GOLDEN, Colo., Nov. 8 /PRNewswire-FirstCall/ -- Canyon Resources
Corporation (AMEX:CAU), a Colorado-based mining company, is pleased
to provide a summary of the unaudited results for the Company's
third quarter ended September 30, 2007. Financial Results Canyon
ended the quarter with $4.3 million of unrestricted cash and short
term investments. The short term investments of $0.5 million
consist of auction rate certificates. Cash used in operations
during the third quarter of 2007 amounted to $1.4 million and
capital spending at the Briggs Mine totaled $0.1 million.
Significant uses of cash from operations are summarized as follows:
-- Selling, general and administrative spending amounted to
approximately $0.9 million, which included holding costs at the
Briggs Mine of $0.4 million. -- Exploration and development
spending amounted to $0.4 million including amounts capitalized. --
Asset retirement obligation spending amounted to $0.2 million
primarily for the Kendall Mine operations and continued leach pad
dewatering at the Briggs Mine. -- Sources of cash during the
quarter included gold sales of $0.2 million and asset sales of $0.5
million. A net loss of $0.8 million was recorded, or negative $0.02
per share, on revenues of $0.2 million for the third quarter ended
September 30, 2007. This compares to a net loss of $1.2 million, or
negative $0.03 per share, on revenues of near nil for the third
quarter of 2006. The total variance between the quarters was
positive by $0.4 million, but significant variances between cost
categories are summarized below: -- Positive variance of $0.2
million in revenue was offset by $0.2 million negative variance in
cost of sales. -- Positive variance of $0.2 million in selling,
general and administrative costs due primarily to cost reduction
measures. -- Negative variance of $0.1 million in exploration
costs. -- Positive variance of $0.4 million for a gain on sales of
excess mining equipment. A net loss of $3.7 million was recorded,
or negative $0.08 per share, on revenues of $0.2 million for the
nine months ended September 30, 2007. This compares to a net loss
of $3.0 million, or negative $0.07 per share, on revenues of $1.0
million for the nine months ended September 30, 2006. For the third
quarter ended September 30, 2007, Canyon had gold sales of 265
ounces. For the comparable period of 2006, no gold sales were made.
The London PM Fix gold price averaged $680 and $622 per ounce for
the third quarter 2007 and 2006, respectively. Operating Activities
and Other Developments Briggs Mine At year-end 2006, an initial
Briggs Mine feasibility study was completed for both the open pit
and underground mining options. Subsequently the size and quality
of estimated underground mineralized material was increased and
underground mine design work to plan the extraction of this
material is ongoing and nearing completion. Significant potential
is possible from the Goldtooth structure which remains open along
strike and to depth. This structure has been tested over a distance
of 4,900 feet and to a depth of approximately 500 feet and remains
open for further expansion both along strike and down dip. As
announced on July 30, 2007, total in-place mineralized material in
the high grade underground Goldtooth zone is 0.8 million tons at a
grade of 0.215 ounces per ton of gold ("opt") based on a cutoff
grade of 0.10 opt. This high grade zone is surrounded by a blanket
of lower grade material, totaling 4.2 million tons at a grade of
0.049 opt using an internal cutoff grade of 0.02 opt. Mineralized
material outside of the Goldtooth zone and around the existing open
pits totals 22.0 million tons at a grade of 0.022 opt at a cutoff
grade of 0.01 opt. Total in-place mineralized material from all
sources quoted above at Briggs is 27.0 million tons at a grade of
0.031 opt. A permitted twenty-hole drill program at the Cecil R
deposit, located approximately four miles north of the Briggs Mine,
is planned for the fourth quarter of 2007 to further outline the
extents of the deposit. The Cecil R deposit has estimated in-place
mineralized material of 5.75 million tons at an average grade of
0.024 opt using a cutoff of 0.015 opt. Metallurgical testwork
indicates that good gold recovery can be expected using heap leach
technology. Reward Project The Reward Project located near Beatty,
Nevada, is currently in the feasibility stage. We have hired an
engineering firm to complete the feasibility study to determine its
economic potential. It is anticipated that this study will be
completed prior to year end 2007. The feasibility study is building
upon a positive pre-feasibility study that was announced in January
2006 and a May 2007 report showing a significant increase in
mineralized material for the project. Many of the components of
this study have already been completed or are in process including:
heap leach pad design, electrical supply, water supply,
geotechnical study and additional metallurgical test work. The
Reward Project anticipates development by conventional open pit
mining methods and standard crushing and heap leach technology for
gold recovery. Leach solutions would be circulated through
activated carbon, concentrating the gold. This loaded carbon would
then be transported to the Briggs Mine in California or to a third
party gold facility for production of gold dore for sale. The
permitting process for the Reward Project is also proceeding as
planned and is well advanced. A plan of operations was submitted to
the Las Vegas field office of the Bureau of Land Management ("BLM")
and found to be complete. The BLM has completed an internal scoping
review and an environmental assessment ("EA") is being prepared to
support the BLM's review. Archaeological and biological assessment
surveys were completed on the site and reports have been submitted
to the BLM for review, and ultimate inclusion in the EA.
