The Gold Range property is located in Mohave County Arizona within a historic district that has seen small-scale lode and placer gold production but limited modern lode gold exploration. The property is 108.4 hectares in size consisting of 14 lode mining claims located on federal land administered by the Bureau of Land Management. CANEX has the right to earn a 100% interest in the property from the Vendor by making staged cash payments over 4 years totaling US$90,000 and completing exploration expenditures of US$80,000. The Vendor will retain a 2% net smelter royalty which can be bought back by CANEX for US$1.5 million.
In early 2019 a prospector using a hand-held metal detector discovered a quartz vein containing abundant visible gold concealed under shallow soil cover.
Prospectors excavated a small hand pit at the discovery and recovered gold from the base of the soil-alluvium horizon and from quartz veins within the underlying weathered bedrock.
Immediately north of the new gold-quartz discovery is an area along the side of a hill that has recently been placer mined, recovering quartz with gold that is inferred to be at or near its bedrock source. Combined these zones make a compelling near surface high grade gold exploration target as shown in the photo below. The zone has never been explored for the lode source and can initially be tested at surface by low cost mechanical trenching.
Preliminary fieldwork by CANEX personnel have identified several additional targets on the Gold Range property, including a second area located 600 metres northwest of the new discovery where gold-bearing quartz vein material has been discovered in a dry wash and is inferred to be close to source. The property also contains multiple historic workings along quartz veins. One of these is located 400 metres south of the new discovery and contains a large zone of quartz veining that has been traced for 250 metres in a north-south orientation. The zone has seen historic exploration by adits and small pits but has no evidence of modern exploration by geophysics or drilling. Quartz from these historic workings contains minor galena and chalcopyrite and is reported to contain rare traces of fine-grained gold although gold was not observed by CANEX personnel. Multiple assay samples have been taken to test the gold content in these veins, and results are pending.
CANEX personnel recently conducted 7 days of fieldwork at the Gold Range property and numerous quartz veins and historic workings were examined. Thirty-nine rock samples and 50 soil samples were collected and submitted for assay with results expected in early July.
Permitting is underway for a trenching program designed to expose and extend the new gold discovery and test a number of other prospective targets identified during recent fieldwork. Permitting will include geophysical surveying and drill testing of priority targets.