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Monday, 11 March 2013
Canamex Resources rises as drill plans advance at Bruner
Vancouver-based Canamex Resources Corp. (CVE:CSQ)(OTCQX:CNMFX) says it has signed a contract to start 6,700 metres of reverse circulation drilling at its Bruner gold project in central Nevada this week, to last through June of this year.
Additional drilling of "at least a similar amount" is expected during the second half of this year, although details of this program will be dependent in part on the results received from the first half of 2013, the company said.
Canamex has the right to earn a 70 percent interest in the Bruner project by spending $6 million on it before May 2017, and can boost its stake by a further 5 percent by finishing a bankable feasibility study.
The Canadian junior says it now has enough cash to complete the contracted drill program for the first half of this year.
"We are excited to resume drilling on the Bruner gold project, after a severe snowstorm ran us out of the project in mid-December 2012, and we look forward to drilling the project throughout 2013 to be able to establish an initial NI 43-101 mineral resource on the Bruner project after this next year of drilling," said president and COO, Greg Hahn.
"Our expectations are high that we will have a very attractive gold + silver deposit to bring to the market in 2014, after completion of drilling in 2013."
The property has a historic, non NI 43-101 compliant resource near the southwest portion, which identified roughly 383,000 ounces of gold, or 15 million tons at 0.026 ounces per ton. The resource, though not compliant, was based on work completed by some heavyweights in the industry, including Miramar, Newmont, and Kennecott, meaning that Canamex has faith that the work is valid.
The junior mineral explorer recently raised $2.5 million from silver mining giant Hecla (NYSE:HL), giving Hecla a near 15% interest in Canamex - suggesting support for the Canadian company's project and plans.
Specifically, in the first half of this year, drilling will begin on the west side of the Bruner property, on the northern extension of the historic resource area. The area has seen little drilling, the company said Monday, with a total of 16 holes from four sites planned to test the northern extension. If successful, more holes in the region will be proposed in the second half of this year.
Column leach tests on bulk samples from underground workings in the historic resource area done by Canamex last year returned "excellent gold extractions", it said, of over 85 percent. This supports the advancement of the property toward the preparation of an NI 43-101 compliant resource, as well as potential follow-on preliminary economic assessment report.
Following the first stage of drilling on the west side of the property, the drilling will proceed to the east side and to the Penelas East discovery area. Drilling will continue on the open extension of the new deposit found last year, where 19 of 20 holes intersected mineralization - averaging 158 feet grading 1.41 grams per tonne (g/t) gold. All together, the company says this mineral system could be more than 600 metres long and 100 metres wide.
"The Penelas East target...contains several gold intercepts in shallow holes completed by Newmont, Miramar and others well north of the current proposed drilling program, which could extend the mineralized zone beyond the strike length that will be drilled by the end of this next round of drilling," Canamex said in its statement.
Meanwhile, metallurgical test work is already underway on drill samples from the Penelas East area, with results expected shortly.
Canamex also stands to benefit from its Aranka North property in Guyana, where it has the option to acquire up to a 100% interest in the asset. The property, which spans 98,057 acres, is on the same trend as Guyana Goldfields (TSE:GUY), and is also on trend with major gold discoveries by Sandspring Resources (CVE:SSP) at Toroparu.
Shares of the junior Canadian explorer rose by one penny to 10 cents in Toronto this morning.