Cancor Mines Inc.
CNSX : KCR

Cancor Mines Inc.

April 27, 2011 14:57 ET

Cancor Mines: Exploration Update on In Ouzzal North Property, Algeria

MONTREAL, QUEBEC--(Marketwire - April 27, 2011) - Cancor Mines (CNSX:KCR) is pleased to provide an update on the exploration on In Ouzzal North, one of the Company's four gold properties in Algeria. On April 13th Cancor issued a press release on the Tirek North property. The attached map shows the location of both properties (http://media3.marketwire.com/docs/cancor_maps_2.pdf).

The Tachamek gold field, located on the In Ouzzal North property, was the site of much historical work which was focused on the known veins which have impressive grades of gold mineralization. During the recent program, in order to investigate the gold potential between the known veins, several trenches and geological surveys were completed. One objective of this work is to demonstrate that the gold mineralization extends beyond the known veins which would increase the likelihood of being able to access large volumes of mineralized material from surface in an open pit operation.

The licence for In Ouzzal North covers an area of 6,528 hectares. This area includes the southern portion of the In Ouzzal Deformation Zone (IODZ), which constitutes a band of mylonites 300 to 3,000 metres thick, corresponding to a major tectonic deformation rift. This tectonic zone controls the emplacement of numerous vein-type gold showings, including the two gold deposits at Tirek and Amessmessa, located respectively 67 and 15 kilometres north of the northern boundary of the licence. The Amessmessa deposit is currently in production.

The geological and geochemical work done by Cancor in 2007 and 2008 served to confirm the environment's geology and the grades of mineralization on the main gold field of Tachamek reported by Russian and Algerian teams working for Sonarem between 1979 and 1995.

Under the current exploration program, in addition to geological mapping being completed, 25 trenches have been opened up or newly dug, and some 989 samples have been collected by channel and grab sampling. The samples are currently being processed. Results will be released as soon as available.

All the known goldfields and veins on In Ouzzal North have been visited and sampled. These samples are being analyzed by OMAC Laboratories in Ireland. Cancor expects to receive the test results shortly.

Mr. Jacques Marchand, independent geological engineer and qualified person as defined in NI 43-101, has overseen the exploration program. Mr. Marchand established the sampling procedures, and he will publish a compliant report on the In Ouzzal North property toward the end of June 2011. This report will define the subsequent work program and surveys planned for the fall of 2011 and winter of 2012.

The known gold-bearing veins of the Tachamek field are grouped together within six vein-type structures (zones I to VI, see the attached map). Some of the gold-bearing quartz veins reach 500 metres in length. Two samples collected by grab sampling by Cancor's geologists yielded 410 g/t Au and 128.50 g/t Au, confirming as well the strong grades obtained historically (see Cancor's press release of December 3, 2007).

The gold fields of Tachamek are located immediately to the east of the In Ouzzal Deformation Zone (IODZ), in the mylonitic domain; the host rocks of quartz veins in this sector are characterized by mylonitic granite-gneisses cut by dykes and a small intrusion of syn-orogenic to late-orogenic granite. This granitic intrusion contains quartz veins running in a submeridian direction which form a part of the area's mineralized zones.

Zone I.

This zone is located approximately 100 metres west of the western border of the granitic intrusion, and manifests in a continuous outcrop of vein-like quartz. The length of the zone is approximately 370 metres, and the width of the outcrop varies from 0.20 to 0.90 metres. The quartz is fractured and mineralized with pyrite and galena crystals, and particularly includes oxides and hydroxides of iron. Exploration by trenching executed in this zone had detected grades ranging from traces to 5.1 g/t Au.

Zone II.

This zone is located approximately 100 metres east of Zone I, and is the most important in the sector extending more than 2.5 kilometres within the licence; its width varies on average from 20 to 60 metres and in places exceeds 100 metres.

The zone consists largely of mafic rock material composed of altered gabbro-diorite, including lenses, veins, and/or quartz stringers sometimes brecciated. Within these bodies of quartz, gold mineralization (visible gold in places) is associated with sulfides, particularly galena and pyrite, with oxides and hydroxides of iron.

Here is a summary of the results obtained throughout the area:

  • The anomalous values ΓÇïΓÇïof altered host rocks: grades ranging from trace amounts to 0.6 g/t Au; one grade in trench No. 373 reached 6.0 g/t Au.
  • The best grades were recorded on the quartz bodies and they vary from 0.2 to 46.0 g/t Au, with one grade reaching 86.1 g/t (trench 373) and another exceptional grade reaching 361.9 g/t (trench 310) .
  • The characteristics of the area make this type of mineralization consistent with that of the Amesmessa deposit.

Zones III, IV, V and VI represent the mineralized areas hosted within the granitic intrusion.

Zone V.

This area, providing perhaps the greatest potential, stretches intermittently for approximately one kilometre. Prospecting activities have included 16 trenches. The quartz is massive, banded, lined with cracks of mostly ferruginous materials, and containing gold, pyrite with rare galena as well as oxides and hydroxides of iron. The historical grades obtained from channel sampling vary from 2.82 to 17.29 g/t Au on section lengths of the quartz veins ranging from 30 to 108 metres.

Cancor holds a 100% interest in the In Ouzzal North (ION) property through an Exploration license acquired in 2007. The ION property straddles a major fault associated with numerous extensive surface and near-surface gold showings which appear to offer exceptional potential for open pit mining.

Quality Control

Follow up on the exploration program is carried out by Cancor employees under the supervision of Mr. Jacques Marchand, eng., independent geologist and qualified person (as defined by National Instrument 43-101) with more than 35 years of experience in exploration.

Mr. A. Chaouche, an Algerian consulting geologist, accredited by the Algerian Ministry of Energy and Mines and working in close collaboration with Mr. Marchand, is in charge of the channel sampling process including the preparation and transport of the samples to OMAC Laboratories in Ireland, an internationally accredited laboratory.

About Cancor Mines Inc.

Cancor Mines Inc. is a Canadian company involved in the exploration and development of mineral properties with high potential for precious or base metals. In addition to its Quebec properties, the Company holds a 100% interest in four Algerian properties which are prospective for gold. The Company is listed and traded on the Canadian National Stock Exchange under the symbol: KCR (CNSX - www.cnsx.ca)

The Algerian properties are located in the Hoggar region approximately 2000km south of the capital Algiers. They are located in a very favourable geological environment for gold similar to Canada's Abitibi greenstone belt and contain numerous gold fields on or near surface which may be amenable to open-pit mining. The properties are as follows:

  • Tan Chaffao West prospection permit (44 580 ha),

  • In Ouzzal North exploration permit (6528 ha),

  • Tirek North prospection permit (98 990 ha), and

  • Tan Chaffao East exploration permit (20 000 ha).

All Cancor Mines press releases, maps and figures related to these properties are available on the company's website, www.cancor.ca.

Technical reports with compliance to NI 43 101 have been completed for all our properties and are available on SEDAR site (www.sedar.com) and on our web page on CNSX (www.cnsx.ca).

Mr. Khobzi an engineer and qualified person under NI 43-101, who has visited the properties, has read and approved this release.

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 2009 Annual Information Form, a copy of which can be obtained on the SEDAR website at www.sedar.com

The CNSX does not accept responsibility for the adequacy or accuracy of this release.

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