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September
13, 2007
NEWS RELEASE
Deep Drill Program on Broulan
Reef Gold Project to Commence
in Red Lake,
Ontario
Vancouver, BC – Cypress Development Corp. (TSX-V: CYP) (the
“Company”) announces that the 2007-2008 exploration program on
its Broulan Reef gold project located in the Bruce Channel area, Red Lake,
Northwestern Ontario is about to commence with the anticipated arrival of the
deep penetrating diamond drill rig. The Broulan Reef gold project is situated
along the Red Lake
mine trend, west of Goldcorp's Red Lake and Campbell
mines, and adjacent to the south Gold Eagle Mines Bruce Channel discovery.
Broulan Reef
Red Lake Location Map:
http://www.cypressdevelopmentcorp.com/i/maps/CYP-McKenzie-Island-New-Map.jpg
The rig, a
JKS Boyles BBS – 75 Diamond Drill, is capable of achieving drill
hole lengths of up to 2400 metres. A drill contract has been awarded to Cabo
Diamond Drilling, Kirkland Lake,
Ontario. Cabo has informed Cypress that the drill
rig will be mobilized and drilling will commence on the Broulan Reef project
at the beginning of October 2007. Cypress
anticipates the drilling of 2 mother holes with several diverging holes to be
wedged off each of the main holes. The Company intends to drill up to 10,000
metres with this Phase 1 deep drill program. A budget of $2.5 million dollars
has been allotted for the completion of the Phase 1 of the deep penetration
drill program on the Broulan Reef acreage over a 12 to 18 month period.
The target
for the 2007-2008 deep drill program will be the Balmer Assemblage rocks
underlying the Bruce Channel sediments, as established during the 2006
summer-fall drill program on the Broulan Reef project. Dips within the Bruce
Channel rocks on the west limb of the broad nose fold are approximately 45
degrees to the west .The shallow dipping unconformity has very significant
implications for the Broulan Reef property. With known points of elevations
of the Balmer Assemblage surface, it is projected that this rock type horizon
will be at an inferred vertical depth of between 900 metres on the eastern
edge of the property and 2000 metres on the western part of the property. At these depths, targets in the Balmer Assemblage
rocks are within explorable and exploitable range over most of the property.
The Balmer
Assemblage rocks beneath the Bruce Channel sediments represent a highly
prospective setting to host high-grade gold mineralization similar to several
mines in the immediate area and to recent, near-by discoveries in the Balmer
Assemblage rocks (Gold Eagle Mines etc.). General structural orientations,
north-northeast, indicate the structural trend being successfully drill
tested by Gold Eagle Mines at this time continues on the Broulan Reef
property.
Broulan Reef 1st Deep Drill Hole Location Map:
http://www.cypressdevelopmentcorp.com/s/Image.asp?i=maps/CYP-Broulan_reef_Drill_Map.jpg
The Balmer
Assemblage is the known host rock for the gold deposits that are being
discovered by Cypress’
neighbors, Gold Eagle Mines, Goldcorp and Premier Gold. The Balmer Assemblage
is the known host environment for the gold that is produced in Red Lake
by Goldcorp, perhaps the richest gold mine known in the world today. The same
geological horizon, Balmer Assemblage that is being seen in the Gold Eagle
Mines drilling is known to exist on the Cypress Broulan Reef property (2006
summer-fall drill program).
The
Company believes that every opportunity exists on the Broulan Reef claims to
encounter the extension of the Gold Eagle Mines deposit now being
discovered / delineated in the Bruce Channel. Gold Eagle Mines adjoins the Broulan
Reef project on our immediate north boundary. Goldcorp / Premier Gold adjoin
the Broulan Reef project on our east boundary with their Rahill-Bonanza
project. Gold Eagle, and Goldcorp / Premier Gold continue to drill just to
the north and east of Cypress’
property with very impressive results released to date.
Goldcorp
invested in a private placement with Cypress Development in May 2007 in the
amount of $2.6 million at a price of $0.65 per share. Goldcorp, in essence,
has acquired 4.8% of the outstanding shares of Cypress with an option to acquire another
4.8% via the exercise of $1.00 warrants attached to the private placement.
Cypress
Development has now completed the establishment of an all weather access road
right-of-way to the drill site for the next several holes to be completed on
the Broulan Reef property. The Company has received permission from Goldcorp
to access the drill site area across their patented ground. Cypress also has
made arrangements to access its patented mining claim KRL 41962 on the east
side of the Bruce Channel by crossing private surface rights held by Sandor
Red Lake Limited and Minnie-Bowman Surveying Ltd, two private Ontario
companies. Cypress Development now has the ability to access the deep hole
drill site for the next 18 months. As consideration, Cypress Development will
issued Sandor Red Lake Limited and Minnie-Bowman Surveying Ltd a total of
200,000 shares of Cypress Development Corp. shares upon TSX Venture Exchange
approval.
David J.
Busch, B.A., B.Sc., PGeo., Vice President of Explorations, is the qualified
person under the meaning of National Instrument 43-101 and has reviewed the
data in this News Release.
Cypress
Development Corp. is a diversified precious and base metal exploration and
development company with properties in Red Lake,
Ontario, Canada,
and in Nevada, U.S.A.
To find
out more about Cypress Development Corp. (TSX-V: CYP), visit our website at www.cypressdevelopmentcorp.com.
ON BEHALF OF
THE BOARD OF DIRECTORS
“Don Huston”
DONALD C.
HUSTON
President
For further information contact myself or:
Don Myers
Cypress
Development Corp.
Director
Telephone:
604-687-3376
Toll Free:
800-567-8181
Facsimile:
604-687-3119
Email: info@cypressdevelopmentcorp.com
or
Nick Hurst
Vice
President
The
Equicom Group Inc.
Telephone:
(403) 538-4845
Email: nhurst@equicomgroup.com
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