Positive drilling results extend mineralisation at Al Hariqah Gold Project

KELOWNA, BC, Oct. 15, 2013 /CNW/ - Cantex Mine Development Corp. (TSXV : CD) ("Cantex" or the "Company") is pleased to announce the results from 11 drill holes targeting extensions to the known gold mineralisation and infill drilling at the Al Hariqah Gold Project, a prospective and potentially large scale gold project located in the Republic of Yemen. The work on the project is now being lead by WCP Resources Ltd ("WCP") who have an option to farm into the project from Cantex.

Highlights:

Results from recent core drilling have again demonstrated potential for extension of gold mineralisation to the south of the previously drilled northern 1km section (of the total 4km of target strike).

• Two diamond drill holes have been drilled in this southern extension and both holes returned encouraging intercepts as follows:
• 6.22m @ 4.08g/t Au from 150.4m in RDH057A
• 3.85m @ 9.79g/t Au from 70.76m in RDH063A
• 7.25m @ 3.03g/t Au from 80.55m in RDH063A
• Cantex and WCP are encouraged by these results and expects further assay results from the southern extension to be released over the coming months.
• Importantly, hole RDH057A (refer Figure 2) intercepted mineralisation in the western quartz mica schist zone which is over 200m south of previously intercepted gold in this zone (refer Figure 3), demonstrating the potential for continuation of the mineralisation.
• In addition, results from recent infill drilling in the previously drilled northern 1km section (of the total 4km of strike) continue to intercept shallow gold mineralisation.
• Nine diamond drill holes (5 of which are previously drilled holes that have been re-entered and extended) have been drilled in this northern section and returned encouraging intercepts including:
• 12.7m @ 2.47g/t Au from 122.32m in RDH020
• 4.82m @ 2.46g/t Au from 108.05m in RDH021
• 6.32m @ 2.64g/t Au from 123.82m in RDH021
• Further drilling is currently being planned to test 2km of the remaining 3km of underexplored strike directly to the south of the previously drilled northern section (refer Figure 1).
• Results from the ongoing drilling program, together with the extensive previous drilling, will provide a solid base for an updated geological model for the Project and WCP have indicated that they will look to prepare an initial Mineral Resource estimate in accordance with the JORC Code during 2014.

Introduction

The Al Hariqah Gold Project (Project) is a near-surface gold deposit located 130km northwest of Sana'a, Yemen. The Project is currently 100% owned by Cantex Mine Development Corporation and WCP, which is listed on the Australian Securities Exchange and headquartered in Perth, Australia, has an option to farm in.

The Project comprises a granted exploration licence covering an area of approximately 957 square kilometres and is valid until 16 January 2016 with the option for two further 4 year extensions (providing 50% area relinquishments are carried out at the first extension).

WCP has until 10 February 2014 to exercise its option to farm-in to the Project. Upon exercise, and by meeting a series of expenditure commitments, WCP will be able to progressively earn up to a 70% interest in the Project.

Geological Setting

The geology at Al Hariqah consists of Proterozoic quartz mica schist bordered to the east by Proterozoic metavolcanics and to the west by Tertiary dykes. The mineralisation appears to be dominantly hosted by the quartz mica schist and is commonly associated with arsenopyrite.

Current Drilling Program

The current drilling program comprises core diamond drilling (DD) utilising two drill rigs, including a small scale core rig and slightly larger dual purpose core/percussion rig.

The key objectives of the current drilling campaign are to test extensions to the gold mineralisation south of the previously drilled northern 1km section (of the total 4km of strike) where only limited drilling has previously been conducted and to confirm previous results from drilling in the northern 1km section where significant previous drilling has encountered significant mineralisation.

Further drilling is currently being planned to test 2km of the remaining 3km of underexplored strike directly to the south of the previously drilled northern section (refer Figure 1).

Since WCP entered into the option agreement with Cantex to farm-in to the project in December 2011, 26 holes for 3,585m of drilling have been completed at the Project. This announcement includes the assay results from 11 of these drill holes representing approximately 1,006m of drilling. Assay results from the remaining 15 drill holes representing approximately 2,579m of drilling are expected to be released in the coming months.

Following the appointment of an in-country Exploration Manager in April 2013, WCP has now established a procedure whereby drill core samples (being half of the BQ diameter core) are crushed and pulverised at a local sample preparation facility operated by the Geological Survey and Mineral Resources Board of Yemen and then the processed samples are exported for fire assaying in Canada by the ALS Vancouver laboratory. This has improved assay turnaround times.

Current Drilling Results

The results from 11 DD drill holes from the current drilling program, representing approximately 1,006m of drilling are reported herein. Results from the holes and collar information are presented in Table 1.

Two of the drill holes are located in the southern extension section of the previously drilled northern 1km section where only a limited drilling program has been undertaken. Refer to Figure 1 for the drill hole locations and Figure 2 for a cross section of these two holes.

Both of the holes returned encouraging intercepts (quoted as down-hole intercepts) including:

• 6.22m @ 4.08g/t Au from 150.4m in RDH057A;
• 3.85m @ 9.79g/t Au from 70.76m in RDH063A; and
• 7.25m @ 3.03g/t Au from 80.55m in RDH063A.

