CANYON RESOURCES LTD - ASX: CAY

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Description

Canyon Resources has been formed to grow shareholder wealth via exploration of the Cue Project and the sourcing and exploration of resource opportunities worldwide. The Board of directors and management has a strong mix of geological, technical, financial and corporate skills and this combination of skills will place the Company in a strong position to successfully explore the gold prospects in its Cue Goldfield Project as well as expanding the Company via acquisition of new projects.

Cue Project, Western Australia

Canyon Resources has acquired a cohesive portfolio of tenements in the Cue Goldfield, in the Murchison Region of Western Australia, a region that has produced in excess of 7 million ounces of gold over the past 100 years. Mining in the Cue region first commenced in 1892 at Cue townsite, later extending 5 kilometres southwest to the rich Day Dawn deposits of Great Fingal and Golden Crown, which produced a combined total of 1.3 million ounces of gold.

Cue Project is located on the extension of the mineralised corridor hosting the Day Dawn deposits. The Company’s Cue Project is home to a significant number of historical workings, with individual larger workings having produced up to 50,000 ounces of gold. Exploration for narrow vein, high grade shoots, such as those at Light of Asia and Cue One North, is considered to have potential for discovery of extensions to the shoots. The identified shoots persist near to the surface, which is a positive for exploration and to future mining should it prove economic. The shoots have a low angle plunge that remains untested at depth. The potential for discovery of new shoots similar in style to these prospects is, based on interpretation of the magnetic data, considered to be high.

Lights of Asia Prospect

The Lights of Asia prospect is located approximately 4km North East of the Cue townsite and represents one of the most significant prospects in the Cue Project area. Modern exploration of the prospect has highlightedthe potential for this prospect to host additional high grade gold mineralisation. Reverse Circulation drilling undertaken by previous workers returned intersections including 23m @5.4g/t Au (CJRC402 64m – 87m), 4m @ 15.6g/t Au (CJRC393 56m – 60m), 3m @ 12.6g/t Au (CJRC401 61m – 64m). (See table 2.2 in the Independent Geologist Report). The results indicate a high grade shoot is present at the intersection of the Lights of Asia and Queen of the May structures. This shoot has a low angle plunge to the northwest that is open at depth. A reverse circulation drilling program is planned to delineate the geometry and test the depth extent of the high grade mineralised shoot at the Lights of Asia prospect. Initial phases of drilling will also test structural settings that are analogous to the Lights of Asia prospect as highlighted in aeromagnetic data by de-magnetised zones.

Cue One North Prospect

The Cue One North prospect is located on the northern extension of the Cue One reef, which is within one kilometre of the Cue townsite. The prospect is located along strike of the historic Cue One Gold Mine. Previous exploration returned intercepts including 3m @19.2 g/t Au (CRC271 49m – 52m), 3m @ 17.3 g/t Au (CRC322 49m – 52m) and 8m @13.7 g/t Au (CRC173 53m – 61m).(See table 2.3 in the Independent Geologist Report). Follow up Reverse Circulation drilling is planned to test the strike and plunge potential of the Cue One North Prospect.

West African Gold Project

The Gold Project tenements cover an area of 1124 square kilometres over 6 permits in the Birimian Greenstone Belts of the West African craton. These permits comprise two project areas known as the Taparko North Gold Project and the Tao Gold Project. Both Gold Projects are easily accessible by road, being approximately 240km northeast of Ouagadougou, the capital of Burkina Faso.

The Taparko North Gold Project is situated in the Yalogo Belt. This greenstone belt hosts the 2 million ounce Taparko gold mine and the 1.7 million ounce Inata gold mine. The Tao Gold Project lies in the Gorouol Greenstone Belt which hosts the country’s largest deposit, the 5 million ounce Essakane gold mine.

Significantly, both Gold Projects are situated along north east striking structures. The major gold endowed north east – south west trending Markoye Fault is recognised as hosting both the Taparko and Essakane gold deposits and the 3.5 million ounce Bomboré gold deposit, situated along strike to the south west. Numerous artisanal gold occurrences have also been located along the trend of the Markoye Fault within the Taparko North Gold Project.

The Gold Projects represent a combination of outstanding geological and structural settings in highly gold endowed Birimian Greenstone Belts, with recognised major gold hosting structures traversing the project areas. As such, the Taparko North and the Tao Gold Projects have tremendous potential to host significant gold resources.

Mine For

gold

Location of operation(s)

Western Australia, Burkina Faso

Address

Level 3 West, 10 Outram St
WEST PERTH, WA, Australia

Phone

(61 8) 9413 7300

Email

Website

http://www.canyonresources.com.au

Last Updated

5/5/2011