Cloudbreak Resources Ltd.
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Cloudbreak Resources Ltd.

June 27, 2008 03:01 ET

Cloudbreak Receives "Comfort Letters" Land Adjoining Westar's "18 Meter Coal Property"

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 27, 2008) - CLOUDBREAK RESOURCES LTD. (TSX VENTURE:CDB)(PINK SHEETS:CUDBF)(FRANKFURT:C6K) has received a "Comfort Letter" from Saskatchewan Energy and Resources for coal disposition applications filed in mid-May that confirmed first priority for 36,864 hectares (approx 91,000 acres). The comfort letter received lists all applications made on behalf of the company during the period in mid-May and details the land description, acres, priority sequence and the allocated coal-prospecting permit numbers. The company applied for the ground in accordance with all the rules and regulations set forth by the Government of Saskatchewan's permitting office.

Two of Cloudbreak's townships which now have "Comfort Letters" are located in east-central Saskatchewan, approximately 80 kilometers from the recent Goldsource Mines Inc. discovery, near North American Gem and directly adjoining Weststar Resources property known as the "18 Meter Property". The companies other two townships are within 40 kilometers of this property.

During a 1994 exploration program conducted by Consolidated Pine Channel Gold Corporation, an approximately 18.84-metre-thick coal interval between 47.70 metres and 66.54-metre depth was identified, at the property. The discovery was made while testing a magnetic geophysical anomaly for kimberlite. The historical drill log (TL02-2, assessment report 63E-0004) indicates:

- 47.70 m to 55.32 m (7.62 m) -- coal, massive;

- 55.32 m to 66.54 m (11.22 m) -- coal breccia, from 20% to 60% angular coal clasts, mixed with varying amounts of clay, silt and sand.

Neither the rank nor the grade of the coal has been determined. It should also be noted that core recoveries in the coal intersection were as low as 15%, and average less than 50% for the 7.62 metre interval. Hence, the massive nature of the coal as stated in the drill log may not be accurate.

Readers should note that the above information on historical work performed on the property was done prior to implementation of National Instrument 43-101, therefore the results spoken of do not comply with modern reporting standards and should not be relied upon until such time as additional work is completed on the property, including preparation of an NI 43-101 report.

Although the coal was not analyzed at the time, the magnitude of coal reported within the aforementioned interval is similar to the Goldsource discovery (26 m and 32.5 m in thickness) and confirms the regional potential for significant thicknesses of coal within Mannville-aged rocks of east-central Saskatchewan.

The recent announcement of the discovery by Goldsource of coal in two drill holes, 1,600 metres apart, suggests the potential for a much larger coal system. Goldsource reports it believes the coal it encountered is from the Mannville/Swan River group of Cretaceous age. Coal seams of Cretaceous age are reported to be generally very large and can encompass several thousand square kilometers.

Cloudbreak has also applied for an additional 16.5 townships (approximately 375,000 acres) of coal dispositions in the area as announced on June 19, 2008 and is awaiting communication from the Ministry as to their status.

This news release has been prepared on behalf of the Board of Cloudbreak Resources Board, which accepts full responsibility for its contents. The contents of this release have been reviewed and approved by Marvin A. Mitchell, P.Eng, and Director of Cloudbreak is a qualified person as defined by National Instrument 43-101.

Cloudbreak has also applied for a number of metallic mineral permits from the Department of Alberta Energy, Mineral Development Division in Edmonton, Alberta in the Vermillion area on the Saskatchewan-Alberta border, which include the rights to subsurface potash, totaling 774,282 acres. The company has been notified that the application process for these permits should be finalized in the coming weeks.

ON BEHALF OF THE BOARD

Blair Naughty, President & Director

The TSX Venture Exchange has not reviewed nor does it accept responsibility for the adequacy or accuracy of this press release.

Contact Information

  • Cloudbreak Resources Ltd.
    Rich Macey
    (604) 669-0401
    or
    Cloudbreak Resources Ltd.
    Shelly Hildebrandt
    (604) 669-0401
    (604) 669-0414 (FAX)
    Website: www.cloudbreakresources.com