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Canamex Resources Releases More "Encouraging" Results From Penelas East Discovery

Canamex Resources Corp. (CVE:CSQ)(OTCQX:CNMXF) shares gained Friday after announcing more encouraging results from the Bruner project in Nevada, specifically the Penelas East discovery area, from where the first holes of this year's program were announced in April.

The latest five reverse circulation drill holes were completed on drill pad number two, according to Canamex's statement, which is just 80 metres north of drill pad one, where the first two holes of the 2013 campaign were drilled that intersected gold grades as high as 117 grams per tonne (g/t).

Notable results released Friday include 1.585 g/t gold over 30 feet, and 2.4 g/t gold over 5 feet.

"We are encouraged by these results," said president and COO Greg Hahn in the release today. "All five holes are mineralized and could be accessible by open pit.

"Importantly, a three dimensional analysis of the high grade intercepts encountered in discovery hole B‐1201 and B‐1301 suggest the +110 gpt Au intercepts (+3 opt ) are contained in a steep‐ eastward dipping structure which was not penetrated by drill holes B‐1303 to B‐1307."

Indeed, a new pad has been constructed from where a historic hole drilled by Newmont Mining intersected 95 feet of 0.057 ounces per ton, which is believed to be the upper extension of the high grade structure found in the discovery hold drilled last year, and the first hole of the 2013 campaign announced back in April. Drilling on this new pad should begin in mid June, once work on the northern extension to the historical resource has been wrapped up.

The Bruner 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 company has been drilling on the northern extension of this resource since finishing the drill holes on Penelas East reported today, with six holes having been completed. Results are anticipated as soon as they are received and analyzed, Canamex said.

Shares were lately trading at 8 cents on the TSX Venture Exchange on Friday. Earlier this year, the junior mineral explorer 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.

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.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.