Cash Minerals Ltd.

Cash Minerals Ltd.

May 26, 2005 08:00 ET

Cash Minerals Drill Program to Commence on Four of its Uranium Properties

TORONTO, ONTARIO--(CCNMatthews - May 26, 2005) - CASH MINERALS LTD. (TSX VENTURE:CHX) is pleased to announce that a 2,800 metre drill program of approximately 24 holes will begin in June on four of the Company's uranium properties in Yukon. Three of the properties (Bond, Igor, Steel) host uranium in strongly altered Proterozoic age discordant breccia bodies (see press release dated April 21, 2005). The uranium is modeled on iron-oxide copper gold (IOCG) deposits of which the world's largest uranium mine, the Olympic Dam deposit in South Australia, is the best known example. The fourth property (Pterd) covers an extensive glacial float train of high grade uranium bearing boulders. The source of these boulders has not yet been identified.

"We look forward to releasing the first batch of drill results by the third week of July" said Basil Botha, President.

The independent 43-101 report entitled "Technical Report describing the geology, geochemistry, geophysics and diamond drilling at the Bond, Igor, Steel and Pterd Properties Mayo Mining District Yukon Territory" that was prepared for the Company by W. Douglas Eaton, B.Sc. Geology, of Archer, Cathro & Associates (1981) Limited and Helmut Wober, P.Eng. (see press release dated April 21, 2005 - with a copy of the technical report available on SEDAR), provided the following highlights:

- Bond Property - Uranium occurs in strongly altered and tightly folded breccia bodies, the grade potential of which is characterized by a 1977 drill intersection that averaged 0.083% U308 over 9.42 m. Planned drilling of about 8 to 10 holes will confirm the fold model and establish grade and size potential of mineralization.

- Igor property - Uranium and copper mineralization is hosted in tabular, steeply dipping zones that have been partially delineated by 1980 to 1982 drill holes, which yielded numerous promising intersections including 0.089% U308 and 4.74% copper over 19.81 m and 0.090% U308 and 6.49% copper over 10.06 m. Planned drilling of about seven holes will explore down dip and along strike extensions of surface mineralized exposures and previous drill intersections.

- Steel Property - Specimens collected in 1981 from a radioactive outcrop produced assay values of 0.178 to 0.244% U308. Planned drilling of two to three holes will test for mineralization in proximity to coincident strong geophysical magnetic and gravity anomalies.

- Pterd Property - Representative samples of radioactive boulders in 1975 returned assay values between 1.36 to 7.67% U308. Proposed drilling of two to three holes will explore for the source of the uranium mineralized boulders.

The drill program will be carried out on behalf of the Company by Archer, Cathro & Associates (1981) Limited, and will be monitored by our consultant Suraj Ahuja who has over 35 years of uranium exploration experience. Archer Cathro has considerable experience in uranium exploration including having performed exploration on Bond, Igor and Pterd properties on behalf of Chevron Canada Ltd, Aquitaine Company of Canada and Eldorado Nuclear during the period 1975 to 1982.

Under an option agreement with Twenty-Seven Capital Corp., the Company has the right to earn an initial 50% interest in the four mineral properties in Phase 1 and up to 75% interest in Phase 2 of the two stage program.

- Phase 1: 2,800 m - an initial drill program in 2005 of $1 million.

- Phase 2: 6,000 m - a drill program of $2 million in 2006 and contingent upon the results of 2005 drilling. Cash Minerals has the right to earn up to 75% in Phase 2.

The properties collectively comprise 75 claims totaling approximately 1,500 hectares which cover key portions of earlier properties that were explored extensively by Chevron, Aquitaine, and Eldorado Nuclear during the period 1974 to 1982. Most recent activities on any of the properties were magnetic and gravity surveys performed at the Steel property in 2004.

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. In addition to the Uranium properties described in this release, the company is also developing the Division Mountain Coal Project near Whitehorse in the Yukon Territory, where the company recently confirmed the economic potential of the 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 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 kilometres 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
    Cash Minerals Ltd.
    David Meyer
    Business Consultant
    1 (416) 861-5891