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Cantex Completes 2019 Drill Program at North Rackla

Exploration Programs

Cantex Completes 2019 Drill Program at North

Rackla

KELOWNA, BC

,

Jan. 6, 2020

/CNW/ -

Cantex Mine Development Corp.

(CD: TSXV) (the

"Company") has released an update on the work program at its Massive Sulphide project within its

100-per-cent-owned 14,077 hectare North Rackla claim block where it has been drilling to define a

lead-zinc-silver mineralized system with Broken Hill Type (BHT) affinities.

CEO

Chad Ulansky

reports

HIGHLIGHTS

38,174 metres of drilling completed in 2019

Massive sulphide mineralization intersected from pads MZ 31, MZ 33 and MZ 34

DRILLING UPDATE

In 2019, the Company completed 139 holes totalling 38,174 metres of core drilling on the North

Rackla project, substantially more than the 18,000 metres proposed at the start of the year. The

2019 drill program is now complete and drilling is expected to resume when field conditions allow in

late spring.

With the onset of winter, avalanche hazard limited the area in which it was safe to work. Drills which

were testing the continuity to depth beneath pad MZ 5 of the Extension Target and the strike extent

of the mineralization at the Discovery Target were relocated to the flat till covered area between

these two Targets.

The till in this area is up to 50 metres thick, making targeting difficult as prospecting and soil-talus

sampling were ineffective. In addition, ground geophysical surveys (including gravity,

electromagnetics, induced polarization and resistivity) were unable to define known massive sulphide

mineralization, preventing their application. In spite of these challenges Cantex successfully

intersected significant sulphide mineralization as described by the onsite geologists. These holes

were drilled from pads MZ 31, MZ 33 and MZ 34 collared between 880 and 1000 metres to the

ENE of Pad MZ 6.

The locations of these pads relative to pad 6 is shown in Figure 1 below.

Figure 1.

Drill collar locations. (CNW Group/Cantex Mine Development Corp.)

Cantex is presently in the process of hiring a world class structural geologist and will be utilizing

down hole electromagnetic geophysics to assist in defining additional massive sulphide targets for

the upcoming drill season.

Persistent poor weather towards the end of the year hampered air support to the project, delaying

the shipment of core samples from site. Conditions did improve just prior to Christmas, allowing the

samples to be sent out. These high interest samples have now arrived at CF Mineral Research Ltd

where they are being crushed and pulverized prior to being sent to ALS Global – Geochemical

Analytical Lab in

North Vancouver

for assay.

The Company expects the assays from these holes to be the next significant results to report.

Cantex continues to build its team and is pleased to announce that

Tom Obradovich

has been added

to the slate of directors for the upcoming Annual General Meeting. Mr. Obradovich brings 35 years

of experience in mining exploration, development and financing. He was a key individual behind

Aurelian Resources which discovered the Fruta del Norte gold deposit in

Ecuador

and was later

acquired by

Kinross Gold Mines

for

$1.2 billion

; a co-founder of Canadian Royalties Inc., which

discovered and developed the Raglan south nickel belt; acquired and developed the Yonge Davidson

Mine to a minable resource which was subsequently acquired by Northgate Minerals Ltd.; a member

of the Special Committee at Dalradian Resources which was privatized by Orion Mine Finance for

$550 million

; and a director and Special Committee member of Barkerville Gold Mines Ltd. which

was acquired by Osisko Gold Royalties for

$338 million

.

The technical information and results reported here have been reviewed by Mr.

Chad Ulansky

P.Geol

., a Qualified Person under National Instrument 43-101, who is responsible for the technical

content of this release.

Signed,

Charles Fipke

Charles Fipke

Chairman

Neither 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. Information set forth in this news release includes forward-looking statements under

applicable securities laws. Forward-looking statements are statements that relate to future, not

past, events. In this context, forward-looking statements often address expected future business

and financial performance, and often contain words such as "anticipate", "believe", "plan",

"estimate", "expect", and "intend", statements that an action or event "may", "might", "could",

"should", or "will" be taken or occur, or other similar expressions. All statements, other than

statements of historical fact, included herein including, without limitation; statements about the

terms and completion of the proposed sale transaction are forward-looking statements. By their

nature, forward-looking statements involve known and unknown risks, uncertainties and other

factors which may cause the actual results, performance or achievements, or other future events,

to be materially different from any future results, performance or achievements expressed or

implied by such forward-looking statements. Such factors include, among others, risks identified in

the management discussion and analysis section of the Company's interim and most recent annual

financial statement or other reports and filings with Canadian securities regulators. Forward

looking statements are made based on management's beliefs, estimates and opinions on the date

that statements are made and the respective companies undertakes no obligation to update

forward-looking statements if these beliefs, estimates and opinions or other circumstances should

change, except as required by applicable securities laws. Investors are cautioned against

attributing undue certainty to forward-looking statements.

SOURCE

Cantex Mine Development Corp.

View original content to download multimedia:

http://www.newswire.ca/en/releases/archive/January2020/06/c7034.html

%SEDAR: 00010333E

For further information:

Cantex Mine Development Corp, Tel: +1-250-860-8582; Email:

[email protected]

CO: Cantex Mine Development Corp.

CNW 08:30e 06-JAN-20