October 15, 1996
Trading Symbol: CYR (ASE)

Voiseys Bay Update Drilling Results From VBE 1

The management of Columbia Yukon Resources Ltd. and International Can Alaska Resources Ltd. are reporting that drilling has been terminated on the deep drill hole on the VBE 1 claim block, due east of the Voiseys Bay Eastern Deeps discovery of Diamond Fields- Inco, at a depth of 870 metres (2854 feet). The drilling equipment reached its limits before the targeted depth of 1000 metres (3280 feet) and the hole has been capped to allow re-entry into the hole with a larger drill rig.

The drill site was selected on gravity anomaly with a strong magnetic signature. The geological information from the drill confirmed that an anorthosite/norite complex underlies the surface expressions of nickel copper mineralization. Within the last 100 metres of drill core disseminated pyrrhotite and chalcopyrite is reported to be increasing in concentration. Also, olivine crystals were identified within the anorthosite/norite rocks and locally the core was comprised of magnetite and plagioclase suggesting development of cumulates. (Cumulates are characteristic formations in some intrusive rocks that indicate settling of crystals in the molten magma to form discrete concentrations of minerals. This sort of accumulation of minerals can lead to the formation of concentration of economic sulphides as well as the more common silicate minerals.)

These significant changes occurred beneath more uniform sequences of norite higher in the hole which indicating a development of the type of rocks that would be expected to overlie a potential extension of the world class Eastern Deeps type mineralization on the neighboring claim block.

A down-the-hole geophysical E.M. probe was conducted before capping the hole and results are awaited. This probe tested for conductors up to 200 metres (660 feet) from the end of the hole and will allow further drilling to be optimized.

Columbia Yukon Resources Ltd. will continue its exploration program in Labrador with further drill programs planned for several of its properties in the spring of 1997.

ON BEHALF OF THE BOARD OF DIRECTORS


"Benjamin Ainsworth"
Benjamin Ainsworth, Director

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