Cancor Mines Inc.

Cancor Mines Inc.

June 08, 2008 09:28 ET

Cancor acquires another major gold project in Algeria

MONTREAL, July 8 - Cancor Mines Inc. is pleased to announce
that it has acquired another exploration permit for a major gold project in
Algeria. The new project is called Tan Chaffao East (TCE).
The exploration permit which covers approximately 20,000 hectares
(200 km2) is host to a zone of copper-gold mineralization. The mineralized
zone was discovered in 1972 during a gold prospecting campaign conducted by
Russian geologists working for the Algerian state-owned entity Société
Nationale de Recherche Minière (Sonarem).
The permit was obtained through a competitive bidding process conducted
by the Agence Nationale du Patrimoine Minier (ANPM), the sole government body
authorized to issue mining permits in Algeria. The permit is held by TCE
Exploration, L..P., a limited partnership (the "Partnership"). The general
partner of the Partnership is Cancor Mines Inc. and the sole limited partner
is a wholly-owned subsidiary of Cancor Mines Inc. The property is located in
the Hoggar, 200 km northwest of the town of Tamanrasset.
The Tan Chaffao East property hosts several bodies of secondary
quartzite, attributed to the same key horizon. The total length of the
mineralized bodies is 1,450 metres, and their average thickness is 10 metres.
Historical data based on geological assessments of the property reveal an
estimated 6.6 million tonnes of resources at 0.55% Cu and 1.62 g/t Au
(Sonarem, Kytchakov and al. for 1972-1973 work and by V. Kouldochine and al.
for 1973 work). This preliminary assessment was done by the Russian team based
on 10 drill holes and trenches spaced 100 to 200 metres apart. These resources
are not compliant with National Instrument 43-101. A qualified person has not
done sufficient work to classify the historical estimate as current mineral
resources. Cancor is not treating the historical estimate as current mineral
resources and accordingly the historical estimate should not be relied upon.

The table below summarizes the parameters of the mineralizations

Item Thickness (m) Au g/t % Cu % Zn
Trench 101 10 2.2
Trench 102 3.2 3.3
Trench 106 10 1.0
Borehole 21 17 3.5 1.0 1.8
21 2.0 - -
Borehole 28b 17 1.0 0.4 1.5
Borehole 30 6.5 0.1 1.9
Borehole 43b 4.4 0.42
Borehole 24 9 3.3 0.62
Borehole 23 5 8.6 1.2
5.8 3.6 0.55

The mineralized zones and the marker extend over 5 kilometres and are
lenticular and heavily oxidized on the surface, forming gossans (goethite,
limonite) containing malachite, a minimal amount of azurite and accessory
lead-bearing and zinc-bearing minerals. Free gold is visible on the surface,
especially in zones rich in barite.
Reconnaissance work conducted in proximity to the Tan Chaffao East body
has revealed several other showings which present the same geological and
structural characteristics. However, these showings have not yet been
The model in place is of the Volcanic Massive Sulphide type, with copper
and gold. The host and potential horizon is very extensive and scarcely
explored up to now. A complete due diligence of the project and a NI 43-101
report will be completed over the next few months and an exploration program
will be put in place.
Over the past year Cancor and its subsidiaries have successfully acquired
three other gold projects in Algeria. These consist of two prospection permits
for properties respectively known as Tan Chaffao West (Gold-Copper project,
press release dated June 12 , 2007) and Tirek North (Gold project, press
release dated May 20, 2008), as well as an exploration permit for a property
known as In Ouzzal North (Gold project, press release dated July 31, 2007).
SONATRACH, Algeria's state-owned oil and gas company, holds the right to
acquire a participating interest ranging between 15% to 49% in any project
that goes into production.
Cancor and its subsidiary are currently establishing the organizational
and technical infrastructure needed for upcoming operations.

Cancor Mines Inc. is a Canadian mining company engaged in the exploration
and development of properties with gold and base metal potential in
established mining camps.
All recent Cancor Mines press releases are available on the Company's
Website: This press release has been read and approved by
Mr. Khobzi, an engineer and qualified person for the purposes of NI 43-101.
For further information, please contact Mr. Khobzi, the company's President,
in Montréal at (514) 849 -3013.

Caution concerning forward-looking statements

This press release contains certain "forward-looking statements",
including, but not limited to, the statement regarding exploration work and
the emphasis on looking for a certain type of deposit. Forward-looking
statements involve a number of risks and uncertainties. There can be no
assurance that such statements will prove to be accurate. Actual results and
future events could differ materially from those anticipated in such
statements. Risks and uncertainties that could cause results or future events
to differ materially from current expectations expressed or implied by the
forward-looking statements include, among other things, those set forth in
Cancor's 2008 Annual Information Form, a copy of which can be obtained on the
SEDAR website at

Contact Information

  • For further information: Mr. Khobzi, the company's President, Montréal,
    (514) 849-3013