LOWNA, BC, Aug. 26 /CNW/ - Cantex Mine Development Corp (CD - TSX
Venture Exchange) ("Cantex" or the "Company").
Exploration Update for Yemen and Nevada Projects
Cantex is pleased to announce the first of its drill results from its
aggressive and ongoing drill programs on its Suwar and Al Hariqah projects in
Yemen. In Nevada work is continuing and this work is expected to add to the
previously announced (news release dated August 9, 2005) drill holes on 10
targets.
Suwar Project, Yemen.
Cantex is pleased to report that assay values of 1.23% nickel (Ni), 0.30%
copper (Cu), 0.10% cobalt (Co) over a drill intercept of 1.12 meters; and
1.89% Ni, 0.35% Cu and 0.15% Co over a drill intercept of 1.36 meters, have
been obtained from the massive sulfide intersections in the Y005-3 and Y005-6
drill holes respectively. At current metal prices these two intersections
equate to 226.88 US$/ton and 344.68 US$/ton in the ground. These two massive
sulfide intersections occur within an envelope of disseminated sulfides which
increase the width of the zone of interest.
These assay results are summarized on the table below:
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Drill From To Drill Nickel Copper Cobalt Sulphides Ni-Cu-Co
Hole Width
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Total
(meters)(meters)(meters) % % % Value
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(US$/t)
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Y005-3 35.00 36.58 1.58 0.329 0.10 0.03 Disseminated $ 62.35
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Y005-3 36.58 36.95 0.37 0.36 0.17 0.03 Disseminated $ 70.06
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Y005-3 36.95 38.07 1.12 1.225 0.30 0.10 Massive $ 226.88
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Average value over 3.07 meters $ 123.30
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Y005-6 76.20 77.40 1.20 0.374 0.26 0.03 Disseminated $ 74.94
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Y005-6 77.40 78.60 1.20 0.406 0.23 0.04 Disseminated $ 80.63
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Y005-6 78.60 79.96 1.36 1.85 0.35 0.15 Massive $ 344.68
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Y005-6 79.96 82.00 2.04 0.347 0.17 0.03 Disseminated $ 67.89
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Average value over 5.80 meters $ 136.89
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Drill holes Y005-3 and Y005-6 were designed to test the central part of a
1.1 kilometer long UTEM geophysical anomaly and were drilled at 220 and
570 meters respectively north of Cantex's Suwar Hill nickel deposit. A further
six holes drilled in this anomaly have also intersected massive and/or
disseminated sulfide mineralization during the present drill program and the
mineralized sections of these holes are presently being air freighted to
Canada for assay.
Drilling of Suwar Hill by Cantex in 1999/2000 gave the following
significant results. The in ground value column is calculated using today's
metal prices.
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Total
Hole From To Width Ni Cu Co Ag Value
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(meters) (meters) (meters) % % % g/t USD/t
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Y99-1 41.3 46 4.7 0.94 0.24 0.051 0.8 $ 170.48
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51.5 61.5 10 1.2 0.52 0.058 1.2 $ 223.22
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87.7 91 3.3 0.56 0.46 0.038 1.6 $ 116.84
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Y99-2 47.95 70.6 22.65 1.39 0.89 0.064 2.7 $ 268.71
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Y00-2 115.8 121 5.2 0.65 0.39 0.021 12.2 $ 123.76
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Y00-3 118.89 123.71 4.82 0.58 0.53 0.029 1.2 $ 119.09
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125.96 126.46 0.5 0.79 0.3 0.034 1 $ 143.81
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Y00-5 7.62 62.5 54.88 0.76 0.38 0.044 0.9 $ 146.07
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178.34 198.81 20.47 0.65 0.26 0.027 0.5 $ 118.39
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Y00-7 102.4 108.5 6.1 1.4 0.48 0.083 0.8 $ 261.16
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Y00-8 65.52 74.06 8.54 1.01 0.42 0.054 0.9 $ 189.11
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Y00-10 65.9 70.4 4.5 0.87 0.27 0.039 0.3 $ 156.45
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Y00-11 67.35 74 6.65 1.23 0.32 0.06 1 $ 220.77
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118.1 118.7 0.6 3.17 0.14 0.146 0.3 $ 538.94
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For comparative purposes the average in ground value of Sudbury, Canada
is US$221/tonne (1.2% Ni and 1.03% Cu); Jinchuan, China is US$208 ton (1.2%
nickel and 0.7% copper) and Mt Keith, Australia is US$86 (0.52% Ni, 0.01% Cu,
0.02% Co). These examples of large tonnage mines demonstrate that the metal
values obtained at Suwar are consistent with those of producing mines.
