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Cantex intersects 18.15 metres (12.61 metres true width) of 33.82% lead-zinc with 95.62 g/ton silver at North Rackla

Drill Results

Cantex intersects 18.15 metres (12.61 metres

true width) of 33.82% lead-zinc with 95.62 g/ton

silver at North Rackla

KELOWNA, BC,

Jan. 30, 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 drill results continue to define a

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

Dr.

Chuck Fipke

reports

HIGHLIGHTS

Drilling at pads MZ31, MZ32, MZ33, MZ34 and MZ39B has intersected significant lead-zinc-

silver mineralization within the Main Zone

Highlights include YKDD19-146 (

12.61m

true width of 13.21% lead, 20.61% zinc and 95.62 g/t

silver) at pad MZ33, and YKDD19-156 (

8.08m

true width of 4.9% lead, 10.93% zinc and 62.58

g/t silver) at pad MZ34. These spectacular high-grade intersections occur 970 to

1,000m

ENE

of previously reported high-grade intercepts at pads MZ3, MZ4, MZ5 and MZ6.

Results continue to confirm the presence of a large-scale mineralizing system within a marine

sedimentary sequence of Proterozoic age

MAIN ZONE RESULTS

Assay results have been now been received from 49 holes drilled from 15 Pads. The pad locations

are presented in Figure 1. Significant results are reported below in Table 1. Where noted, some of

the holes presented in the table have additional intervals for which assays are still pending. These

results, along with those from additional holes yet to be analyzed, will be reported when received.

Figure 1.

Drilling plan view (CNW Group/Cantex Mine Development Corp.)

Table 1. Significant drill results

Pad

Dip

Hole

From

To

Length

True

Silver

Lead +

Lead

Zinc

Copper

Mn

Width

Zinc

(m)

(m)

(m)

(m)

(g/t)

(%)

(%)

(%)

(%)

(%)

