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Cabo announces progress on exploration projects and head office move

Vancouver, BC – Cabo Mining Enterprises Corp. announces today the following update on work completed, results obtained and work programs planned for the Company’s Cobalt Area, Electrum Lake, Hope Lake and Skead Properties exploration projects in Ontario.

Cobalt Area Project
During 2004, all new collected data has been integrated with published historical information and government data. Two primary target areas have been selected from within the 600 claim unit Cobalt Area property. Work programs have focused on the search for “Cobalt Type” Ag-Co-Base Metal type targets.  The targets include: 1) a northeast-southwest trending structural zone in the northern part of Gillies Limit North Township (The Kerr Lake –Waldman Trend) - which hosts the Waldman, Professor Adit, Oxford Shafts, Cummings Pits and numerous other prospects; and 2) a similar geological setting in the Santa Maria Area – which hosts the site of a large (9,715 troy oz.) silver nugget reported by earlier workers as well as the Santa Maria and Botha Lake Shafts. 

Line cutting grids (Waldman Grid, 9.2 km; and Santa Maria Grid, 33.4 km) were completed to cover the most favourable portions of these target areas to control ground magnetometer surveys, geological mapping, prospecting and rock  sampling. Many of the old muck-piles and shaft areas on and adjacent to the property were examined and character samples were collected from typical mineralized zones. Some of this “mine muck” is grapefruit size, and contains up to 30% massive native silver. In addition, soil samples from above four known vein zones were collected (B-horizon and MMI type samples) and analysed to provide background VALUES (for comparison purposes in future programs.

The prospecting program on the Waldman Grid resulted in the discovery of a new calcite-quartz vein system containing massive lenses of galena and chalcopyrite located approximately 100 metres south of the old Waldman # 1 Shaft. The area was stripped by excavator in early July exposing a 10 metre wide network of calcite filled fracture veins with associated cobalt-base metal mineralization along a 30 metre strike length. The east-west trending zone disappears under low lying ground towards the west. Three grab samples from a 10 cm wide portion of the vein material assayed from 3 to 126 g/t Ag with associated lead from 0.6% to 12.2%. A grab sample from another narrow vein (<10 cm wide) within the overall structure containing visible cobalt “bloom” at surface assayed 12 g/t Ag, 7.1% Co and 3.1% Ni. This structure is typical of many of the surface exposures of Cobalt Type veining in this area, and is a confirmed drill target.

A second drill target within the Kerr Lake – Waldman Trend is referred to as the Cummings Pits Prospect.  Three old pits blasted by earlier workers through a relatively flat lying calcite vein hosted within a Nipissing aged diabase sill in this area contain coarse patches of galena, chalcopyrite and sphalerite. The “flat” veining appears to be spatially related (overlying and adjacent to) a vertical breccia vein structure that ranges from a few cm to 1.0 metre in width. This vertical vein and erratically developed flat veining were traced for approximately 50 metres by stripping. Chip samples collected from the vein consistently contain elevated VALUES (in lead, zinc, silver, copper and gold. The best sample assayed during the current program contained 339 g/t Ag, 20.7 g/t Au, 11.2 % Pb, 2.8 % Zn and 2.8 % Cu. The vein system will be tested by the next drilling program beginning mid-December 2004.

A third grid (13 km) was cut over the Oxford Shafts – Professor Adit area to the northeast of the Cummings Pits and a small grid is currently being cut over an airborne conductor that lies to the southwest of the Waldman Prospect. Geological mapping, soil geochemical sampling (MMI); prospecting and mechanical stripping are in progress.  Prospecting and geological mapping over the Santa Maria grid located a number of sulphide bearing veins and structures as well as two shafts, several pits and numerous old trenches. Assay results from samples collected to date have not been encouraging in this area.

Electrum Lake - Kenora
In May, two drill holes totalling 330 metres were completed from the same setup (-450 and -660) to test a previously identified gold target known as the “arsenic zone”. This zone, located near the east end of the 8 kilometre long Electrum Lake property, consists of grey, folded quartz stringers and veins hosted within a quartz porphyritic unit of unknown size. A hole completed in 1961 by Electrum Lake Mines Limited was reported intersecting 0.27 oz/ton Au over 60 feet (9.25 g/t over 18 metres).

