Cloudbreak Receives Drill Permits on Dowd Lake Coal Property

Cloudbreak Receives Drill Permits on Dowd Lake Coal Property

May 12, 2009 Filed Under: Coal Mining  

Cloudbreak Resources Ltd. announces that permits to drill up to 40 coal exploration test holes at their “Dowd Lake Coal Property” near the town of La Ronge, in Central Saskatchewan have been approved and granted by the Saskatchewan Ministry of Environment. The “Dowd Lake Coal Property” is comprised of a total of 96 Coal Prospecting Permits covering approximately 182,000 acres of prospective coal bearing lithologies. Each of the planned diamond drill holes targets the near surface expression of the Cretaceous Mannville Formation which is the target stratigraphy of Goldsource’s “Durango Trend”.

The area covered by the Dowd Lake Coal Property, which lies south of Wapawekka Lake, has been identified in GSC paper 89-4 (G.G.Smith, 1989) as an area prospective for containing coal which has been potentially misidentified as Lignite. Smith identified coal sampled from the area (within the Wapawekka Coal Pit) as Sub Bituminous C ranked coal. This area has also been identified by Pearson (1961) as hosting “Cretaceous Age, Silica Sand and Coal Occurrences on Wapawekka Lake”. Within this Pearson report it is stated “The coal outcrops at Wapawekka Lake…may indicate the northern edge of a coal field lying to the south, southwest and west of Wapawekka Lake.” The Dowd Lake Coal Property lies south and southwest of Wapawekka Lake. Subsequent to these reports, in 2000, Golconda Resources intercepted 145 meters of “coal seams of varying thickness intercalated in unconsolidated sandstones of medium grained composition from 17.5 meters to 163.06 meters”. In 1993, Consolidated Pine Channel intercepted 30 feet (9.15 metres) of coal seams of varying thickness. The coal intersected with the drill hole was described as “Lignite: largely intermixed with silt in the centre part of the section from 278 feet to 308 feet (84.76 metres to 93.9 metres)”.

Mr. Richard Macey, President, reports, “We are extremely pleased that Phase I of the Dowd Lake Coal Exploration drilling program has been approved and we expect to commence the exploration work in July 2009. The Dowd Lake Property is well positioned in an area among Goldsource’s “Ballantyne Property”, Geo Minerals “Wapawekka Lake Property” where they recently announced (April 30, 2009) a coal intercept of 52 feet (16 metres), and the historic Golconda Resources “145 metre coal property”. The Company also looks forward to the drill testing of its additional Saskatchewan Coal Properties in 2009.”

The Dowd Lake Property is one of the Company’s six coal exploration projects in Saskatchewan. Drill testing permits on the remaining five projects are currently being reviewed and prioritized towards permit filing.

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