The Gibson prospect is 887 Ha in size and located in central British Columbia, approximately 95 kilometres northwest of Fort St. James. The area is accessible via a network of all weather logging roads.
At it's election CANEX Metals can earn a 100% interest in the Gibson prospect from Altius Resources Inc. by issuing shares, spending $500,000 on exploration within 18 months, and taking over the obligation of an underlying option agreement. CANEX will issue shares to Altius as follows; on signing 1,125,000 shares were issued, after completion of surface exploration work but prior to drill testing another 1,180,000 shares will be issued, and after the $500,000 required work expenditures have been completed a final 1,240,000 shares will be issued to complete the 100% earn in. Altius will retain a 2% net smelter returns royalty on the property less any royalty obligation in the underlying agreement. If CANEX achieves a measured and indicated mineral resource in excess of 1 million gold equivalent ounces a Milestone Payment of 1,275,000 shares will be issued to Altius. CANEX will also assume the obligations of an underlying option agreement with Steven Scott including payments of either cash or equivalent shares of $85,000 spread over 4 years, and Milestone Bonuses of $5000 upon a change of control of the property, $25,000 upon completion of a Bankable Feasibility Study, and $50,000 upon commercial production.
Geology and Mineralization
The Gibson prospect contains mesothermal gold-silver mineralization hosted in hornfelsed volcanic rocks of the Lower Jurassic Takla Group, within about 500 metres of the contact of the Early Jurassic Hogem Batholith. Zones of porphyry style Cu-Au mineralization have been intersected within the Hogem Batholith 2.5 to 3.5 kilometres northeast of the Gibson showing. Mineralization at Gibson consists of quartz-carbonate veins, stockworks, and breccias, within strong clay-sericite-quartz altered volcanic rocks. Sulfides within the mineralized zones include pyrite-galena-sphalerite-arsenopyrite, enveloped by larger zones with 5 to 10% pyrite.
The Gibson zone is largely known from surface exploration work and drilling conducted by Noranda from 1989 to 1991. Following soil sampling and induced polarization geophysical surveys Noranda exposed precious metal mineralization in hand trenches. Trench samples returned 12.86 g/t gold and 144.7 g/t silver over 1.5 meters and 5.35 g/t gold and 2136 g/t silver over 1.7 meters. Noranda subsequently drilled 9 holes into the zone, with all 9 holes intersecting significant clay-sericite-quartz altered and pyrite-galena-sphalerite mineralized volcanic rocks, and 8 of the 9 holes intersecting significant gold and silver mineralization. The drilling demonstrates a mineralized zone at least 400 metres long and 4.5 metres wide that remains open in all directions. There has been no subsequent drilling or trenching at Gibson since Noranda's highly successful 1991 program.
A summary of Noranda's drill results are shown in the table below.
Recent 3D analysis of the 1991 drill data by CANEX indicates a strong NNE strike and near vertical dip to the mineralization at the main Gibson showing, with the zone remaining open in all directions. Interpretation of alteration distribution indicates multiple steeply dipping alteration zones are likely, each perhaps 20 to 40 metres wide or more, with potential for multiple zones of high grade mineralization. Available historic drilling, soils, and geophysical data indicate the prospective zone for alteration and mineralization could be at least 1600m long by 600m wide.
Analogy - Exploration Model
Historic exploration data show evidence for a large and strong mineralized system at Gibson with very good continuity in the small area tested to date. The target is structurally controlled high grade Au-Ag mineralization peripheral to a variably mineralized porphyry or intrusive centre. An analogy includes the Snip Mine in British Columbia which produced 1.1 million ounces of gold and has considerable exploration potential remaining.