(March 27, 2012) Canamex Resources Corp. (TSX-V: CSQ) (OTCQX:CNMXF) (FSE: CX6):
Question: Canamex’s Aranka North project is located in Guyana, South America. Why did you choose Guyana?
Answer: Guyana hosts one of the newest emerging and most undeveloped gold provinces known in the world. In addition, it has a stable government based on English common law. An analyst for RBC Capital Markets said it best, “Guyana has great potential to become a favored South American destination for investment, as high geological prospectivity meets a government keen on developing its mining industry.”
Question: Where is Aranka North located?
Answer: Our 98,000+ acre Aranka North property lies about 140 kilometers northwest of the capital city of Georgetown on the most pronounced and productive northeasterly aligned gold trend in Guyana, where this gold trend intersects a northwest alignment of known gold deposits. It is the intersection of these two structural trends that establishes Aranka North as an exciting exploration opportunity for hosting a major bedrock gold deposit.
Question: 98,000+ acres is almost 400 square kilometers. That’s a big piece of real estate. What is your exploration strategy?
Answer: There is active alluvial mining on the property, so we know there is gold in the area. Our objective is to discover the sources of bedrock gold which are feeding into the streams and the alluvial gold operations. We are taking a measured and cost effective approach, starting with high level interpretation and working our way in stages to the bedrock targets. As everyone knows, you have to drill in order to prove up a gold deposit. However, drilling is very expensive, so the objective is to eliminate as much of the risk as possible and define the target as clearly as we can before we start drilling. That’s our focus at the moment.
Question: That makes sense. What was your first step?
Answer: Fortunately we were able to acquire airborne geophysical data over the entire Aranka North property when we acquired the property from GMV Minerals. The initial interpretive work identified fifteen large, discrete anomalies, all of which have a dimension of 2-4 kilometers long and 1-3 kilometers wide within larger shear zones. These anomalies cover an area of approximately 200-225 square kilometers on our property, so that work alone reduced the size of our initial area of interest by fifty percent.
Question: That’s encouraging. What did you do next?
Answer: We commenced an initial stream sediment sampling program from a total of 85 sample sites to evaluate the gold signatures of the fifteen airborne geophysical anomalies. That’s a density of roughly one per 2.5 square kilometers (85X2.5=212.5 sq. km.). Once again, this was a high level approach, with the objective of further reducing the initial area of interest.
Question: When were those results announced?
Answer: On January 17, 2012 we reported that four discrete anomalous areas, ranging in size from 10 to 25 square kilometers, were identified by the initial stream sediment sampling program. Gold values ranged up to 647 ppb (0.647 gpt). Importantly, we learned as much from the samples that carried no or only “background” (virtually insignificant) amounts of gold, as we did from those samples that carried higher amounts of gold. That may seem counter intuitive, but our objective is to reduce the area of interest as quickly and cost effectively as possible. Learning where not to look further, at least on an initial basis, is just as important as knowing where to focus the next phase of exploration.
Question: That makes sense. What was your next step?
Answer: Well, the next step was really two steps. First of all, based on all the evidence at hand including both the airborne geophysical data and initial stream sediment sampling results, we concluded our priority target should be the 25 square kilometer area identified in the January 17th news release. We designed a program with a sample density of approximately one per 0.3 square kilometers, which is over 80 times more intense than the initial program. Once again, we were refining our search to identify and focus on the bedrock sources of the gold.
Question: What was your second step?
Answer: While I was on the property during February, we designed our first grid soil sampling program over what we identified as the Camp Anomaly, which covers three anomalous drainages (with reported values of up to +300 ppb Au) draining the plateau behind the main camp on the Waini River. The first grid will cover 1 X 1.75 kilometers and will be sampled on 100 meter centers. This program, which will consist of both surveying and sampling, should commence in early April.
Question: OK, let’s go back to the sampling program on the 25 square kilometer area. Do you have any results from that program?