MZ39B

-45

YKDD19-119

9.20

42.20

33.00

27.99

14.95

6.96

2.48

4.48

0.06

4.76

including

30.50

35.70

5.20

4.41

31.40

21.82

7.65

14.17

0.03

4.47

-71

YKDD19-121

29.10

47.00

17.90

9.75

3.96

3.04

0.83

2.21

0.00

1.03

50.30

51.80

1.50

0.82

3.14

2.16

0.41

1.75

0.03

3.55

82.80

84.70

1.90

1.03

51.50

0.02

0.00

0.02

1.98

2.59

MZ34

-45

YKDD19-153

Additional results pending

233.40

234.40

1.00

0.89

60.40

12.59

4.94

7.65

0.32

1.43

237.15

238.00

0.85

0.76

0.59

3.01

0.01

3.00

0.01

0.20

240.10

241.60

1.50

1.34

0.61

1.41

0.04

1.37

0.00

0.36

300.25

303.00

2.75

2.45

5.24

4.86

1.05

3.81

0.01

0.18

-62

YKDD19-156

Additional results pending

270.65

287.50

16.85

12.72

44.70

10.67

3.20

7.47

0.08

4.10

Including

272.80

283.50

10.70

8.08

62.58

15.83

4.90

10.93

0.06

5.02

MZ33

-45

YKDD19-144

Additional results pending

148.60

149.50

0.90

0.79

21.10

7.22

2.39

4.83

0.08

1.74

152.00

155.00

3.00

2.65

7.82

2.42

0.38

2.04

0.02

3.82

172.30

176.20

3.90

3.44

129.00

1.80

0.42

1.38

1.35

3.43

185.60

186.30

0.70

0.62

3.83

1.55

0.37

1.18

0.00

0.87

228.85

233.00

4.15

3.66

10.14

13.12

0.68

12.44

0.04

4.50

-62

YKDD19-146

Additional results pending

186.60

188.30

1.70

1.18

12.71

10.40

1.57

8.83

0.02

2.05

218.80

220.20

1.40

0.97

0.80

1.34

0.08

1.26

0.00

0.64

222.60

240.75

18.15

12.61

95.62

33.82

13.21

20.61

0.07

2.23

360.60

361.55

0.95

0.66

24.50

7.45

1.65

5.80

0.21

2.33

392.20

392.70

0.50

0.35

7.17

3.23

0.23

3.00

0.03

1.12

412.25

413.60

1.35

0.94

53.79

4.75

2.73

2.02

0.53

4.64

452.25

453.00

0.75

0.52

1.11

1.45

0.14

1.31

0.00

0.22

-70

YKDD19-149

Additional results pending

149.30

149.90

0.60

0.34

3.87

1.70

0.03

1.67

0.00

0.34

223.25

224.80

1.55

0.89

13.69

9.01

1.23

7.78

0.02

0.16

232.20

233.00

0.80

0.46

4.07

1.46

0.22

1.24

0.00

0.24

235.70

240.10

4.40

2.52

12.08

8.71

0.29

8.42

0.02

0.34

284.65

287.80

3.15

1.81

10.10

3.62

0.40

3.22

0.28

2.19

291.00

292.10

1.10

0.63

8.68

3.86

0.07

3.79

0.01

3.85

335.30

337.60

2.30

1.32

5.34

2.54

0.25

2.29

0.01

2.40

342.00

345.05

3.05

1.75

7.58

4.51

0.23

4.28

0.04

3.86

375.95

377.40

1.45

0.83

5.93

2.55

0.27

2.28

0.03

2.09

484.85

485.45

0.60

0.34

47.00

11.53

7.00

4.53

0.03

3.60

490.80

493.40

2.60

1.49

91.32

9.03

3.29

5.74

0.37

3.44

-80

YKDD19-155

Additional results pending

351.80

352.35

0.55

0.28

10.30

0.19

0.06

0.13

1.21

2.38

353.15

364.80

11.65

5.83

38.14

11.41

3.37

8.04

0.22

2.68

Including

355.90

362.70

6.80

3.4

57.67

16.40

5.43

10.97

0.28

2.25

420.70

421.75

1.05

0.53

5.72

3.35

1.11

2.24

0.00

0.41

MZ32

-45

YKDD19-098

113.90

114.60

0.70

0.59

3.61

1.26

0.10

1.16

0.04

1.11

120.60

125.30

4.70

3.99

22.28

3.01

0.53

2.48

0.15

3.76

134.00

141.20

7.20

6.11

13.39

5.24

1.58

3.66

0.03

4.55

146.20

148.60

2.40

2.04

156.99

12.46

9.08

3.38

1.73

2.04

150.20

152.00

1.80

1.53

6.50

3.03

0.05

2.98

0.01

1.22

176.90

178.30

1.40

1.19

15.26

6.06

0.42

5.64

0.01

0.52

183.70

184.30

0.60

0.51

1.96

1.73

0.25

1.48

0.00

0.37

302.00

304.50

2.50

2.12

2.45

1.37

0.17

1.20

0.04

1.45

307.80

308.60

0.80

0.68

2.94

1.78

0.33

1.45

0.00

0.25

-62

YKDD19-107

Results pending

-70

YKDD19-112

Additional results pending

171.00

173.00

2.00

1.06

5.10

2.71

0.25

2.46

0.03

0.50

220.70

222.50

1.80

0.95

2.11

5.32

0.01

5.31

0.01

4.57

224.90

226.00

1.10

0.58

9.03

2.32

0.78

1.54

0.04

1.65

253.30

254.40

1.10

0.58

4.52

4.29

0.01

4.28

0.01

0.39

326.00

326.60

0.60

0.32

10.95

2.00

0.91

1.09

0.07

0.95

467.40

468.40

