CAU Canyon Resources Corp

GOLDEN, Colo., Sept. 5 /PRNewswire-FirstCall/ -- Canyon Resources Corporation (AMEX:CAU), a Colorado-based mining company is pleased to provide an update on the progress of its Reward Project, near Beatty, Nevada, and on its feasibility study work at the Briggs Mine in Inyo County, California. Reward Project We have commenced an 8,000-foot reverse circulation (RC) drilling program at the Reward Project. The program will consist of 31 drill holes positioned as step-outs from mineralization recognized in the existing pre-feasibility study open pit design. The pre-feasibility study for Reward (previously reported on January 12, 2006) developed a design for an open pit which contained an in-situ mineralized material estimate of 3.35 million tons at a grade of 0.031 ounces per ton based on a $400 gold price and a cutoff grade of 0.011 ounces of per ton. The mineralized material in this pit design has not been closed off by drilling. The new program is designed to test the expansion potential of the deposit and to infill portions of the currently planned open pit design which had been classified as waste due to lack of sufficient drilling information. "We believe that this drilling program will enable us to significantly expand the reserve potential at this site," states James Hesketh, President & CEO. "We have also commenced development of engineering information required to complete a final feasibility study and to provide permitting support for permits to develop this project." As part of the engineering for the project, a shallow geotechnical core drilling program will be conducted to develop information for determining open pit slope design parameters. The present open pit was designed using a conservative 45-degree pit angle. Preliminary engineering studies suggest that the competent wall rocks may support a steeper pit angle, with commensurate improvement in the strip ratio and reserve potential. Additional engineering work includes the commissioning of a heap leach pad design study and preparation of a preliminary plan-of-operation for use in the permitting process. Disseminated gold mineralization at Reward is hosted in a north-south trending, steeply to moderately eastward dipping, quartz stockwork-vein zone from 15 to 140 feet thick and 2000 feet long developed within the Reward fault. The mineralized zone remains open down-dip. The fault separates Proterozoic quartzite, siltstone and dolomite on the west from Cambrian limestone and marble on the east. Gold mineralization is probably Tertiary in age and is considered epithermal in nature. The main target of this drill program is the untested down-dip and up-dip portions of the zone, which were not drilled by previous operators. The Reward Project is part of the Bullfrog/Bare Mountain Mining Districts which are located on the southern end of the Walker Lane Structural Belt, a regionally important and complex zone of Miocene Age hosting numerous epithermal precious metal districts. Reward is located about five miles south of the town of Beatty, Nevada, and about five miles southeast of Barrick's inactive Bullfrog Mine which produced over 2,000,000 ounces of gold in the late 1980s and early 1990s. The Bullfrog/Bare Mountain Districts have been very prolific, producing about 3,000,000 ounces of gold in total from several modern operations, including the Bullfrog Mine (noted above), the Sterling Mine (Imperial Metals), Secret Pass-Daisy (Glamis) and numerous other historic producers. The Bullfrog Mine, Secret Pass and most of the historic producers were low-sulphidation, volcanic hosted epithermal gold systems controlled by low angle faults. Briggs Mine Update Re-start feasibility study work for resumption of production at the Briggs Mine site is well advanced and is expected to be completed over the next month. Review of the Briggs crushing plant has been completed by outside consultants, who report that the plant is in generally good condition needing only minor component refurbishment and maintenance to make it operational. Studies on leach pad design, mine design, the gold plant, site infrastructure, and cost estimation are all nearing completion. This mine design work is based on a philosophy of minimizing environmental impact of renewed operations by avoiding existing reclamation areas and using existing open pits as waste dumps. We have completed additional work on resource modeling to develop high grade mineralization for potential underground mining that may not be suitable for open pit mining. This work included developing a geologically/grade constrained model suitable for use in estimation of underground reserves. An estimate of higher grade underground mineralized material contained within the global estimate (previously reported on July 13, 2006) for Briggs follows: Cut-off Volume Density Tonnage Au Grade Area (oz Au/t) (Cuft/1000) (T/cuft) (Tons/1000) (oz Au/t) Goldtooth 0.10 3,363 0.082 275 0.191 Briggs North 0.10 2,205 0.082 180 0.169 Variogram analysis of the drill results in these areas indicates that maximum 70 foot drillhole spacing will be required to bring this material into a confidence level suitable for reserve declaration. Present drillhole spacing is approximately 100 feet. We are in the process of contracting a drill rig to perform the additional infill drilling required. This program is expected to commence this fall. For additional information on Canyon Resources and its Reward and Briggs Mine projects please visit our website at http://www.canyonresources.com/. This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934 as amended. Such forward-looking statements include, among others, feasibility studies for the Briggs and Reward projects, mineralized material estimates, drilling capability and the potential reopening or expansion of the Briggs Mine. Factors that could cause actual results to differ materially from these forward-looking statements include, among others: the volatility of gold prices; potential operating risks of mining, development and expansion; the uncertainty of estimates of mineralized material and gold deposits; and environmental and governmental regulations; availability of financing; the outcome of litigation, as well as 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 and CEO (303) 278-8464 Valerie Kimball, Investor Relations (303) 278-8464 http://www.canyonresources.com/ DATASOURCE: Canyon Resources Corporation CONTACT: James Hesketh, President and CEO, or Valerie Kimball, Investor Relations, both of Canyon Resources Corporation, +1-303-278-8464 Web site: http://www.canyonresources.com/

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