Can-Cal Resources Ltd. is a public company trading on the O.T.C. Bulletin Board (Symbol: CCRE). The Company is engaged in the acquisition, exploration and development of precious metals mineral properties. As part of its future growth strategy, the Company will focus its efforts in the Western Hemisphere, with an emphasis on Latin America, particularly Mexico.

Can-Cal Resources Ltd.       [CCRE:OTCBB] 

Operates in Mexico through wholly owned Mexican subsidiary, Sierra Madre Resources S.A. de C.V. ("SMR")

Arco Project, Durango. The Project is comprised of the Arco and Arco 2 concessions, representing a total land package of 3,680 hectares (approximately 9,060 acres) approximately 120 kilometers north-northwest of the city of Durango, and lies in the Central Plateau Gold-Silver belt of the Sierra Madre Occidental, near the historic Silver-Lead-Zinc district of Tejamen. As previously reported, encouraging assay results were received from the first phase of rock chip sampling completed on the Arco concession during June 2004, and a new vein structure was discovered approximately 600 meters to the southeast of the three main outcrop veins, which are located in the northwest portion of the concession. Of particular interest was the western most vein (the "West Vein") of the main outcrop veins, where successive gold assay values of 0.426 g/t, 0.329 g/t, 5.070 g/t, 1.265 g/t and 0.848 g/t were reported over a strike length of approximately 125 meters. The reported gold assays values for the new southeast vein, based on 3 rock chip samples, were 1.090 g/t, 1.945 g/t, and 1.460 g/t over a strike length of approximately 130 meters. The principal focus of the second phase of sampling was to test for the potential extension of the West Vein to the southeast and to further test the newly discovered southeast vein area. An additional 8 rock chip samples were taken along the southeast extension of the West Vein, over a strike length of approximately 130 meters. The successive gold assay values for these samples were again encouraging, as follows: 20.9 g/t, 0.32 g/t, 1.12g/t, 1.99 g/t, 0.31 g/t, 0.07 g/t 0.78 g/t and 0.10 g/t. The overall strike length of the West Vein now approximates 320 meters. The 3 main outcrop veins converge to the southeast and dip below surface in what appears to be a faulted area. Very narrow outcrop veining just to the southeast of the faulted area was sampled, with reported gold assay values of 6.45 g/t and 4.39 g/t. The relationship between the convergence of the main outcrop veins to the southeast and the southeast vein area, some 600 meters away, requires further investigation. At present, it appears that the two vein structures are along the same strike line. Additional sampling of the southeast vein area has resulted in the discovery of a second vein structure, which strikes north versus northwest, as does the originally discovered southeast vein. A total of 5 rock chip samples were taken along this newly discovered vein with reported, successive gold assay values of 3.39 g/t, 0.32 g/t, 0.50 g/t, 0.37 g/t and 0.60 g/t. This new vein structure requires further investigation, as does the potential for the discovery of additional north-striking vein structures in the eastern portion of the Arco concession. Lastly, a new potential stockwork target has been identified in the northern most portion of the Arco concession, which will be further explored in the coming months. All samples were shipped to ALS Chemex of Vancouver, Canada for assaying. SMR's geological work to date indicates that the Arco Project is a low-sulfidation epithermal gold-vein occurrence in Upper Series rhyolite formation, which is projected to be relatively shallow, especially on the northern and western margins of the main outcrop vein swarm where apparent faults expose andesite flows supposed to be of the Lower Volcanic Sequence. Typically, it is the underlying andesite formations that are mineralized in Mexico. The fact that the veins occur in the rhyolite formation is unusual and indicates the potential for wider and stronger vein structures in the underlying Lower Series andesite formation. Although the main outcrop veins are narrow (from 2 to 100 centimeters for individual veins in zones of up to 20 meters), they have a strike length of over 2 kilometers and form vein swarms, suggesting that the veins may thicken at depth in the underlying andesite series rocks.

Press Release 24Aug04
Press Release 22Jul04

Hoya Au-Ag Concession, Chihuahua. As part of SMR's focused exploration program using Thematic Mapper ("TM") satellite images, an extensive area of hydrothermal alteration was identified in south-central Chihuahua. The Mexican mining company, Peñoles, recently staked a large part of the anomaly, but the alteration was found to extend to the south onto open ground, which is now covered by SMR's concession application. The Hoya concession comprises 1,533 hectares (approximately 3,786 acres) and is located 180 kilometers south of the city of Chihuahua. Regional surface samples have given encouraging results from stockwork / disseminated mineralization in sandstone units of up to 0.439 g/t Au and 116 g/t Ag. Historic mining in the area was from silver-lead-zinc veins. The target SMR will be investigating is a gold-dominant stockwork / disseminated style of mineralization.

Carbon Au-Ag Concession, Chihuahua. The Carbon concession comprises 1,995 hectares (approximately 4,928 acres) and is located 130 kilometers south of the city of Chihuahua in south-central Chihuahua State. Carbon is a CRD (Carbonate Replacement Deposit) target that lies adjacent to the southeastern boundary of Anglo America (Canada) Ltd.'s "Pinabete" concession, recently optioned to Southern Silver Exploration Corp. TM satellite image anomalies indicate that the northwest trending structural zone reported by Anglo continues to the southeast onto open ground and manifests itself as strong alteration of the Tertiary volcanic rocks overlying the carbonate sedimentary units and associated Pb-Zn-barite mineralization.

Cerritos Au-Ag Concession, Chihuahua. SMR's Cerritos concession comprises 1,955 hectares (approximately 4,829 acres) and is located 150 kilometers south of the city of Chihuahua in south-central Chihuahua State. Historically considered primarily a copper target, Noranda previously drilled this TM satellite anomaly for porphyry copper mineralization, and presently, Peñoles and individual concessionaires control the known copper district. Recently, the valley to the southwest of the anomaly was staked by Kennecott to test for buried copper mineralization. Initial fieldwork by SMR has identified an area to the northeast of the anomaly on open ground, with gold-anomalous samples from stream sediments peripheral to the copper zone. This is the area covered by SMR's concession application.

Mr. Anthony F. Ciali, President & CEO, stated, "During the past several months, SMR has investigated numerous geologic targets of interest based on satellite images. The targets were located in the States of Chihuahua and Durango, although SMR has numerous potential targets in several other states located in northern and central Mexico, which will be investigated in the future. In addition to the three new concessions recently applied for, SMR anticipates making applications for additional concessions in the coming months. SMR has also been pursuing the potential acquisition of third party concessions by way of option or joint venture agreements. While discussions have taken place, and are continuing, no agreements have yet been finalized. The next phase of work on SMR's Arco Project, which will principally include a Phase I drilling program to test the outcropping vein structures that have been sampled, is pending financing, which the Company is pursuing."

Press Release 18Nov04