Answer: Yes, on March 22nd we announced extremely exciting results, with more to come. As we said in the release, based on the results which included anomalous gold with values ranging up to 12,334 ppb gold (12.234 gpt Au), we have identified the Ridge Anomaly as a second target for a grid soil sampling program on 100 meter spacing. Eighteen streams drain the Ridge Anomaly, and all of them contain anomalous gold. For our purposes, more importantly than that, visible gold from this area is fine-grained and needle-shaped with very sharp edges, suggesting it has not been transported very far. Most of these sample locations are within one kilometer of the headwaters of the streams draining the Ridge Anomaly. Once again, the lower values speak volumes. The farther away we are from the Ridge Anomaly, the lower the gold values.
Question: And your conclusion is?
Answer: We believe the source of the gold that is feeding the streams is beneath the Ridge Anomaly.
Question: What about the Camp Anomaly?
Answer: We went back to camp this week, and the Camp Anomaly will be the first priority, having already designed the soil grid. We hope to complete the program by the middle of April, with initial results reportable in early May.
Question: But the Ridge Anomaly is so much larger?
Answer: Yes, it is, and we will survey and sample it as soon as we finish the grid soil sampling at the Camp Anomaly. We are designing the Ridge Anomaly grid and sampling program currently.
Question: When will we see results from the Ridge Anomaly?
Answer: That’s a much larger program-over six times as large, actually. It will take several months to complete, but the first results should be available by the end of May.
Question: Earlier you said there were still more results to come from the more intense stream soil sampling program. Is that correct?
Answer: Yes. We expect results from the final 50 stream sediment and pan concentrate samples which were sent to the lab in March to be available in early April.
Question: So, you will have more results from the final stream sediment sampling program even before you have results from the grid soil sampling program on the Camp Anomaly. You have a lot of information which will become available over the next two months, don’t you?
Answer: Yes, we should receive the balance of the stream sediment sample results in early April. The Camp Anomaly grid soil sampling program should be completed by the middle of April, with final results in early May. The Ridge Anomaly program will commence after completion of the Camp Anomaly program, with initial results by the end of May. As I just said, that’s a much larger program which probably won’t be completed until early July.
Question: What happens after that?
Answer: We will take the summer to analyze results from the Camp Anomaly and Ridge Anomaly programs, and possibly do any follow-up or in-fill sampling required to nail down the geometry of the drill targets.
Question: What follows that analysis?
Answer: The grid soil sampling programs on the Camp and Ridge Anomalies should define the bedrock source locations of the gold. After completing our analysis of the results, if we deem it necessary, these programs will be followed by soil auger drilling to test the base of the saprolite soils for the actual bedrock characteristics and gold content. From there we will design an initial core drilling program to test the soil anomalies.
We should be ready to drill once we have completed any follow-up or in-fill sampling on the soil grids. Our objective is to be in a position to diamond drill by the end of this year. We are starting to talk to drilling contractors about availability in the fall, but there is no assurance any drill rigs will be available in the latter part of 2012. The point to remember, however, is that we will have lots of news along the way. Drilling and drill results are certainly important, but shareholders will have lots of news to digest between now and Q4 of 2012 to assess our progress as we continue to identify the bedrock sources of the gold that are so evident in many of the streams on Canamex’s Aranka North property.
Question: Do you have any final comments?
Answer: Yes, we wish to reiterate how excited we are about our results to date. We are moving more quickly than anticipated towards our 2012 objective of identifying the bedrock sources of gold. Finally, we wish to thank our loyal shareholders for their continuing support.
If you have any questions or comments, please do not hesitate to contact the company.
Greg Hahn, Certified Professional Geologist (#7122) is the Qualified Person who has prepared and reviewed this press release in accordance with NI 43-101 reporting standards.
ON BEHALF OF THE BOARD
SIGNED: Gregory A. Hahn
Gregory A. Hahn, Chairman and CEO
Contact:Robert Kramer (604) 718-2800 (ext 311)
Renmark Financial Communications Inc.
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Tel.: (514) 939-3989 or (416) 644-2020 www.renmarkfinancial.com
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