Cdn Gold starts 10,000-metre drilling on Caballo Blanco

Mr. Richard Bailes reports

DIAMOND-DRILL PROGRAM COMMENCES ON CABALLO BLANCO GOLD PROJECT IN VERACRUZ, MEXICO

Canadian Gold Hunter Corp. has commenced diamond drilling on the Caballo Blanco gold project in the state of Veracruz, Mexico. Two track-mounted core rigs have been mobilized to the property. The planned program is up to 10,000 metres in two phases, with the initial phase being 5,000 metres.

The upcoming program is a follow-up to the initial 18 core holes (3,355 m) drilled on the Cerro La Paila high-sulphidation gold target from late 2007 to mid-2008. That campaign generated very encouraging results with a number of broad intervals that graded over one gram per tonne gold (g/t Au), including drill hole 08CBN-004, which intersected 94.5 metres grading 2.09 g/t Au. The primary objective of the current drill program is to define a resource at Cerro La Paila. The first phase of the program will comprise 24 angled holes drilled along east-west sections spaced at 50 metres. In addition, reconnaissance drilling will be conducted at Cerro La Cruz and Cerro Bandera, two other high-sulphidation gold targets within the Northern zone.

Cerro La Paila is one of several gold targets within the much larger Northern zone, which is defined by a strong alteration system extending over more than 20 square kilometres. Gold at Cerro La Paila is hosted by a large body of complex vuggy silica breccias containing abundant iron oxides partly exposed over a north-south distance of 900 metres and up to 450 metres wide. The silica breccias are well defined by a strong resistivity anomaly with similar surface dimensions and considerable, but as yet undetermined, depth extent. Gold, silver and several pathfinder metals define a prominent soil anomaly over the exposed parts of the breccias. Cerro La Cruz, 700 metres south, and Cerro Bandera, three kilometres southwest of Cerro La Paila, constitute two other areas of exposed massive silica and vuggy silica breccias that are also coincident with strong resistivity anomalies.

The company can earn a 70-per-cent interest in the Caballo Blanco project from Almaden Minerals Ltd. by spending $12-million (U.S.) over a period of six years.

The geological data in this news release were verified by qualified person Jan Christoffersen, PEng, vice-president of Canadian Gold Hunter. Appropriate quality control and quality assurance protocols are used on the program. Standard reference samples and various duplicates are inserted in each batch of assays. Drill core samples are cut by saw on site and sample splits are shipped for preparation to ALS Chemex in Guadalajara, Mexico. Sample pulps are sent to ALS Chemex in North Vancouver, B.C., and analyzed for gold by fire assay and for silver and 34 other trace and major elements by ICP-MS in accordance with standard industry practices.

Hg