VANCOUVER, British Columbia, Jan. 13, 2006 (PRIMEZONE) -- Cypress Development Corp. (TSX-V:CYP) announces that the Phase I winter diamond drill program on its 80% owned McKenzie Island gold project located in Red Lake, Northwestern Ontario commenced this morning.
The Company has delineated drill targets from a recently completed, closely spaced Induced Polarization survey (IP) and detailed Magnetometer survey. The surveys have confirmed an extensive geological alteration within an embayment of volcanic rocks to the south and to the west of the gold mineralization (166,000 oz at .53 oz per ton resource estimate) found on the Western Discovery Zone of Southern Star/Exall Resources (SSR/EXL) property.
The IP survey identified several chargeability features within resistive rocks within the alteration system. The McAndrew East Zone will be the initial drill target area. Past exploration programs consisting of till sampling by overburden drilling and Mobile Metal Ion (MMI) soil surveys have resulted in the establishment of several areas of elevated gold-in-tills settings on this portion of Cypress' McKenzie Island property. Ongoing geological and geophysical evaluation of the McAndrew East Zone has identified a continuous trend of shearing and carbonate alteration of approximately one kilometre long in an east-west direction. The shearing and lithologies in the McAndrew East Zone dip very steeply to the north (near vertical).
It is the Company's position that there remains significant potential for gold deposits to be discovered on its McKenzie Island property.
A total of 19.2 million ounces of gold have been produced from 13 mines in the Red Lake area. Gold production has been continuous since 1930 when the Howey Gold Mine entered production. Current gold production is around 700,000 ounces per year from the Campbell mine of Placer Dome and the Red Lake mine of Goldcorp.
Cypress Development Corp. also announces that since the beginning of November 2005, the Company has added $832,500 through the exercise of share purchase warrants, to its working capital. As a result of the various exercises, the Company now has 54,833,174 shares issued and outstanding, and its fully diluted share capital is 68,382,547 shares.
Cypress Development Corp. is a precious and base metal exploration company developing a gold property in Red Lake, Ontario, Canada, and two gold properties, a silver/copper property, and a zinc property in Nevada, U.S.A.
To find out more about Cypress Development Corp. (TSX-V:CYP), visit the Company's website at www.cypressdevelopmentcorp.com.
On Behalf of the Board of Directors "Don Huston" Donald C. Huston President
The TSX venture exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.
This news release contains certain "forward-looking statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the British Columbia Securities Commission and the United States Securities & Exchange Commission.