Impact and Yale to work together YLL – TSX.V
News Release #06-20
October 17, 2006
YALE TO ACQUIRE UP TO 80% IN THREE SILVER PROPERTIES IN ZACATECAS, MEXICO.
Yale Resources Ltd. (TSX-V - YLL and Frankfurt - YAB) is pleased to announce that the Company has signed a Letter Agreement with IMPACT Silver Corp. (IPT- TSX-V) to purchase up to an 80 % interest in three properties in the Zacatecas Silver District, Mexico, which have recently been acquired by IMPACT.
The three properties, collectively called the Zacatecas Venture, are San Sabino, San Jose, and Salvador. All three properties are within eight kilometres of the Veta Grande processing plant, which IMPACT has recently announced that it has an option to purchase (see IMPACT’s news release dated Sept. 28, 2006). By teaming with IMPACT, Yale has access to an aggressive well managed partner who is working toward becoming a dominant player in the Zacatecas District.
A key aspect in the evaluation of these properties is the high grade nature of the run of mine dumps located on the properties - grades from sampling done to date shows that the dumps grade, on average, in excess of 300 g/t silver. Should the results of the upcoming exploration programs prove favourable, Yale will be able to process material through the Veta Grande processing plant once IMPACT exercises its option to acquire the plant.
Each of the three properties has had some past silver production dating back to the Spanish period. The Zacatecas silver district is one of the largest historic silver districts in the world with past production estimated at 1.2 billion ounces.
The Agreement:
Under terms of the Agreement, for each property, Yale must reimburse Impact the property purchase cost and then spend a minimum of US$ 100,000 on exploration within 18 months in order to earn a 65 % interest in the property. Yale will then have an option to increase its interest to 80 % by paying IMPACT US$ 125,000 in either cash or shares, at IMPACT’s discretion. IMPACT will be the operator of the Zacatecas Venture.
The Properties:
San Salvador:
The Salvador property is located approximately 5 km southeast of the Veta Grande processing plant. Vein outcroppings and old workings indicate that the primary vein within the Salvador property can be traced for greater than 1 km. The central 400 m long section consists of open pits that trace a very well defined 2 to 5 m wide structure with a secondary vein nearby. Along the length of the vein there are three main shafts, one glory hole at a presumed vein intersection and another outside the principal vein area presumably for ore extraction, access and services. Each of the main shafts has an estimated depth of 60 m to the water table, but the true depth of the workings is unknown.
Along the length of the vein there are dumps of run of mine material of various sizes. Due to past mining activity and the resulting poor access, the principle vein has not been sampled at this early stage of assessment. Results from the sampling done to date of the main dumps are as follows:
Sample Sample Ag Ag Au Pb Zn
number description g/t Oz/Ton g/t % %
DUMP #1
400198 random material 109.0 3.17 0.14 0.20 0.34
400199 selected material 947.0 27.62 0.73 0.64 1.93
Sample Sample Ag Ag Au Pb Zn
number description g/t Oz/Ton g/t % %
DUMP #2
400200 random material 288.0 8.40 0.30 0.24 0.36
399701 selected material 265.0 7.73 0.15 0.14 0.13
DUMP #3
399703 random material 199.0 5.80 0.33 0.19 0.37
399704 selected material 976.0 28.47 0.62 0.52 0.43
DUMP #4
399705 random material 276.0 8.05 0.10 0.20 0.28
399706 selected material 922.0 26.89 0.14 0.40 0.46
DUMP #5
399707 random material 82.0 2.39 0.16 1.24 0.42
399708 selected material 159.0 4.64 0.57 1.42 2.95
DUMP #6
399709 random material 201.0 5.86 0.27 0.35 0.14
399710 selected material 683.0 19.92 0.35 0.33 0.86
San Sabino:
The San Sabino property is located approximately 8 km north of the Veta Grande processing plant. The property covers a 500m section of the San Sabino Vein marked by old workings and trenches. In the main showing area there is an old open cut and a small dump of run of mine material. Random samples from the dump assayed 303 g/t silver and a grade sample ran 834 g/t silver. The vein appears to be a strongly silicified shear mineralized with pyrite, galena and sphalerite. A chip sample taken from a remnant pillar across the open cut assayed 260 g/t silver across a true width of 2.35m.
There is a perpendicular structure that appears to intersect this structure at, or near, the open workings. This secondary vein has only one small test pit and appears to have not been mined. It outcrops across a width of 3.0 metres and one sample across this width returned 290 g/t silver.
San Jose:
The San Jose property is located 5 km northwest of the Veta Grande processing plant. The property has at least two veins and covers a 500 m section of the principal vein. There are two open shafts with approximately 50 meters depth to the water table and a third has collapsed. The ultimate depth of these shafts and the associated workings are unknown.
In the vicinity of the two primary shafts are three run of mine dumps. Of particular interest at San Jose are the very high grades from selected sampling of these dumps with the highest grades being 4,970 g/t (159.81 oz/t) silver, 6.74 g/t gold, 1.67 % lead, and 2.98 % zinc. Results from the sampling of these dumps are as follows:
Sample Sample Ag Ag Au Pb Zn
number description g/t Oz/Ton g/t % %
DUMP #1
400126 selected material 4,970 144.96 6.74 1.67 2.98
400127 random material 122 3.56 0.15 - -
Sample Sample Ag Ag Au Pb Zn
number description g/t Oz/Ton g/t % %
DUMP #2
400128 Selected material 200 5.83 0.22 - 1.12
DUMP #3
400131 selected material 4,200 122.50 7.73 1.37 1.68
400130 random material 525 15.31 1.07 1.87 -
There is considerable exploration potential at San Jose as there are two exploration targets that have been identified within the property. The first is near an old blocked shaft of unknown depth, a sample across mineralization exposed here graded 0.37 g/t gold and 67.4 g/t silver over 2.8 metres. The second is along strike from the historic workings and consists of several alteration zones made up of moderate to strong oxidation, moderate argillitization, and weak silicification. Each of these zones requires detailed sampling and mapping in order to determine their potential.
About Yale Resources:
With the of the properties comprising the Zacatecas Venture, Yale now has interest in five highly prospective properties in Mexico along with its two properties in Namibia, southwest Africa. Acquiring properties in Mexico fits well with Yale’s corporate mandate of ‘identifying properties of merit in mining friendly and politically stable jurisdictions’. In addition, all five properties are within 10 km of producing mines as well as having previous production.
Ian Foreman, P.Geo., President of Yale, is the Qualified Person, as defined by National Instrument 43-101, for the Zacatecas Venture. In addition, George Gorzynski, P.Eng., Vice President of Exploration for IMPACT Silver Corp., who is responsible for all of IMPACT’s technical programs, has reviewed this news release. Samples were tagged for identification after collection and securely stored at the IMPACT base camp until shipment. A total of 5% assay standards and 5% blanks were inserted into every sample shipment as a quality control measure. All samples were shipped to the ALS Chemex preparation laboratory in Guadalajara (Mexico) where they were fine crushed, pulverized and a pulp split separated for assay by a riffle splitter. These pulps were then shipped to the ALS Chemex laboratory in North Vancouver, Canada where a 30 gram split of each was assayed for gold and silver by standard fire assay and a 10 gram split was analysed for an additional 30 elements by ICP spectrometry.
On behalf of the Board,
“Ian Foreman”
Ian Foreman, P.Geo.
President
For Investor Relations please call Contact Financial at 604-689-7422.
For additional information on Yale Resources please call the Company at 604-678-2531.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. Statements in this press release, other than purely historical information, including statements relating to the Company’s future plans and objectives or expected results, may include forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.