Cabo’s first hole (CEL-1) was designed as a re-drilling of the 1961 hole (same collar, orientation and attitude). The best results from the CEL-1 was a 16.8 metre wide intersection (drilled width) from 19.1m to 35.9m that assayed 1.02 g/t Au including 6.26 g/t Au over 0.7 m (28.1m to 28.8m) and 5.59 g/t Au over 0.9 m (35.0m to 35.9m). A second intersection lower in the hole (56.8m to 57.5m) returned 6.75 g/t Au over 0.7 m.

The second hole (CEL-2) undercut the quartz vein zone but indicates a complex, folded vein zone that plunges roughly down dip of the first hole. Due to the shallow plunge, a series of seven holes completed by earlier workers and collared behind the 1961 discovery hole had no chance of intersecting the vein system. Several drill holes are planned for this target commencing in January when freezing conditions allow access to a swampy area that prevents proper drill testing during the summer season.

A property wide prospecting and rock sampling program, designed to investigate numerous other known gold-silver-copper-molybdenite targets on the property, commenced October 10th. Results from this work will be incorporated as soon as available with results from previous explorers. To date three additional targets have been identified for possible drill testing in early 2005.

An additional 12 unit claim was acquired during the summer extending the Kenora area Electrum Lake property to the Manitoba border. The new claims cover east-west trending extensions of the geology and known mineral showings in the south-west portion of that ground.

Hope Lake - Kenora
Two additional gold occurrences were discovered during a small reconnaissance program carried out in late July. The brief work program was aimed at confirming existing targets and providing guidelines for a drill testing program.

The Hope Lake project is located in a very active area 50 km southeast of Kenora, Ontario (Houston Lake Mining Ltd, Metalore, Western Warrior). The property contains numerous gold targets identified by the prospector/optionee and previous operators (Noranda, BPSelco, Granges and Placer Dome). Work carried out by previous explorers has generated surface samples and drill intersections as well as geophysical targets (IP & EM) that have not yet been systematically tested. The geological information has been acquired, compiled and re-interpreted. The data indicates gold mineralization may be associated with a structural trend that is oblique to the stratigraphic trend investigated by the earlier programs (0800 as opposed to 0600).

A new grid is to be established over the favourable parts of the property linking three of the target areas.  Drill testing of these three targets is planned for February, 2005.

Skead - Sudbury
Work on the Skead project (near Sudbury, Ontario) focused on areas immediately adjacent to the old underground workings of the Skead Gold Prospect. Work included linecutting, geological mapping, prospecting and a reconnaissance IP (induced polarization) survey. Sampling and brief prospecting was also carried out on the Bonanza Shaft area (quartz vein) and in the area of a breccia zone identified by earlier work in the southern part of the property. The IP survey proved very difficult to execute due to very dry conditions in the gravelly overburden that covers one of the most favourable target areas. Satisfactory survey results followed use of a very large transmitter and extensive brine solutions around electrodes.

Two targets were identified for potential drill testing. One of these is coincident with the probable extension of the old Skead Mine zone. The second target is a previously unknown feature overlain by a large northwest trending swamp.

An airborne geophysical survey is planned as the next phase of exploration prior to a modest sized drill program.

2005 Exploration
Initial drill testing is proposed for each of Cabo’s four projects. The programs will commence next week on the Cobalt Area Project and will proceed as set out above. Additional work will be required as results determine.

Head Office Move
The Company’s new head office address is: 3rd Floor, 120 Lonsdale Avenue, North Vancouver, B.C., V7M 2E8, and the new telephone and fax numbers are 604-984-8894 and 604-983-8056 respectively.

Cabo is a drilling services and mineral exploration company headquartered in Vancouver, British Columbia, Canada. The Company provides drilling services through its subsidiaries Heath & Sherwood Drilling (1986) Inc, of Kirkland Lake, Ontario, Petro Drilling Company Limited of Springdale, Newfoundland, Stratacan Inc. of St. John’s, Newfoundland, and Stratacan (Quebec) Inc. of St. Julie, Quebec. Cabo’s mineral exploration properties are located near Cobalt, Kenora, and  Sudbury Ontario, Canada. The Company’s common shares trade on the TSX Venture Exchange under the symbol: CBE.


(signed “John A. Versfelt”)

John A. Versfelt

Chairman, President and CEO

* * * *

The Exchange has not in any way passed upon the merits of this news release.

This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, potential mineral recovery processes and other business transactions timing. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

Last Updated: 12/09/2004