1.00

0.54

2.08

1.16

0.16

1.00

0.01

0.53

487.80

488.80

1.00

0.54

11.05

1.49

0.15

1.34

0.07

2.02

493.60

494.20

0.60

0.33

318.00

1.62

0.36

1.26

1.55

1.86

-80

YKDD19-117

Additional results pending

308.10

318.00

9.90

3.71

5.59

2.36

0.04

2.32

0.08

3.08

Including

316.00

317.00

1.00

0.37

4.27

11.79

0.04

11.75

0.05

2.73

324.00

325.00

1.00

0.37

1.29

2.02

0.04

1.98

0.01

4.61

348.00

350.00

2.00

0.75

3.26

1.83

0.00

1.83

0.00

2.32

MZ31

-45

YKDD19-148

111.40

112.50

1.10

0.99

2.46

2.38

0.37

2.01

0.02

1.37

128.65

129.35

0.70

0.63

8.55

2.59

2.13

0.46

0.05

4.01

132.30

135.20

2.90

2.61

18.58

3.82

3.42

0.40

0.06

4.65

-62

YKDD19-151

127.50

128.55

1.05

0.80

0.34

1.07

0.00

1.07

0.00

0.50

136.90

138.40

1.50

1.15

1.03

1.78

0.02

1.76

0.01

1.54

141.00

141.80

0.80

0.61

4.02

2.78

0.22

2.56

0.06

3.24

148.70

149.30

0.60

0.46

0.70

1.11

0.04

1.07

0.01

4.71

154.10

156.90

2.80

2.14

33.10

18.02

5.07

12.95

0.04

3.59

164.55

165.95

1.40

1.07

10.30

11.36

1.69

9.67

0.03

3.37

169.15

173.55

4.40

3.37

14.62

6.94

1.69

5.25

0.07

3.34

182.30

183.50

1.20

0.92

0.61

2.45

0.01

2.44

0.01

0.56

-70

YKDD19-152

Results pending

-80

YKDD19-154

69.85

70.40

0.55

0.20

12.25

1.35

1.31

0.04

0.00

0.49

298.80

299.35

0.55

0.20

1.66

4.58

0.00

4.58

0.01

5.83

316.50

317.10

0.60

0.22

5.94

1.85

0.35

1.50

0.02

2.77

MZ 27

-45

YKDD19-077

No significant results

-62

YKDD19-080

No significant results

-70

YKDD19-083

128.70

131.20

2.50

1.83

3.73

1.34

0.09

1.25

0.04

1.64

133.70

135.20

1.50

1.10

2.04

1.47

0.14

1.33

0.01

3.19

YKDD19-086

No significant results

-80

YKDD19-087

165.00

166.10

1.10

0.60

15.70

24.37

4.27

20.1

0.05

2.03

-90

YKDD19-091

No significant results

MZ26

-44

YKDD19-049

No significant results

-62

YKDD19-053

102.00

104.00

2.00

1.26

85.90

0.59

0.09

0.50

0.81

2.63

160.00

161.00

1.00

0.62

24.90

1.98

0.99

0.99

0.20

2.60

-70

YKDD19-056

No significant results

-80

YKDD19-058

209.00

210.00

1.00

0.41

2.50

3.15

0.09

3.06

0.02

2.13

-90

YKDD19-063

No significant results

MZ25

-44

YKDD19-074

No significant results

-62

YKDD19-076

117.80

119.70

1.90

1.27

58.14

0.46

0.14

0.32

0.99

3.49

130.20

130.80

0.60

0.4

28.00

4.55

3.47

1.08

0.00

0.55

-70

YKDD19-078

No significant results

-80

YKDD19-081

No significant results

MZ17

-42

YKDD19-031

70.60

76.60

6.00

3.86

8.62

5.47

3.03

2.45

0.01

1.23

including

72.10

73.10

1.00

0.64

41.00

22.93

16.75

6.18

0.02

2.79

97.70

99.70

2.00

1.29

5.67

5.28

1.29

3.99

0.01

1.95

-41

YKDD19-035

14.00

17.00

3.00

1.93

2.27

1.74

0.21

1.53

0.00

0.29

317.70

318.80

1.10

0.71

7.77

2.38

0.51

1.87

0.03

3.06

MZ17B

-52

YKDD19-069

15.00

16.10

1.10

0.52

89.00

15.73

11.65

4.08

0.05

4.38

210.90

211.90

1.00

0.47

2.84

1.31

0.25

1.06

0.00

0.94

As presented above, greater than 10% combined lead-zinc was intersected in drilling from pads

MZ39B, MZ34, MZ33, MZ32 and MZ31. These pads are located over 370 metres of strike length,

being 1250, 1000, 970, 930, and 880 metres to the ENE of pad MZ6 respectively. Holes YKDD19-

155 and YKDD19-156 were the last holes drilled during the season, and both intersected significant

mineralization.

YKDD19-155 was drilled at a -80 degree dip and intersected 5.83 metres (true width) of 11.41%

combined lead-zinc with 38.14 g/t silver. This was at a vertical depth of nearly 360 metres. The

cross section of MZ33 showing this result is presented in Figure 2 along with the 12.61 metre (true

width) intercept from the -62 degree hole YKDD19-146 containing 33.82% combined lead-zinc with

95.62 g/t silver.

