Gold Range - Arizona

Highlights

• Good geologic and structure setting in Arizona, a top-tier mining jurisdiction.
• The district has never been assembled and systematically explored as a single large gold bearing system.
• Multiple kilometre scale mineralized trends now have been identified.
• The Adit Shear Zone has been traced for over 5 kilometres.
• Classic structural traps occur and are mineralized (fault intersections, bends, fold noses).
• Mineralized quartz veins up to 5 metres wide have been identified.
• Mineralized stacked flat lying veins identified at the Pit Zone over a 25 metre vertical section provides a compelling drill target with good tonnage potential.
• A large gold in soil anomaly 90 metres wide and 330 metres long (and open) has been identified and is being expanded.

Introduction

The Gold Range property is located in Mohave County Arizona within a historic district that has seen widespread small-scale lode and placer gold production but limited modern lode gold exploration. The property is 1043 hectares in size consisting of 145 lode mining claims located on federal land administered by the Bureau of Land Management.  CANEX has the right to earn a 100% interest in the property from the Vendor by making staged cash payments over 4 years totaling US$90,000 and completing exploration expenditures of US$80,000.  The Vendor will retain a 2% net smelter royalty which can be bought back by CANEX for US$1.5 million.

Geology and Mineralization

The Gold Range district contains Precambrian metamorphic rocks that have been intruded by Cretaceous granites and modified by Laramide to Tertiary Age compression and extension.  Most mineralized veins are mesothermal in nature and contain trace to a few percent sulfides consisting of galena, chalcopyrite, pyrite and sphalerite, and traces of native gold.

The district contains multiple historic workings dating back as far as the 1880’s but very limited modern exploration and to our knowledge the district has never been assembled and explored in the context of a single large mineralized system.  CANEX is focused on identifying zones within this large system that have potential to host large gold deposits.

Numerous high-grade gold bearing quartz veins occur over an area 5 kilometres by 3 kilometres with gold grades ranging from trace to 94.7 g/t. The average of 367 surface chip and grab samples, including mineralized veins and barren wall rock, is 4.4 g/t gold.

Select chip sample results are shown in the Table below and confirm high grade gold mineralization at several targets throughout the property.

Table of select chip samples results from Gold Range.

The Pit Zone contains a small open pit that was mined in the 1980’s with the material heap leached in the adjacent valley.  Sixty-nine chip and grab samples have been taken at the Pit Zone by CANEX personnel, including mineralized veins and unmineralized wall rock, and have returned gold values ranging from trace to 48.1 g/t, averaging 8 g/t gold.  The Pit Zone exposes numerous well mineralized quartz veins ranging from 0.25 to 1.5 metres in width.  At least 6 flat lying stacked mineralized quartz veins are exposed in the pit across a vertical distance of about 25 metres.  The flat veins appear to be exploiting a flat lying metamorphic fabric at the nose of a large fold structure.  The axial plane of the fold contains a steeply dipping mineralized feeder structure associated with an altered and mineralized intrusive dike that is best exposed at the north end of the pit.  The presence of multiple stacked flat veins adjacent to a steeper feeder structures provides a great setting for targeting significant tonnages of high-grade mineralization.  Chip sampling indicates that some wall rocks adjacent to veins contain 0.4 to 2 g/t gold, whereas some wall rocks between veins are not significantly mineralized. 

A 60 metre wide gold in soil anomaly has been discovered 70 to 100 metres north of the Pit Zone providing good evidence the mineralization may extend in that direction where geophysical data suggest the zone might be at least 450 metres long.

A 90 metre wide by 330 metre long (and open) gold in soil anomaly has recently been identified in the Central Zone. Over 700 additional soil samples have recently been taken at Gold Range to identify the extent of the Pit Zone and Central Zone gold in soil anomalies. Results from this sampling are pending

Next Steps

CANEX is rapidly advancing the Gold Range Property to the drill testing stage with surface mapping and sampling, high resolution airborne magnetic surveys, soil sampling, and trenching.  Exploration permits have been received and company is fully permitted to excavate an additional 10 exploration trenches and drill up to 35 holes from 15 drill pads.