Santoy Resources Ltd.
TSX VENTURE : SAN

Santoy Resources Ltd.

January 29, 2007 09:00 ET

Santoy-Melkior Joint Venture Acquires Marc-Andre Uranium Occurrence, Otish Mountains, Quebec

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 29, 2007) - Santoy Resources Ltd. (TSX VENTURE:SAN) and its joint venture partner, Melkior Resources Inc. (TSX VENTURE:MKR), are pleased to announce the acquisition of a 100% interest in 13 claims totaling 501.55 Ha at Lac Laparre in the Otish Mountains district of Quebec. The property is situated within the Otish Basin where the basement complex is unconformably overlain by fluvio-terrestrial to marine sediments of the Indicateur Formation (locally conglomerate, quartz arenite and sub-arkose).

The claims cover two uranium showings of note; the Marc-Andre uranium occurrence at the northeast end of the property, and the J. Robert radioactive boulder train in the southwest sector. Geophysical grids established in the early 1980's by Uranerz Exploration and Mining delineated an east-northeast trending, 100 to 200 metre wide, altered gabbroic dike cut by a series of sub-parallel, north-south to ENE-trending faults. At the Marc-Andre Occurrence, a number of trenches investigated the highly altered (limonitic, hematitic, tourmaline and epidote rich, siliceous and sericitic) fault breccia adjacent to and within the gabbroic dike. The best grab sample was reported to have assayed 0.26% U3O8. On the J. Robert grid, a boulder train of angular, altered, brecciated radioactive sediments lies adjacent to a geophysically interpreted fault zone. As a consequence of the collapse of the uranium market in the 1980's, neither occurrence was investigated by drilling. Subject to field confirmation of the historical data, the Companies consider that this will form a drill-ready target and an aggressive follow-up program is planned for this summer.

The geologic setting appears analogous to the Strateco Resources Matoush Property, 20 km to the southwest, where one of the best reported drill intercepts to date has been 2.1% U3O8 over a core length of 12.4 metres (Strateco news release Dec. 21/06). The Matoush occurrence was also a Uranerz discovery during the same early 1980's program. This mineralization is "perched" above the basement rocks in altered, arkosic to sub-arkosic, brecciated sandstones in the hanging wall of the Matoush Fault. "The uranium mineralization is closely linked to the tourmaline alteration on both sides of a gabbro dike in the sediments. Typically, moving outward from the dike is first a tourmaline zone, then a chlorite-fuchite-muscovite zone and a limonite-hematite zone," (Strateco website). To date, this fault zone has been traced for over 8 kilometres on Strateco's claims. This style of mineralization is similar to unconformity-related uranium orebodies at McArthur River and Cigar Lake in the Athabasca Basin of Saskatchewan.

Consideration to be paid to International Royalties Corp., a private company, by the Joint Venture for the property will be $10,000 cash, 200,000 shares of Melkior and 40,000 shares of Santoy. A two percent (2%) royalty interest, of which 1.5% may be purchased for $1 million at any time prior to commercial production, has been reserved for the original vendor of the property, Mr. A. L. Barker. As a current director of Melkior, Mr. Barker is a non arm's-length party to the purchase agreement, which is subject to regulatory approval.

This news release has been prepared by the companies jointly and is issued under the technical qualifications of Mr. J. E. Hansen, P.Eng, President of Melkior, and Mr. Rupert Allan, P.Geol., on behalf of Santoy, both of whom are qualified persons under National Instrument 43-101.

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