Yankee Hat Makes High Grade Tungsten Discovery; Kidlark Project, Yukon: Financial News

Yankee Hat Makes High Grade Tungsten Discovery; Kidlark Project, Yukon
Wednesday October 29, 2008 8:45 am ET

VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Oct 29, 2008 -- Yankee Hat Minerals Ltd. ("Yankee Hat" or the "Company") (CDNX:KHT.V - News) is pleased to announce that as a result of the regional joint venture grassroots exploration program with the Japan Oil, Gas and Metals National Corporation ("JOGMEC") a new property, Kidlark, has been explored. Surface sampling has returned high grade tungsten assay results from this scheelite skarn occurrence.

The Kidlark Property was explored in late July, and company geologists immediately staked 32 claims covering several visually impressive scheelite-bearing garnet skarn tungsten showings. The property, located within the Pelly Mountains, is approximately 90 kilometers northeast of Whitehorse, and 45 km west-northwest of Quiet Lake along the South Canol Highway. It lies less than 20 km northeast of Livingstone, an active placer gold operational area serviced by an active airstrip and winter road access.

Eighteen grab samples were taken from the Kidlark Property and submitted to EcoTech Laboratories in Whitehorse for testing. Assay results for the samples ranged up to 7.68% WO3 and averaged 1.463% WO3 with visual estimations of scheelite content by UV fluorescence correlating well with WO3 % content. The 18 samples were taken from 5 distinct showings over 13 kilometers along a single geological contact.

 

Table: Grab Sample Results Kidlark Project, Yukon

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Sample ID            W (%)   WO3 (%)  Description
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KL-08-AAB-0034      0.382     0.482   Crumbly and rusty massive sch-py-po
Brand Showing A                       rock adjacent to a vuggy siliceous
                                      zone. Scheelite is fine to coarse
                                      grained, with crystals to 1 cm2
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KL-08-AAB-0035      3.490     4.401   Siliceous vuggy zone, adjacent to a
Brand Showing B                       banded gt-diop skarn. Moderate
                                      scheelite mineralization with py-po.
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KL-08-AAB-0036      0.982     1.238   Dark green, rusty, vuggy diop skarn
Brand Showing C                       - well lamping (under Ultra-Violet
                                       light)
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KL-08-AAB-0037      2.940     3.708   Dark green, rusty, vuggy diop skarn
Brand Showing D                       - well lamping (under Ultra-Violet
                                      light)
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KL-08-AAB-0038      2.450     3.090   Dark green, rusty, vuggy diop skarn
Brand Showing E                       - well lamping (under Ultra-Violet
                                      light)
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KL-08-CGD-0042      6.090     7.680   Rusty skarn zone with massive
Davis Showing                         sch/py/po up to 1m in thickness.
                                      Next to rusty metasediments
                                      approximately 5 m in width and talus.
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KL-08-CGD-0043      0.054     0.068   Rusty skarn zone with massive py/po
Davis Showing                         Next to rusty metasediments
                                      approximately 5 m in width and talus.
                                      No visible scheelite.
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LVA 0080        less than             Entire showing comprises coarse
Wilson Showing      0.001             grained dark red to brown garnet
                                      dominated skarn zone approximately
                                      2 m thick with patches of coarse
                                      scheelite - no visible scheelite
                                      in sample LVA0080.
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LVA 0081            0.344     0.434   Entire showing comprises coarse
Wilson Showing                        grained dark red to brown garnet
                                      dominated skarn zone approximately
                                      2 m thick with patches of coarse
                                      scheelite - visible scheelite in
                                      sample LVA0081.
---------------------------------------------------------------------------
CGD 0060            0.001     0.001   Sand sample consisting of dolomitic
Near Brand Showing                    limestone occurring at granite
                                      contact.
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CGD 0061 A          0.113     0.143   Rusty garnet epidote skarn zone
Near Brand Showing                    containing books of medium grained
                                      muscovite. Moderate visible scheelite.
---------------------------------------------------------------------------
CGD 0061 B          0.024     0.030   Rusty garnet epidote skarn zone
Near Brand Showing                    containing books of medium grained
                                      muscovite. No visible scheelite.
---------------------------------------------------------------------------
CGD 0062            0.072     0.091   Rusty skarn zone near contact.
Arness Showing                        Visible scheelite seen.
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CGD 0063            0.007     0.009   Rusty skarn zone near contact with
Arness Showing                        quartz flooding. Visible scheelite
                                      seen.
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CGD 0064            0.675     0.851   Rusty skarn zone with massive
Davis Showing                         sch/py/po up to 1m in thickness.
                                      Next to rusty metasediments
                                      approximately 5 m in width and talus.
---------------------------------------------------------------------------
CGD 0065            1.140     1.438   Rusty skarn zone with massive
Near Davis Showing                    sch/py/po up to 1m in thickness.
                                      At granite contact.
---------------------------------------------------------------------------
CGD 0066            0.893     1.126   Rusty skarn zone with massive
Near Davis Showing                    sch/py/po up to 1m in thickness.
                                      At granite contact.
---------------------------------------------------------------------------
CGD 0067            0.068     0.086   Garnet skarn with quartz flooding.
Rasmussen Showing                     At granite - limestone contact.
---------------------------------------------------------------------------

