Cash Minerals Ltd.
TSX VENTURE : CHX

Cash Minerals Ltd.

June 27, 2005 08:00 ET

Cash Minerals and AIDEA Advance Negotiations To Export 1.2m tonnes of Coal from Skagway Ore Terminal

TORONTO, ONTARIO--(CCNMatthews - June 27, 2005) - CASH MINERALS LTD. (TSX VENTURE:CHX) is pleased to announce that negotiations have commenced with Alaska Industrial Development and Export Authority (AIDEA) to export 1.2 million tonnes of coal out of its all-weather port located in Skagway, Alaska.

This is a follow up to a meeting held with AIDEA on April 28, 2005, in Skagway to explore logistics associated with the use of the Skagway Ore Terminal (SOT.)

"This is a positive development that advances us towards our objectives to further the Division Mountain coal project," said Basil Botha, President of Cash Minerals.

The use of the Skagway ore terminal provides a two and one half day shipping advantage to Pacific Rim markets over that of traditional west coast ports. Along with this tremendous advantage, road haulage from the mine to the terminal is only 290 kms on a road open year round. For these reasons, SOT is strategically and logistically well-placed to handle and ship 1.2M tonnes of coal per year.

A Cost Reimbursement Plan and Scoping Study is currently being implemented to determine what additional upgrades are required at the SOT facility, this will assist Cash in achieving the 1.2M tonne coal export objective. It is anticipated that the scoping study will be complete by early September 2005.

AIDEA is the contractual owner of the SOT until 2023 and they have the use of the docking facility in conjunction with White Pass & Yukon Rail. Apart from the summer tourist industry there is very little year round import/export movement of goods through the first-class port. The primary use of the SOT facility was to ship ore concentrates out of the Yukon.

To enable the Faro Mine to haul to Skagway on a year round basis, a decision was taken to upgrade the road from Carcross to Skagway in 1986. Work was completed on this upgrade by 1987. In 1997, road haulage activities have ceased from the impact of low commodity prices. Since this time, the loading facility has been idle, with a care and maintenance program in place.

At a recent meeting with Michael Catsi of Skagway Development Corporation, he gave full support to Cash Minerals in achieving their goals to utilize the SOT facility. Calls to the Mayor of Skagway, City Councilors and the City Manager were also positive. "It is our intention to meet with all Skagway officials and interested members in July to present our proposal for using the SOT facility," said Basil Botha.

The main storage area is completely paved and the current loading rate onto ship is in the range of approximately 1,000 tonnes per hour. Modifications to the conveyor system will include higher revolution motors. Upgrading the conveyor belts, will increase the loading rate to approximately 1,500 tonnes per hour. "This will give us the ability to load 80,000 tonne ships in a little over two days," said Basil Botha. "Without modifications to the existing docking and loading facility, 40,000 to 52,000 tonne (HandMax) ships can be accommodated."

Following the latest meeting with AIDEA, a Cost Reimbursement Plan and Scoping Study will commence shortly and will include:

- an appraisal of the facility,

- a master plan, including environmental studies, stockpile and coal handling, and upgrading the loading facility, and

- a cost estimate and finance plan.

Approval to commence the scoping study should be complete by July 25, 2005, following a meeting by the Board of AIDEA. "We are encouraged by the intentions of Cash Minerals to use Skagway to export coal to Pacific Rim markets" said John Wood, Project Manager for AIDEA.

Cash Minerals - an emerging Energy Resource Company

Cash Minerals (CHX) is an emerging energy resource company with coal assets and uranium exploration properties in the Yukon Territory. The company is developing the Division Mountain Coal Project near Whitehorse in the Yukon Territory, where the company recently confirmed the economic potential of approximately 51.6 million tonnes of measured and indicated resources (see Cash Minerals press release dated April 18, 2005 which discussed the Scoping Study prepared by Gary Stubblefield, P.E. of Norwest Corporation on the Division Mountain Coal Project - please note that the scoping study is not adequate to definitively confirm the economics of the Division Mountain Coal Project.

The Company also has a right to earn an interest in six significant uranium projects in Yukon Territory, including four in the Wernecke Mountain area of northeastern Yukon. These uranium projects are hosted in Proterozoic age iron-oxide rich breccia bodies that share numerous textural and mineralogical similarities to the IOCG deposit (Iron-Oxide-Copper-Gold) model, which include Olympic Dam, Ernest Henry and Candelaria. Two uranium properties, (one in west-central and one in southeastern Yukon), are both hosted in Cretaceous granitic intrusions and are best viewed as bulk tonnage uranium targets, modeled on the Rossing Deposit in Southern Africa. .

The Division Mountain Coal Project

The deposit lies 20 km west of Highway 2 and Yukon's main power grid, and 290 km from the closest tidewater port at Skagway, Alaska. The Division Mountain project under study is owned 100% by Cash Minerals, Ltd., and consists of five coal leases measuring 776.4 hectares and 22 Territorial Coal Exploration licenses covering 360,000 hectares. The exploration area covers 4,017 square km of coal-bearing stratigraphy. In addition to the exploration work, geologic and economic studies that have been conducted on the project, the Company has also carried out wide ranging environmental surveys in anticipation of application for mining permits.

Contact Information

  • Cash Minerals Ltd.
    Basil Botha
    President & C.E.O.
    1-604-608-6175
    or
    Cash Minerals Ltd.
    David Meyer
    Business Consultant
    1-416-861-5891