Cantex Mine Development Corp V.CD

Exploration Update

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Cantex Mine Development Corp. - Exploration Update KELOWNA, BC, Aug. 26, 2005 (Canada NewsWire via COMTEX) -- Cantex Mine Development Corp (CD - TSX Venture Exchange) ("Cantex" or the "Company"). Exploration Update for Yemen and Nevada Projects Cantex is pleased to announce the first of its drill results from its aggressive and ongoing drill programs on its Suwar and Al Hariqah projects in Yemen. In Nevada work is continuing and this work is expected to add to the previously announced (news release dated August 9, 2005) drill holes on 10 targets. Suwar Project, Yemen. Cantex is pleased to report that assay values of 1.23% nickel (Ni), 0.30% copper (Cu), 0.10% cobalt (Co) over a drill intercept of 1.12 meters; and 1.89% Ni, 0.35% Cu and 0.15% Co over a drill intercept of 1.36 meters, have been obtained from the massive sulfide intersections in the Y005-3 and Y005-6 drill holes respectively. At current metal prices these two intersections equate to 226.88 US$/ton and 344.68 US$/ton in the ground. These two massive sulfide intersections occur within an envelope of disseminated sulfides which increase the width of the zone of interest. These assay results are summarized on the table below: << ------------------------------------------------------------------------- Drill From To Drill Nickel Copper Cobalt Sulphides Ni-Cu-Co Hole Width ------------------------------------------------------------------------- Total (meters)(meters)(meters) % % % Value ------------------------------------------------------------------------- (US$/t) ------------------------------------------------------------------------- Y005-3 35.00 36.58 1.58 0.329 0.10 0.03 Disseminated $ 62.35 ------------------------------------------------------------------------- Y005-3 36.58 36.95 0.37 0.36 0.17 0.03 Disseminated $ 70.06 ------------------------------------------------------------------------- Y005-3 36.95 38.07 1.12 1.225 0.30 0.10 Massive $ 226.88 ------------------------------------------------------------------------- Average value over 3.07 meters $ 123.30 ------------------------------------------------------------------------- ------------------------------------------------------------------------- ------------------------------------------------------------------------- Y005-6 76.20 77.40 1.20 0.374 0.26 0.03 Disseminated $ 74.94 ------------------------------------------------------------------------- Y005-6 77.40 78.60 1.20 0.406 0.23 0.04 Disseminated $ 80.63 ------------------------------------------------------------------------- Y005-6 78.60 79.96 1.36 1.85 0.35 0.15 Massive $ 344.68 ------------------------------------------------------------------------- Y005-6 79.96 82.00 2.04 0.347 0.17 0.03 Disseminated $ 67.89 ------------------------------------------------------------------------- Average value over 5.80 meters $ 136.89 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Drill holes Y005-3 and Y005-6 were designed to test the central part of a 1.1 kilometer long UTEM geophysical anomaly and were drilled at 220 and 570 meters respectively north of Cantex's Suwar Hill nickel deposit. A further six holes drilled in this anomaly have also intersected massive and/or disseminated sulfide mineralization during the present drill program and the mineralized sections of these holes are presently being air freighted to Canada for assay. Drilling of Suwar Hill by Cantex in 1999/2000 gave the following significant results. The in ground value column is calculated using today's metal prices. ------------------------------------------------------------------------- Total Hole From To Width Ni Cu Co Ag Value ------------------------------------------------------------------------- (meters) (meters) (meters) % % % g/t USD/t ------------------------------------------------------------------------- Y99-1 41.3 46 4.7 0.94 0.24 0.051 0.8 $ 170.48 ------------------------------------------------------------------------- 51.5 61.5 10 1.2 0.52 0.058 1.2 $ 223.22 ------------------------------------------------------------------------- 87.7 91 3.3 0.56 0.46 0.038 1.6 $ 116.84 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Y99-2 47.95 70.6 22.65 1.39 0.89 0.064 2.7 $ 268.71 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Y00-2 115.8 121 5.2 0.65 0.39 0.021 12.2 $ 123.76 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Y00-3 118.89 123.71 4.82 0.58 0.53 0.029 1.2 $ 119.09 ------------------------------------------------------------------------- 125.96 126.46 0.5 0.79 0.3 0.034 1 $ 143.81 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Y00-5 7.62 62.5 54.88 0.76 0.38 0.044 0.9 $ 146.07 ------------------------------------------------------------------------- 178.34 198.81 20.47 0.65 0.26 0.027 0.5 $ 118.39 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Y00-7 102.4 108.5 6.1 1.4 0.48 0.083 0.8 $ 261.16 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Y00-8 65.52 74.06 8.54 1.01 0.42 0.054 0.9 $ 189.11 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Y00-10 65.9 70.4 4.5 0.87 0.27 0.039 0.3 $ 156.45 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Y00-11 67.35 74 6.65 1.23 0.32 0.06 1 $ 220.77 ------------------------------------------------------------------------- 118.1 118.7 0.6 3.17 0.14 0.146 0.3 $ 538.94 ------------------------------------------------------------------------- For comparative purposes the average in ground value of Sudbury, Canada is US$221/tonne (1.2% Ni and 1.03% Cu); Jinchuan, China is US$208 ton (1.2% nickel and 0.7% copper) and Mt Keith, Australia is US$86 (0.52% Ni, 0.01% Cu, 0.02% Co). These examples of large tonnage mines demonstrate that the metal values obtained at Suwar are consistent with those of producing mines. The calculated average in ground value for the Suwar Ni-Cu-Co mineralization