The calculated average in ground value for the Suwar Ni-Cu-Co
mineralization based on the data presented above is $138 per ton. On a global
basis production costs of nickel vary from $2.20 to $14.00 per kilogram of
nickel produced. Taking the worst case scenario the average grade of Suwar
would still produce a surplus of $45 per ton. Taking a mid-case scenario of
US$ 8 per kg, the surplus is $77 per ton. It is believed that the latter
figure is more reasonable as Yemen is a low cost country in which to work.
Obviously these figures will need to be verified by further studies, but they
do demonstrate that the grade of mineralization found in Yemen is comparable
to ore being mined profitably by other companies.
The objective of future work at Suwar will be to delineate the tonnage of
Ni-Cu-Co mineralization available and determine its continuity. Work will
focus on the exceptionally long mineralized zone potentially 2.6 kilometers or
more in length.
Al Hariqah Project, Yemen
Cantex is pleased to report that four of 45 planned drill holes have been
completed utilizing a new drill rig shipped from Canada and manned by Canadian
and Yemeni drillers. Samples from the first three holes are currently being
shipped by air cargo to Canada for assay. Rock samples containing gold
mineralization have been sent for cyanide leach bottle roll tests to evaluate
the optimal conditions for cyanide leach gold extraction.
In 1999/2000 Cantex completed 28 reverse circulation drill holes and
435 meters of channel and rock chip samples within an anomalous zone 30 to
50 meters wide by 1100 meters long. The current drill program will further
define this zone as well as test the as yet undrilled 2900 meter long strike
extension of the mineralized zone.
Conceptual calculations by gold geologist John Churchill, assuming
continuity between drill holes, give a potential of 16Mt at 1.65 g/t to
100 meters depth. Churchill further concludes that if the grades can be
extrapolated to 165 meters vertical depth, which is the deepest hole drilled
and which still ended in gold mineralization, and along the 4000 meters of
mineralized strike, then potential exists for 40+ Mt at similar grades.
However, additional drilling is required to determine the validity of this
conceptual study, particularly to confirm grade, continuity of grade and
dimensions of the mineralization. This is one of the objectives of the current
program.
Nevada Project, USA
The Company is pleased to report that work is progressing on its Nevada
properties. On the Carico Lake claim group geological teams have completed
establishing a geophysical grid and prospecting a 600 x 400 meter arsenic
anomaly that is considered a pathfinder to gold mineralization. A CSAMT
geophysical survey is scheduled to commence over this anomaly prior to the end
of August.
On Cantex's Bruner claim block exploration is currently underway along an
800 meter long strongly anomalous gold zone. Crews are currently completing a
prospecting, hand trenching, rock sampling and geological mapping program.
Work is expected to be complete within 10 days on the Company's North
Fork claim group. Here a 200+ meter gold anomaly with coincident pathfinder
metal anomalies (silver, antimony, arsenic and mercury) is being prospected,
hand trenched, rock sampled and geologically mapped.
It is expected that the above work will provide additional drill targets.
Summary
Cantex is pleased to report that work is progressing well on three
projects. Sulfide mineralization has been intersected in eight core holes at
Suwar and a further four holes are currently underway. The mineralization that
has been intersected in both the drill program in 1999/2000 and in the current
program is comparable to that being profitably mined by other companies.
Once the core drill is finished at Suwar it will be moved to Al Masna to
drill the 4 to 5 kilometer long mineralized zone where a single drill hole
encountered a 1 meter section of massive sulfides that assayed 7.2% Ni and
1.2% Cu along the 0.39 meter section assayed (currently valued at US$ 1,134
per ton).
The Company's second drill has completed four of 45 planned holes at Al
Hariqah. The focus of the program is to further define the 1.2 kilometer gold
mineralized zone previously drilled as well as test the as yet undrilled 2900
meter long strike extension of this mineralized zone.
During the past 8 months Dr. Peter Gregory, Canadian drill staff and
several of the Company's directors including Dr. Charles Fipke, Chad Ulansky
and Katherine MacDonald have visited the Company's properties in Yemen,
including Suwar, Al Hariqah and Al Masna. All have been welcomed by the local
people and feel that there is presently no political risk and no more personal
risk than conducting exploration in Canada and the U.S.A. In addition the
petroleum industry is booming in southern Yemen and there are no reports of
Canadian or American employees of Nexen, Hunt Oil or Canadian Occidental being
harmed or detained in Yemen.
The Nevada project presently has ten anomalous potential heap leach gold
areas on four claim groups targeted for drilling. The additional geophysical
and geochemical surveys now underway on three claim groups should add to the
number of targets ready to drill. A major company has expressed interest in
joint venturing the Cantex gold claims in Nevada. Alternatively Cantex will
make arrangements to drill the targets on its 100% owned claims.
The Cantex directors are most encouraged by the positive exploration
results and improved political conditions in both Yemen and Nevada. With
continued persistence, and positive drill results, the directors are confident
that commercial success will be attained.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
Signed,
Chad Ulansky
Chad Ulansky
President and Geologist.
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