Canamex Resources Progress Update on Fall Drilling Program at Bruner Project, Nye County, Nevada

- November 8th, 2016

Canamex Resources Corp. the “Company” (TSXV:CSQ)(OTCQX: CNMXF) (FSE: CX6) is providing a progress report on the fall drilling campaign at the Bruner gold project in Nye county, Nevada.

Canamex Resources Corp.  the “Company”  (TSXV:CSQ)(OTCQX: CNMXF) (FSE: CX6) is providing a progress report on the fall drilling campaign at the Bruner gold project in Nye county, Nevada.
The company has completed 14 holes to date focused on infill drilling at the Paymaster resource area. More than half of the holes completed to date have intersected silicified and quartz-veined rocks adjacent or in proximity to old workings, similar to intercepts in 2014 which encountered good gold values up to 12 feet (3.66 metres) grading 1.18 ounce per ton (40.33 grams per tonne) gold (drill hole B-1457 — 135 feet to 147 feet) in silicified and quartz-veined rock adjacent to old workings.
Production from Paymaster in the 1920s was reported to have averaged $54.61 per ton (Nevada Bureau of Mines and Geology bulletin 99B, 1984). The price of gold in the 1920s was fixed by the U.S. government at $20.67 per ounce, so the old reported production averaged approximately 2.6 ounces per ton. The company is targeting the silicified zones surrounding and between these old high-grade workings which carry significant grade but which were not mined previously. A capping grade of seven grams per tonne Au was applied to resource estimation at the Paymaster zone because a significant number of the Paymaster database assays above seven grams per tonne Au came from previously collected underground channel samples which were not statistically represented in the drill hole database at the time of the resource estimate. The increased drill density in the area surrounding the old workings is intended to provide sufficient drill hole assay data to reconsider the application of a capping grade in future resource estimations. Roughly half of the ounces estimated in the Paymaster resource area are not included in the National Instrument 43-101 resource estimate as a result of the grade capping applied.
Samples from the first 14 holes have been delivered to ALS Minerals’ sample preparation facility in Sparks, Nev., along with independent standards and blanks for proper quality assurance/quality control purposes, where they will be dried, split, crushed, pulverized and subsampled for assaying. Representative splits will be sent to the ALS Vancouver laboratory for gold and silver assays. Turnaround time is expected to be 25 days to 30 days. An additional eight holes will be drilled at the Paymaster resource to complete the fall drilling program there.
The company has also completed the first groundwater test hole in the proposed leach pad area on patented claims. No groundwater was encountered, which is as anticipated. Three other groundwater test holes are planned in the proposed heap leach pad and pond area to determine depth to groundwater (if any is encountered within 500 feet of the surface). This information is critical to allow the company to commence the project permitting process with the State of Nevada Department of Environmental Protection and the U.S. Bureau of Land Management, and will determine whether or not groundwater monitoring wells will be required.
Read the full press release.

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