CANEX has signed a Letter of Intent granting the Company an option to acquire a 100% interest in 5 mineral exploration properties in British Columbia from Altius Resources Inc. (“Altius”), a wholly held subsidiary of Altius Minerals Corp (TSX:ALS). The portfolio of British Columbia projects ranges from early stage to more advanced properties, and comprises high and low sulphidation epithermal targets, porphyry Cu-Au targets, and mesothermal gold targets. The projects are Ace, Echo, Fulton, Red, and Beal and their locations are shown on the map below.
The Ace project is the most advanced of the 5 Altius BC properties and is centered around a historic 1800 metre by 500 metre Cu-Ag-Au in soil anomaly that has never been trenched or drilled. Altius has an exploration permit application for Ace allowing trenching, geophysics, and drilling. Acquiring the Ace project will be conditional on satisfactory resolution of a property access issue by August 15, 2018.
CANEX must fund the next $100,000 in exploration by Altius. Following that, CANEX would earn a 100% interest by issuing 500,000 shares to Altius and assuming the obligations of an underlying option agreement. Altius would retain a royalty interest (less any underlying royalty) and a milestone bonus. The underlying agreement is with Ken Galambos and Ralph Keefe, and includes payments of $150,000 in cash or shares and expenditures of $555,000 over 5 years, along with an underlying royalty and milestone bonuses.
The Ace property is centered around a large Bulkley Suite intrusive containing widespread alteration zones, quartz stockwork veining, potassic alteration, and a historic 1800m by 500m Cu-in-soil anomaly with strong Ag and Au. The property has good potential to host a large precious metal enriched porphyry copper system. A compilation of historic data also shows large gold and silver anomalies within and surrounding the porphyry system. Structurally controlled high grade Ag-Au mineralization is one of the primary targets at Ace.
A district scale NE trending lineament controls the alignment of prospects in the district and is postulated to be a first order control on high grade precious metal mineralization. Historic chip sampling of outcrop near this lineament returned 10 metres grading 578 g/t Ag, and numerous grab samples have returned several hundred g/t Ag and up to 3.3 g/t Au.
In 2016, along the covered SE projection of the lineament, a grab sample of float from a logging cut block returned 17,952 g/t Ag (577 ounces per tonne), 2.5 g/t Au, 15.8% Zn, and >20% Pb, demonstrating the potential for high grade precious metal veins in the district. Within this covered area strong precious metal in soil anomalies have been encountered over hundreds of metres but have not yet been tested.
A compilation of historic soil sampling from the Ace property is shown above. Strong gold in soil anomalies have been identified peripheral to the Ace Main Zone and a strong silver anomaly is centred over the Ace Main Zone.
A compilation map of historic data from the Ace Main Zone is shown on the maps above. Soil samples shows a strong Ag-in-soil anomaly associated with a northeast trending intrusive body, an antiformal structure, and inferred district scale lineament. The zone also has a strong copper in soil anomaly with values up to 1,410 ppm copper.
Surface work and trenching is planned for 2018 to better expose and sample the known mineralized zones and test structural and soil anomalies in covered areas. An access trail has been permitted to allow direct exposure and trenching of Ace Main Zone.
Ace – Echo – Fulton – Red Projects
The Ace, Echo, Fulton, and Red Projects are all early stage projects that require additional fieldwork to advance to the trenching or drill stage. To Earn a 100% interest in the projects CANEX must spend a minimum of $30,000 on exploration within 15 months, and for each project issue to Altius 500,000 CANEX shares. Altius will retain a royalty a milestone bonus on each.
The Echo Project targets mesothermal (orogenic) gold mineralization within a till covered area which has seen very little historic exploration. The claims are centered over a cluster of 90 to 99 percentile gold in lake sediment anomalies and are in proximity to known placer gold occurrences. The claims cover 7.5 kilometres of strike length over an inferred covered shear zone known to host alteration and lode gold mineralization 20 kilometres to the northwest. In 2017 Altius discovered a low-level gold in soil anomaly over a 300 metre by 500 metre till covered area at Echo. This anomaly remains open for expansion and most of the 7.5 kilometre strike length of the inferred shear zone remains unexplored. CANEX plans to initiate soil sampling and mapping at Echo in May 2018.
The Fulton Project contains a large airborne potassium, magnetic, and Th/K ratio anomaly identified in the 2017 Geoscience BC Search Phase II geophysical survey, located within an area prospective for Cu-Au porphyry mineralization. In 2017 field work by Altius identified porphyritic intrusions, alteration zones, and discovered a new zone of copper mineralization which returned composite grab samples from outcrops of 0.48% Cu and 6.8 g/t Ag over 2 metres, and 0.15% Cu over 4 metres. Further prospecting, mapping and sampling at Fulton is planned for summer 2018.
The Red Project contains a large high-level alteration system considered prospective for high sulphidation epithermal mineralization, porphyry Cu-Au mineralization, and peripheral gold-silver base metal veins. A large gossanous alteration zone is well exposed over an area 1.5 by 1 kilometres at Red. Soil sampling by Altius in 2017 identified a low level Au-Te-Mo-As soil anomaly overlapping the zone of alteration and this anomaly remains open for expansion. Historic exploration 1.5 km southwest of the exposed alteration zone identified vein and stockwork mineralization within a creek bed. Historic drilling from this zone returned an intersection of 6.93 g/t Au and 34.6 g/t Ag over 0.53 metres. Historic work has traced this vein and stockwork zone over about 1000 metres of strike length. The next phase of exploration at Red is being evaluated.
The Beal Project is centered around a government survey sample that returned a 99.97 percentile gold in stream sediment anomaly within a geologic and structural setting favorable for mesothermal (orogenic) gold mineralization. Grass roots exploration by Altius has confirmed anomalous gold in stream silt samples, located patchy low-level gold in soil samples, and has narrowed the prospective source area for gold at the target. Further evaluation at Beal this summer will include prospecting, mapping and sampling.