GOLDEN, Colo., April 14 /PRNewswire-FirstCall/ -- Canyon Resources Corporation , a Colorado-based mining company, received notice on April 11, 2006, that the United States District Court for the District of Montana, Helena Division, has dismissed the complaint related to its federal takings claim in the case of Seven-Up Pete Venture, et al. v The State of Montana. This dismissal was based on technical grounds without deciding on the merits of the case. "We are disappointed that the court reached this decision without looking at the merits of the case or whether our rights have been violated. We continue to believe in the merits and arguments supporting our case and that a true injustice has occurred. We will file notice of appeal of this decision to the U.S. Court of Appeals for the Ninth Circuit by May 11, the deadline for such filing. This case has been well documented and will require only limited expense to move it to the next stage of appeal," states James Hesketh, President & CEO.
As noted in previous press releases and the Company's filings with the Securities and Exchange Commission, this case was initiated after the passage of the 1998 I-137 ballot initiative in the State of Montana. Passage of this 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. This was the first of its kind in the U.S. By the time the initiative passed, the Seven-Up Pete Venture had spent over $70 million drilling, permitting and engineering on its properties in Montana, including the McDonald gold project. The passage of this initiative rendered the property worthless as no other gold recovery process technology has been proven to be economically viable for these ores.
Canyon Resources Corporation is primarily focused on re-starting the Briggs Mine in California, where drilling operations are currently underway to define additional gold mineralization on the property. The Company is simultaneously advancing its Reward Project in Nevada toward final feasibility study and is working with its joint venture partners to advance its uranium properties in Wyoming.
This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act or 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/
