Exploration And Expansion Drilling Is Underway At Gold Range Project

CALGARY, AB - CANEX Metals Inc. reported that a reverse circulation drill program is underway at the Gold Range Project, Arizona. Three holes have been completed at the Excelsior Zone and a fourth is in progress. The Company plans to drill up to 50 holes during the current drilling program.

Shane Ebert, President, said, “We are very pleased to have started our third drill program at Gold Range and are excited to follow up our recent bulk tonnage discoveries and work to expand the zones and further test the underexplored mineralized trend that hosts mineralization. With continued success this program could provide a solid foundation for a larger resource definition program".

The current reverse circulation drill program will consist of up to 50 drill holes and a minimum of 3000 meters of drilling. The program will initially focus on expanding high grade near surface mineralization identified at the Excelsior Zone before expanding outward along the 3 kilometer long mineralized trend linking the historical Excelsior, Malco, and Eldorado Mines. The Excelsior Zone was first drill tested by the Company in February of this year and returned very strong grades such as 1.6 g/t gold over 35.1 meters including 2.2 g/t gold over 24.4 meters. The program will also look to expand mineralization at the Eldorado and Malco zones and test multiple areas along the known trend. A few holes are planned to test larger targets in the central and northern part of the claim block. The drill program is expected to run into late October with assay results released in several batches as they become available.

The main exploration targets at Gold Range are near surface bulk tonnage gold zones hosted in metamorphic rocks and cretaceous intrusive dikes. Mineralization contains disseminated stockwork style quartz veinlets surrounding high grade gold veins. Free gold has been observed within high grade veins and within stockwork veinlets. Eight bottle roll samples from across the system achieved final cyanide soluble gold recoveries ranging from 94 to 99%, averaging 97%. These exceptional cyanide soluble recoveries confirm the project as a valid heap leach type target. Numerous heap leach style mining operations are currently active in the Western United States and Northern Mexico, and these deposit types are sought after by mining companies as they are low cost to build and can be operated highly profitably at very low average gold grades.