Santoy Resources Ltd.

Santoy Resources Ltd.

July 18, 2007 11:21 ET

Santoy Reports Exploration/Drill Plans on Uranium Joint Venture, Athabasca Basin, SK

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 18, 2007) - Santoy Resources Ltd. (TSX VENTURE:SAN) is pleased to provide an exploration update on their joint venture, with Denison Mines Corp. (TSX:DML), which is comprised of four project areas: Hatchet Lake, Murphy Lake, Fond du Lac River and Riou River totalling 123,378 ha. All the properties have been investigated by airborne geophysical surveys, with further data processing completed by Condor Consulting Inc. (Condor) on the Hatchet Lake and Murphy Lake projects.

Exploration budgets for this season have been approved for a minimum expenditure of $1.4 million of which 50% will be funded by Santoy Resources. If the JV decides to maintain the current land package, further expenditures will be necessary to satisfy all of the assessment requirements. The intent of the current program is to screen the large land package with further work to be focused in areas with positive exploration results. It is anticipated that the summer program will include diamond drilling on select targets on the Hatchet and Murphy Lake projects.

HATCHET LAKE - 37,514 Ha

A minimum $475,000 exploration program has been approved for the Hatchet Lake project. The Condor Consulting, Inc. interpretive report on the VTEM airborne survey results identified 11 target zones ("TZ"). Three of these have already been selected for helicopter supported diamond drill testing during the summer. A number of other TZ's will undergo additional compilation and interpretation of historical exploration work, with emphasis on previous drill results, prior to selecting additional drill targets. Some of the TZ's may require follow-up ground geophysics prior to drill target selections.

Previous work on the property included the completion of numerous diamond drill holes to investigate graphitic conductor trends. Highlights of this work includes the identification of extensive clay alteration, elevated uranium and elevated indicator metals including nickel, cobalt, copper, zinc and gold. The most significant historic results were one intersection of 7.34% cobalt, 1.66% nickel and 16.07% arsenic over 2.5 metres and an intercept of 2600 ppm U3O8, 2.5% Cu and 950 ppb Au over 6.0 metres on claim S-107535 (assessment report 64-L-NW-0053). The depth to the unconformity throughout the property varies between 0m and 240m.

MURPHY LAKE - 15,236 Ha

Three TZ's were identified in the Condor report. An exploration program totalling $475,000 has been approved by the joint venture which will include the drill investigation of two or three of the TZ's, identified by Condor, this summer utilizing a helicopter supported diamond drill. A review of the historical exploration work which included diamond drilling along a conductive trend thought to be associated with favourable graphitic structure and a re-interpretation of past ground geophysical surveys will be undertaken to prioritize other drill targets. The depth to the unconformity varies between 200m and 350m on the project lands.


This large property with thin Athabasca Group cover was flown with a GEOTEM airborne system. The basement rocks are typical Mudjatik terrain comprised of Archean granitoids and Aphebian metasediments. The airborne survey identified two areas with weak conductive responses that have been selected for additional processing. A summer program of detailed lake sediment geochemical sampling and boulder sampling has been approved for an expenditure of $275,000. Even though the project area has thin Athabasca cover, historical exploration has been limited due to the lack of identified basement graphitic conductor trends. Basement structures identified by airborne magnetics are the focus of the boulder sample program which will attempt to identify possible uranium or pathfinder metal enrichment, and/or clay alteration halos in the sandstone boulders which could be indicative of potential uranium mineralization at the unconformity. The depth to the unconformity varies between 0m and 150m on the project lands.

RIOU RIVER - 13,686 Ha

These claim blocks were flown with a MEGATEM survey, which did not identify the presence of any basement conductors. However, the magnetic survey results indicate the continuation of favourable lithological and structural features from the north. The structural features identified to the north of the SAN/DML claims have yielded significant evidence of uranium mineralization as previously reported by UEX. In addition the presence of radioactive springs and the presence of elevated uranium and other pathfinder minerals reported from the historical D.F. Exploration geochemical data base are worthy of additional investigation. Historic drilling on (1 hole) and adjacent (5 holes) to the property defined the basement unconformity to be in the order of 500 to 900 metres deep. The program planned for this property will conduct further lake sediment sampling and confirm the presence of radioactive springs in the region. The JV is considering utilizing other deep penetrating geophysical methods, either airborne or on the ground in order to locate the continuation of basement graphitic conductor trends that have associated uranium mineralization to the north. An exploration budget of $75,000 has been proposed for the project with a contingency of $100,000 if a suitable deep penetrating geophysical system becomes available.

The Qualified Person, as defined by National Instrument 43-101, responsible for the technical data in this news release is Ron Nichols, P. Eng., Vice-President of Exploration.

About Santoy Resources

Santoy Resources Ltd. is a Canadian mining exploration company focused primarily on the energy sector. Emphasis is being placed on uranium projects in British Columbia, Saskatchewan, Manitoba, Otish Mountains of Quebec and the Central Mineral Belt of Labrador; and on coal and coal bed methane in Western Canada. A description of our properties, including maps and photographs can be viewed on the Company's website at Santoy is well funded with $13.5 million in the treasury.

On Behalf of the Board of Directors SANTOY RESOURCES LTD.

Ron Netolitzky, President

Cautionary Statement on Forward-Looking Information

The statements made in this News Release may contain certain forward-looking statements. Actual events or results may differ from the Company's expectations. Certain risk factors may also affect the actual results achieved by the Company.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Santoy Resources Ltd.
    Ron Netolitzky
    (604) 669-4799
    Santoy Resources Ltd.
    Tony Perri
    Investor Relations, Manager
    (604) 669-4799
    (604) 669-2543 (FAX)