Canex Metals

Overview

Legendary investor Warren Buffet once suggested that when evaluating stocks, one of the key factors investors should look at is a company’s management team. He said, “Look at what they have accomplished.”

CANEX Metals (TSXV:CANX) CEO Dr. Shane Ebert has been involved in the discovery of three notable porphyry and bulk tonnage style deposits and he hasn’t stopped there: the Bahuerachi copper porphyry deposit in Chihuaua, Mexico, which lead to the takeover of Tyer Resource in 2008; the Viking project in Newfoundland, which paved the way for Northern Abitibi Mining to be awarded the Prospector/Explorer of the Year Award in 2010 by the Newfoundland Branch of the Canadian Institute of Mining, Metallurgy and Petroleum; and Surge Copper’s (TSXV:SURG) Ootsa property in British Columbia, specifically the West Seel deposit, Ootsa’s larger zone of copper-gold-molybdenum-silver mineralization.

Ebert’s newest company, CANEX Metals, is focused on identifying, acquiring and developing highly prospective explorations projects throughout North America. The company is currently developing a new gold discovery at its flagship Gold Range project in Arizona.

Arizona is currently ranked second overall in the Fraser Institute’s list of the world’s top jurisdictions for investment based on the Investment Attractiveness Index. Arizona’s favorable regulatory conditions, widespread exploratory potential and unexplored resource-rich geology combine for spectacular investment opportunities.

CANEX is in the exploration phase with ongoing work on the property already identifying a 5 kilometer long fault zone containing numerous mineralized zones and exploration targets.

Management has a good understanding of the local geology and structural controls at the Gold Range property. Of particular interest are the multiple bulk tonnage gold targets that CANEX has identified from first pass drilling and sampling on the property. Drilling into this type of target on the property is relatively low-risk and low-cost with a high reward proposition. Thus, presenting a unique opportunity for investors.

In addition, when combined, these targets have the potential to deliver an attractive project with scale that would be of interest to many. Regionally, CANEX’s Gold Range property is quickly developing into a key piece of the puzzle in what appears to be a new emerging bulk tonnage gold district in Northern Arizona.

Ebert enthusiastically discussed the next steps for the project. “The geology here is prospective for big deposits. We have multiple large mineralized footprints and indications of intrusion-related mineralization, a model that is known to host large gold deposits .”

“We are drill testing near surface bulk tonnage type targets. If successful, this type of target will be of interest to several players in the region that are looking to buy and consolidate and build these heap leach operations,” he further shared.

Regional Consolidation

Northern Vertex Mining (TSXV:NEE) owns and operates the nearby Moss mine, currently the largest pure gold and silver mine in Arizona with a low cost, open pit mine and heap leach processing. On February 16 2021, Northern Vertex agreed to combine with Nevada-based exploration company Eclipse Gold Mining Corporation (TSXV:EGLD) to form an emerging mid-tier gold producer with a focus on growth through M&A.

In July 2020, Argonaut Gold (TSX:AR) acquired the Nevada-based oxide gold heap leach project Florida Canyon, through its acquisition of Alio Gold (TSX:ALO). Over the last decade, Argonaut has successfully developed and operated several open pit heap leach mines. Argonaut’s strategy involves harvesting cashflows from current operations and using them for sustainable growth and replacement of resources. Argonauts’ current operations are in Western USA, Canada and Mexico.

Other notable regional developers and operators of gold heap leach projects include:

Americas Gold and Silver (TSX:USA) is a high-growth North American focused precious metals mining company. The company’s newest asset, the Relief Canyon gold heap leach project in Nevada is expected to reach commercial production by mid 2021.

Fiore Gold (TSXV:F) is a growth-oriented US gold producer. Its flagship asset is the Pan mine, a heap leach gold project based in Nevada. Fiore’s goal is to build a mid-tier US gold mining company through internal growth and strategic M&A.

Company Highlights

• The company’s flagship Gold Range project in Arizona leverages the state’s resource-rich history and mineralization. The company could see large bulk tonnage and high-grade gold resources that mimic nearby deposits.
• The relatively underexplored gold mining district in Northern Arizona presents CANEX with a first-mover advantage for gold discovery and the development of potential exploration targets.
• CANEX completed its Phase Two drill project at Gold Range in 2021. The first phase drilling program has indicated favorable heap-leach potential.
• The company is headed by a world-class technical and geology team, which primes Gold Range for expert analysis and expert targeting.