Yankee Hat Minerals Ltd.

Yankee Hat Minerals Ltd.

October 20, 2006 16:30 ET

Yankee Hat Minerals Ltd.: New Gold Zone Discovered on Fran Property

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 20, 2006) - Yankee Hat Minerals Ltd. (the "Company") (TSX VENTURE:KHT) is pleased to announce the discovery of a New Gold Zone at the Fran property, located 60 km north of Fort St. James, BC. The zone is located 250 meters northwest of hole FR-55, which previously returned the best gold intercept to date of 8.51 g/t Au over 9.55 meters (see the news release dated October 3, 2006).

Highlights from Phase 1 drilling included FR-055 which intersected 8.51 g/t Au over 9.55m (including 10.6 g/t over 1.18m) and FR-049 which cut 5.18 g/t Au over 8.58m. Phase 2 of the 2006 exploration work will commence shortly, with additional drilling to further define a potential gold resource.

Over 180 samples have been taken from the new zone over the last three weeks. Fracture controlled sulphide mineralization (pyrite, pyrrhotite, chalcopyrite) with vuggy quartz is widespread in favorable feldspar porphyry intrusive rocks and altered siltstones, and hornfels. The widespread sulphide mineralization suggests that the zone has excellent potential to host bulk tonnage gold deposits.

The new gold zone is located at the western end of the North Contact Zone. The discovery significantly expands the potential size of the mineralized zone at the North Contact to over 1.4 km. This area will be drill tested as soon as possible.

Terry Fields, President said, "this new discovery has increased the potential strike length of the North Contact Zone by 40%, to over 1.4 km. Drilling at the North Contact Zone has already shown several high grade intersections to the east of the new discovery. These high grade zones, combined with the potential for more widespread mineralization at the new zone, have put us one step closer to defining a large bulk tonnage gold resource at Fran."

Phase 1 of the 2006 diamond drilling program at the North Contact Zone was completed at the end of August. The program involved 16 holes and tested approximately 700 meters of strike length. Assay results have been received for 12 of these holes; the remaining four are expected shortly.

The Fran exploration program is managed and supervised by Ron Wells, P.Geo, FGAC, the qualified person under National Instrument 43-101.

About Yankee Hat Minerals Ltd.

Yankee Hat Minerals is actively exploring the Fran Property, a gold/base metals target near the Mt. Milligan deposit in central British Columbia; and the Shanghai Creek Project, a gold target within the Tintina Gold Belt - near Stratagold's Aurex and Dublin Gulch projects in the Yukon Territory. The Company also recently acquired the Union Mine Property in the Greenwood Mining Division near Grand Forks, British Columbia.


Terry Fields, President and Director

This news release has been prepared by management. This document contains certain forward looking statements which involve known and unknown risks, delays, and uncertainties not under the Company's control which may cause actual results, performance or achievements of the Company to be materially different from the results, performance or achievements implied by these forward looking statements. We seek safe harbor.

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

Contact Information

  • Yankee Hat Minerals Ltd.
    Donald Gee
    (604) 618-3433
    (604) 646-0640 (FAX)
    Yankee Hat Minerals Ltd.
    Shareholder communications
    1-877-711-6111 or 1-866-345-0115
    Website: www.yankeehatminerals.com