Yale adds a great prospectMay 17, 2006
YALE OPTIONS THE URIQUE PROJECT IN THE SIERRA MADRE GOLD BELT OF CHIHUAHUA STATE, MEXICO
Yale Resources Ltd. (YLL-V and YAB-Frankfurt) is pleased to report that the Company has signed a Letter of Intent with Exmin Resources Ltd. (EXM-V) to earn up to a 75 % interest in the Urique Project, located in southwest Chihuahua State, Mexico.
The Urique Project consists of 11 concessions covering 28,880 hectares and is located in the prolific Sierra Madre gold belt of northern Mexico, which has a well known history of gold and silver discovery and production.
Numerous plus-one million ounce gold deposits have been discovered in this 300 km long region of southwestern Chihuahua: including Mulatos (Alamos Gold), Dolores (Minefinders), Ocampo (Gammon Lake), as well as the El Sauzal mine (Glamis Gold). The Urique Project is located immediately north of Glamis’s property and approximately 10 km north of the El Sauzal mine and extends 40 kilometers to the north where it borders the Monterde property (Kimber Resources).
The El Sauzal mine entered production in 2004 and was scheduled to produce 170,000 ounces in 2005. As of Dec. 31, 2005, the mine has proven and probable reserves of 15,821,000 tonnes grading 3.29 g/t gold (for a total of 1,673,000 ounces) and measured and indicated resources of 20,529,000 tonnes grading 2.73 g/t gold (for a total of 1,802,000 ounces) [source: www.glamis.com].
Yale may earn up to a 75 % interest in the Urique Project by spending US$ 4.5 million on exploration and property acquisitions and issuing 1.5 million shares to Exmin over a five year term.
The Urique Project covers or surrounds seven mineralized areas with past mining activity. Each of these areas is related to large mineralized hydrothermal systems that have the potential to host open pittable resources. The seven areas that have been identified, to date, are briefly described below:
Note: The Company has relied upon historical results from several sources in the evaluation of the Urique Project. As a majority of the results quoted were taken before current QA/QC and sample security protocols were adopted, these results should be considered ‘historical’ in nature and can only be used as a quantitative guide as to the relative tenor of mineralization and should not be relied upon as to what potential resources exist on the property. All sampling reported by the Consejo de Recursos Minerals (or CRM - now known as the Servicio Geologic Mexicano - or the Mexican Geological Survey) exist in the public domain. Although Yale is confident in these results, a significant aspect of the initial exploration on the property will be to re-sample each area in detail.
• El Platano: Reported to contain a 1.2 km long vein that averages 4 meters in width; 3 samples taken by the CRM, averaged 4.0 metres in width with 1% Cu and 84 g/t Ag.
• Los Alisos: A large visible iron oxide anomaly, possibly consisting of advanced argillic alteration, surrounding an intrusion at Cobriza with anomalous copper and gold values; the CRM has compared this area to El Sauzal prior to its discovery.
• El Frijolar: A alteration zone approximately one square kilometre in size that is rich in iron oxides. A 0.5 m vein is reported to outcrop for 50 meters - 2 samples by the CRM gave 4.2 g/t gold and 46.9 g/t gold.
Yale Resources Ltd.
News Release – May 16, 2006
Page 2 of 2
• Urique: Consists of an epithermal vein district with as many as 18 small mines and prospects worked until the 1920’s according to the CRM. Limited sampling by the CRM yielded local bonanza grade gold and silver values (86 g/t gold and 161 g/t silver) as well as locally important base metals values.
• San Pedro: Consists of an area surrounding small old workings that targeted numerous, generally narrow epithermal veins with local bonanza grades (35 g/t gold and 482 g/t silver) with anomalous values for various indicator elements such as arsenic, antimony and mercury.
• El Vergel: A large structure between 1.5 to 10 meters in width and mapped over a 2.5 km strike length. Local workings have been identified at the northern extent of the target area.
• Cuiteco: a large area that covers at least several square kilometres of strong silica-clay alteration; of six samples collected by Exmin only one sample contained anomalous copper and lead values as well as 2.59 % zinc.
All samples taken by Exmin were prepared and analyzed by ALS Chemex at their labs in Mexico and Vancouver. Data from the CRM comes from an open file report on the Urique Region and the Chihuahua state monograph.
Ian Foreman, P.Geo., President of Yale, is the Qualified Person, as defined by National Instrument 43-101, for the Urique Project. In addition, Dr. Craig Gibson, PhD., Executive Vice President of Exploration for Exmin Resources and is responsible for all of Exmin’s technical programs and information has reviewed this news release.
On behalf of the Board,
“Ian Foreman”
Ian Foreman, P.Geo.
President