based on the data presented above is $138 per ton. On a global basis production costs of nickel vary from $2.20 to $14.00 per kilogram of nickel produced. Taking the worst case scenario the average grade of Suwar would still produce a surplus of $45 per ton. Taking a mid-case scenario of US$ 8 per kg, the surplus is $77 per ton. It is believed that the latter figure is more reasonable as Yemen is a low cost country in which to work. Obviously these figures will need to be verified by further studies, but they do demonstrate that the grade of mineralization found in Yemen is comparable to ore being mined profitably by other companies. The objective of future work at Suwar will be to delineate the tonnage of Ni-Cu-Co mineralization available and determine its continuity. Work will focus on the exceptionally long mineralized zone potentially 2.6 kilometers or more in length. Al Hariqah Project, Yemen Cantex is pleased to report that four of 45 planned drill holes have been completed utilizing a new drill rig shipped from Canada and manned by Canadian and Yemeni drillers. Samples from the first three holes are currently being shipped by air cargo to Canada for assay. Rock samples containing gold mineralization have been sent for cyanide leach bottle roll tests to evaluate the optimal conditions for cyanide leach gold extraction. In 1999/2000 Cantex completed 28 reverse circulation drill holes and 435 meters of channel and rock chip samples within an anomalous zone 30 to 50 meters wide by 1100 meters long. The current drill program will further define this zone as well as test the as yet undrilled 2900 meter long strike extension of the mineralized zone. Conceptual calculations by gold geologist John Churchill, assuming continuity between drill holes, give a potential of 16Mt at 1.65 g/t to 100 meters depth. Churchill further concludes that if the grades can be extrapolated to 165 meters vertical depth, which is the deepest hole drilled and which still ended in gold mineralization, and along the 4000 meters of mineralized strike, then potential exists for 40+ Mt at similar grades. However, additional drilling is required to determine the validity of this conceptual study, particularly to confirm grade, continuity of grade and dimensions of the mineralization. This is one of the objectives of the current program. Nevada Project, USA The Company is pleased to report that work is progressing on its Nevada properties. On the Carico Lake claim group geological teams have completed establishing a geophysical grid and prospecting a 600 x 400 meter arsenic anomaly that is considered a pathfinder to gold mineralization. A CSAMT geophysical survey is scheduled to commence over this anomaly prior to the end of August. On Cantex's Bruner claim block exploration is currently underway along an 800 meter long strongly anomalous gold zone. Crews are currently completing a prospecting, hand trenching, rock sampling and geological mapping program. Work is expected to be complete within 10 days on the Company's North Fork claim group. Here a 200+ meter gold anomaly with coincident pathfinder metal anomalies (silver, antimony, arsenic and mercury) is being prospected, hand trenched, rock sampled and geologically mapped. It is expected that the above work will provide additional drill targets. Summary Cantex is pleased to report that work is progressing well on three projects. Sulfide mineralization has been intersected in eight core holes at Suwar and a further four holes are currently underway. The mineralization that has been intersected in both the drill program in 1999/2000 and in the current program is comparable to that being profitably mined by other companies. Once the core drill is finished at Suwar it will be moved to Al Masna to drill the 4 to 5 kilometer long mineralized zone where a single drill hole encountered a 1 meter section of massive sulfides that assayed 7.2% Ni and 1.2% Cu along the 0.39 meter section assayed (currently valued at US$ 1,134 per ton). The Company's second drill has completed four of 45 planned holes at Al Hariqah. The focus of the program is to further define the 1.2 kilometer gold mineralized zone previously drilled as well as test the as yet undrilled 2900 meter long strike extension of this mineralized zone. During the past 8 months Dr. Peter Gregory, Canadian drill staff and several of the Company's directors including Dr. Charles Fipke, Chad Ulansky and Katherine MacDonald have visited the Company's properties in Yemen, including Suwar, Al Hariqah and Al Masna. All have been welcomed by the local people and feel that there is presently no political risk and no more personal risk than conducting exploration in Canada and the U.S.A. In addition the petroleum industry is booming in southern Yemen and there are no reports of Canadian or American employees of Nexen, Hunt Oil or Canadian Occidental being harmed or detained in Yemen. The Nevada project presently has ten anomalous potential heap leach gold areas on four claim groups targeted for drilling. The additional geophysical and geochemical surveys now underway on three claim groups should add to the number of targets ready to drill. A major company has expressed interest in joint venturing the Cantex gold claims in Nevada. Alternatively Cantex will make arrangements to drill the targets on its 100% owned claims. The Cantex directors are most encouraged by the positive exploration results and improved political conditions in both Yemen and Nevada. With continued persistence, and positive drill results, the directors are confident that commercial success will be attained. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. Signed, Chad Ulansky Chad Ulansky President and Geologist. >> %SEDAR: 00010333E SOURCE: Cantex Mine Development Corp. Cantex Mine Development Corp., 2600 B Enterprise Way, Kelowna, BC, V1X 7Y5, Tel [phone], Fax [phone], Email [e-mail]