Cash Minerals Ltd.
TSX VENTURE : CHX

Cash Minerals Ltd.

June 16, 2005 11:10 ET

Cash Minerals Announces Drill Program on Division Mountain Coal Property

TORONTO, ONTARIO--(CCNMatthews - June 16, 2005) - CASH MINERALS LTD. (TSX VENTURE:CHX) is pleased to announce the commencement of further exploration work as recommended by Norwest Corporation in the 43-101 Report on the Company's Division Mountain Coal Project (see press release March 31, 2005). This drilling and sampling program will add vital information on coal quality within each seam and will increase drill-hole density and provide samples for metallurgical test work.

Comprehensive laboratory analysis of the drill cores will be undertaken to determine the full extent of the metallurgical properties of the coal. "These results will enable us to institute a marketing outline of exactly where to target sales of Division Mountain coal, within the steel producing industry" said Basil Botha, President, Cash Minerals. "The analysis will also determine the probability that larger volumes of PCI (Pulverized Coal Injection), as estimated in the Scoping Study (see press release April18, 2005) could be made available for export to the Pacific Rim steel producers".

Drilling on the property is set to commence on June 17, 2005 and will be managed by Archer, Cathro & Associates (1981) Ltd, who have more than thirty years of exploration experience in the Yukon. This program will comprise seven diamond drill holes measuring 2,100 metres. Further infill drilling is being conducted to upgrade indicated resources into the measured category. The 43-101 Report estimated The Division Mountain coal property to contain 51.6 M tonnes of surface minable coal resources.

The drill program will provide an opportunity to carry out geotechnical studies on rock samples, which will provide criteria on optimal pit slope angles. Conservative 50 degree angles were used in the scoping study. "If rock strengths support steeper angles, it is hoped that stripping ratios and thus stripping costs could be reduced, resulting in significantly improved economies" said Basil Botha. "Hydrology work will also be a key component of this drill program and will provide vital information in the mine design and environmental assessment in the mine permitting process".

The completion of this drill program, as recommended in the 43-101, will provide valuable information in moving toward completion of our Bankable Feasibility Study (see press release May 11, 2005) on the Division Mountain Coal Project" said Basil Botha. We anticipate the results of this drill program will be made available by the end of July 2005".

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 kilometres of coal bearing stratigraphy. With less than 5% of the property having been fully explored, there is potential for the Company to increase its resources over time.

Cash Minerals - An emerging Energy Resource Company

Cash Minerals is an emerging energy resource company with coal assets and uranium exploration properties in The Yukon Territory.

In addition to 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. All of the uranium projects have considerable existing data as they were aggressively explored by majors in the late 1970s and early 1980. As stated in a Company press release May 26, 2005 a 2,800 metre drill program of approximately 24 holes will begin in June on four of the Uranium properties in Yukon.

Cash Minerals Ltd. (www.cashminerals.com) is an emerging energy resource company listed on the TSX Venture Exchange under the symbol "CHX". The Company has approximately 24.2 million shares outstanding.

THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information

  • Cash Minerals Ltd.
    Basil Botha
    President & CEO
    (604) 608-6175
    or
    Cash Minerals Ltd.
    David Meyer
    Business Consultant
    (416) 861-5891