The intercept recorded in hole RDH057A is significant in that it is the first hole in the southern extension section that has been drilled into the western quartz mica schist zone (refer Figures 1 and 2). RDH057A returned an encouraging intercept of 6.22m @ 4.08g/t from 150.4m down hole. 220m to the north of this hole (refer Figure 3) there is significant mineralisation hosted in the western quartz mica schist unit and suggests further drilling to the west and south of RDH057A is warranted.

The remaining 9 drill holes are from the northern 1km section where there has already been a significant amount of drilling completed over the last 15 years. 5 of these holes are previously drilled holes that have been re-entered and extended.

Select intercepts from these 9 holes (quoted as down-hole intercepts) include:

• 12.7m @ 2.47g/t Au from 122.32m in RDH020;
• 4.82m @ 2.46g/t Au from 108.05m in RDH021; and
• 6.32m @ 2.64g/t Au from 123.82m in RDH021.

Refer to Figure 3 for a cross section of the mineralised intercepts in holes RDH020 and RDH021, in the northern 1km section where previous drilling has encountered significant mineralisation.

The cross sections in Figures 4 and 5 have been included to display the significant intercepts encountered over a broad area to date.

Table 1: Summary of Diamond Drill Hole Intersections

Notes:

1. Holes with an * postfix are holes that have been drilled in a previous program and have been re-entered and extended to the indicated depth.
2. Co-ordinates are in UTM grid (WGS 84 Zone 38N) and have been measured by GPS (+/- 5m accuracy).
3. Samples at nominal 1.5m various intervals.
4. All intercepts calculated using a 0.5 g/t lower cut and no upper cut.
5. 3m of sub grade material.
6. Intervals are all down-hole length.
7. Assaying conducted by ALS in Vancouver using industry standard 50g lead collection fire assay with AAS finish.
8. Reference standards, field duplicates and blank samples are routinely inserted; quality control samples are routinely monitored.
9. The broad mineralised zone at Al Hariqah dips to grid west at approximately 15 degrees. Local variations in mineralisation dip occur within the broad mineralised zone.

Previous Drilling Results

Prior to the current drilling program, 158 holes totalling 19,093m had been drilled at the Project, comprising 4,145m of reverse circulation (RC) drilling, 10,192m of percussion rotary air blast (RAB) drilling and 4,756m of DD.

A selection of the five best historic intercepts include:

• 31.5m @ 2.59g/t Au from 13.5m (RAB);
• 43.5m @ 3.45g/t Au from 31.5m (RAB);
• 48.0m @ 2.96g/t Au from 18.0m (RAB);
• 23.9m @ 7.22g/t Au from 90.18m (DD); and
• 55.5m @ 3.76g/t Au from 21.0m (RAB).

The drilling completed at the Project to-date has defined a broad zone of gold mineralisation which is approximately 4km in length, up to 500m wide, and extends to at least 150 metres depth with several deep holes ending in mineralisation.

Previously, drilling has concentrated on the northern 1km of strike where numerous mineralised intercepts have been returned. The southern 3km of strike has only been subjected to sporadic drilling on the eastern side which did return gold mineralisation that warrants follow up drilling. The deposit is open along strike to the south, across strike and at depth.

Initial Mineral Resource Estimate

There has been no resource estimate prepared for the Project to date, however Cantex and WCP believe the Project has the potential to host a large scale gold project.

Results from the ongoing drilling program, together with the extensive previous drilling, will provide a solid base for an updated geological model for the Project and WCP has indicated it will look to prepare an initial Mineral Resource estimate in accordance with the JORC Code during 2014.

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

Beyond the Al Hariqah gold project Cantex has projects in the Yukon and Nevada. In the Yukon recent work has identified the potential for the claims area to host Carlin-style mineralization. In Nevada the Company has five drill ready properties along known trends of gold mines and is currently seeking joint venture partners to advance the projects.

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.

SOURCE Cantex Mine Development Corp.

Image with caption: "Figure 1 Al Hariqah Geology and Drill Hole Location Plan (CNW Group/Cantex Mine Development Corp.)". Image available at: http://photos.newswire.ca/images/download/20131015_C9701_PHOTO_EN_32008.jpg

Image with caption: "Figure 2 Al Hariqah Geology and Drill Hole Cross Section 1776530N (CNW Group/Cantex Mine Development Corp.)". Image available at: http://photos.newswire.ca/images/download/20131015_C9701_PHOTO_EN_32009.jpg

Image with caption: "Figure 3 Al Hariqah Geology and Drill Hole Cross Section 1776770N (CNW Group/Cantex Mine Development Corp.)". Image available at: http://photos.newswire.ca/images/download/20131015_C9701_PHOTO_EN_32010.jpg

Image with caption: "Figure 4 Al Hariqah Geology and Drill Hole Cross Section 1776850N (CNW Group/Cantex Mine Development Corp.)". Image available at: http://photos.newswire.ca/images/download/20131015_C9701_PHOTO_EN_32011.jpg

Image with caption: "Figure 5 Al Hariqah Geology and Drill Hole Cross Section 1777050N (CNW Group/Cantex Mine Development Corp.)". Image available at: http://photos.newswire.ca/images/download/20131015_C9701_PHOTO_EN_32012.jpg