Applications for a water pollution control permit and a reclamation
permit have been submitted to the Nevada Division of Environmental
Protection ("NDEP"). The NDEP has determined the applications are
nearly complete and Canyon is providing additional information to
complete the NDEP's technical review. A design report for the heap
leach facility is complete and was submitted to the BLM and NDEP.
Potential water well sites have been identified and permits to
conduct drilling and hydrologic testing have been issued. Test
water well drilling will commence this month. Takings Claim The
federal takings claim in the case of Seven-Up Pete Venture, et al.
v Brian Schweitzer, Governor of the State of Montana, et al. was
heard in oral arguments by the U.S. Court of Appeals for the Ninth
Circuit in Seattle, Washington on November 7th. The Seven-Up Pete
Venture is wholly owned by Canyon Resources Corporation and its
subsidiaries. The case was vigorously presented before the court
and the justices presiding over the case appeared to find the case
interesting. Canyon remains cautiously optimistic concerning the
outcome from this court, which if successful would result in a
remand back to U.S. District court where the case would be heard on
its merits. A decision in this case will be released at the
pleasure of the court. As noted in previous press releases and the
Company's filings with the Securities and Exchange Commission, this
case was initiated after passage of the 1998 I-137 ballot
initiative in the State of Montana. The initiative resulted in a
law that was narrowly crafted to specifically outlaw the use of
cyanide to recover gold from ores mined by open pit methods. The
passage of this initiative critically impaired the McDonald gold
project rendering it worthless as no other gold recovery process
technology has been proven to be economically viable for these
ores. The Company is seeking compensation for its resulting loss of
value. 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/ CANYON RESOURCES CORPORATION AND
SUBSIDIARIES SUMMARIZED CONSOLIDATED FINANCIAL AND PRODUCTION
INFORMATION (Unaudited) Sept. 30, Dec. 31, 2007 2006 BALANCE SHEETS
Assets Current assets $4,678,100 $4,426,800 Noncurrent assets
12,665,300 12,397,800 Total assets $17,343,400 $16,824,600
Liabilities and Stockholders' Equity Current liabilities $1,846,700
$2,392,300 Notes payable 825,000 825,000 Noncurrent liabilities
2,827,600 3,087,200 Stockholders' equity 11,844,100 10,520,100
Total liabilities and stockholders' equity $17,343,400 $16,824,600
Three Months Ended Nine Months Ended Sept. 30, Sept. 30, 2007 2006
2007 2006 STATEMENTS OF OPERATIONS Revenue $181,100 $2,400 $248,300
$1,008,800 Expenses and Other (Income) Cost of sales 170,600 -
231,000 866,600 Depreciation, depletion and amortization 11,500
8,600 33,200 24,200 Selling, general and administrative 861,000
1,005,600 2,819,500 2,644,300 Exploration 443,200 381,800 1,314,800
1,115,000 Accretion expense 41,900 50,700 125,700 152,300 Gain on
asset disposals (440,000) - (404,900) - Gain on sale of securities
- - - (882,200) (Gain) Loss on derivative instruments - (240,900) -
69,600 Other income, net (80,000) (2,200) (200,200) (27,500) Net
loss $(827,100) $(1,201,200) $(3,670,800) $(2,953,500) Net loss per
share $(0.02) $(0.03) $(0.08) $(0.07) Basic and diluted
weighted-average shares outstanding 53,037,800 43,824,500
48,164,000 40,735,500 CASH FLOWS Cash and cash equivalents,
beginning of period $4,758,500 $1,543,700 $1,513,700 $5,649,200 Net
cash used in operating activities (1,386,500) (2,019,600)
(4,262,100) (11,292,700) Net cash provided by investing activities
384,800 1,831,300 1,811,900 1,848,500 Net cash provided by (used
in) financing activities (4,900) (1,000) 4,688,400 5,149,400 Cash
and cash equivalents, end of period $3,751,900 $1,354,400
$3,751,900 $1,354,400 PRODUCTION & SALES DATA Gold sales in
ounces 265 - 365 1,735 Average realized price per ounce $680 $-
$677 $579 Average market price per ounce (London PM Fix) $680 $622
$666 $601 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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