Santoy Resources Ltd.

Santoy Resources Ltd.

November 01, 2007 10:13 ET

Santoy Reports New Uranium Discoveries from Prospecting in the CMB, Labrador

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 1, 2007) - Santoy Resources Ltd. (TSX VENTURE:SAN) is pleased to provide an update on the 2007 exploration program on its 100% owned Anomaly 7 property in the Central Mineral Belt (CMB) of Labrador. Field work was completed in October and most of the analytical results have now been received. Ground follow-up this year focused on further prospecting of anomalies defined by the 2005 airborne magnetic- radiometric survey. Prospecting was supplemented by geological mapping, soil geochemistry over selected areas, radon-in-soil and in-water surveys, lake bottom sediment sampling and water geochemistry. This work has resulted in the discovery of several new uranium bearing zones, and has also aided in better delineation of previous targets, such as the Fish Hawk Lake North Zone.

Fish Hawk Lake North Zone

The Fish Hawk Lake North Zone, discovered in 2006, is associated with fractured and locally pyritic basement intrusive rocks, with locally derived talus yielding as high as 5.086% U3O8 (news releases dated October 13 and November 23, 2006). However, two holes drilled on this zone failed to intersect any significant mineralization.

Detailed follow-up this year indicates that the mineralization, which appears to be unconformity related, straddles the contact between an interpreted fault bounded wedge of Moran Lake Group sediments and Archean basement intrusives. At the contact, silicified siltstone and a porphyritic intermediate intrusive exhibit elevated radiometric responses and contain up to 2 to 4% chalcopyrite and 2 to 5% pyrite. This zone was exposed by trenching over a length of 25 metres. The northernmost 15 metres yielded elevated radiometric responses and was channel sampled at 1 metre intervals yielding the following results:

0.042% U3O8 and 0.493% Cu over 14 metres,

including 0.051% U3O8 and 0.650% Cu over 9 metres,

and including 0.062% U3O8 and approx. 1% Cu over 3 metres

Numerous additional outcrops of fractured and hematized radioactive basement rocks were also discovered west of the Fish Hawk Lake North Zone. This mineralization, traced over 300 metres, typically occurs along fractures in granodiorite, and, to a lesser extent, within pegmatites. Twelve grab samples were collected and assays vary from 0.01% to 3.09% U3O8. Nine samples yielded greater than 0.1% and 3 samples returned greater than 0.7% U3O8.

Anomaly 17

The Anomaly 17 occurrence was discovered by Canico in the late 1970's and briefly investigated by Santoy in 2005. The zone is host to narrow, relatively widely-spaced fracture controlled uranium mineralization in basement intrusive rocks. Detailed prospecting has extended the mineralization well beyond that indicated by Canico. Mineralization hosted by granite to alkali granite has now been traced over approximately 500 metres by 200 metres. The primary depositional control appears to be roughly north-south striking and steeply dipping fractures. In several locations, secondary uranium stain is common. Six grab samples were collected with assays varying from to 0.07% to 1.26% U3O8, with 3 samples yielding greater than 0.5% U3O8.

Brook Showing

The Brook Showing, named for an area of elevated radioactivity in a small brook in the northwest area of the property, now encompasses a northeast-southwest trending area roughly 3 km by 1 km, with numerous uranium occurrences in a complex granodiorite/pegmatite basement setting. This area also encompasses some of the highest uranium values in lake sediments on the property (up to 360 ppm uranium).

Uranium mineralization occurs along sporadic, narrow hematized fractures in granodiorite, and as hematitic or otherwise unaltered spot highs in pegmatite. Nineteen outcrop grab samples assayed from trace to 4.86% U3O8 (with the latter also assaying greater than 10,000 ppm lead) with 6 samples grading better than 0.1% U3O8. Another sample of radioactive pegmatite that assayed 0.09% U3O8 was also noted to contain 545 ppb Au.

A 1.5 km x 0.5 km portion of this mineralized corridor was surveyed for radon gas in soil in 2007. A northeast-trending multi-station anomaly is scheduled for follow up next season.

Whiskey Jack Occurrence

A radioactive occurrence measuring roughly 75 by 40 metres was discovered in a similar geologic setting to and about 650 metres northeast of the Fish Hawk Lake North Zone. Within this area, numerous bleached, pyritized, (+/- chalcopyrite) radioactive outcrops were noted. Five grab samples assayed from 0.033% to 0.062% U3O8. Limited geological mapping indicates that the radioactive zone may occur near the hinge zone of a plunging regional fold. Further field work is planned in 2008.

Lake Bottom Sampling

A total of 126 additional lake bottom sediment samples were collected to augment the 2005 program. Numerous highly anomalous sites were noted with 10 samples returning greater than 50 ppm uranium and 4 samples greater than 100 ppm uranium. Three of the four samples are located in a cluster centered approximately 3 kilometers southwest of the historic Anomaly 7 uranium occurrence. Further follow up is scheduled for 2008.

Further Work in 2007

A minimum of 2,000 metres of diamond drilling is planned for late fall, pending rig availability. This work will target the down-dip and strike extensions to the Fish Hawk Lake South Zone where drilling earlier this year outlined a significant uranium bearing zone in hematized and fractured Archean granodiorite (news release dated June 5, 2007). Drilling is also planned to test the uranium-copper mineralization exposed by channel sampling at the Fish Hawk Lake North Zone, the basement hosted mineralization to the west of that zone, and the radiometric anomaly and mineralization at the original Anomaly 17 occurrence.

Rock, soil and lake sediments were analyzed by Activation Laboratories in Ancaster, Ontario. Uranium was analyzed by the Delayed Neutron Activation technique and additional elements by the ICP method. Field work was supervised by Brian Willett, B.Sc. Geology. The Qualified Person, as defined by National Instrument 43-101, responsible for review of this news release is Rupert Allan, P. Geol.

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
    (604) 669-4799
    Santoy Resources Ltd.
    Tony Perri
    Investor Relations, Manager
    (604) 669-4799
    (604) 669-2543 (FAX)