Cancor Mines Inc.
CNSX : KCR

Cancor Mines Inc.

August 06, 2009 11:55 ET

Cancor Mines Inc. Completes Independent NI 43-101 Report for Tan Chaffao East Gold Project in Hoggar, Algeria

MONTREAL, QUEBEC--(Marketwire - Aug. 6, 2009) - Cancor Mines Inc. (CNSX:KCR) is pleased to present an update with respect to its activities on its gold-bearing properties in Algeria, and to announce the filing of a technical report on SEDAR, in compliance with Canadian Standard 43-101.

Cancor and its subsidiaries hold four gold exploration licences in Algeria, in the Hoggar region of the Sahara, located 2,000 km south of the capital Algiers:

- The Tan Chaffao West prospecting licence (44,580 ha),

- The In Ouzzal North exploration licence (25,872 ha),

- The Tirek North prospecting licence (98,990 ha), and

- The Tan Chaffao East exploration licence (20,000 ha).

The first two licences were acquired in 2007, and the other two were acquired in the summer of 2008. Tan Chaffao East (TCE) recently underwent a complete technical evaluation by Mr. Paul Girard, engineer-geologist and qualified person within the meaning of Canadian Standard 43-101, who studied the Tan Chaffao East property and prepared the technical report.

The TCE licence covers an area of 20,000 hectares (200 km2), and contains copper-gold-mineralizations. It is located on the eastern flank of the In Rabir syncline in volcanic-sedimentary formations.

The mineralized zones ("the deposit") are within "secondary quartzites" (a Russian term equivalent to the Anglo-Saxon chert), and their immediate wall rocks of sericite-quartz+/-chlorite-pyrite schists. These mineralized zones are exposed in the form of lenticular outcroppings laid out in a chain formation, which create a positive-relief terrain that reaches heights of 20 to 25 m. The length of these outcroppings ranges from 50 to 300 m and their width from 0.6 to 16.5 m.

These mineralized zones are located atop the felsic volcanics, and extend for several kilometres. They consist of disseminations and veinlets of sulphides that account for as much as 50% of the rock in the richest portions. Mainly pyrite, accompanied by chalcopyrite, sphalerite, and galena are found. At the surface, the minerals are represented by malachite, chalcosite, galena, chalcopyrite, zinc oxides, and visible fine gold.

The general direction of the mineralized zone is NE-SW, with a dip of 65 degrees to 80 degrees toward the NW.

The Tan Chaffao East mineralized zones are hosted by several bodies of secondary quartzite, attributed to the same key horizon. The historical resource estimate for this is 6.6 millions tonnes of 0.55% Cu and 1.62g/t Au (Sonarem, Kytchakov, et al. for the work in 1972-1973 and V. Kouldochine et al. for the work in 1973). This preliminary assessment was carried out by the Russian team, based on 10 drill holes and trenches spaced 100 to 200 m apart. These resources are characterized by Kouldochine et al. as "prognostic", which seems to correspond to category C2 (in the Russian classification).

These resources are not compliant with Canadian Standard 43-101. No qualified person has carried out the work required 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 (July 8, 2008 Press Release).

Three mineralized zones or lenses were covered by this estimate prepared by Kouldochine et al. (1973): the South-West, Central, and North-East blocks. The table below summarizes the tonnages and grades obtained.



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Length Depth Thickness Resources
Zone (m) (m) (m) (t) % Cu % Zn Au g/t
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South-West
Block 450 170 9.8 2 209 160 0.6 1.7 1.4
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Central
Block 300 120 13.1 1 320 480 0.95 0.9 3.5
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North-East
Block 700 170 9.5 3 165 400 0.36 1.65 1.0
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Total 1450m 10.1 6 585 040 0.55 1.65 1.62
--------------------------------------------------------------------------


The schematic geological map of the Tan Chaffao East deposit (Cancor, 2008) is available at the following address: http://media3.marketwire.com/docs/KCRmap_E.pdf

The South-West block consists of 3 lenses separated by low-displacement faults. The Russians updated it by means of 7 trenches and 4 drill holes (S21, S28B, S29, and S30) on two profiles.

The Central block is defined by 3 trenches and one drill hole: S23.

The North-East block was delimited by 7 trenches spaced 100 m apart and three drill holes on three profiles: S24, S46, and S43b.

This estimate excludes the resources of the oxidation zone, which is estimated to be between 20 and 30 metres.

Other mineralized showings

Two other showings have been identified within the perimeter of the licence: the "North East" showing and the "Prospection" showing. These two showings were discovered as a result of extensive exploration of the sector by the Russian teams in 1972-1973.

The North East Showing covers an area of 6 km2, approximately 6 km NE of the Tan Chaffao East mineralized zones, in the same geological environment, on the eastern flank of the In Rabir syncline. It was recognized as a result of geological, geochemical, and geophysical work and a number of trenches.

The existence of sulphide lenses at depth is suggested by the presence of extended SP electric anomalies superimposed on highly-altered rocks ranging from highly sericitized, chloritized, and pyritized rocks to "secondary quartzites" with anomalous values of Cu, Pb, Zn, and Au.

The Prospection Showing is located north of the North East Showing, and constitutes its extension. It is in the same geological environment as the previous mineralized zones. This zone was the subject of geological surveys with grab and channel sampling, as well as electrical and magnetic exploration profiles and 30 gravimetric profiles. This work led to the discovery of a hydrothermal alteration zone characterized by the presence of quartz-sericite-pyrite schists, with thicknesses of as much as 100 to 200 metres. The grab samplings show anomalous copper values. Electrical prospecting indicates a conductive zone that is more than 8 km long.

With the exception of the southern sector of the licence, namely the Tan Chaffao East mineralized zones ("the deposit"), the perimeter covered by the licence is still at the preliminary exploration stage. A relatively small amount of work has been carried out there. An exploration program is proposed. It is divided into three phases with the following objectives: a site survey, validation of the data, and a search for encouraging anchor points for moving on to the detailed exploration phase, as applicable. At the end of this program, we should be able to delimit the zones and provide a first estimate of the polymetallic and gold-bearing mineral resources contained on the property.

Quality control

Cancor Mines Inc. has not yet carried out any sampling on this on this property. In the 1970s, samples from the Hoggar region were sent to the SONAREM laboratory in Tamanrasset. To the best of the author's knowledge, the analysis methods used at the time were spectrographic powder assaying and the Sofranov method. These methods are no longer used by recognized laboratories. For this reason, the author cannot pronounce judgment on the relevance and quality of the methods used during the exploration campaigns of previous years by the Russian, French, and Algerian teams. The Tamanrasset laboratory has not yet received international accreditation. However, the author is of the opinion that the results of the analysis given above provide a conceptual indication of the sector's potential, and that they are relevant for the purposes of geological evaluation.

Cancor Mines Inc. is a Canadian mining company involved in the exploration and development of properties with high potential for precious or base metals in recognized mining camps. The company is listed and traded on the Canadian National Stock Exchange under the symbol KCR (CNSX- www.cnsx.ca).

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 property, 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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