Canamex Resources Corp.

Canamex Resources Corp.

October 15, 2013 09:00 ET

Canamex Reports Drilling Progress on the Bruner Gold Project, Nye County, Nevada

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 15, 2013) - Canamex Resources Corp. (the "Company") (TSX VENTURE:CSQ)(OTCQX:CNMXF)(FSE:CX6) announces drilling progress at the Bruner gold project, Nye County, Nevada. Drilling in August and September focused on three areas: 1) step-out reverse circulation ("RC") and HQ core drilling at the Penelas East discovery area; 2) an initial seven hole RC drill program at the new Bruner vein target area which is located about one mile north of the Penelas East discovery area; and 3) commencement of a six hole RC program to test the second largest of 50 silica+adularia alteration spires located within and surrounding the historic resource area.

Penelas East Discovery Area

At the Penelas East discovery area five RC holes (B-1321 thru B-1325) were drilled south of the last drilling completed at Section 400mN (please see Canamex's Planning Map Beginning 40 meters south of the Section 400mN, all five holes were drilled from east to west, and intersected low grade gold values towards the bottoms of the holes below 500 feet depths, but did not intersect the target zone where projected. The current interpretation based on this new information is that any continuation of the Penelas East gold system south of Section 400mN would be offset to the west, and the low grade gold encountered in the bottoms of the drill holes represents the eastern edge of the projected and offset mineral system. The area to the west of these five drill holes remains untested.

Core drilling is underway at the Penelas East target area. The first core hole (B-1330C) was drilled adjacent to RC hole B-1301 (see Canamex news release dated April 23, 2013), which intersected 117 gpt gold (3.402 opt gold) at 415-420 feet, within an overall interval from 290 to 590 feet grading 3.1 gpt gold (0.09 opt gold). The core hole was collared four feet south and three feet east of the collar at B-1301, and down-hole surveying of the hole revealed it is straight and does not deviate significantly from the RC hole B-1301. The interval between 300 to 600 feet in B-1330C is characterized by silica stockwork and micro-veining along several dominant (mostly steeply dipping) attitudes with limonite staining along fractures and in veinlets after pyrite. The entire length of the hole, which bottomed at 751.5 feet, is oxidized. The core hole has been logged and marked for sampling based on standard five foot intervals to facilitate comparison of assay intervals with the adjacent RC hole.

Core hole number two (B-1333C) at Section 560mN is underway at the north end of the drilling pattern completed to date, and is designed as an offset of drill hole B-1319 (see Canamex news release dated August 21, 2013), which intersected 5 feet grading 30.7 gpt gold (0.90 opt gold) mineralization at 635-640 feet within a wider interval of 30 feet that carried 7.2 gpt gold (0.210 opt gold) to total depth, and which may have been terminated prematurely at 660 feet. The resource area remains open and untested to the north of the intercepts in B-1319 and B-1320. The Company plans to drill a third core hole in the Penelas East discovery area prior to completion of the 2013 Bruner drill program.

Bruner Vein Target Area

The Company drilled seven RC holes (B-1326 to B-1332) at the Bruner vein target area to test the potential for a high-grade epithermal vein at depth below century-old prospect pits that contain a chalcedony + bladed calcite bearing vein system. These individual veins are up to a meter wide and with gold values up to 7.6 gpt gold (0.22 opt gold). Assay results have been received for all seven holes, and the best intercept is in vertical hole B-1330, which intersected 5 feet of 2.44 gpt gold (0.07 opt gold) or 10 feet grading 1.7 gpt gold (0.05 opt ). The hole above it had a maximum value of 0.617 gpt gold (0.018 opt gold). This is significant in that the holes above these intercepts had virtually no gold in them, suggesting a vector of increasing gold content with depth, as anticipated. The sixth hole intersected the vein only slightly below the level intersected in drill hole B-1330, and did not test the target at the desired depth. The seventh hole was drilled from the west to intersect a series of steeply dipping chalcedonic veins, and was terminated prematurely due to ground water flow.

These results suggest we are high in the vein system, above the boiling zone and possibly within a larger epithermal vein system. Gold in epithermal vein systems precipitates primarily at and below the boiling point of the gold-bearing solutions, so any gold in the vein system above the boiling zone is a very encouraging sign. In 2014, we plan to design and permit new access to be able to drill deeper into the vein system, which we are unable to do today from existing drill pads.

Historic Resource Area

Geologic mapping across the historic resource area this past summer recorded the presence of over 50 discrete silica+adularia alteration spires within and surrounding the historic resource area. Comparison with the existing drill hole data base indicates that most of these alteration spires have not been drilled, and those that have been drilled have good mineralization beneath them. We have completed a six hole RC drilling program (B-1334 to B-1339) to test the second largest of the spires which has not been drilled, but which has two historic drill holes along strike of it that contain significant gold + silver mineralization. All six holes contain significant limonite, silica alteration, and silica matrix breccias from 100 feet to 250 feet in thickness, and look very similar to the underground exposures within the historic resource area. Assay results for these holes are pending, but if successful, this drilling opens up a large untested area containing over 50 similar alteration spires for further drilling in 2014.

Quality Control

Drill samples are dried on site and are either retrieved by ALS Minerals personnel or an independent contractor and transported in their custody to the ALS Minerals laboratory in Reno/Sparks, Nevada, where they are dried further, crushed, and split, and representative splits sent to the ALS Minerals laboratory in Vancouver for gold and silver analyses. Duplicates, blanks, and standards are inserted at regular intervals for QA/QC purposes. The core samples are stored in a locked storage facility on site and then delivered to ALS Minerals laboratory facility in Sparks, NV for rectified photography of the entire core, sawing of the core per split marks on the core, and sampling for analyses.

Greg Hahn, President and COO and a Certified Professional Geologist (#7122) is the Qualified Person under NI43-101 responsible for preparing and reviewing the data contained in this press release.


Robert Kramer, Chairman and CEO

Forward-Looking Statements:

This news release includes certain forward-looking statements or information. All statements other than statements of historical fact included in this release are forward-looking statements that involve various risks and uncertainties. Forward-looking statements in this news release include statements with respect to the estimated costs and timing of drill programs on the Bruner property, the potential mineralization and geological merits of the Bruner property and other future plans, objectives or expectations of the Company. 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 plans or expectations include the risk that actual results of current and planned exploration activities, including the results of the Company's planned 2013 drilling program(s) on the Bruner property, will not be consistent with the Company's expectations; the geology, grade and continuity of any mineral deposits and the risk of unexpected variations in mineral resources, grade and/or recovery rates; fluctuating metals prices; possibility of accidents, equipment breakdowns and delays during exploration; exploration cost overruns or unanticipated costs and expenses; uncertainties involved in the interpretation of drilling results and geological tests; availability of capital and financing required to continue the Company's future exploration programs and preparation of geological reports and studies; delays in the preparation of geological reports and studies; the metallurgical characteristics of mineralization contained within the Bruner property are yet to be fully determined; general economic, market or business conditions; competition and loss of key employees; regulatory changes and restrictions including in relation to required permits for exploration activities (including drilling permits) and environmental liability; timeliness of government or regulatory approvals; and other risks detailed herein and from time to time in the filings made by the Company with securities regulators. In connection with the forward-looking information contained in this news release, the Company has made numerous assumptions, including that the Company's 2013 exploration programs will proceed as planned and within budget. Canamex expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as otherwise required by applicable securities legislation.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Canamex Resources Corp.
    Robert Kramer
    Chairman and CEO