Calgary, Alberta (FSCwire) - CANEX Metals Inc. (“CANEX” or the “Company”) is pleased to announce it has signed a Definitive Agreement granting the Company an option to acquire a 100% interest in five mineral exploration properties in British Columbia from Altius Resources Inc. (“Altius”), a wholly held subsidiary of Altius Minerals Corp (TSX:ALS).

 

With this deal complete CANEX now has 6 exploration projects in British Columbia, including a drill ready project at the Company’s existing Gibson gold-silver property, an advanced target with exceptionally high grade silver and large copper anomalies that can be tested by trenching, and four early stage gold or copper exploration projects with promising initial results.  The Company looks forward to a steady flow of exploration results through 2018.  CANEX is pleased to have established this association with Altius Minerals who have had tremendous success in identifying and assembling high quality exploration projects globally.

 

Terms of the Agreement

 

The agreement gives CANEX the exclusive right, at its election, to acquire a 100% interest in any or all of five British Columbia mineral properties from Altius.  Four of the five Altius projects are road accessible and all are located in west central British Columbia.  The five properties are named Ace, Echo, Fulton, Red, and Beal.

 

To earn a 100% interest in the Ace project CANEX must fund the next $100,000 in exploration expenditures and assume the obligations of an underlying option agreement which includes payments of $150,000 in cash or shares and expenditures of $555,000 over 5 years. Following the $100,000 expenditure CANEX would be required to issue 500,000 shares to Altius and a milestone bonus of 1.5 million CANEX shares would be payable to Altius if the property achieves a compliant resource estimate containing in excess of half a million gold equivalent ounces.  Altius would retain royalty buy back rights from the underlying agreement and would hold a 1.75% gross sales royalty on the property with any royalty payments in the underlying agreement subtracted from the royalty due to Altius. Acquiring the Ace project will be conditional on satisfactory resolution of a property access issue by August 15, 2018.

 

To Earn a 100% interest in the Echo, Fulton, Beal, and Red properties CANEX must spend a minimum of $30,000 on exploration within 15 months, and for each project where title is transferred to CANEX issue to Altius 500,000 CANEX shares.  Altius will retain a 1.75% gross smelter royalty on each property, and would be entitled to a milestone bonus of 1.5 million CANEX shares for any property that achieves a compliant resource estimate containing in excess of half a million gold equivalent ounces.  

 

There are no financing obligations attached to the agreement.

 

The BC Properties

 

Additional information on the five exploration properties optioned as part of this agreement are available on our website at www.canexmetals.com. 

 

The Ace project is the most advanced of the 5 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.  The property is prospective for Cu-Au porphyry mineralization and related high-grade veins.  Regional airborne magnetic surveys indicate a district scale fault cuts the area and controls the alignment of 5 known mineral occurrences contained within the property.  This fault zone is considered to have excellent potential to host high grade silver and gold mineralization.  Historic sampling along or near this fault zone has returned a chip sample containing 578 grams per tonne (g/t) Ag over 10 metres. A grab sample of float from a covered area along the southwest projection of the fault zone returned 17,952 g/t silver (577 ounces per tonne), providing an exceptional target for immediate follow up. Altius has an exploration permit in place for Ace, and pending resolution of access issues, a trenching program will be initiated this summer to test the large soil anomaly and the inferred high-grade structure.

 

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 complete additional soil sampling and mapping at Echo this year.

 

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 being planned.  

 

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.  Soil sampling by Altius in 2017 identified a low level Au-As-Te-Mo soil anomaly overlapping the zone of alteration and this anomaly remains open for expansion.  Historic exploration 1.5 kilometres 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 will include prospecting, mapping and soil and rock sampling.  

 

About CANEX Metals Inc.

 

Canex Metals is a Canadian based exploration company focused on acquiring and advancing high grade gold and silver deposits in stable mining jurisdictions.  Company Management has a proven track record of exploration success, with key personnel being involved in discoveries in Mexico, Newfoundland, and British Columbia.  CANEX successfully trenched the Gibson Au-Ag property in British Columbia during 2017 and plans to drill test the property in 2018. Details of CANEX Metals proposed 2018 exploration are available here.

 

Dr. Shane Ebert P.Geo., is the Qualified Person for CANEX Metals and has approved the technical disclosure contained in this news release.

 

“Shane Ebert”

 

Shane Ebert

President/Director

 

 

Except for the historical and present factual information contained herein, the matters set forth in this news release, including words such as “expects”, “projects”, “plans”, “anticipates” and similar expressions, are forward-looking information that represents management of CANEX Metals Inc. internal projections, expectations or beliefs concerning, among other things, future operating results and various components thereof or the economic performance of CANEX. The projections, estimates and beliefs contained in such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause CANEX’s actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, those described in CANEX’s filings with the Canadian securities authorities. Accordingly, holders of CANEX shares and potential investors are cautioned that events or circumstances could cause results to differ materially from those predicted. CANEX disclaims any responsibility to update these forward-looking statements.

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Source: CANEX Metals Inc. (TSX Venture:CANX, OTC Bulletin Board:NOMNF, FWB:NJM1)

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