager
    (604) 669-4799
    (604) 669-2543 (FAX)
    Website: www.santoy.ca