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Mineral abbreviations: sch=scheelite, po=pyrrhotite, py=pyrite,
diop=diopside
---------------------------------------------------------------------------

Based on the promising initial exploration results, Yankee Hat has expanded the property by staking an additional 70 claims. This brings the total number of claims to 102, with rough dimensions of 13 kilometers by 2 km and an area of approximately 2,100 hectares. The Company also completed detailed mapping, prospecting, silt and soil sampling, trenching, and ground magnetic work through the month of August and early September. The results of this work are pending and the company will report further once it is received and compiled. Maps and sample photos have been posted on http://yankeehatminerals.com/properties/kidlark.

Already at least five distinct mineralized zones (from North to South; Wilson, Rasmussen, Davis, Brand and Arness showings) have been located in outcrop along a 13 kilometer strike length. The known outcrops are variably mineralized, but in general are characterized as garnet-diopside skarn with minor to major pyrrhotite. Tungsten is found thus far as the mineral scheelite. Typically, the mineralized area begins in barren limestone, moving through recrystallized marble, garnet-diopside skarn, a vuggy quartz-pyrite flooded zone, fluid-altered multiphase heterogeneous granite, and unaltered homogeneous granite. Scheelite also occurs within intrusive dykes.

At Kidlark, the Dycer Creek Pluton intrudes into Lower Paleozoic carbonate-bearing continental platform sedimentary sequences of the Cassiar Platform. This geological setting has also given rise to the nearby Risby and Stormy tungsten deposits, as well as to the Northern Dancer tungsten-molybdenite deposit (also known as Logtung) further to the southwest.

The Kidlark discovery was made as a result of Yankee Hat's generative tungsten exploration program with JOGMEC in southeastern Yukon Territory. The 2008 generative program had a budget of C$920,000 and is funded 60% by JOGMEC and 40% by Yankee Hat. JOGMEC earlier contributed $200,000 to the program that was used primarily for claims and acquisition of an extensive geological data base. Under the joint generative exploration agreement JOGMEC will have the right to acquire a 60% interest in the Kidlark Property, if it is deemed a Designated Property, by funding its pro-rata share of future exploration expenditures. If the property is not selected as a Designated Property, it will be 100% owned by Yankee Hat.

The outlook for the price of tungsten is positive, supported by strong growth in Chinese consumption, and a lack of new primary supply. Given its unique physical attributes, tungsten has many applications in which it is virtually irreplaceable including light bulbs and electrical applications, and as a wear-resistant "super alloy" used in the mining, petroleum, military, construction and metalworking industries.

China currently produces roughly 85% of the world's tungsten and has recently begun to restrict foreign access to the tungsten it produces. With China hoarding its production for its own growth, the rest of the world is scrambling to find new sources of supply as prices move upwards.

The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and reviewed on behalf of the Company by Mr. Terence Schorn, P.Geo, Chairman of Yankee Hat, and a qualified person.

Grab samples were submitted to EcoTech Laboratories Ltd. in Whitehorse for conventional dissolution and analysis for a range of major and trace elements, including tungsten. Due to the refractory nature of scheelite (CaWO4) more robust dissolution was carried out to ensure accurate measurement of tungsten in the samples.

ABOUT YANKEE HAT MINERALS:

Yankee Hat Minerals Ltd. is a publicly held resource company that utilizes its management's expertise in mineral exploration and evaluation, and financial acumen, to identify, acquire, and develop mineral prospects in mining friendly jurisdictions with the potential to host large-scale discoveries. The company strategically focuses on advanced stage projects and commodities that have strong underlying price fundamentals such as tungsten, rare earth elements, copper, and gold.

Investors are invited to visit Yankee Hat's IR Hub at http://www.agoracom.com/ir/yankeehatminerals where they can post questions and receive answers or review questions and answers already posted by other investors. Alternatively, investors are able to e-mail all questions and correspondence to KHT@agoracom.com where they can also request to be added to the investor email list to receive all future press releases and updates in real time.

ON BEHALF OF THE BOARD OF DIRECTORS

P. Bradley Kitchen, President, CEO, and Director

This news release has been prepared by management. This document contains certain forward looking statements which involve known and unknown risks, delays, and uncertainties not under the Company's control which may cause actual results, performance or achievements of the Company to be materially different from the results, performance or achievements implied by these forward looking statements. We seek safe harbour.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.