Cantex completed a 30,000 km2 regional heavy mineral sampling program over an area favourable for Carlin style mineralization following ATAC Resources Ltd discovery of the Osiris deposit in 2010. This work identified seven areas which contained highly anomalous gold and pathfinder elements for Carlin style mineralization. These areas were staked in 2012 and exploration is currently focused on the North Rackla claim block.

Exploration of the North Rackla block commenced with detailed heavy mineral sampling to define portions of the drainages which hosted mineralization. These watersheds were then evaluated using composite soil-talus samples collected at 25 metre intervals along 200 metre spaced lines. Where favourable results were obtained, infill lines were completed down to a 50 metre spacing to define the mineralization source. Nearly 20,000 composite soil-talus samples have been collected on the North Rackla block.

The soil-talus sampling has identified several mineralized zones within the 15km x 15km North Rackla claim block. The most advanced of these are the Northern Area and the Massive Sulphide Zone.

The Northern Area contains polymetallic mineralization in a stromatolitic limestone which is capped by a sandy bedded dolomitic unit. Prospecting, rock sampling and trenching of the mineralization which outcrops over a 120m by 150m area have returned results as high as 15.75 g/t gold, 377 g/t silver, 11.0% lead and 32.5% zinc. This area is ready to be drill tested and a fence of 5 holes is proposed for the 2018 summer program.

The Massive Sulphide Zone stretches over 2 kilometres long and hosts elevated silver, lead, zinc and copper values. The mineralization is hosted in Proterozoic aged rocks and contains elevated manganese values – similar to the Broken Hill deposit in Australia which is the world’s largest silver – lead – zinc deposit. Trenching at the northeastern end of the Massive Sulphide Zone returned 15.7m of 36 g/t silver, 7.04% lead and 1.85% zinc with a second parallel mineralized horizon approximately 10m away containing 5.6m of 54 g/t silver, 1.95% zinc and 0.48% copper. These trenches tested oxidized mineralization.

Drilling in late 2016, 1.6 kilometres away at the southwestern end of the Massive Sulphide Zone encountered oxidized mineralization that increased in grade and width with depth. The deepest intervals occur in hole YKDD-0006 which include 4.05m (from 22.95m) of 21.1 g/t silver, 2.12% lead and 1.79% zinc; 5.7m (from 33.0m) of 137 g/t silver, 2.8% lead and 0.83% zinc; and 4.4m (from 43.7m) of 49 g/t silver, 5.35% lead and 5.99% zinc.

Cantex intends to drill both the northeastern and southwestern portions of the Massive Sulphide Zone during the 2018 summer program. At the northeastern end drilling is proposed from 3 pads to test the mineralization beneath the substantial widths encountered in trenching. At the southwestern end drilling will test the mineralization to greater depth to see whether the mineralization grade and thickness continue to increase.

The locations of Cantex’s claim blocks are presented in the map

The foregoing holes from the 2016 winter drill program are presented in the map