CAU Canyon Resources Corp

Canyon Resources Announces Continuation of Reclamation at Kendall Mine in Montana GOLDEN, Colo., June 30 /PRNewswire-FirstCall/ -- Canyon Resources Corporation (AMEX:CAU), a Colorado-based mining company, announced today that its wholly-owned subsidiary, CR Kendall Corporation, resumed significant earthwork reclamation this week at the Kendall Mine new Lewistown, Fergus County, Montana. The primary contractor for this $1.5 million phase of the project is MK Weeden Construction, a local Lewistown firm. CR Kendall is implementing one of the last remaining reclamation projects at the mine, with three-quarters of the site having been reclaimed in previous years. To date, CR Kendall has conducted more than $8 million in reclamation work at the site. "We are excited to complete reclamation at the mine," said Richard De Voto, President of Canyon Resources Corporation. "This is something that we have been working toward for years. We are committed to getting the job done in an environmentally sound manner and at no cost to the taxpayers." CR Kendall mined and produced gold and silver from the site from 1988 through 1996. The area has a rich history in gold mining. While the first discovery was in the 1890s, activity picked up substantially upon the arrival of Harry Kendall in 1900, and there was a significant amount of gold mining there through the 1940s. As part of its reclamation efforts, CR Kendall has also reclaimed much of the land disturbed by the old-time miners long before the company arrived in the 1980s. CR Kendall is implementing a reclamation plan developed by the Montana Department of Environmental Quality (DEQ) in 2000 and approved following a series of public hearings. Key elements of the plan include re-contouring the process pads, covering them with 36 inches of soil, then re-vegetating areas with native plant species. In addition to having been reviewed by DEQ experts, the reclamation plan has been reviewed by outside engineering firms that determined it to be the most suitable method of closing the site. In addition, an Environmental Protection Agency (EPA) study indicates that the type of reclamation cover being implemented is very effective for sites like Kendall. The Montana DEQ is currently conducting an Environmental Impact Statement (EIS) to further evaluate reclamation alternatives at the Kendall Mine site. De Voto said he is confident, particularly given previous evaluations and preliminary results issued by the EIS contractor, CDM of Helena, that the reclamation plan will perform well. After this reclamation is completed, CR Kendall will conduct long-term monitoring at the site -- including water quality monitoring -- to assess its performance and make necessary adjustments should any be required. In addition to the fact that CR Kendall is paying for the reclamation, the company has also provided the state DEQ with $1.9 million in cash, earmarked for reclamation work. "We are committed to completing reclamation at Kendall," said De Voto. "We have a good plan, we are spending the money necessary to properly implement it, and we are moving forward to get this done promptly." Local ranchers who truck water from Kendall's containment pond to supply their livestock will be able to continue to do so. Weeden, the Lewistown contractor, will continue the work throughout the summer and early fall. For more details of the mining and reclamation activities at Kendall, both historic and modern, see the Kendall website, http://www.kendallmine.com/. In addition to producing gold from its Briggs Mine in California, Canyon owns the Seven-Up Pete Venture which has invested $75 million in the 10.9 million ounce McDonald Gold Project in Montana, which is constrained from current development by the anti-mining initiative, I-137. The Company has filed suit against the State of Montana seeking to overturn I-137 or to obtain a damage award, which could be as much as $500 million, for the lost value of the Seven-Up Pete properties, including the McDonald Gold Project. A proposed new initiative, I-147, which has received more than enough signatures of registered voters to qualify for the ballot, if enacted by a vote of the citizens on November 2, 2004, would allow the use of cyanide recovery at open-pit gold mines with appropriate engineering practices and environmental safeguards and would restore all mineral rights to their status of November 1998. The I-147 campaign website is available at http://www.yeson147.com/. 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 metals prices, production and reserve estimates, production costs, cash flows, environmental and governmental regulations, availability of financing, judicial proceedings and force majeure events. Most of these factors are beyond the Company's ability to control or predict. DATASOURCE: Canyon Resources Corporation CONTACT: Richard H. De Voto, President of Canyon Resources Corporation, +1-303-278-8464 Web site: http://www.yeson147.com/ Web site: http://www.kendallmine.com/ Web site: http://www.canyonresources.com/

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