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January 9, 2008
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X-Cal Resources Ltd.: 2008 Priorities and Update
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VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 9, 2008) - X-CAL (TSX:XCL) completed 71,406 feet (21,765 meters) of drilling at Sleeper in 2007, in preparation for the pending mineral inventory. Drilling was mainly concentrated on known areas of gold and silver mineralization. The chosen areas were both infill drilled and expanded. Encouraging drill results were reported throughout the year.
A substantial database that includes more than 600 drill holes for the mineralized areas has been submitted to qualified independents for resource calculations (see: November 13, 2007 and December 5, 2007 news releases).
The Ken Snyder Royalty Syndicate purchased a 1% NSR Future Production Royalty on the Sleeper Gold Project for $ US 1.5 million, in mid-2007. The investment is an endorsement of the project by a respected professional.
The Sleeper Gold Project will require successive financings to realize the development/exploration potential. X-Cal has begun dialogue with several corporate entities with a view towards meeting the growing requirements of the project. The discussions will be a priority as we begin 2008.
X-CAL's initial 2008 goals are:
- Finance
- Publish mineral inventory for Sleeper
- Accelerate exploration and development of the Sleeper Property
Evaluating the potential for re-establishing heap leach production with a blend of near surface Facilities Area Mineralization and above ground gold and silver mineralization from the Heap Pads at Sleeper is a priority.
Sonic drilling results from the Heaps are pending and will contribute to evaluation of the near-term potential.
Metallurgical testing to determine potential recovery rates for gold and silver from both the Facilities Area and the Heaps at Sleeper is ongoing at Kappes, Cassiday & Associates (KCA) in Reno, Nevada.
Drill data for the West Wood Area has also been submitted to Mine Development Associates (MDA) for resource calculation.
West Wood is deeper, higher-grade material compared to Facilities or Heaps. Drill highlights from this area can be found in the current Annual Report (Example: 110 ft. avg. 0.633 oz per ton Au / 21.72 gpT).
The delivery date for the mineral inventory is not fixed. Our commitment is to provide all information requested to the qualified independents and to report within the earliest reasonable time frame.
The Sleeper Gold District covers 30 square miles, which encompasses substantial evidence of a robust mineral system. The project is a combination of advanced exploration, near-term production potential and untested targets within a district scale claim block. Development logistics in North Central Nevada are favorable.
The Sleeper Gold Project has been reviewed by top professionals, who are recognized authorities on epithermal gold systems. Priority targets within the Sleeper District are summarized in a paper by Dr. Richard Sillitoe, which can be found at www.x-cal.com.
The total investment in land assembly and documentation of the Sleeper Gold District to date by X-Cal and partners is more than $45 million (Cash and share payments made by X-Cal to Amax Gold, Kinross Gold Corp., and New Sleeper Gold for title are included in the figure, as well as geologic surveys, data systems, geology, drilling and insurance).
Currently, the company has completed a non-brokered private placement of 2,599,997 common shares at $0.15 per share for proceeds of $390,000. Two of the participants in the private placement are insiders and directors of X-Cal. The private placement shares are subject to a four-month hold period.
In addition to the Sleeper Gold Project, X-Cal also has 100% title to three other Nevada Gold properties: MILL CREEK and REESE RIVER which are located over lower plate windows in the Cortez Area. The WR Property is located in the Spring Valley Area.
The contents of this release have been reviewed by Robert Thomason, M.Sc. and Larry Kornze, P.Eng., who are "Qualified Persons" as defined by NI-43-101.
Shawn Kennedy, President
Caution Concerning Forward-Looking Statements
This release and related documents may contain certain "forward-looking statements" including, but not limited to, statements relating to interpretation of drilling results and potential mineralization, future exploration work at the Sleeper Gold Project, the Mill Creek Gold Project, the Reese River Project and the Spring Valley Area Project and the expected results of this work. Forward looking statements are statements that are not historical facts and are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements, including, without limitation: risks related to fluctuations in gold prices; uncertainties related to raising sufficient financing to fund the planned work in a timely manner and on acceptable terms; changes in planned work resulting from weather, logistical, technical or other factors; the possibility that results of work will not fulfill expectations and realize the perceived potential of the Sleeper Gold Project, the Mill Creek Gold Project, the Reese River Project and the Spring Valley Area Project; uncertainties involved in the interpretation of drilling results and other tests; the possibility that required permits may not be obtained in a timely manner or at all; risk of accidents, equipment breakdowns or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in the work program; the risk of environmental contamination or damage resulting from the exploration operations at the Sleeper Gold Project, the Mill Creek Gold Project, the Reese River Project and the Spring Valley Area Project.
Forward-looking statements contained in this release and related documents are based on the beliefs, estimates and opinions of management on the date the statements are made. There can be no assurance that such statements will prove accurate. Actual results may differ materially from those anticipated or projected. X-Cal Resources Ltd. and X-Cal USA, Inc. undertake no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change.
Note: X-Cal Resources Ltd. can be referenced through the Standard & Poor's Directory.
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