YKDD19-156 was drilled at a -62 degree dip and intersected 8.08 metres (true width) of 15.83%

combined lead-zinc with 62.58 g/t silver. A cross section through MZ34 showing this results is

presented in Figure 3.

In addition to the above, results were received from 13 holes drilled from pads MZ11, MZ12 and

MZ13 which tested portions of the previously discussed dyke swarm, which we believe remobilized

the massive sulphides to locations adjacent to the dyke swarm that have not yet been intersected by

drilling.

The core displays numerous faults and local outcropping rocks are folded. As is the case at Broken

Hill, faults and folds locally change the location of massive sulphide units. As the massive sulphides

are covered by talus and glacial till and cannot be detected by ground gravity, electromagnetic,

induced polarization, resistivity or magnetic geophysical surveys we have note yet been able to

intersect massive sulphides in the vicinity of the aforementioned drilling from pads MZ11, MZ12 and

MZ13 as well as in two holes drilled from pad 38 and one hole drilled from pad 42. Locations of

these pads are presented in Figure 1.

Figure 2.

Drill pad MZ33 section (CNW Group/Cantex Mine Development Corp.)

Figure 3.

Drill pad MZ34 Section (CNW Group/Cantex Mine Development Corp.)

The drill holes reported in this press release were drilled using HQ (63.5mm) diamond drill bits. The

core was logged, marked up for sampling and then divided into equal halves using a diamond saw on

site. One half of the core was left in the original core box. The other half was sampled and placed

into sealed bags which were in turn placed into larger bags closed with security seals prior to being

transported to CF Mineral Research Ltd in

Kelowna, BC

.

At CF Minerals the samples were dried prior to crushing to -10 mesh. The samples, which averaged

over 3kg, were then mixed prior to splitting off 800g. The 800g splits were pulverized to -200 mesh

and a 250g split was sent for assay. Quality control procedures included the insertion of coarse

quartz samples to assess the sample preparation. Silica blanks were inserted along with certified

reference samples. These quality control samples were each inserted approximately every 20

samples.

ALS Chemex in

Vancouver

assayed the samples using a four-acid digestion with an ICP-MS finish.

The 48 element ME-MS61 technique was used to provide a geochemical signature of the

mineralization. Where lead or zinc values exceeded one percent the Pb-OG62 or Zn-OG62

techniques were used. These have upper limits of 20% lead and 30% zinc respectively. Samples

with lead and zinc values over these limits are then analyzed by titration methods Pb-VOL70 and Zn-

VOL50. The over limit analyses (and the over limit – over limit analyses) contribute to delays in

receiving final assay results.

DISCUSSION

Drill results continue to demonstrate the extensive trend of the Main Zone high-grade lead-zinc-silver

mineralization at the Company's Massive Sulphide project, which is believed to be of sedimentary

exhalative (sedex) origin. Mineralization is coarsely crystalline and appears to be stratabound,

showing evidence of recrystallization during mild metamorphism. Based on a combination of multiple

factors (the nature of the sedimentary host sequence, the Proterozoic age, the elevated manganese

levels, and the high silver content), the North Rackla mineralization is believed to belong to the BHT

(Broken Hill type) sub-class of sedex lead-zinc-silver deposits. The Broken Hill massive sulphide

deposit has been mined for more than 100 years and produced some of the highest lead-zinc-silver

grades in the world. It is the founding deposit of BHP, the world's largest mining company.

The high grades being encountered clearly demonstrate the fertile nature of this large-scale system.

Structural and geochemical data are being compiled in order to guide the focus of future drilling

within the Main Zone sequence.

In addition, CEO

Chad Ulansky

states, "As planned, our field teams moved onto the flatter, till

covered ground in the vicinity of the camp with the onset of winter. This drilling was very successful,

intersecting massive sulphides from multiple drill pads. Our last holes of the season intersected

high-grade mineralization, which is open both along strike and to depth giving the project an exciting

point to commence its 2020 drill program."

The Company continues to be impressed by the results and potential of the project and looks

forward to the coming drill program.

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/January2020/30/c5408.html

%SEDAR: 00010333E

For further information:

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

[email protected]

CO: Cantex Mine Development Corp.

CNW 17:00e 30-JAN-20