Drilling highlights include Hole GR21-37 which targeted the historic Excelsior Mine area and returned 1.6 g/t gold over 35.1 metres, starting from surface, including 2.2 g/t gold over 24.4 metres. “This is the best hole drilled on the property to date and is considered high-grade for a bulk tonnage target,” the company said in a press release.
Canex shares rallied on the news, rising 14.3% or $0.015 to 12 cents. The shares are currently trading in a 52-week range of 33 cents and $0.095 cents.
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, with hole GR20-9 returning 0.9 g/t gold over 27.3 metres, including 5.9 g/t gold over 1.5 metres.
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.
Canex recently entered into a letter of intent to acquire the Excelsior mine located 2.5 km from Eldorado on the eastern side of the Gold Range properties.
Excelsior has seen historic underground and open pit mining along a zone that is 200 metres long and open along strike.
On Monday, the company said the mineralization intersected at Excelsior is 1.0 km from the historic Malco Mine and 2.7 km from the initially drill tested Eldorado, with all three areas occurring along a district scale mineralized structure that remains open for expansion.
Canex President Shane Ebert said grades and widths reported in Monday’s press release highlight the potential of the Gold Range property and the success his team is having targeting and defining zones of near-surface, oxidized, bulk tonnage style gold mineralization.
“Drilling to date has confirmed a 3.0 kilometres long mineralized target zone extending from the Eldorado to the Excelsior areas, and this target is gold bearing in every place we have drill tested so far, suggesting sizable gold resource potential,” he said.
Ebert said the company is planning additional surface exploration work on the recently acquired Excelsior Mine Property to further refine drill targets along the mineralized trend with a goal of resuming drill testing as soon as a drill is available.
To date, 25 holes from the 2021 drill program have been received and released and results for an additional 9 drill holes are pending and will be released as they are received, compiled and interpreted, the company said.