Fipke’s Cantex agrees to pause Yukon exploration activity

Cantex Mine Development Corp. [CD-TSXV; CTXDF-OTCQB] has announced a temporary shutdown of exploration activity at its North Rackla project northeast of Mayo in central Yukon.

The project is located within the traditional territory of the First Nation of Na-Cho Nyak Dun (FNND). As a result of the heap leach pad failure at Victoria Gold Corp.’s [VGCX-TSX] Eagle mine, which is located 120 kilometres from Cantex’s project, the FNNND has requested a temporary pause to all mining and exploration occurring within their Traditional Territory.

“The Department of Lands and Resources of FNNND have requested this temporary pause to allow them to prioritize resources to deal with the ongoing impacts of the leach pad collapse, which has been further complicated by several forest fires burning in the vicinity of the community,’’ Cantex said in a press release.

Cantex said it has agreed to the request from the FNNND and has paused all drilling and exploration activities.

Cantex shares moved lower on the news, easing 3.7% or $0.005 to 13 cents. The shares are currently trading in a 52-week range of 31.5 cents and 12 cents.

Cantex has agreed to pause exploration after recently raising $1.45 million from a private placement financing consisting of 12.08 million common shares priced at 12 cents each. A numbered company controlled by Cantex Chairman Dr. Charles Fipke subscribed for 8.3 million shares, for a total subscription price of $1.0 million. Fipke is best known for discovering Ekati in the Northwest Territories, Canada’s first diamond mine.

The company said proceeds from the offering will be used, along with proceeds of a $3 million financing completed in January 2024, to fund drilling at the North Racka project, where high-grade massive sulphide mineralization has been discovered.

Over 60,000 metres of drilling has defined high-grade silver-lead-zinc germanium mineralization over 2.3 kilometres of strike length and 700 metres depth.

In a press release on June 3, 2024, the company said it had just commenced drilling on the Copper Project on the western side of the North Rackla property. It said previous drilling on this project intersected 2.5 metres of 3.93% copper, including 1.0 metre of 7.32% copper. The company also said it planned to commence drilling on the Massive Sulphide project. Gold targets are also being evaluated for the summer’s drill program, the company said.

In an earlier press release on May 13, 2024, Cantex reported results from five holes completed at the Discovery and Central Sectors of the Main Zone at Rackla. The company said all four holes drilled at the Discovery Sector intersected mineralization. Highlights include three holes drilled from Pad MZ54, and include an 8.35-metres interval in hole YKDD23-278, which contained 24.5 g/t silver, 7.68% lead and 5.50% zinc.