SVG is obtaining working capital from the ores January 06, 2012
Canasia to Acquire Aluminous Clay/ Rare Earth Prospect in Gaspe Bay Region of Quebec
Canasia Industries Corporation ("Canasia" and the "Company") (TSX VENTURE: CAJ.V)(PINK SHEETS: CANSF.PK)(FRANKFURT:45C) is please to announce that it has entered into an option agreement to acquire approximately 5,500 contiguous acres prospective for Aluminous Clay and Rare Earths in the Gaspe Bay Region of Quebec, near Murdochville.
Negar Adam, President of Canasia stated, "Management is pleased to be able to enter into an option agreement in such a highly sought after mining region in Quebec. This property borders Orbite Aluminae Inc.'s Grande-Vallée aluminous clay deposit. A work program is anticipated to commence in the coming months to test for aluminous clay and rare earths over the extent of the prospect. This now provides Canasia with two major areas of focus in the coming months, with the other being the Clone Gold Prospect where the 2011 bulk sample returned significant values of 102 tons consisting of 4.0 oz/ton gold or 137.1 g/t gold. The board is excited about what may transpire in 2012, as we plan to have multiple work programs that we intend to develop aggressively."
Terms of the new agreement are $20,000 and five million shares upon closing, as well as five million shares within 13 months of closing. Work commitments are: $100,000 in the first 18 months, $250,000 within the first 30 months and $500,000 within 42 months. The agreement is with an arms length vendor and subject to TSX Venture Exchange approval.
On October 25th, 2011, the Company announced that it has been informed by the operator that assays have been received for the 102 one-ton lots comprising the 2011 bulk sample from the Clone property, situated 12 miles southeast of Stewart, British Columbia. The average for the 102 tons was 4.0 oz/ton gold or 137.1 g/t gold. This year's bulk sample contains 408 ounces of gold, which when added to the 68 ounces collected in the 2010 bulk sample (34 tons at 68.65 g/t gold), amounts to 476 ounces in total. Previously, there were drill results on the Clone that returned drill intercepts of 44.75g/t over 12.8 meters (October 22, 2009). The Company anticipates generating revenue from the gold sales in 2012 collected from the bulk sample.
Canasia also announced (October 7, 2011) that it has increased its rare earth acreage in the vicinity of the Eldor Discovery in Quebec, which brought Canasia's total to 7,198 contiguous acres prospective for rare earth.
(https://www.canasiaind.com/s/NewsReleases.asp?ReportID=486878&_Type=News-Releases&_Title=137.1-Grams-per-Tonne-Gold-Returned-from-2011-Work-Program-at-Clone-Gold-Pr...)
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Negar Adam, President of Canasia stated, "We are very pleased with the grades returned from this year's work program. We are looking forward to a much larger program in 2012 on the Clone Gold Prospect."
(https://www.canasiaind.com/s/NewsReleases.asp?ReportID=486878&_Type=News-Releases&_Title=137.1-Grams-per-Tonne-Gold-Returned-from-2011-Work-Program-at-Clone-Gold-Pr...)
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The implication in the above 2 news releases is:
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SVG, the operator who has refined a total 476 ounces of gold from the 4 oz. per tonne ores has generated nearly $1/2 million of cash has planned a bigger refinery this year TO GENERATE MORE CASH ! About 300 tonnes of ores will generate $1 million of cash at 4 oz. per tonne at a production cost of $500 per ounce.
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With the outstanding share of 137 million, it is unwise to generate cash through further equity financing. SVG's current strategy to generate cash from the ores is a brilliant idea and that is exactly why the company is in the mining business and that is exactly what the goal of the business is: To bring the Clone property to production.