Canadian Gold Hunter tracking the precious metal in Mexico

Vancouver – The Caballo Blanco gold project in Veracruz, Mexico, is returning promising results for Canadian Gold Hunter (CGH-V).

The 15,000-hectare Caballo property, located 60 km north of Veracruz and within 10 km of the Panamerican highway, hosts three area mineralized zones: the Northern, Central Grid, and Highway zones. Canadian Gold is focused on the Northern zone, a 20-sq. km area defined by extensive vuggy silica, alunite, and clay alteration and siliceous hydrothermal breccias.

Within the Northern zone the Cerro la Paila target area is defined by a clear, north-south elongated gold-in-soil anomaly 1,100 metres long that coincides with a strong resistivity high some 900 meters long and up to 450 meters wide. Canadian Gold’s second and third holes into the project targeted the Cerro la Paila target.

Hole 3 returned 82.3 metres of iron oxide-cemented silica grading 1.08 grams gold per tonne and 2.8 grams silver per tonne from 72.5 metres depth, including 16.8 metres of 2.63 grams gold and 3.1 grams silver. Hole 2 cut 216.4 metres grading 0.6 gram gold and 3.1 grams silver from 38.7 metres downhole, then last 24.4 metres of which averaged 1.01 grams gold and 9.5 grams silver.

Two rigs are currently at work on the Cerro la Paila gold target. The company plans 28 core holes totaling 7,000 metres in the current drill program. The large, high-sulphidation epithermal gold system saw only limited work before Canadian Gold started exploring the property in mid-2007 as part of a joint venture agreement with Almaden Minerals (AMM-T). Canadian Gold can earn a 70% interest in Caballo Blanco by spending US$12 million over a six-year period.

The latest drill results boosted Canadian Gold by 12 in mid-day trading but it closed up only 3 at $1.16. The company has a 52-week trading range of $1.07 to $2.74 and has 54 million shares issued.

Canadian Gold is also advancing several projects in British Columbia. In mid-March the company released the final 28 holes of an 80-hole drill program at its 100%-owned GJ-Kinaskan copper-gold porphyry project in northern B.C.

The 2007 drill program focused on mineralization associated with the Groat stock, a poorly exposed elongated stock of monzodiorite with intruded andesite and volcaniclastic sediments. The Groat stock has four associated mineralized zones: Donnelly, North Donnelly, GJ, and North.

The latest results came from the Donnelly zone. Highlights included hole 197, which intersected 64 metres grading 0.49% copper and 1.06 grams gold, hole 203, which cut 72.5 metres grading 0.75% copper and 1.03 grams gold, and hole 212, which returned 219.5 metres grading 0.47% copper and 0.49 gram gold.

Canadian Gold plans to complete a resource estimate and economic evaluation of the Donnelly zone this year.