Bruner Gold Project: H1 2013 Drilling Program
The Company's Technical Advisory Committee met last week and has recommended to the Board of Directors a 6,700 meters (22,000 feet) RC drilling program for the first half of 2013 to be split roughly evenly between the new discovery area drilled in 2012 (the area referenced above) and the northern extension to the historic resource area. Historic work by Morrison-Knudsen, Miramar, Glamis, Newmont, Kennecott and others identified a low grade resource near the southwest portion of the property. The work by Newmont, Kennecott and Miramar was summarized in a report by John Schilling in 1991. The resource section of the report identifies approximately 383,000 ounces (15 million tons at 0.026 opt) of gold within the July-Duluth area of the project. This is not a NI 43-101 defined resource and a qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves, and Canamex is not treating the historical estimate as current mineral resources or mineral reserves. The Company identifies this as the historic resource area.
Recently acquired rock and soil sampling over the historic resource area completed by Newmont shows a gold anomalous area roughly 100 meters wide by 200 meters long the contains samples up to +50 gpt Au and which has not been drilled. Combined, these two target areas could add significantly to the mineral inventory at the Bruner property. Also, an area roughly 100 meters by 100 meters located to the east of the historic resource area contains highly anomalous gold in soils and rock chips and which contains no drill holes. This area will be a focus of detailed geologic mapping and follow-up sampling in anticipation of drilling in the second half of the year.
Bruner Vein Target Area
The newly defined Bruner vein target area is approximately 1.5 kilometers north of the Penelas East new discovery area. During Q4 of 2012, Chief Geologist Dr. Ellen Leavitt took rock chip samples from this newly defined area of interest which returned up to +5 gpt Au. Based on an historic rock geochem map obtained in H2 2012, the Company has determined that historic rock chip samples have returned over 7 gpt Au in an area on the property near the Bruner Vein that has seen absolutely no follow-up mapping or sampling since the samples were taken in the late 1980s. Importantly, there has been no drilling in the Bruner Vein target area. The Company anticipates it will be ready to drill this area in the second half of 2013.
Bruner Gold Project: Additional Actions
The Company plans to commence initial metallurgical work on drill cuttings from the Penelas East new discovery area. The ultimate objective will be to compare the very positive metallurgical results announced on September 10, 2012 for the historic resource area with those for the Penelas East new discovery area. In addition, the Company will address preparation of a Plan of Operations that will allow extensive drilling of these resource areas and additional target areas going forward. The Company is currently operating under Notice of Intent for the drilling planned in 2013 and does not require approval of a Plan of Operations for any drilling contemplated at the Bruner gold project during 2013.