Core drilling is underway at the Penelas East target area. The first core hole (B-1330C) was drilled adjacent to RC hole B-1301 (see Canamex news release dated April 23, 2013), which intersected 117 gpt gold (3.402 opt gold) at 415-420 feet, within an overall interval from 290 to 590 feet grading 3.1 gpt gold (0.09 opt gold). The core hole was collared four feet south and three feet east of the collar at B-1301, and down-hole surveying of the hole revealed it is straight and does not deviate significantly from the RC hole B-1301. The interval between 300 to 600 feet in B-1330C is characterized by silica stockwork and micro-veining along several dominant (mostly steeply dipping) attitudes with limonite staining along fractures and in veinlets after pyrite. The entire length of the hole, which bottomed at 751.5 feet, is oxidized. The core hole has been logged and marked for sampling based on standard five foot intervals to facilitate comparison of assay intervals with the adjacent RC hole.
Core hole number two (B-1333C) at Section 560mN is underway at the north end of the drilling pattern completed to date, and is designed as an offset of drill hole B-1319 (see Canamex news release dated August 21, 2013), which intersected 5 feet grading 30.7 gpt gold (0.90 opt gold) mineralization at 635-640 feet within a wider interval of 30 feet that carried 7.2 gpt gold (0.210 opt gold) to total depth, and which may have been terminated prematurely at 660 feet. The resource area remains open and untested to the north of the intercepts in B-1319 and B-1320. The Company plans to drill a third core hole in the Penelas East discovery area prior to completion of the 2013 Bruner drill program.
Bruner Vein Target Area
The Company drilled seven RC holes (B-1326 to B-1332) at the Bruner vein target area to test the potential for a high-grade epithermal vein at depth below century-old prospect pits that contain a chalcedony + bladed calcite bearing vein system. These individual veins are up to a meter wide and with gold values up to 7.6 gpt gold (0.22 opt gold). Assay results have been received for all seven holes, and the best intercept is in vertical hole B-1330, which intersected 5 feet of 2.44 gpt gold (0.07 opt gold) or 10 feet grading 1.7 gpt gold (0.05 opt ). The hole above it had a maximum value of 0.617 gpt gold (0.018 opt gold). This is significant in that the holes above these intercepts had virtually no gold in them, suggesting a vector of increasing gold content with depth, as anticipated. The sixth hole intersected the vein only slightly below the level intersected in drill hole B-1330, and did not test the target at the desired depth. The seventh hole was drilled from the west to intersect a series of steeply dipping chalcedonic veins, and was terminated prematurely due to ground water flow.
These results suggest we are high in the vein system, above the boiling zone and possibly within a larger epithermal vein system. Gold in epithermal vein systems precipitates primarily at and below the boiling point of the gold-bearing solutions, so any gold in the vein system above the boiling zone is a very encouraging sign. In 2014, we plan to design and permit new access to be able to drill deeper into the vein system, which we are unable to do today from existing drill pads.
Historic Resource Area
Geologic mapping across the historic resource area this past summer recorded the presence of over 50 discrete silica+adularia alteration spires within and surrounding the historic resource area. Comparison with the existing drill hole data base indicates that most of these alteration spires have not been drilled, and those that have been drilled have good mineralization beneath them. We have completed a six hole RC drilling program (B-1334 to B-1339) to test the second largest of the spires which has not been drilled, but which has two historic drill holes along strike of it that contain significant gold + silver mineralization. All six holes contain significant limonite, silica alteration, and silica matrix breccias from 100 feet to 250 feet in thickness, and look very similar to the underground exposures within the historic resource area. Assay results for these holes are pending, but if successful, this drilling opens up a large untested area containing over 50 similar alteration spires for further drilling in 2014.
Quality Control
Drill samples are dried on site and are either retrieved by ALS Minerals personnel or an independent contractor and transported in their custody to the ALS Minerals laboratory in Reno/Sparks, Nevada, where they are dried further, crushed, and split, and representative splits sent to the ALS Minerals laboratory in Vancouver for gold and silver analyses. Duplicates, blanks, and standards are inserted at regular intervals for QA/QC purposes. The core samples are stored in a locked storage facility on site and then delivered to ALS Minerals laboratory facility in Sparks, NV for rectified photography of the entire core, sawing of the core per split marks on the core, and sampling for analyses.
Greg Hahn, President and COO and a Certified Professional Geologist (#7122) is the Qualified Person under NI43-101 responsible for preparing and reviewing the data contained in this press release.