CAU Canyon Resources Corp

GOLDEN, Colo., Aug. 9 /PRNewswire-FirstCall/ -- Canyon Resources Corporation (AMEX:CAU), a Colorado-based mining company, is pleased to announce that its Board of Directors has approved a $700,000 budget to conduct an exploratory drilling on expected high-grade gold targets associated with its Briggs Mine in the Panamint Range of Inyo County California. These targets offer the potential for discovery of high-grade, structurally controlled mesothermal gold orebodies adjacent to and below the recently closed open pit operations. Review of exploration drilling from the Briggs Mine indicates the presence of at least two high-grade zones, one in the Goldtooth pit and one at Briggs North, where Canyon conducted an underground mining program to extract high-grade gold ores. A potential gold deposit in this environment could develop as one or more ore shoots along a favorable fault or shear zone. "I am very excited about this program. Briggs was discovered in the late 1980s when exploration was focused on discovering shallow, low grade, oxidized, gold ores that were amenable to open pit mining. There was no focus on the potential for high-grade feeder systems that could be underground mineable. Recent field examination and data review indicates good potential for discovery of high-grade gold mineralization below or adjacent to the Briggs Mine where we have ongoing gold production at a permitted facility. I believe that the best odds of finding a new deposit is always in and around an existing mine. Strong exploration potential exists which can be quickly tested by an aggressive, but straight forward drilling program," states James Hesketh, President & CEO. The major conduit for the gold bearing fluids that formed the orebodies at the Briggs mine is believed to be the Goldtooth Fault. The Company believes that the relationship between this fault and gold mineralization at the Briggs Mine is analogous to faults that control major mesothermal greenstone gold orebodies elsewhere in the world. Examples of earlier drilling results show the potential along the Goldtooth Fault for high-grade gold mineralization as shown below: Top of Drill Hole# Mineralization Interval Average gold grade GT-104 285 feet 55 feet 0.376 ounce per ton PPN-212 125 feet 25 feet 0.372 ounce per ton PPN-261 85 feet 30 feet 0.306 ounce per ton In 2001 and 2002, Canyon conducted an underground mining operation over a nine month period at the Briggs North orebody using modified room and pillar methods on a near horizontal, but highly mineralized structure. A total of 21,000 ounces were extracted at an average grade of 0.19 ounces per ton of gold indicating the potential for high-grade in this system. The last underground working that was mined across the width of the underground orebody averaged 0.32 ounces per ton of gold over 275 feet in channel sampling. Underground mining proceeded beyond the drilled gold reserve and was terminated as the gold price fell below $275 per ounce. A 5000-foot portion of the Goldtooth Fault adjacent to the Briggs Main and North orebodies has not been drill tested below about 450 feet and the northern 2000 feet has never been drill tested. In the 1990s a geophysical survey consisting of a single IP line crossed the Goldtooth fault west of the main Briggs pit and identified at depth (interpreted to be below 200-300 feet) a significant chargeability anomaly (4 to 5 times background) corresponding to the believed location of the fault. Chargeability infers the presence of significant sulfides, in this case pyrite, which is commonly associated with significant gold values at the Briggs Mine. IP surveys appear to be a highly useful tool to define the fault at depth and determine which areas along its strike might host significant pyrite and possible associated gold mineralization. The approved budget includes additional IP surveys along the Goldtooth Fault. Actual results may differ materially from any forward-looking statement whether expressed or implied in this news release. The following risks and uncertainties which could cause actual results to vary include, but are not limited to speculative nature of mineral exploration, precious metal prices, production and reserve estimates, production costs, cash flows, environmental and governmental regulations, availability of financing, judicial proceedings and force majeure events and other risk factors as described from time to time in the Company's filings with the Securities and Exchange Commission. Most of these factors are beyond the Company's ability to control or predict. FOR FURTHER INFORMATION, CONTACT: James Hesketh, President & CEO, (303) 278-8464 Gary Huber, VP Finance and Corporate Development, (303) 278-8464 http://www.canyonresources.com/ DATASOURCE: Canyon Resources Corporation CONTACT: James Hesketh, President & CEO, +1-303-278-8464, or Gary Huber, VP Finance and Corporate Development, +1-303-278-8464, both of Canyon Resources Corporation Web site: http://www.canyonresources.com/

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