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Cantex to Drill Four Carlin-Type Gold Targets, Nevada

Exploration Programs

Cantex to Drill Four Carlin-Type Gold Targets,

Nevada

KELOWNA, BC

,

July 15, 2020

/CNW/ -

Cantex Mine Development Corp.

(TSXV: CD) (the

"Company") has released an update on the work program at its

Nevada

gold project.

Dr.

Charles Fipke

reports

Cantex is pleased to announce that a drill program on its

Nevada

claims is planned to commence in

the Fall of 2020.

Cantex previously completed a heavy mineral stream sediment sampling program in

Nevada

that

resulted in the discovery and staking of several properties containing anomalies of gold as well as

key pathfinder elements (such as arsenic, antimony, mercury, thallium and lead), characteristic of

bulk mineable heap leach ("Carlin-style") gold mineralization. The proprietary heavy mineral

processing methods utilised by C.F. Minerals Research Ltd. have been utilized to detect four

previously unknown Carlin-style gold deposits now in production in

Nevada

.

Follow-up heavy mineral, BLEG and soil-talus sampling as well as prospecting, geophysics, and

geologic mapping have established drill targets on four claim blocks, 100% owned by Cantex. As

Cantex's management is focused on the North Rackla project in the

Yukon

, Discovery Consultants

have been engaged to manage the

US$800,000

drill program to test all four of the

Nevada

claim

blocks.

A summary of the four claim blocks to be drilled in 2020 is as follows:

1) Baxter Springs Property

Heavy mineral stream sampling detected anomalous gold and Carlin-style pathfinders within the

Baxter Springs property which is underlain by Cambrian to Ordovician shale, limestone and

quartzites of the Palmetto Formation. The Palmetto Formation hosts many of

Nevada's

heap leach

gold mines such as

Carlin

, Cortez as well as the Manhattan Mine, 10 km to the north of the property.

The northeast corner of the property is intruded by Cretaceous age granitic rocks. A major northerly

trending block fault crosscuts the property.

Cantex funded a 307 sample composite soil-talus sampling survey at 60 metre intervals and a

CSAMT (Controlled Source Audio Frequency Magnetotelluric) geophysical survey over the gold

anomalous area underlain by the Palmetto Formation rocks. A north-northwest trending gold-

antimony-bismuth anomaly underlain by a (>

600 m

by

300 m

) resistivity high occurs in the northwest

corner of the area surveyed. A 200 metre vertical hole is planned to establish if the resistive block is

mineralized and a 530 metre 60 degree inclined hole is to test the gold-antimony-bismuth anomaly

within and at the edges of the resistivity high.

A second west-northwest trending arsenic-antimony-mercury

+

gold anomaly is underlain by a (>

900

m

by >

600 m

) strongly conductive anomaly. A vertical 250 metre hole is needed to test the core of

the strong conductor which is coincident with anomalous gold-arsenic-mercury and antimony in soil-

talus samples. Two additional vertical holes comprising 260 metres are planned to test for altered

meta-sedimentary rocks within the highly conductive area. These holes are

135 m

and

320 m

east

of the hole discussed above.

2) Bruner Property

The Bruner property, within the Bruner Mining District, lies within a watershed anomalous in gold as

discovered by the Company's heavy mineral sampling. It is situated within 1km of three former gold

mines, the Penelus, Duluth and Derelict Mines which were active between 1906 and 1940.

Cantex's Bruner claims host tuffaceous sediments underlain by rhyolitic and rhyodacitic volcanic

rocks, all of Miocene age. The three former mines are also hosted in the same tuffaceous

sediments. The Round Mountain Mine located 70 km southeast of Bruner is the pre-eminent

example of these deposits.

The Paradise Peak Gold Mine is situated about 40 km southwest and the Santa Fe Gold Mine is

situated about 60 km southwest of Cantex's Bruner claims.

The property is cut by extensive southwest trending faults. A 619 composite soil-talus sampling

program was completed on a line spacing of 60 metres and a sample spacing of 60 metres. This

survey defined a large (>

600 m

by

850 m

) gold anomaly, commonly accompanied by anomalous

mercury.

The upcoming program will initially build roads to 16 proposed drill pads at the highest gold values

within the large gold anomaly. Outcrops cut by the road will then be sampled and sixteen drill holes

comprising 2,000 metres are planned.

3) Carico Lake Property

Cantex's Carico Lake property is situated about 25 km southwest of the historic Cortez Mining

District, which hosts many large low grade gold mines including Cortez, Pipeline,

Cortez Hills

and

Horse Canyon.

The Carico Lake claim block covers an area drained by streams containing anomalous gold. The

claims area is underlain by commonly brecciated Ordovocian aged

Valmy

formation cherts,

quartzites and minor siltstone. The target deposit is sediment-hosted gold in lower plate rocks

similar to that found in the Cortez Mining District.

A 292 composite (soil/talus) sample survey detected a 1km long arsenic anomaly. The east end of

this arsenic anomaly is marked by north-south oriented antimony and tungsten anomalies. Most of

the highest geochemical anomalous areas were covered by a CSAMT geophysical survey.

Three 60 to 64 degree dipping holes, totalling 1,220 metres, are planned. The first will test a

conductive anomaly beneath high arsenic in soil-talus samples. The second hole will test a resistivity

high geophysical anomaly coincident with strong antimony and strong arsenic anomalies in soil-talus

samples. The third hole will pass through a major fault block into a deep conductive zone under

strongly anomalous arsenic in soil-talus.

4) Weepah South Property

The Weepah South Property is situated 4 km southwest of the Weepah Gold Mine in

Esmeralda

County

,

South Nevada

. Mining at Weepah commenced in 1934, with open pit, heap leach mining

methods being implemented in the late 1980's. In 1986 and 1987 alone, 58,000 oz of gold were

produced (NBMG, 1986).

The claim block is centred on a

300 m

by

470 m

induced polarization chargeability anomaly that is

thought to be the source of anomalous gold and

Carlin

pathfinder elements in streams draining the

property. The property is mapped as being underlain by alluvium and Tertiary rhyolitic and

rhyodacitic rocks which are in turn underlain by the Ordovician Palmetto Formation and Cambrian

Emigrant Formation which are comprised of mainly claystones and limestones. These formations

are the host of the nearby Weepah Gold Mine as well as many other large-tonnage, low grade gold

mines throughout

Nevada

.

A report by geophysicist

Phil Nielson

states that the IP chargeability anomaly "is about four times

background" and that it "is overlain by a layer of more resistive rocks." The overlying resistive rocks

are likely the Tertiary rhyolites and the IP target is likely the underlying prospective Cambrian to

Ordovician sedimentary rocks.

The 2020 drill program includes four drill holes totalling 900 metres testing the IP anomaly.

Summary

The four wholly owned claim blocks were staked based on their drainages hosting anomalous gold

and Carlin-style pathfinder elements. The subsequent geochemical, geophysical and geological

work completed has defined 12 drill targets. These targets are to be tested by 28 holes totalling

5,360 metres. Cantex's board of directors looks forward to the commencement of drilling on these

promising targets in a prolific gold producing region.

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

About the Company

Cantex's main focus is its wholly owned Massive Sulphide discovery in the

Yukon Territory

, Canada.

Also within the

Yukon

, the Company is advancing a number of new gold and base metal discoveries

this season.

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 statements 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 undertake 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:

http://www.newswire.ca/en/releases/archive/July2020/15/c6924.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 15-JUL-20