Canex Metals Inc [CANX-TSXV] on Monday released assay results from 10 reverse circulation drill holes that targeted the Eldorado zone its Gold Range project in Arizona.
Results released on Monday are from drill holes GR21-69 to 78. These holes were all step-outs, mostly on the north and west side of Eldorado, and are starting to define a higher-grade central zone surrounded by lower grade material with a total zone now identified over an area of 300 metres by 200 metres that remains open.
Drilling highlights include hole GR21-73, which intersected 1.8 g/t gold over 6.1 metres within a wider interval of 0.6 g/t gold over 30.5 metres from 12.2 metres depth. The same hole intersected a second zone of mineralization at depth that returned 0.7 g/t gold over 3.05 metres from 57.9 metres depth.
On June 10, 2022, Canex shares closed at 17.5 cents and currently trade in a 52-week range of 20 cents and $0.085.
Canex Metals is an exploration company with a focus on advancing the Gold Range project, where it has identified and tested several targets which host the potential for bulk tonnage oxide gold mineralization. Drilling in 2020 identified near-surface bulk tonnage gold potential at the Eldorado Zone.
Altius Minerals Corp. [ALS-TSX, ATUSF-OTCQX], a founding shareholder of the company, owns 7.5% of Canex.
The Gold Range property is located in Mohave County in a historic district that has seen widespread small-scale lode and placer gold production, but limited modern lode gold exploration. Canex can earn a 100% interest in the 1,043-hectare project by making cash payments of US$90,000 and spending US$80,000 on exploration over four years. The vendor retains a 2.0% net smelter royalty, which can be required by Canex for US$1.5 million.
Mondayâ€™s announcement comes after Canex recently raised $2.5 million from a private placement financing, money that will be used to fund exploration at Gold Range.
â€œResults from the Eldorado zone have exceeded expectations with nine of the 10 step out holes intersecting gold mineralization and the majority of holes showing indications of multiple stacked mineralized horizons,â€ the company said in a press release.
â€œWe are very pleased to resume drilling at Gold Range and continue to test and understand this significant mineralized system, which we have successfully expanded with each exploration program,â€™â€™ said Canex President Shane Ebert.
â€œDrilling will start at the Excelsior zone which is proving to be a higher grade-part of the system and will then expand outwards to test the large-scale potential of the project,â€™â€™ he said. â€œThe results from the Eldorado zone confirm multiple mineralized horizons over a sizeable area and we look forward to additional results from the Marco and Excelsior zones, which occur along strike, to better understand the potential to expand and possibly join the three zones into one large deposit.â€™â€™
The current program is expected to be the fourth to exceed 5,000 metres and will extend to the fall.
Assay results for 18 previously drilled holes are still pending.