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Canamex Resources Hits More High Grades At Penelas East, Area To Remain A Priority This Year

Jul. 17, 2013 3:21 PM ETCNMXF
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Canamex Resources Corp. (CVE:CSQ)(OTCQX:CNMXF) reported Wednesday a new high grade gold intercept at its Penelas East discovery area found on its Bruner gold project in Nevada.

A new drill pad in the region was constructed in June, located 90 metres north of the initial discovery hole found last summer, and 140 metres north of the high grade gold intercept announced in April.

The new hole, B-1316, cut 1.5 metres grading 37.9 grams per tonne (g/t) gold, from between 340 to 345 feet, within a wider zone averaging 4.27 g/t gold over 21.3 metres.

Two more holes near the area have already been drilled, with results pending, while another hole is also being drilled to intersect the high grade structure 100 feet above the intercept in the latest hole completed.

"We are very excited to continue to intersect high-grade gold in the Penelas East discovery area, " said president and COO Greg Hahn in the release Wednesday. "This high-grade structure remains open and undrilled to the north of the fence of holes currently being drilled, and remains open and undrilled to the south of hole B-1301, located about 140 meters south of the intercept reported above from hole B-1316."

Hahn also said that he believes the company now has a "good handle" on the strike and dip of the high grade structures, with continued drilling here to be the focus of its work for the "forseeable future".

"In addition, we plan to bring in a core drill in September to get a more detailed look at the structure hosting the high-grade gold," he added.

The company has also completed drilling on the northern extension to the historic resource on the property, saying it intersected several intervals between tens of feet to 100 feet plus thick, grading 0.01 ounces per ton, but did not return any higher grade material that justified continued drilling on the target. The rig thus returned to the Penelas East target area, with the drilling to continue on the east side of the Bruner property for the remainder of the year.

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.

The Canadian listed junior 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. Shares of the company are currently trading at 7 cents on the TSX Venture Exchange.

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

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