Canex Metals Inc. Signs Letter of Intent to Acquire High Grade GOLD
CANEX METALS INC.
SUITE 800, 808-4TH AVENUE S.W., CALGARY, ALBERTA, T2P 3E8
PH: 403.233.2636 FAX: 403.266.2606
NEWS RELEASE: 17-1 APRIL 4, 2017
Trading Symbol: TSX Venture-CANX
For Further Information Contact: Shane Ebert at 1.250.964.2699 or
Jean Pierre Jutras at 1.403.233.2636
Web: http://www.canexmetals.ca
CANEX METALS INC. SIGNS LETTER OF INTENT TO ACQUIRE HIGH GRADE GOLD
SILVER PROSPECT FROM ALTIUS RESOURCES INC.
CANEX Metals Inc. (“CANEX” or the “Company” formerly Northern Abitibi Mining Corp. ) announces it
has signed a Letter of Intent to acquire a 100% interest in the Gibson Prospect from Altius Resources
Inc. (“Altius”), a wholly held subsidiary of Altius Minerals Corp (TSX:ALS). The Gibson prospect is 887
Ha in size and located in central British Columbia, approximately 95 kilometres northwest of Fort St.
James. The area is accessible via a network of all weather logging roads.
The Gibson Prospect
Gibson contains mesothermal gold -silver mineralization hosted in highly altered volcanic rocks
adjacent to the Hogem Batholith. Mineralization consists of quartz -carbonate veins, stockworks, and
breccias, within strong clay-sericite-quartz alteration zones. The zone was discovered and explored by
Noranda Exploration Company from 1989 to 1991. Following soil sampling and induced polarization
geophysical surveys Noranda exposed precious metal mineralization in hand trenches with surface
samples returning 12.86 g/t gold and 144.7 g/t silver over 1.5 meters and 5.35 g/t gold and 2136 g/t
silver over 1.7 meters. Noranda subsequently drilled 9 holes all of which intersected significant clay-
sericite-quartz altered and pyrite -galena-sphalerite mineralized volcanic rocks, with 8 of the 9 holes
intersecting significant gold and silver mineralization as shown in the table below. The best drill
intercept returned 4.26 metres grading 6.77 g/t gold and 1828 g/t silver. No follow up trenching or
drilling has been conducted at Gibson since the highly successful Noranda program. Drilling indicates
the mineralized zone is about 4.5 metres wide and at least 400 meters long, whereas drilling, soils, and
geophysical data suggest the zone could be at least 1400 metres long. Mineralization remains open in
all directions.
Historic Drilling Results
Hole Interval (m) Width (m) Au g/t Ag g/t Pb % Zn %
EA-91-01 14.10 to 23.28 9.18 4.34 224.3 0.9 0.6
EA-91-02 17.20 to 22.50 5.30 2.59 122.9 0.6 1.5
EA-91-03 29.15 to 30.17 1.02 3.63 494.8 1.8 1.1
EA-91-04 25.89 to 26.88 0.99 6.41 252.0 0.8 1.0
EA-91-05 58.34 to 62.60 4.26 6.77 1828.8 3.3 2.7
EA-91-15 9.95 to 11.50 1.55 2.19 29.5 0.0 0.2
EA-91-15 71.55 to 74.40 2.85 0.62 20.6 0.1 0.5
EA-91-16 16.85 to 26.28 9.43 0.21 8.8 0.0 0.0
EA-91-17 39.30 to 43.40 4.10 1.78 47.7 0.5 1.1
EA-91-17 54.50 to 58.30 3.80 1.46 95.5 0.7 1.7
Drill results in the table above are reported in BC Assessment report 21762 for Noranda Exploration Company by Stewart and
Walker 1991. This drilling was done prior to NI 43-101 and should be considered historic in nature. The results have not
been verified by CANEX and should not be relied upon.
Page 2 – April 4, 2017
Dr Shane Ebert President of the company commented, “Gibson is a well defined exploration target that
shows strong grades, good size potential, and remains open in all directions. Good access to the area
has recently been established by new logging developments, providing an excellent opportunity for
CANEX to evaluate the potential of the target and understand the controls on mineralization through
low cost trenching and surface work. We are excited to be partnering with Altius Resources and look
forward to having them as a significant shareholder of the Company. Altius will have the right to
participate in our future financings, and having access to the technical and potential financial support of
such a dynamic and global exploration group will be a significant benefit to the Company”.
Terms of the Agreement
CANEX Metals can earn a 100% interest in the Gibson pros pect from Altius by issuing common
shares, spending $500,000 on exploration within 18 months, and taking over the obligation s of an
underlying option agreement. CANEX will issue 1,125,000 shares to Altius on signing, a fur ther
1,180,000 after completion of surface exploration work but prior to drill testing , and a final 1,240,000
shares after the $500,000 required work e xpenditures are complete to earn 100% of the Property .
Altius will retain a right to purchase an underly ing 1.5% NSR royalty and preferential rights on any
future royalties or streams granted on the Property . If CANEX achieves a measured and indicated
mineral resource in excess of 1 million gold equivalent ounces , a Milestone Payment of 1,275,000
shares will be issued to Altius. Altius will have a pro rata right to participate in future equity financings
of Canex for two years.
CANEX will also assume the obligations of an underlying option agreement with Steven Scott including
payments of either cash or eq uivalent shares of $85,000 spread over 4 years, and Milestone Bonuses
of $5000 upon a change of control of the property, $25,000 upon completion of a Bankable Feasibility
Study, and $50,000 upon commercial production.
A definitive agreement between CANEX and Altius will be completed shortly and will be subject to
exchange approval.
Related Party Transaction Disclosure
Shane Ebert through his private consulting company Vector Resources, is involved in British Columbia
project generation activities for Altius. Vector Resources is entitled to 5% of the compensation due to
Altius as part of the Gibson Agreement.
About CANEX Metals Inc.
Canex Metals is a Canadian based exploration company focused on acquiring and advancing high
grade gold and silver dep osits in stable mining jurisdictions. Company Management has a proven
track record of exploration success, with key personnel being involved in discoveries in Mexico,
Newfoundland, and British Columbia.
Dr. Shane Ebert P.Geo. , is the Qualified Person fo r CANEX Metals and has approved the technical
disclosure contained in this news release.
“Shane Ebert”
Shane Ebert, President/Director
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of
the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Except for the historical and present factual information contained herein, the matters set forth in this news release, inclu ding words such as
“expects”, “projects”, “plans”, “anticipates” and similar expressions, are forward -looking information that represents management of CANEX
Metals Inc. internal projections, expectations or beliefs concerning, among other things, future operating results and various components
thereof or the economic performance of CANEX. The projections, estimates and beliefs contained in such forward -looking statements
necessarily involve known and unknown risks and uncertainties, which may cause CANEX’s actual performance and financial results in future
periods to differ materially from any projections of future performance or results expressed or implied by such forward -looking statements.
These risks and uncertainties include, among other things, those described in CANEX’s filings with the Canadian securities authorities.
Accordingly, holders of CANEX shares and potential investors are cautioned that events or circumstances could cause results to differ
materially from those predicted. CANEX disclaims any responsibility to update these forward-looking statements.