Cash Minerals Ltd.
TSX VENTURE : CHX

Cash Minerals Ltd.

August 12, 2005 13:00 ET

Cash Minerals Issues Clarification

TORONTO, ONTARIO--(CCNMatthews - Aug. 12, 2005) - CASH MINERALS LTD. (TSX VENTURE:CHX), at the request of the TSX Venture Exchange, wishes to clarify a press release that the Company issued on August 9, 2005. The Company wishes to clarify that the potential resource estimate provided in our Phase 2 program should have been expressed as up to 5 million tonnes grading at up to 0.5% U3O8. The Company wishes to further clarify that this potential resource is conceptual in nature based on historical Canadian and Australian uranium vein-type deposits. The 5 million tonnes is derived from a conceptual mineralized body having 750 metre by 250 metre by 10 metres dimension (from the Gunnar Deposit model in northern Saskatchewan) with a grade roughly equivalent to the median grade of 36 Saskatchewan and Australian vein-type deposits grading 0.42% U3O8. In addition, The Company realizes that there is insufficient exploration to define a resource on the property, and that the Company is not certain whether future exploration will result in a discovery of a resource on the property.

In estimating the potential resource, MRB & Associates reviewed exploration work (including regional geochemical and airborne surveys) completed in the mid 1970's up until 1980 by such companies as James Bay Nickel, MRNQ, S.D.B.J. and Ressources MSV. In the 43-101 report on the property (filed on SEDAR as a technical report on August 11, 2005), MRB & Associates concluded that:

"Very little work (except for the S.D.B.J. geochemical surveys) was carried out within the paragneisses, migmatites, pegmatites, granites and granodiorites underlying most of the Company's ground position. Nevertheless, there are a number of factors which add to the attractiveness of the property;

- Uranium exploration targets generated with the combined use of lineament, ice direction movement and detailed airborne magnetic / radiometric surveys, remain untested;

- No drilling in any of the Uranium anomalies that were detected by the SDBJ in 1975;

- Ideal area for prospecting due to the smooth topography, sparse vegetation, large outcrops, and numerous boulder fields."

MRB & Associates stated that the first phase (exploration program) should include a combined airborne magnetic, time domain electromagnetic and gamma-ray spectrometry geophysical survey over the geochemical anomalies, followed by ground prospecting work, including Beep-mat coverage and boulder sampling. Some compilation work will be needed to combine all past and present data in order to generate drilling targets, as well as a lineament study from satellite images. Once the targets have been properly identified and geo-referenced, surface diamond drilling work will be required to follow up on favorable structures, where there are reasonable possibilities to outline the potential resource.

The information disclosed in this press release has been prepared by J.P. Berube, P. Eng. and J. Lafleur, Geol., authors of the NI 43-101 Technical Report on the Rupert River Property.

Additionally, in a press release dated August 3, 2005, Mr. Suraj Ahuja was incorrectly reported as Cash Mineral's coal marketing specialist. This should have stated that Mr. Peter Arendt was hired as Coal Marketing Consultant to Cash Minerals on July 5, 2005. "Mr. Arendt will help us identify areas where we can best position the sale of PCI metallurigial and thermal coal, as well as negotiate long-term supply agreements into these markets," said Basil Botha, President of Cash Minerals.

ABOUT CASH MINERALS

The Division Mountain Coal Project.

The Division Mountain Coal Project lies 20 km west of Highway 2 and Yukon's main power grid, and 290 km from the tidewater port at Skagway, Alaska. The Project 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.

A recently completed NI 43-101 Report on the Project by T. C. Becker, B.Sc., P.Geo. of Norwest Group (filed as a technical report on SEDAR on April 1, 2005) confirmed a Measured Resource of 38.6 million tonnes of coal and an Indicated Resource of 13.0 million tonnes of coal (all coal contained within the measured and indicated categories is high Volatile "B" Bituminous Coals with calculated weighted averages of 2.4% residual moisture, 27.9% ash content, 26.3% volatile matter, 43.6% fixed carbon, 0.45% sulphur and a calorific value of 5,140 cal/g). A subsequent scoping study, also completed by Norwest, indicated that the Project is potentially viable. Cash is conducting exploration work, geologic and economic studies and wide ranging environmental surveys in anticipation of application for mining permits. A full bankable feasibility study by Norwest is in progress and is scheduled for completion by September 2005.

Uranium Exploration

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 iro-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. A 2,800 metre drill program of approximately 24 holes is currently in progress 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 33.4 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 & C.E.O.
    (604) 608-6175
    or
    Cash Minerals Ltd.
    David Meyer
    Business Consultant
    (416) 861-5891
    www.cashminerals.com