GREENWOOD VILLAGE, Colo., March 26, 2004 (PRIMEZONE) -- Calais Resources (OTCBB:CAAUF) is pleased to report that the company has now signed an agreement with Murray Watts Drilling and Idea Inc. Drilling of Minnesota for an initial 16,000 feet of diamond core drilling at the company's Caribou Gold and Silver District properties. This initial agreement is part of the aggregate 150,000 foot drilling program the company has planned for 2004. Two drill teams of equipment and manpower are being deployed now and drilling is expected to commence on April 15, 2004.
The first phase is intended to target the No Name vein from hole CR-97-104 to the original Caribou Mine, an estimated 1800 feet, in a geologic strategic pattern for the purpose of potentially identifying additional mineral resources and converting existing resources into mineral reserves. Initial drilling will focus drill hole CR-04-128 as a possible intersect to the No name vein. The No Name vein is the largest gold and silver producing vein from the original Caribou Mine and was previously intersected with drill hole CR-97-104, 1800 feet away from the Caribou Mine, which resulted in a high grade intercept of 28.5 feet of .36 oz. Au/ ton gold and .76 oz. Ag/ ton silver. With research of the expressions and outcroppings completed on the surface, it is estimated that the No Name vein extends over 10,000 feet. As only 100 feet of indicated or inferred mineral resources had been added to Calais's overall gold and silver calculations at Caribou from drill hole CR-97-104, additional drilling will allow Calais to confirm and potentially add further mineral resources to the company's current estimates - as described below.
Several other targets including the new caribou Park Discovery, Pomeroy Mountain, and a multitude of other vein systems will be included in future drilling.
Calais has estimated measured, indicated, and inferred mineral resources at its Caribou Gold District as follows:
Measured Indicated Inferred
Mineral Mineral Mineral
Resource Resource Resource
Gold Silver Gold Silver Gold Silver
Tons (opt) (opt) Tons (opt) (opt) Tons (opt) (opt)
165,138 .353 4.27 276,746 .701 26.72 577,689 .295 7.48
The mineral resource estimates are derived a report entitled "Gold and Silver Resource Review - Cross and Caribou Mines Area" dated June, 1998 and prepared by Robert L. Akright, a Geologist and Geological Consultant residing in Littleton, Colorado and an independent third party review report entitled "Cross/Caribou Mines Geological Resource Calculation Review" dated July 27, 1998 and prepared by Mark G. Stevens C.P.G., a qualified independent Geologist of Pincock Allen & Holt of Lakewood, Colorado, mineral industry consultants. The resource estimates contained in the original reports by Akright and Pincock Allen Holt related to only eight veins for areas below existing stopped areas. The Company subsequently made certain adjustments to the data presented in the Pincock Allen Holt report. The Company identified an error in the historical data. Subsequent to the original reports above, the Company added an indicated mineral resource estimate with respect to the Cross Mine using data from the mine's historical operations (using level four of the Cross Mine to the surface ground) taken from a report entitled "Project Status and Recommendations for Continued Evaluation - Cross Mine" prepared by geologists Larry Barrett and William Schuiling in June, 1988. Details with respect to the mineral resource estimates can be found in the company's news release of January 19, 2004 and the material change report dated March 25, 2004.
Mineral resources or inferred mineral resources that are not mineral reserves do no have demonstrated economic viability and due to the uncertainty that may attach to categories of mineral resources, the company advises that there is no assurance that any currently reported mineral resources will be upgraded to proven and probable mineral reserves as a result of continued exploration. Further, the development of a commercially productive mineral reserves and the marketability of any minerals discovered are also affected by numerous factors which are beyond the company's control and which cannot be predicted, such as the potential for further financing and environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
For Further information, please contact Tom Hendricks CEO, President Calais Resources, Inc Matt Witt CFO Calais Resources, Inc. Phone 720-529-9500
Safe-harbor statement
Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Resources
This press release discusses "Measured," "Indicated" and "Inferred" Mineral Resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission (the "SEC") does not recognize them. "Mineral Resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of Mineral Resources will ever be converted into mineral reserves.
Cautionary Note to United States Investors Concerning Forward-Looking Statements
The future conduct of the company's business and it's response to issues raised by third parties are dependent upon a number of factors, and there can be no assurance that the company will be able to conduct its operations as contemplated. Certain statements contained in this release using the terms "may", "expects to", "projects", "estimates", "plans", and other terms denoting future possibilities, are forward-looking statements in accordance with the Private Securities Litigation Reform Act of 1995. The accuracy of these statements cannot be guaranteed as they are subject to a variety of risks that are beyond our ability to predict or control and which may cause actual results to differ materially from the projections or estimates contained herein. The risks include, but are not limited to, the risks described in the above press release; those risks set out in the company's disclosure documents and its annual, quarterly and current reports; and the other risks associated with start-up mineral exploration operations with insufficient liquidity, and no historical profitability.