Yankee Hat brings copper into the fold (July 28, 2008)

VANCOUVER–Yankee Hat Minerals (KHT-V, YKHTF-O) isn’t doodling at its Lobo del Norte site, 20 km southwest of Whitehorse, Yukon. It only optioned the project from Lobo del Norte Exploration in April, but has already completed a shallow, 20-hole drill program, and announced its first four drill results showing decent copper grades with molybdenum credits.

Yankee Hat’s best intercept in hole 144 hit 41.8 metres grading 1.62% copper and 0.04% molybdenum starting 32.3 metres down-hole. Hole 143 cut 20.1 metres grading 1.12% copper and 0.05% moly starting 44.7 metres down-hole. Hole 142 returned 8.7 metres grading 2.3% copper and 0.07% moly from 48.8 metres, and hole 140 intercepted 7.9 metres grading 3.85% copper and 0.1% moly from 36.3 metres.

AtLobo del Norte, the typical copper- bearing minerals are chalcopyrite, bornite and tenorite, with molybdenum occurring in molybedenite. As part of the Whitehorse Copper Belt, the minerals occur primarily within calc-silicate skarns hosted in Upper Triassic limestone of the Askala formation.

On the Lobo del Norte property itself, two open-pit mines operated in 1971. The current drill program, however, targeted areas outside the historic deposits, and the company says the resource at the open-pit mines and surrounding areas have yet to be explored using modern techniques.

The option agreement signed with Lobo del Norte gives Yankee Hat up to a 100% interest, subject to a 2% net smelter return royalty for payments totalling $1.05 million over two years. Yankee Hat must also issue 2.7 million common shares over two years, and spend $1.25 million on exploration over four years.

The junior gets a 50% stake once it has spent $350,000 on exploration, and the rest after spending $700,000.

The option is one of eight the company has signed in the past 12 months in Western and Northern Canada. In addition to Lobo del Norte, it owns or has options on six tungsten plays in the Yukon; is exploring for gold at its Fran property, 60 km north of Fort St. James in northern B. C.; and has options on the Union gold property, 55 km north of Grand Forks, B. C., and the George’s Lake gold property, 130 km northeast of La Ronge, Sask. It also recently signed an option agreement for the Lancer rare earth elements property, 90 km from Ross River in the Yukon.

Yankee Hat’s share price was up 3.6% to close at 14.5 on news of the drill results. The company has 54.4 million shares issued.